PPS International (Holdings) Ltd. (8201) AI Stock Analysis

• Market Cap: HK$34.56M
• Dividend Yield: N/A
• Average Volume (3M): 16.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 2.94%
• EPS Growth: -56.79%
• Country: HK
• Employees: 1,679
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): N/A
• Shares Outstanding: 540,000,000
• 10 Day Avg. Volume: 16,855
• 30 Day Avg. Volume: 16,958
• PEG Ratio: 0.64
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 1.64
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.07 ▲(11.67% Upside)

The overall stock score for PPS International (Holdings) Ltd. is driven primarily by its strong financial performance and positive technical indicators. However, the low valuation score due to the negative P/E ratio and lack of dividend yield significantly impacts the overall score. Addressing profitability concerns and providing clear earnings guidance could enhance the stock's attractiveness.

Positive Factors

Revenue Growth

The company has demonstrated solid revenue growth, indicating strong demand for its services and successful market expansion efforts.

Cash Flow Management

Effective cash flow management ensures operational stability and financial flexibility, supporting long-term business sustainability.

Balance Sheet Strength

A strong balance sheet with low leverage reduces financial risk and provides a solid foundation for future growth initiatives.

Negative Factors

Profitability Issues

Persistent profitability challenges may hinder reinvestment capabilities and affect long-term financial health if not addressed.

Negative Return on Equity

Negative ROE reflects inefficiency in generating profits from shareholders' equity, potentially impacting investor confidence.

Valuation Concerns

Valuation concerns due to negative earnings and lack of dividends may deter investors seeking income and growth opportunities.

PPS International (Holdings) Ltd. Business Overview & Revenue Model

Company Description

PPS International (Holdings) Limited, an investment holding company, primarily provides environmental and cleaning services in Hong Kong and the People's Republic of China. It operates through Environmental and Cleaning, Money Lending, and Investments segments. The company offers public area and office cleaning services, such as cleaning of public areas, carpets, floors, toilets, changing rooms, lifts, and escalators; and engages in emptying garbage bins at commercial buildings and their tenants, residential complexes, shopping arcades, and hotels, as well as at public transport facilities, such as airports, ferries, ferry terminals, and cargo and logistics centers and depots. It also provides overnight kitchen cleaning services primarily at private clubs and hotels; external wall and window cleaning services; stone floor maintenance and restoration services; pest control and fumigation services; and waste management and disposal solutions, such as collection, transportation, and disposal of household waste, construction waste, and trade waste, as well as sells recyclable waste, such as paper, metal, and plastic waste. In addition, the company provides housekeeping services at local boutique hotels, hostels, and serviced apartments; secure and confidential waste destruction services for commercial clients; sanitation solutions for yacht; and cleaning and waste management solutions for renovated apartments. Further, it engages in the provision of airline catering support services; and money lending and financial assets investment, as well as securities trading businesses. The company was founded in 1978 and is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

PPS International (Holdings) Ltd. generates revenue through contracts for cleaning and related services offered to various sectors, including corporate offices, hotels, shopping malls, residential buildings, and public facilities. The company leverages long-term service agreements and partnerships with clients to ensure consistent income streams. Additionally, its focus on providing specialized cleaning services such as deep cleaning and sanitation, especially in the wake of increased hygiene demands, further bolsters its earnings. Key factors contributing to its revenue include service diversification, client retention, and expanding its market reach to new geographic areas.

PPS International (Holdings) Ltd. Financial Statement Overview

Summary

PPS International (Holdings) Ltd. has a solid financial foundation with strong cash flow and low leverage. Despite positive revenue growth, profitability is a concern due to negative net margins. The balance sheet shows strength with a high equity ratio, and cash flow management is effective, providing operational stability. The company needs to address profitability issues to improve its financial health further.

Income Statement

The company has shown moderate revenue growth over the years, with a recent increase from 395.4M to 502.1M in the TTM period. However, the net profit margin has been negative in the recent periods, indicating profitability issues. The gross profit margin has decreased slightly, suggesting pressure on costs. EBITDA margin has improved in the TTM period, indicating better operating efficiency.

Balance Sheet

The balance sheet shows a strong equity position with an improving equity ratio, currently at 65.5%. The debt-to-equity ratio is low, indicating limited leverage risk. Return on Equity has been negative recently due to net losses, but the company maintains a healthy asset base.

Cash Flow

The company has demonstrated strong cash flow management, with consistent positive operating cash flow and increasing free cash flow. The Free Cash Flow to Net Income ratio is favorable, highlighting efficient cash generation even with net income losses. Free Cash Flow Growth Rate is positive, reflecting strong cash flow performance.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	502.10M	488.07M	395.40M	370.34M	354.77M	345.39M
Gross Profit	35.36M	33.59M	30.07M	34.36M	32.30M	38.65M
EBITDA	8.58M	2.17M	667.00K	18.12M	27.56M	-26.40M
Net Income	-12.60M	-4.40M	-5.00M	10.68M	19.19M	-36.72M
Balance Sheet
Total Assets	290.55M	297.79M	286.23M	291.77M	294.36M	265.36M
Cash, Cash Equivalents and Short-Term Investments	115.81M	103.58M	90.68M	74.51M	72.49M	65.48M
Total Debt	19.99M	20.94M	22.50M	23.43M	35.05M	34.46M
Total Liabilities	97.19M	100.98M	83.60M	78.43M	91.62M	85.17M
Stockholders Equity	190.38M	193.84M	199.30M	209.70M	199.34M	178.28M
Cash Flow
Free Cash Flow	27.54M	22.11M	20.71M	14.37M	6.79M	-17.99M
Operating Cash Flow	28.86M	23.25M	22.23M	17.41M	8.12M	36.55M
Investing Cash Flow	-990.00K	-6.58M	-597.00K	-1.76M	2.37M	-44.57M
Financing Cash Flow	-4.61M	-3.65M	-3.59M	-13.84M	-4.43M	20.00M

PPS International (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8201, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 13.40 is Positive, neither overbought nor oversold. The STOCH value of -24.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8201.

PPS International (Holdings) Ltd. 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%
8201	60 Neutral	HK$34.56M	―	-3.59%	―	2.94%	-56.79%
8472	52 Neutral	HK$65.66M	-8.86	-4.22%	―	-72.66%	-127.43%
8320	49 Neutral	HK$76.80M	―	-4.04%	―	12.29%	51.28%
8309	48 Neutral	HK$37.20M	-5.17	-9.31%	―	-57.27%	-190.00%
0923	47 Neutral	HK$106.11M	-0.22	-107.25%	―	-2.08%	-647.01%
0646	46 Neutral	HK$58.94M	―	―	―	4.13%	-5.11%