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

• Market Cap: HK$85.07M
• Dividend Yield: N/A
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 2.5
• Beta (1Y): 0.40
• Revenue Growth: 62.06%
• EPS Growth: N/A
• Country: HK
• Employees: 467
• Sector: Industrials
• Sector Strength: 92
• Industry: Rental & Leasing Services
• EPS (TTM): 0.05
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 291,600
• 30 Day Avg. Volume: 3,381,066
• PEG Ratio: 0.01
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.71
• 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

• Rating: 78 Outperform
• Price Target: ―

Progressive Path Group Holdings Ltd. demonstrates strong financial performance with impressive revenue and cash flow growth. The technical analysis reflects positive momentum, supported by the stock's position above key moving averages. Furthermore, the low P/E ratio suggests the stock is undervalued, making it an attractive investment opportunity despite minor concerns over historical EBIT volatility and absence of dividend yield.

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 two primary streams: construction services and machinery rental. The construction services segment involves undertaking construction projects, where the company earns money by completing construction contracts for various buildings and infrastructure projects. Revenue is typically recognized based on the progress of these projects. The machinery rental segment provides construction equipment and machinery on a rental basis to other construction firms. This segment earns revenue through the leasing of machinery, which is essential for construction projects that require specialized equipment. Additionally, strategic partnerships with other construction companies and government entities may contribute to the company's earnings by securing long-term contracts and projects.

Progressive Path Group Holdings Ltd. Financial Statement Overview

Summary

Progressive Path Group Holdings Ltd. has demonstrated strong financial improvements over the past year, particularly in revenue growth and cash flow generation. The company has successfully increased its profitability margins and improved its leverage ratios. However, it continues to face challenges with historical EBIT volatility and maintaining a balanced debt management strategy.

Income Statement

The company has shown impressive revenue growth from 2023 to 2024 with a 42.57% increase. The Gross Profit Margin improved significantly from 0.72% in 2023 to 7.93% in 2024. Net Profit Margin also turned positive at 3.05% after a negative margin in 2023. EBIT and EBITDA Margins have improved, indicating better operational efficiency. However, the company has experienced volatility in EBIT historically.

Balance Sheet

The company's Debt-to-Equity Ratio decreased from 0.91 in 2023 to 0.73 in 2024, reflecting an improved leverage position. Return on Equity improved to 8.66% in 2024 from a negative value in 2023. The Equity Ratio slightly increased from 41.34% to 42.96%, indicating a stable financial position. However, the company still carries a significant debt load relative to equity.

Cash Flow

The company reported strong Free Cash Flow growth of 132.51% from 2023 to 2024. The Operating Cash Flow to Net Income Ratio is robust, indicating strong cash generation relative to net income. The Free Cash Flow to Net Income Ratio also suggests efficient cash management. The cash flow stability provides a solid foundation for future growth.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	909.28M	728.53M	511.02M	515.95M	435.59M	312.07M
Gross Profit	72.38M	57.77M	3.68M	33.64M	21.92M	13.34M
EBITDA	75.20M	140.78M	86.95M	90.86M	67.06M	49.93M
Net Income	31.38M	22.22M	-21.96M	12.13M	3.74M	-15.60M
Balance Sheet
Total Assets	613.28M	597.27M	567.11M	471.06M	389.74M	362.79M
Cash, Cash Equivalents and Short-Term Investments	64.45M	39.77M	27.31M	17.26M	16.78M	13.51M
Total Debt	154.17M	186.66M	213.00M	182.16M	114.27M	100.29M
Total Liabilities	344.49M	340.65M	332.72M	266.95M	197.76M	174.55M
Stockholders Equity	268.81M	256.63M	234.41M	204.13M	192.00M	188.26M
Cash Flow
Free Cash Flow	92.10M	88.47M	38.04M	32.85M	17.05M	27.22M
Operating Cash Flow	118.13M	102.33M	79.20M	75.68M	50.32M	70.53M
Investing Cash Flow	-25.91M	-17.97M	-44.12M	-41.26M	-24.36M	-38.46M
Financing Cash Flow	-76.47M	-83.22M	-25.02M	-33.95M	-22.68M	-61.22M

Progressive Path Group Holdings Ltd. Technical Analysis

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

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 0.18, above the 50-day MA of 0.14, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 58.52 is Neutral, neither overbought nor oversold. The STOCH value of 57.33 is Neutral, 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	78 Outperform	HK$85.07M	2.48	12.46%	―	62.06%	―
1496	70 Neutral	HK$139.97M	11.49	5.26%	4.69%	12.88%	15.45%
9930	70 Neutral	HK$3.71B	3.79	8.08%	7.76%	18.52%	-9.41%
Sector *	58 Neutral	HK$14.15B	4.41	-3.01%	7.30%	3.67%	-54.16%
8425	44 Neutral	HK$20.30M	―	-23.63%	―	-1.62%	-4280.00%
8612	41 Neutral	HK$8.19M	―	-107.28%	―	-29.81%	23.43%
1341	39 Underperform	HK$2.90B	―	-19.11%	―	-17.22%	-561.80%