DirectBooking Technology Co., Ltd. (ZDAI) Stock Analysis and Metrics

Sector: Industrials Industry: Engineering & Construction CIK: 0001966678

Market Cap 12.47 Mn

P/B 2.55

P/E -1.01

P/S 0.82

ROIC (Qtr) 0.00

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 3.34 Mn

Debt/Equity (Qtr) 0.68

About

Primega Group Holdings Ltd (PGHL) is a holding company based in the Cayman Islands, with operations conducted by its Hong Kong-based subsidiary, Primega Construction. The company operates in the construction industry, providing transportation services that prioritize environmentally friendly practices. Its primary goal is to facilitate the reuse of construction and demolition (C&D) materials and minimize construction waste. PGHL's core business activities encompass soil and rock transportation services, biodiesel oil trading, and construction works....

Primega Group Holdings Ltd (PGHL) is a holding company based in the Cayman Islands, with operations conducted by its Hong Kong-based subsidiary, Primega Construction. The company operates in the construction industry, providing transportation services that prioritize environmentally friendly practices. Its primary goal is to facilitate the reuse of construction and demolition (C&D) materials and minimize construction waste.

PGHL's core business activities encompass soil and rock transportation services, biodiesel oil trading, and construction works. These activities result in primary products and services such as soil and rock transportation, diesel oil trading, excavation, piling, and bored piling. The company's services cater mainly to construction contractors and property developers based in Hong Kong.

Revenue generation for PGHL comes from its soil and rock transportation services, biodiesel oil trading, and construction works. These services cater to a wide range of customers in the construction sector, including contractors and developers. Specific product and service names from PGHL are not explicitly mentioned in the document, but their primary services include soil and rock transportation, biodiesel oil trading, excavation, piling, and bored piling.

Within the industry, PGHL faces competition from other companies involved in foundation and site formation works in Hong Kong and subcontractors specialized in logistics and transportation of construction materials. Despite this competition, PGHL believes it has a strong competitive edge thanks to its operating subsidiary's fleet of tipper trucks and machinery, long-term relationships with customers, and experienced and professional management team.

PGHL's key customers are construction contractors and property developers in Hong Kong. However, specific names of these customers were not disclosed in the document.

PGHL owns no patents, copyrights, trademarks, or other domain names. The company does not have any trade secrets or proprietary technology.

PGHL's workforce consists of 32 full-time employees, as of the date of the report. The company regards its employees as its greatest asset, implementing measures to ensure their health, safety, and well-being. Additionally, PGHL has established a quality management system that complies with ISO 9001:2015 requirements.

In terms of environmental protection, PGHL's operations are subject to specific environmental requirements in Hong Kong, focusing on waste disposal, air and water pollution control, and noise control. The company disposes of construction waste at designated facilities based on the volume of inert construction waste. PGHL has also adopted measures to reduce its environmental impact, such as using biodiesel oil in its vehicles.

Price action

Investment thesis

Bull case

Strong tangible asset base of 11.74M provides 3.52x coverage of total debt 3.34M, indicating robust asset backing and low credit risk.
Robust tangible asset base of 11.74M provides 3.62x coverage of working capital 3.24M, indicating strong operational backing.
Tangible assets of 11.74M provide robust 4.58x coverage of other current liabilities 2.56M, indicating strong asset backing.
Cash reserves of 169178 provide solid 1x coverage of other non-current liabilities 168359, indicating strong liquidity.
Tangible assets of 11.74M provide robust 2.52x coverage of current liabilities 4.66M, showing strong asset backing.

Bear case

Operating cash flow of 0 provides minimal -0x coverage of tax expenses of (296499), suggesting potential tax planning inefficiencies or unsustainable tax positions.
Cash position of 169178 provides weak coverage of payables of 781467, which is 0.22x, indicating potential working capital stress and supplier relationship risks.
Operating cash flow of 0 barely covers operating expenses of (331666) with a -0 ratio, suggesting thin operational efficiency margins and limited flexibility.
Tax assets of 0 provide limited offset against tax liabilities of 546798, which is 0x, indicating potential future cash flow pressure from tax obligations.
R&D investment of 0 represents just 0x of SG&A expenses of 13.25M, indicating potential underinvestment in innovation relative to administrative overhead.

Peer comparison

Companies in the Engineering & Construction

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	PWR	Quanta Services, Inc.	67.29 Bn	138.47	5.18	6.02 Bn
2	FER	Ferrovial SE	52.08 Bn	189.56	5.95	-
3	EME	EMCOR Group, Inc.	48.16 Bn	357.05	7.52	0.42 Bn
4	FIX	Comfort Systems Usa Inc	45.71 Bn	4,991.17	39.02	0.39 Bn
5	MTZ	Mastec Inc	19.03 Bn	57.48	1.38	2.77 Bn
6	APG	APi Group Corp	17.83 Bn	114.31	2.33	3.05 Bn
7	J	Jacobs Solutions Inc.	17.05 Bn	39.38	1.38	2.96 Bn
8	BLD	TopBuild Corp	14.16 Bn	24.94	2.70	3.09 Bn

Industry comparisons

Current Valuation	Value	Ind Avg
EV to Assets EV to Assets	1.32	1.73
EV to Cash from Ops. EV/CFO	-5.49	61.77
EV to Debt EV to Debt	4.64	13.28
EV to EBIT EV/EBIT	-1.24	74.48
EV to EBITDA EV/EBITDA	-2.25	39.60
EV to Free Cash Flow [EV/FCF] EV/FCF	-5.49	143.23
EV to Market Cap EV to Market Cap	1.24	1.16
EV to Revenue EV/Rev	1.02	2.68
Price to Book Value [P/B] P/B	2.55	9.64
Price to Earnings [P/E] P/E	-1.01	142.37

Dividend Metrics	Value	Ind Avg
Dividend Coverage Ratio Dividend Coverage Ratio	0.00	2.57
Dividend Payout Ratio % Dividend Payout Ratio %	0.00	35.52
Dividend per Basic Share Div per Share (Qtr)	0.00	0.24
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio %	0.00	5.38
Interest Coverage Interest Coverage	-53.04	80.51

Growth Metrics	Value	Ind Avg
Capex Growth (1y) % Capex Growth (1y) %	0.00	-168.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr)	-80.22	655.79
Dividend Growth (1y) % Dividend Growth (1y) %	0.00	6.41
EBIAT Growth (1y) % EBIAT Growth (1y) %	-1,325.22	-38.03
EBITDA Growth (1y) % EBITDA Growth (1y) %	0.00	14.77
EBIT Growth (1y) % EBIT Growth (1y) %	-1,078.88	75.79
EBT Growth (1y) % EBT Growth (1y) %	-1,290.48	29.61
EPS Growth (1y) % EPS Growth (1y) %	0.00	56.98
FCF Growth (1y) % FCF Growth (1y) %	0.00	-16.53
Gross Profit Growth (1y) % Gross Profit Growth (1y) %	-87.64	31.33

Liquidity Ratios	Value	Ind Avg
Asset Utilization Ratio Asset Utilization Ratio	1.29	1.14
Cash Payout Ratio Cash Payout Ratio	0.00	0.05
Cash Ratio Cash Ratio (Qtr)	0.04	0.39
Current Ratio Curr Ratio (Qtr)	1.70	1.55
Debt to Equity Ratio Debt/Equity (Qtr)	0.68	0.90
Interest Cover Ratio Interest Cover Ratio	-53.04	80.51
Times Interest Earned Times Interest Earned	-53.04	80.51

Profitability	Value	Ind Avg
EBITDA Margin % EBITDA Margin %	0.00	0.96
EBIT Margin % EBIT Margin %	-82.23	-3.15
EBT Margin % EBT Margin %	-83.78	-5.46
Gross Margin % Gross Margin %	2.30	20.28
Net Profit Margin % Net Profit Margin %	-81.80	-6.83

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