MECOM Power and Construction (HKSE:01183) Interest Coverage: 2.25 (As of Dec. 2025) — 100% Below Median

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HKSE:01183 MECOM Power and Construction Ltd HKSE:01183
65 GF Score
Price HK$0.14
GF Value HK$0.23
Valuation Significantly Undervalued
! 6 Warning Signs
View Full Analysis

What is MECOM Power and Construction Interest Coverage?

MECOM Power and Construction HKSE:01183 65 Interest Coverage is 2.25 as of Dec. 2025, which is 100% below its 10-year median of 10,000.00. GuruFocus rates HKSE:01183 with a GF Score™ of 65/100 and a GF Value™ of HK$0.23 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 460 Steel companies, MECOM Power and Construction ranks worse than 62.61% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. MECOM Power and Construction's Operating Income for the six months ended in Dec. 2025 was HK$7 Mil. MECOM Power and Construction's Interest Expense for the six months ended in Dec. 2025 was HK$-3 Mil. MECOM Power and Construction's interest coverage for the quarter that ended in Dec. 2025 was 2.25. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for MECOM Power and Construction's Interest Coverage or its related term are showing as below:

HKSE:01183' s Interest Coverage Range Over the Past 10 Years
Min: 1.24   Med: No Debt   Max: No Debt
Current: 3.08


HKSE:01183's Interest Coverage is ranked worse than
62.61% of 460 companies
in the Steel industry
Industry Median: 4.565 vs HKSE:01183: 3.08

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


MECOM Power and Construction  (HKSE:01183) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


MECOM Power and Construction Interest Coverage Related Terms


MECOM Power and Construction Interest Coverage Historical Data

* Premium members only.

The historical data trend for MECOM Power and Construction's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

MECOM Power and Construction Interest Coverage Chart

MECOM Power and Construction Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only No Debt 126.44 1.46 1.24 3.08

MECOM Power and Construction Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 1.25 1.23 3.71 2.25

HKSE:01183 vs NUE, STLD, RS: Interest Coverage Comparison

For the Steel subindustry, MECOM Power and Construction's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MECOM Power and Construction Interest Coverage vs Steel Industry

For the Steel industry and Basic Materials sector, MECOM Power and Construction's Interest Coverage distribution charts can be found below:

* The bar in red indicates where MECOM Power and Construction's Interest Coverage falls into.


HKSE:01183
65GF Score
MECOM Power and Construction Ltd HKSE:01183
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

MECOM Power and Construction Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

MECOM Power and Construction's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, MECOM Power and Construction's Interest Expense was HK$-8 Mil. Its Operating Income was HK$23 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$71 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*23.418/-7.605
=3.08

MECOM Power and Construction's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, MECOM Power and Construction's Interest Expense was HK$-3 Mil. Its Operating Income was HK$7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$71 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*7.399/-3.289
=2.25

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.25 mean?
MECOM Power and Construction (HKSE:01183) has a Interest Coverage of 2.25 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MECOM Power and Construction and its competitors. This is 100% below median its historical median of 10,000.00. Over the past decade, MECOM Power and Construction's Interest Coverage has ranged from 1.24 to 10,000.00. According to the industry distribution chart, MECOM Power and Construction ranks #288 out of 460 companies in the Steel industry, placing it in the top 62.6%.
Is MECOM Power and Construction's Interest Coverage too high?
MECOM Power and Construction's current Interest Coverage of 2.25 is 100% below median its 10-year median of 10,000.00. Over the past 10 years, this metric has ranged from a low of 1.24 to a high of 10,000.00. The Steel industry median Interest Coverage is 4.57. MECOM Power and Construction's value of 2.25 is 50.7% below this industry median. Based on the distribution chart, MECOM Power and Construction ranks #288 out of 460 companies in the Steel industry, which is below the industry midpoint. Overall, MECOM Power and Construction has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MECOM Power and Construction's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, MECOM Power and Construction ranks #288 out of 460 companies for Interest Coverage. This places MECOM Power and Construction in the lower half of its industry. The industry median Interest Coverage is 4.57. MECOM Power and Construction's value of 2.25 is 50.7% below this benchmark. Historically, MECOM Power and Construction's own Interest Coverage has ranged from 1.24 to 10,000.00 over the past decade. While the company's 10-year median is 10,000.00 vs. the industry median of 4.57, MECOM Power and Construction has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Steel company?
The median Interest Coverage among Steel companies is 4.57, based on 460 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MECOM Power and Construction's current Interest Coverage of 2.25 is 50.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on MECOM Power and Construction and its competitors. For the Steel industry, the median Interest Coverage is 4.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MECOM Power and Construction's current Interest Coverage is 2.25, which is 100% below median its own 10-year median of 10,000.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MECOM Power and Construction stock overvalued right now?
Based on GuruFocus' analysis, MECOM Power and Construction (HKSE:01183) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$0.23, compared to a current price of HK$0.14 — trading 41.3% below its estimated fair value. The current Interest Coverage is 2.25, which is 100% below median its 10-year median of 10,000.00 and 50.7% below the Steel industry median of 4.57. MECOM Power and Construction's overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For MECOM Power and Construction (HKSE:01183), the current Interest Coverage is 2.25 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is MECOM Power and Construction (HKSE:01183) Overvalued in 2026?

Based on GuruFocus' analysis, MECOM Power and Construction stock appears to be undervalued. The current stock price of HK$0.14 is trading 41.3% below its estimated GF Value™ of HK$0.23. GuruFocus considers MECOM Power and Construction to be Significantly Undervalued.

Key valuation signals for HKSE:01183:

  • Interest Coverage: 2.25 (100% below median its 10-year median of 10,000.00)
  • GF Value™: HK$0.23 vs. price of HK$0.14 (41.3% below fair value)
  • GF Score™: 65/100 with 6 warning signs
  • Industry Position: 50.7% below the Steel median (#288 of 460)

No single metric tells the full story. See the HKSE:01183 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


MECOM Power and Construction Business Description

Address No. 258 Alameda Dr. Carlos D’Assumpcao, Units Q, R and S, Kin Fu Kuok, 6th Floor, Praca Kin Heng Long-Heng Hoi Kuok, Macau, MAC
MECOM Power and Construction Ltd is a construction company engaged in construction of power substation and structural steelworks. Its scope covers steel structures business, including research and development and sales of new construction materials; construction business, including construction and fitting out works, high voltage power substation construction and its system installation works, E&M engineering services works, facilities management and operation and maintenance services, construction, operation and maintenance of data centres; and electric vehicles related services. Its segments are: Construction business, Electric vehicles business, and Intelligent manufacturing business. It derives maximum revenue from Intelligent manufacturing business.
65GF Score

Get the complete analysis for HKSE:01183

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.14
Price
HK$0.23
GF Value