Prosper Construction Holdings Limited (6816) AI Stock Analysis

• Market Cap: HK$167.20M
• Dividend Yield: N/A
• Average Volume (3M): 70.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.12
• Revenue Growth: 14.57%
• EPS Growth: 13.79%
• Country: HK
• Employees: 567
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.08
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 50,200
• 30 Day Avg. Volume: 70,133
• PEG Ratio: 0.03
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -1.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenue and profitability, high leverage, and cash flow issues. Technical analysis provides mixed signals, and the valuation is unattractive due to negative earnings and lack of dividends. The absence of earnings call data and corporate events limits additional insights.

Prosper Construction Holdings Limited Business Overview & Revenue Model

Company Description

Prosper Construction Holdings Limited, an investment holding company, provides marine construction, auxiliary marine related, and general construction contracting services. It offers marine construction services, including dredging and non-dredging ground treatment works, reclamation works, pier construction works, offshore facilities foundation works, and marine transportation. The company is also involved in the leasing, trading, and repairing of marine vessels. It has operations in Hong Kong, Mainland China, Indonesia, Macao, Pakistan, Cambodia, and Vietnam. The company was founded in 2001 and is headquartered in North Point, Hong Kong. Prosper Construction Holdings Limited is a subsidiary of Qingdao West Coast Holdings (Internation) Limited.

How the Company Makes Money

Prosper Construction Holdings generates revenue through multiple streams, primarily from executing construction contracts for public and private sector projects. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and unit price contracts, allowing flexibility in pricing based on project requirements. Key revenue streams include income from construction services, project management fees, and maintenance services. The company also benefits from strategic partnerships with local governments and private developers, which help secure contracts and expand its project portfolio. Additionally, Prosper Construction Holdings may leverage economies of scale and operational efficiencies to enhance profitability on larger projects.

Prosper Construction Holdings Limited Financial Statement Overview

Summary

Prosper Construction Holdings Limited faces significant financial challenges, including declining revenue, negative profitability, high leverage, and cash flow difficulties. The company's financial health is under pressure, requiring strategic improvements in cost management, debt reduction, and operational efficiency.

Income Statement

Prosper Construction Holdings Limited has experienced declining revenue over the past few years, with a negative revenue growth rate of -7.34% in the most recent year. The company also shows negative profitability metrics, including a net profit margin of -9.75% and an EBIT margin of -4.17%, indicating operational challenges. The gross profit margin has slightly decreased from the previous year, reflecting pressure on cost management.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio of 12.02, indicating significant leverage and potential financial risk. The return on equity is negative at -109.71%, highlighting the company's inability to generate profits from shareholders' equity. The equity ratio is low, suggesting limited financial stability and a high reliance on debt financing.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow, with a significant decline in free cash flow growth of -84.50%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Although the free cash flow to net income ratio is slightly above 1, it is primarily due to negative net income, which is not a positive indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.02B	1.63B	2.13B	2.88B	3.19B	1.47B
Gross Profit	148.16M	130.13M	181.10M	210.58M	192.82M	80.29M
EBITDA	-44.69M	-68.11M	-59.02M	114.45M	109.41M	66.50M
Net Income	-166.46M	-159.10M	-188.90M	-12.19M	2.58M	13.59M
Balance Sheet
Total Assets	5.13B	5.28B	5.04B	4.89B	4.44B	1.75B
Cash, Cash Equivalents and Short-Term Investments	466.92M	314.93M	382.40M	565.65M	390.65M	277.88M
Total Debt	1.92B	1.74B	1.78B	1.29B	1.36B	447.89M
Total Liabilities	4.88B	4.97B	4.56B	4.27B	3.79B	1.20B
Stockholders Equity	88.29M	145.02M	315.06M	507.79M	543.42M	535.19M
Cash Flow
Free Cash Flow	-185.85M	-57.14M	-943.13M	265.28M	-711.60M	-238.68M
Operating Cash Flow	-183.52M	-53.11M	-882.70M	311.49M	-604.32M	-175.00M
Investing Cash Flow	-91.22M	-83.84M	172.51M	-23.84M	-164.04M	-123.65M
Financing Cash Flow	111.93M	118.09M	535.82M	-75.53M	873.05M	174.61M

Prosper Construction Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6816, the sentiment is Positive. The current price of 0.21 is below the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.21, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.74 is Neutral, neither overbought nor oversold. The STOCH value of 67.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6816.

Prosper Construction Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3878	62 Neutral	HK$101.68M	20.79	1.78%	―	-37.55%	-41.28%
2227	60 Neutral	HK$103.46M	5.93	1.57%	―	23.93%	425.00%
1751	54 Neutral	HK$100.40M	-7.02	2.07%	―	-45.46%	-329.88%
1413	51 Neutral	HK$133.00M	-1.38	-36.74%	―	-34.49%	-496.53%
6816	46 Neutral	HK$167.20M	―	-98.05%	―	14.57%	13.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%