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Kingbo Strike Ltd. (HK:1421)
:1421
Hong Kong Market

Kingbo Strike Ltd. (1421) AI Stock Analysis

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HK:1421

Kingbo Strike Ltd.

(1421)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
HK$0.39
▼(-2.00% Downside)
Action:ReiteratedDate:02/18/26
The score is primarily held back by weak financial performance—ongoing losses, declining revenue, and negative operating/free cash flow—despite the benefit of low leverage and some improvement in 2025 results. Technicals also lean bearish with price below key moving averages and negative momentum indicators. Valuation is neutral because negative earnings make P/E less informative and no dividend yield is available.
Positive Factors
Low leverage (debt-to-equity ~0.09)
Very low debt relative to equity reduces financial risk and interest burden, giving management flexibility to weather operational headwinds. This conservative capital structure lengthens runway for turnaround actions and reduces near-term refinancing pressure versus highly leveraged peers.
Narrower 2025 loss and margin rebound
Material improvement in 2025 profitability metrics signals meaningful operational adjustments or better contract/mix management. A halved net loss and rising gross margin indicate the company may be stabilising core operations, reducing the severity of cash burn and improving prospects for sustained recovery if trends continue.
Improving cash-flow trend (less severe burn)
An improving free cash flow trend, even while still negative, shows the company has begun to curb cash outflows through cost control or working-capital changes. If sustained, this reduces dependency on external financing and provides time to achieve operational breakeven without immediate capital raises.
Negative Factors
Persistent net losses and revenue decline
A multi-year top-line collapse paired with recurring losses undermines the company's ability to leverage fixed costs and sustain a viable business model. Continued revenue erosion increases the challenge of restoring margins and requires structural changes or new revenue sources to avoid chronic unprofitability.
Consistently negative operating and free cash flow
Ongoing negative cash generation depletes reserves and forces reliance on external funding. That limits ability to invest in operations, bid competitively or absorb project setbacks. Without a durable move to positive CFO, solvency and growth options remain constrained and financing costs may rise.
Shrinking equity base and deeply negative ROE (~-20%)
Declining shareholders' equity erodes the capital cushion and curtails borrowing capacity, while a ~-20% ROE signals persistent value destruction. Over time this raises the risk of covenant breaches, forced asset sales or dilutive capital raises that further weaken solvency and shareholder claims.

Kingbo Strike Ltd. (1421) vs. iShares MSCI Hong Kong ETF (EWH)

Kingbo Strike Ltd. Business Overview & Revenue Model

Company DescriptionProsperity Group International Limited, an investment holding company, engages in the supply and installation of solar photovoltaic parts and equipment in the People's Republic of China. It operates through two segments, Solar Power Business and Electrical Distribution System Business. The company supplies and installs electrical distribution systems, including distribution board, junction box, cables, switches, etc. In addition, it is involved in the provision of finance; and electrical and general building engineering services. The company was formerly known as Kingbo Strike Limited and changed its name to Prosperity Group International Limited in February 2025. Prosperity Group International Limited was incorporated in 2013 and is headquartered in Tsim Sha Tsui, Hong Kong.
How the Company Makes MoneyKingbo Strike Ltd. generates revenue through its core business activities in the construction and engineering sectors. The company earns money by securing contracts for infrastructure projects, which include electrical and mechanical engineering services and building construction. Revenue is primarily derived from project-based contracts with various clients, including government entities and private companies. The company's earnings are influenced by the number and scale of projects it undertakes, as well as its ability to deliver high-quality services within budget and time constraints. Additionally, strategic partnerships and joint ventures may contribute to its revenue streams by expanding its capabilities and market reach.

Kingbo Strike Ltd. Financial Statement Overview

Summary
Overall financial quality is weak: persistent net losses and negative operating earnings with a steep multi-year revenue decline. Recent improvement is visible (smaller 2025 loss and better gross margin), and leverage is low (debt-to-equity ~0.09), but recurring negative operating/free cash flow and shrinking equity keep the score constrained.
Income Statement
24
Negative
Profitability remains weak, with net losses in every year provided and negative operating earnings across the period. Revenue has also trended down meaningfully (from 380.1M in 2021 to 142.9M in 2025), though 2025 losses narrowed versus 2024 (net loss improved to -21.8M from -47.3M) and gross margin rebounded to ~6.8% from ~3.7%. Overall, the trajectory shows some cost/earnings improvement in the latest year, but the business is still structurally unprofitable with negative operating and net margins.
Balance Sheet
62
Positive
Leverage looks conservative, with low debt relative to equity (debt-to-equity ~0.09 in 2025), which reduces financial risk. However, equity and total assets have been shrinking over time, consistent with ongoing losses, and returns on equity are deeply negative (about -20% in 2025). The balance sheet provides some cushion due to low leverage, but persistent losses are eroding the capital base.
Cash Flow
28
Negative
Cash generation is pressured: operating cash flow and free cash flow are negative in most years, including 2025 (operating cash flow -15.1M; free cash flow -18.7M). While free cash flow improved versus 2023 and the 2025 cash burn is less severe than earlier periods, the company has not demonstrated consistent ability to fund operations internally, increasing reliance on cash reserves or external funding if conditions don’t improve.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2021
Income Statement
Total Revenue142.91M160.73M81.52M211.61M380.15M
Gross Profit9.78M5.94M5.44M22.49M37.76M
EBITDA-15.38M-41.52M-49.02M-27.72M-8.45M
Net Income-21.76M-47.26M-61.62M-44.01M-30.14M
Balance Sheet
Total Assets220.91M227.28M250.65M309.25M426.13M
Cash, Cash Equivalents and Short-Term Investments5.32M24.31M15.25M42.22M81.92M
Total Debt9.35M5.27M13.29M1.83M1.03M
Total Liabilities75.87M75.53M69.64M63.16M81.80M
Stockholders Equity108.13M120.34M152.58M225.84M276.39M
Cash Flow
Free Cash Flow-18.71M-6.25M-41.70M1.03M-1.88M
Operating Cash Flow-15.11M-1.22M-39.76M1.13M-1.87M
Investing Cash Flow-4.79M-3.47M-1.76M-93.49K31.69K
Financing Cash Flow769.00K15.87M16.89M-7.33M-250.27K

Kingbo Strike Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.40
Price Trends
50DMA
0.47
Negative
100DMA
0.49
Negative
200DMA
0.47
Negative
Market Momentum
MACD
-0.02
Positive
RSI
36.80
Neutral
STOCH
1.95
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1421, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.47, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.80 is Neutral, neither overbought nor oversold. The STOCH value of 1.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1421.

Kingbo Strike Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
46
Neutral
HK$76.07M-2.36-19.05%-11.09%69.57%
45
Neutral
HK$134.61M-2.713.70%-42.25%
45
Neutral
HK$219.82M-9.0213.38%33.42%
43
Neutral
HK$312.43M-1.23-24.72%-43.94%-162.54%
42
Neutral
HK$602.54M-9.64-1.39%36.71%8.15%
41
Neutral
HK$26.28M-1.06-94.63%50.51%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1421
Kingbo Strike Ltd.
0.38
0.17
84.47%
HK:0750
China Singyes Solar Technologies Holdings
0.24
-0.07
-21.64%
HK:0757
Solargiga Energy Holdings
0.09
0.02
28.77%
HK:0712
Comtec Solar Systems Group Ltd.
0.13
0.04
51.19%
HK:0475
Central Development Holdings Limited
0.44
-0.01
-2.22%
HK:8111
China Technology Industry Group Limited
0.06
-0.12
-67.43%

Kingbo Strike Ltd. Corporate Events

Prosperity Group Schedules Board Meeting to Review Interim Results and Dividend
Feb 12, 2026

Prosperity Group International Limited has scheduled a board meeting in Hong Kong on 27 February 2026 to review and approve the unaudited interim results for the six months ended 31 December 2025. The board will also consider the potential declaration and payment of an interim dividend and address any other business, signalling an upcoming update on the company’s financial performance and possible shareholder returns.

The meeting details underscore the company’s adherence to disclosure obligations and its ongoing engagement with investors through regular interim reporting. Any decision on dividends at this session could influence shareholder income expectations and provide insight into management’s assessment of the group’s earnings strength and cash position.

The most recent analyst rating on (HK:1421) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingbo Strike Ltd. stock, see the HK:1421 Stock Forecast page.

Prosperity Group Raises HK$10.54 Million via Share Placing to Bolster Working Capital
Jan 28, 2026

Prosperity Group International Limited has completed a placing of 33,365,000 new shares under its general mandate, increasing its issued share capital to 200,195,200 shares. The new shares, priced at HK$0.34 each, represent 16.67% of the enlarged share capital and have been placed with at least six independent investors, none of whom has become a substantial shareholder. The transaction raised gross proceeds of about HK$11.34 million, with net proceeds of approximately HK$10.54 million after expenses, which the company will use as general working capital. The placing further diversifies the company’s shareholder base, maintains public float, and provides fresh liquidity to support day-to-day operations without altering control among existing directors and major stakeholders.

The most recent analyst rating on (HK:1421) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingbo Strike Ltd. stock, see the HK:1421 Stock Forecast page.

Prosperity Group Plans Discounted Share Placing to Raise Working Capital
Jan 6, 2026

Prosperity Group International Limited has entered into a placing agreement to issue up to 33,365,000 new shares under its existing general mandate at HK$0.34 per share, representing about 20% of its current issued share capital and approximately 16.67% of its enlarged share capital. The discounted share placing, which is expected to raise net proceeds of roughly HK$10.54 million for general working capital, is being conducted on a best-effort basis through an independent placing agent to at least six independent investors, and remains conditional on fulfillment of the placing terms, meaning the transaction may or may not proceed, a point on which shareholders and potential investors have been urged to exercise caution.

The most recent analyst rating on (HK:1421) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingbo Strike Ltd. stock, see the HK:1421 Stock Forecast page.

Prosperity Group Announces Board and Committee Changes as INED Resigns
Dec 31, 2025

Prosperity Group International Limited has announced the resignation of independent non-executive director Dr. Luo Xiaodong, who will step down from the board and from his roles on the nomination, audit and remuneration committees with effect from 31 December 2025 to pursue his personal business, with the company stating there is no disagreement or other matters requiring shareholder attention in relation to his departure. Non-executive director Ms. Chan Sheung Yu has been appointed as a member of the audit committee from the same date, ensuring the committee continues to comprise three members and signalling the group’s effort to maintain continuity and compliance in its board and committee structure despite the leadership change.

The most recent analyst rating on (HK:1421) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingbo Strike Ltd. stock, see the HK:1421 Stock Forecast page.

Prosperity Group International Sets Out Board and Committee Roles
Dec 31, 2025

Prosperity Group International Limited, a Cayman Islands-incorporated company listed in Hong Kong (stock code 1421), has disclosed the current composition of its board and key governance committees. The board comprises three executive directors, led by chairman Liu Yancheng, and three independent non-executive directors: Chen Yeung Tak, Wang Haoyuan and Chan Sheung Yu. The company also outlined the structure of its audit, nomination and remuneration committees, with Chen Yeung Tak chairing both the audit and remuneration committees, and Wang Haoyuan and Chan Sheung Yu serving as members across all three committees, underscoring the firm’s emphasis on independent oversight and corporate governance. The announcement clarifies leadership roles and responsibilities for investors and other stakeholders as of 31 December 2025.

The most recent analyst rating on (HK:1421) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingbo Strike Ltd. stock, see the HK:1421 Stock Forecast page.

Prosperity Group Forms Joint Venture to Advance Perovskite Technology
Dec 5, 2025

Prosperity Group International Limited has announced the formation of a joint venture, XinRuiTeng, which will focus on producing high-end perovskite thin-film deposition equipment in China. This venture aims to capitalize on the growing interest in perovskite batteries, known for their efficiency and cost-effectiveness, by establishing a production and research center in Longyou County. The joint venture will procure key components from external suppliers and assemble them into high-precision coating equipment for sale to manufacturers of flexible perovskite batteries. The financial structure involves contributions from Huge Act and Earn Best International, with Huge Act managing daily operations, highlighting a strategic move to strengthen the company’s position in the evolving photovoltaic technology sector.

The most recent analyst rating on (HK:1421) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingbo Strike Ltd. stock, see the HK:1421 Stock Forecast page.

Prosperity Group International Limited AGM Resolutions Passed
Nov 21, 2025

Prosperity Group International Limited announced that all resolutions proposed at its Annual General Meeting (AGM) held on November 21, 2025, were passed by shareholders through a poll. The meeting saw the re-election of several directors and the approval of the company’s audited financial statements for the year ending June 30, 2025. Additionally, Moore CPA Limited was re-appointed as the company’s auditor. The successful passage of these resolutions reflects shareholder confidence in the company’s governance and strategic direction.

The most recent analyst rating on (HK:1421) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Kingbo Strike Ltd. stock, see the HK:1421 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 18, 2026