The ii is a contractor with a long history in Hong Kong. it mainly provides (I) foundation works, including small-scale cast-in-place, cast-in-place H-beams and cut-and-cover H-beams, and other civil works, including ground formation and road and footpath works; and (CTC) tunnel works, including piping, hand-dug tunnels and cut-and-cover tunnels. The annual collection from 2013 to 2015 has completed 10, 15 and 6 projects respectively. To provide construction works in both private and public fields. Based on the annual figures in 2015, the revenue generated by the collection from both public and private projects is 50. 0%. The clients of the collection include the Government, public utility companies, property developers and contractors. According to the annual figures in 2015, the revenue from the top five customers accounted for about 96.8% of the total revenue, and the largest customer revenue accounted for about 52.0%.
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The company is in charge of
(1) have the ability, qualifications and expertise to undertake foundation and other civil engineering projects in Hong Kong; and tunnel contractors; (2) have all kinds of machinery and equipment to carry out foundation and other civil engineering and tunnel works; and (3) have long-term relationships with customers, subcontractors and suppliers. To provide foundation and other civil engineering and tunnel works to the five major customers for less than one to 16 years; (4) to maintain high safety and environmental management standards and strict volume control. The collection meets the certification requirements of quantity management system, environmental management system, energy management system and occupational safety and health management system ISO 9001, ISO 14001, ISO 50001 and OHSAS 18001 respectively. The accident rate of building ground sites in the past season is lower than the average.
Overview of the industry
The total output value of construction projects carried out by general contractors and subcontractors in Hong Kong increased from HK $60.8 billion in 2009 to about HK $1552 in 2014, representing a compound annual growth rate of 20.6%. The increase is due to the policy implemented by the Hong Kong Government in the wake of the global financial crisis in 2008 to launch more construction projects to boost Hong Kong's economic performance through improved employment opportunities. It is expected that the total output value of construction projects carried out by general contractors and subcontractors in Hong Kong will increase from about 1934 billion Hong Kong dollars in 2015 to about 2995 billion Hong Kong dollars in 2017, with a compound annual growth rate of 24.4 percent. The expected increase in strength is mainly due to the fact that public sector projects are public domain projects, namely public housing development plans and 10 major infrastructure projects.
From 2009 to 2014, the estimated total output value of Hong Kong's foundation field increased significantly from about HK $6.8 billion to about HK $19.5 billion, with a compound annual growth rate of 23.5%. The 10 major infrastructure projects undertaken by the public sector (including the South Hong Kong Link, the Sha Central Link, the Tuen Mun-Chek Lap Kok Link and Tuen Mun Western Corridor, the Hong Kong section of the Shenzhen-Hong Kong Expressway, the Hong Kong-Zhuhai-Macao University, the Hong Kong-Shenzhen Airport Link, the Lok Kau Loop Development, the West Kowloon Cultural Zone, the Kai Tak Development Plan and the North New Territories New Development area and flood disaster new development areas) are the major drivers of the increase in the total output value of the foundation domain from 2009 to 2014. It is expected that the estimated total output value in the foundation field will increase from about 24.5 billion Hong Kong dollars to about 37 billion Hong Kong dollars from 2015 to 2017, with a combined annual growth rate of 22.9 percent. The expected increase is due to the expected increase in demand for residential buildings. In the public domain, new projects such as the North New Territories Development area, the Taipa Development Project, the new Hong Kong Island extension and the Hong Kong Development Project are expected to contribute to the growth of total gross domestic product in the foundation field from 2015 to 2017.
The estimated total output value in the field of civil engineering in Hong Kong increased by about 37.4% at a complex annual growth rate, from about HK $13.8 billion in 2009 to about HK $67.6 billion in 2014. The substantial increase is due to the increase in the number of civil engineering projects and the increase in the contractual value of such projects. The number of construction sites carrying out civil engineering increased from about 342 in 2009 to about 442 in 2013, while the average cost of each civil engineering project increased from about HK $7.7 million to about HK $174.5 over the same period. It is expected that the estimated gross domestic product of Hong Kong's civil engineering field will increase significantly from about HK $88.4 billion in 2015 to about HK $1436 billion in 2017, with a compound annual growth rate of 27.5%. This is due to the continued and future 10 major infrastructure projects, construction projects in newly developed areas, urban redevelopment projects and the Government's vigorous increase in the number of residential units.
Tunnel works include tunnels, sinkholes, caves and related underground facilities. The main categories of tunnels include roads, roads, water supplies, canals and sewage and electricity tunnels. Tunnel works in Hong Kong generally include large straight tunnels ranging from about 1.5m to 19m and small and medium-sized straight tunnels, also known as micro-tunnels, ranging from 300mm to 1200 mm. The following construction techniques are generally used in tunnel projects in Hong Kong: cut-and-cover method, blasting method, tunnel boring machine (TBM) or immersed tube tunnel (IMT) method are generally used in tunnel construction. For micro-tunnels (small and medium-sized vertical tunnels), cut-and-cover method, pipe and micro-tunnel boring machine (MTBM), horizontal directional sinkhole (HDD) or hand-dug tunnel are generally used. The estimated total output value of tunnel projects in Hong Kong has increased by about 49.7% at a complex annual growth rate, from about HK $5.7 billion in 2009 to about HK $42.9 billion in 2014.
In 2014, the foundation field of Hong Kong was supported by five participants, accounting for about 48.5% of the total output value of the field, while the field of civil engineering in Hong Kong was led by the five participants, accounting for about 50.0% of the total output value in the field of civil engineering. and the tunnel industry in Hong Kong is led by five participants, accounting for about 34.3% of the total revenue of the tunnel industry in 2014.
Profit ability and duty number
Based on the historical records of the past three years, the revenue of the collection company increased from HK $321.0 million in 2013 to HK $577.3 million in 2015, with a compound annual growth rate of 34.1%. The annual growth rate of Malaysia increased from HK $2.15 million in 2013 to HK $8.60 million in 2015, with a compound annual growth rate of 100.0%. The monthly income and profit in the first four months of 2016 increased by 35.5% and 1.5%, respectively. The annual profit in 2015 increased rapidly, thanks to the rise in gross profit margin. The total gross profit margin of the collection increased to about 28.1% from 17.7% in 2014. As far as tunnel projects are concerned, the increase in gross profit margin is mainly due to the fact that most of the two projects are completed with relatively high gross profit margins, mainly due to (I) the increase in gross profit margin due to the change of some design parameters and the cancellation of some temporary working designs in the most expensive cost-saving proposal for one of the projects. And (ii) one of the projects is more cost-effective due to the implementation and undertaking of multi-project lists and the low cost of materials and materials produced due to the use of used materials. The collection foundation and other civil engineering projects also completed most of the works at a high gross profit margin, mainly because (I) the material cost and subcontracting of one of the projects were substantially generated in 2014; and (ii) a number of preparatory works were carried out in the second half of 2014, resulting in low revenue in this section.
Collection purpose
HK $892 million (based on HK $0.86 per share sold) from this collection will be used for the following purposes: about HK $5.37 million or about 60.2% of the proceeds will be used for foundation production and the upgrading of new machinery and equipment to improve operating efficiency and working capacity. About HK $2.60 million or about 29.1% of the proceeds will be used to replenish tunnel capacity and upgrade new machinery to enhance working capacity; about HK $71 million or about 80% of the proceeds will be used to increase the number of managers to secure the established status within the facility; and about HK $24 million or about 2.7% of the proceeds will be used as general capital funds for the collection.
Valuation
The market does not provide a profit forecast for the 2016 financial year. Based on the profit of 8.60 million Hong Kong dollars for the 2015 financial year, the historical price-to-earnings ratio is 4.0-6.0 times. Companies operating in Hong Kong, including 404.HK, 711.HK and 1246.HK, have price-to-earnings ratios of 5.7x, 17.2x and 3.7x respectively. The collection will benefit from the expenditure on public infrastructure driven by 10 major infrastructure projects and housing demand. at that time, the contract fee will be HK $1341.6, so there should be a certain guarantee of annual income in the near future. Although the development of the industry is beneficial to the market, its income and profit rate depend on individual items, and the level of profitability fluctuates greatly. If the average profit over the past three years is calculated, the price-to-earnings ratio has risen to 7.9-11.8 times, and the valuation is not cheaper than that of the same industry. We recommend investing in speculative stocks.
Negative factor
(1) the revenue mainly comes from non-routine items, and there is no guarantee that customers will provide new services or obtain new contracts; (2) the collection of customers will be concentrated, accounting for about 96.8% of the revenue in terms of the number of five major customers in 2015, and the largest customers account for about 52.0% of the revenue; (3) a small number of customers in tunnel projects with other service providers. Any significant reduction in the contract obtained by customers involved in the tunnel project may adversely affect the tunnel service, cost and cost of the collection; (4) the contract is based on the estimated time required and the cost involved, and the actual time and cost may not be in line with the estimate. Misestimated or ineffective management costs may adversely affect the performance of the collection; (5) the increase in the cost of any major construction materials and substandard construction materials may adversely affect the performance of the collection; (6) the performance of the collection may be adversely affected.