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

• Market Cap: HK$90.88M
• Dividend Yield: N/A
• Average Volume (3M): 125.33K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.46
• 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$0.24 ▲(6.82% 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

Revenue Growth

The significant revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and profitability.

Operational Efficiency

High operational efficiency reflects the company's ability to manage costs and optimize processes, contributing to sustained profitability.

Debt Management

Improved debt management enhances financial stability and flexibility, allowing the company to invest in growth opportunities with reduced risk.

Negative Factors

Gross Profit Margin Decline

A declining gross profit margin suggests potential cost management issues, which could pressure profitability if not addressed.

Free Cash Flow Decline

The decline in free cash flow growth may limit the company's ability to fund new projects and strategic initiatives, affecting long-term growth.

Profit Margin Challenges

Moderate net profit margins indicate challenges in achieving higher profitability, which may affect the company's competitive positioning.

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: 0.22
• 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 0.22 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.19, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 62.27 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	76 Outperform	HK$90.88M	3.64	8.86%	―	-12.78%	-20.50%
9930	71 Outperform	HK$3.55B	4.88	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$134.78M	10.68	5.46%	6.20%	-13.83%	14.96%
8425	49 Neutral	HK$33.09M	-2.36	-13.79%	―	23.95%	-12.01%
1341	46 Neutral	HK$876.53M	-3.95	-13.83%	―	-42.20%	66.04%
8612	44 Neutral	HK$11.40M	-0.37	-202.44%	―	1.88%	34.21%

Progressive Path Group Holdings Ltd. Corporate Events

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.

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.

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.