Progressive Path Group Holdings Ltd. (1581) AI Stock Analysis

• Market Cap: HK$89.64M
• Dividend Yield: N/A
• Average Volume (3M): 125.33K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.49
• Revenue Growth: -12.78%
• EPS Growth: -20.50%
• Country: HK
• Employees: 467
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): <0.01
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 180,000
• 30 Day Avg. Volume: 125,333
• PEG Ratio: 0.03
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 0.69
• 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: 76 Outperform
• Price Target: HK$0.22 ▲(10.00% Upside)

The stock of Progressive Path Group Holdings Ltd. scores well due to its strong financial performance and undervaluation, with technical indicators supporting a bullish outlook. The main risks include declining gross profit margins and free cash flow growth, which need to be monitored.

Positive Factors

Diversified business model

Operating across property development, asset management and financial services gives durable revenue diversification, smoothing cyclical swings in real estate sales. Multiple income streams support stability in cash flows and strategic flexibility to reallocate capital between higher-return opportunities.

Improving leverage profile

A lower debt-to-equity and near-50% equity ratio increase financial resilience for funding development cycles and absorbing market shocks. Improved leverage enhances borrowing optionality and reduces refinancing risk, supporting sustained investment in projects and long-term growth execution.

Recurring fee-based asset management

Fee-generating asset management provides recurring, less capital-intensive revenue that complements project-based property sales. Stable management fees help maintain predictable operating cash flow, support margins over cycles, and reduce reliance on timing of property disposals.

Negative Factors

Declining gross profit margin

A falling gross margin signals rising costs or pricing pressure in core property and service lines, which can compress long-term profitability. Without sustained cost control or pricing power, margin erosion will reduce reinvestment capacity and weaken ability to fund development and dividend policies.

Decreasing free cash flow

A material decline in free cash flow constrains the firm's ability to finance projects internally, service obligations, or return capital. Persistently weaker FCF raises reliance on external funding, increasing refinancing and execution risk for capital-intensive property developments.

Recent revenue growth weakness

Negative recent revenue growth suggests uneven project deliveries, sales timing issues, or softer demand. If the top-line contraction persists, it will pressure margins, cash generation and the company’s ability to scale asset management fees, undermining medium-term earnings momentum.

Progressive Path Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Progressive Path Group Holdings Limited, an investment holding company, engages in the construction works, and construction machinery rental business. It undertakes various construction projects, including the foundation and site formation, builder's, and general building works. The company is also involved in the rental of construction machineries and vehicles, as well as provision of machine operator and transportation services. It serves the construction work companies operating in public and/or private construction projects primarily in Hong Kong. The company was incorporated in 2016 and is headquartered in Tuen Mun, Hong Kong. Progressive Path Group Holdings Limited is a subsidiary of Profit Gold Global Limited.

How the Company Makes Money

Progressive Path Group Holdings Ltd. generates revenue through multiple key streams. Primarily, the company earns income from property development projects, where it develops residential and commercial properties for sale or lease. Additionally, the company has a significant asset management division that generates fees from managing investment portfolios and real estate assets on behalf of clients. Financial services, including consultancy and advisory services related to investment opportunities, also contribute to its revenue. Strategic partnerships with other real estate firms and financial institutions further bolster its earnings by providing access to larger projects and investment opportunities, enhancing its overall market presence.

Progressive Path Group Holdings Ltd. Financial Statement Overview

Summary

Progressive Path Group Holdings Ltd. demonstrates strong revenue growth and operational efficiency, with improving leverage ratios and effective equity utilization. However, declining gross profit margins and free cash flow growth present challenges that need addressing to sustain long-term financial health.

Income Statement

Progressive Path Group Holdings Ltd. has shown strong revenue growth with a 49.6% increase in the latest year, indicating a positive trajectory. The gross profit margin is modest at 6.94%, and the net profit margin is 3.73%, reflecting moderate profitability. The EBIT and EBITDA margins are 4.40% and 15.12%, respectively, suggesting efficient operational performance. However, the decline in gross profit margin from the previous year indicates potential cost management issues.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.40, indicating reduced leverage and a stronger equity position. Return on equity is at 11.73%, showing effective use of equity to generate profits. The equity ratio stands at 49.19%, reflecting a stable financial structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

Operating cash flow is healthy, with a coverage ratio of 0.39, indicating good cash generation relative to net income. However, free cash flow has decreased by 17.73%, which could impact future investments. The free cash flow to net income ratio is 0.70, suggesting that a significant portion of net income is converted into free cash flow, but the decline in growth is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	913.78M	913.78M	728.53M	511.02M	515.95M	435.59M
Gross Profit	63.44M	63.44M	57.77M	3.68M	33.64M	21.92M
EBITDA	102.04M	138.19M	140.78M	86.95M	90.86M	67.06M
Net Income	34.10M	34.10M	22.22M	-21.96M	12.13M	3.74M
Balance Sheet
Total Assets	590.76M	590.76M	597.27M	567.11M	471.06M	389.74M
Cash, Cash Equivalents and Short-Term Investments	30.40M	30.40M	39.77M	27.31M	17.26M	16.78M
Total Debt	117.02M	117.02M	186.66M	213.00M	182.16M	114.27M
Total Liabilities	300.05M	300.05M	340.65M	332.72M	266.95M	197.76M
Stockholders Equity	290.71M	290.71M	256.63M	234.41M	204.13M	192.00M
Cash Flow
Free Cash Flow	75.76M	75.77M	88.47M	38.04M	32.85M	17.05M
Operating Cash Flow	107.52M	107.52M	102.33M	79.20M	75.68M	50.32M
Investing Cash Flow	-32.34M	-25.98M	-17.97M	-44.12M	-41.26M	-24.36M
Financing Cash Flow	-68.85M	-79.60M	-83.22M	-25.02M	-33.95M	-22.68M

Progressive Path Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1581, the sentiment is Positive. The current price of 0.2 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.20, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.91 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1581.

Progressive Path Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1581	76 Outperform	HK$89.64M	3.59	8.86%	―	-12.78%	-20.50%
9930	71 Outperform	HK$3.20B	4.40	5.93%	8.56%	7.48%	-32.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1496	62 Neutral	HK$145.15M	11.51	5.46%	6.20%	-13.83%	14.96%
8425	50 Neutral	HK$33.84M	-2.41	-13.79%	―	23.95%	-12.01%
1341	48 Neutral	HK$954.20M	-4.30	-13.83%	―	-42.20%	66.04%
8612	47 Neutral	HK$48.94M	-0.47	-202.44%	―	1.88%	34.21%

Progressive Path Group Holdings Ltd. Corporate Events

Progressive Path Director’s Passing Triggers Temporary Non-Compliance With HK Listing Rules

Progressive Path Group Holdings Limited has announced the passing of independent non-executive director Mr. Wong Yiu Kit Ernest, who also served as chairman of the remuneration committee and a member of the audit and nomination committees, and paid tribute to his decade-long professional contribution to the board. His death leaves the company temporarily non-compliant with several Hong Kong listing rules regarding the minimum number and proportion of independent non-executive directors on the board and key committees, prompting the company to seek suitable replacements within three months while emphasizing that its operations continue as normal and are not adversely affected.

The most recent analyst rating on (HK:1581) stock is a Buy with a HK$0.22 price target. To see the full list of analyst forecasts on Progressive Path Group Holdings Ltd. stock, see the HK:1581 Stock Forecast page.

Progressive Path Group Sets Out Board and Committee Structure

Progressive Path Group Holdings Limited has announced the current composition of its board of directors, comprising two executive directors, Mr. Wu Wing Hang (who also serves as chairman) and Mr. Chan Tak Ming, and two independent non-executive directors, Mr. Lee Man Tai and Ms. Tong Sze Sze Cecilia. The company has also detailed the structure of its three key board committees—Audit, Remuneration, and Nomination—clarifying chairmanships and memberships, which enhances transparency in its governance framework and signals continued adherence to corporate governance standards important to shareholders and regulators.

The most recent analyst rating on (HK:1581) stock is a Buy with a HK$0.22 price target. To see the full list of analyst forecasts on Progressive Path Group Holdings Ltd. stock, see the HK:1581 Stock Forecast page.

Progressive Path Group Reports Decline in Interim Financial Results

Progressive Path Group Holdings Limited announced a significant decrease in financial performance for the six months ending September 30, 2025, with revenue dropping by 25.2% compared to the same period in 2024. The company’s gross profit and profit attributable to owners also saw substantial declines, leading to a reduced gross profit margin and earnings per share. The board has decided not to recommend an interim dividend, reflecting the challenging market conditions and financial results.

The most recent analyst rating on (HK:1581) stock is a Buy with a HK$0.19 price target. To see the full list of analyst forecasts on Progressive Path Group Holdings Ltd. stock, see the HK:1581 Stock Forecast page.

Progressive Path Group Holdings Issues Profit Warning Amidst Market Challenges

Progressive Path Group Holdings Ltd. has issued a profit warning, indicating a significant decrease in profit for the six months ending September 2025, compared to the same period in 2024. The decline is attributed to a 25% drop in revenue due to reduced construction activities and machinery rentals, alongside increased market competition affecting profit margins. This announcement suggests potential challenges for the company in maintaining its market position amidst a subdued construction market.

The most recent analyst rating on (HK:1581) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Progressive Path Group Holdings Ltd. stock, see the HK:1581 Stock Forecast page.

Progressive Path Group Holdings Schedules Board Meeting for Interim Results

Progressive Path Group Holdings Ltd. has announced that its board of directors will meet on November 27, 2025, to review and approve the unaudited interim results for the six months ending September 30, 2025. This meeting will also address the potential recommendation of an interim dividend. The announcement signifies a routine yet important step in the company’s financial reporting and could have implications for shareholder returns if a dividend is declared.

The most recent analyst rating on (HK:1581) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Progressive Path Group Holdings Ltd. stock, see the HK:1581 Stock Forecast page.