Prosper Construction Holdings Limited (6816) AI Stock Analysis

• Market Cap: HK$174.40M
• Dividend Yield: N/A
• Average Volume (3M): 95.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• 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: 21,400
• 30 Day Avg. Volume: 95,733
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 43 reflects significant financial challenges, including declining revenue, negative profitability, and high leverage. Technical analysis shows mixed signals, with short-term weakness but some longer-term support. Valuation is unattractive due to negative profitability and lack of dividend yield.

Prosper Construction Holdings Limited Business Overview & Revenue Model

Company Description

Prosper Construction Holdings Limited (6816) is a diversified construction company primarily engaged in the provision of civil engineering and construction services. The company operates across various sectors including residential, commercial, and infrastructure projects, offering a wide range of services such as project management, design-build solutions, and construction contracting. With a commitment to quality and sustainability, Prosper Construction Holdings aims to deliver innovative solutions that meet the evolving needs of its clients.

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: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.23, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.65 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3878	62 Neutral	HK$99.76M	20.59	1.80%	―	-37.55%	-41.28%
1751	57 Neutral	HK$241.92M	―	-53.25%	―	-45.46%	-329.88%
2227	55 Neutral	HK$100.72M	5.82	5.68%	―	23.93%	425.00%
1413	45 Neutral	HK$130.20M	-1.36	-33.39%	―	-34.49%	-496.53%
6816	43 Neutral	HK$174.40M	―	-98.05%	―	14.57%	13.79%

Prosper Construction Holdings Limited Corporate Events

Prosper Construction Clarifies 2024 Annual Report Details

Prosper Construction Holdings Limited has issued a supplementary announcement regarding its 2024 Annual Report. The company clarified that certain related party transactions disclosed in the report do not constitute connected transactions under the Listing Rules, while others have complied with the necessary requirements. Additionally, the company confirmed that 80 million shares are available for issue under its Share Option Scheme, representing 10% of the issued shares. This announcement provides clarity on regulatory compliance and shareholder interests.

Prosper Construction’s Framework Agreement Rejected and Expired

Prosper Construction Holdings Limited announced that the ordinary resolution regarding the New Products Sale and Purchase Framework Agreement was rejected by shareholders during the Extraordinary General Meeting held on October 8, 2025. As a result, the agreement automatically expired on the same day, impacting the company’s planned transactions and proposed annual caps.

Prosper Construction Aligns with Qingdao’s Vision for Shipping Hub Development

Prosper Construction Holdings Limited announced its strategic alignment with the Qingdao government’s Mid-Term Plan and 2035 Vision for the Development of Qingdao International Shipping Centre. The company, in collaboration with its controlling shareholder Haifa Group, aims to capitalize on the plan by enhancing its cross-border trade operations and establishing itself as a procurement hub. This move is expected to unlock significant business opportunities and strengthen the company’s market position, leveraging Qingdao’s geographical advantages and integrating shipping, trade, and financial services.

Prosper Construction Announces EGM for New Framework Agreement Approval

Prosper Construction Holdings Limited has announced an extraordinary general meeting to discuss and potentially approve a new framework agreement with Shenzhen Defu Supply Chain Company Limited. This agreement involves the purchase of branded consumer electronic products over the next three years, which could enhance the company’s distribution capabilities and market positioning.

Prosper Construction Holdings Limited Reports Increased Revenue but Sustained Losses in H1 2025

Prosper Construction Holdings Limited reported its unaudited consolidated results for the first half of 2025, revealing a revenue increase to HK$894,705,000 from HK$508,954,000 in the same period of 2024. Despite the revenue growth, the company faced a loss of HK$58,238,000, slightly improved from the previous year’s loss of HK$59,029,000, highlighting ongoing financial challenges.

Prosper Construction Holdings to Review Interim Results and Dividend Declaration

Prosper Construction Holdings Limited has announced that its board of directors will convene on August 28, 2025, to review and approve the company’s unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the declaration of a dividend, highlighting the company’s ongoing financial management and potential shareholder returns.

Prosper Construction Holdings Issues Profit Warning for Interim 2025

Prosper Construction Holdings Limited has issued a profit warning, indicating an expected loss before taxation of no less than HK$49 million for the first half of 2025. This marks an improvement from the previous year’s loss of HK$62 million. The general construction segment showed a gross profit increase of HK$28 million, but the marine engineering segment underperformed, leading to a gross profit reduction of HK$16 million. Despite improvements, the operating profit was insufficient to cover costs, resulting in the expected loss.