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

• Market Cap: HK$72.62M
• Dividend Yield: N/A
• Average Volume (3M): 718.33K
• Price to Earnings (P/E): 2.1
• Beta (1Y): 0.43
• Revenue Growth: 25.43%
• EPS Growth: 53.36%
• Country: HK
• Employees: 467
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.05
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 299,000
• 30 Day Avg. Volume: 718,333
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 177.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 72 reflects strong valuation metrics, with the stock appearing undervalued based on its low P/E ratio. Financial performance is solid, with notable revenue growth and operational efficiency, though challenges in profit margins and cash flow growth need attention. Technical analysis indicates neutral market sentiment, with no strong momentum in either direction.

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 streams, primarily by investing in and managing a portfolio of properties and ventures across its focus sectors. The company earns income from rental properties, which provide a steady cash flow, as well as from capital gains through the appreciation of its real estate assets. Additionally, the company may engage in financial services, including investment management, consultancy, and advisory services, which contribute to its revenue. Strategic partnerships with other firms in technology and infrastructure sectors also play a significant role in expanding its market reach and enhancing its income potential. Overall, the company's diversified approach allows it to navigate market fluctuations and maximize profitability.

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	909.28M	913.78M	728.53M	511.02M	515.95M	435.59M
Gross Profit	72.38M	63.44M	57.77M	3.68M	33.64M	21.92M
EBITDA	75.20M	138.19M	140.78M	86.95M	90.86M	67.06M
Net Income	31.38M	34.10M	22.22M	-21.96M	12.13M	3.74M
Balance Sheet
Total Assets	613.28M	590.76M	597.27M	567.11M	471.06M	389.74M
Cash, Cash Equivalents and Short-Term Investments	64.45M	30.40M	39.77M	27.31M	17.26M	16.78M
Total Debt	154.17M	117.02M	186.66M	213.00M	182.16M	114.27M
Total Liabilities	344.49M	300.05M	340.65M	332.72M	266.95M	197.76M
Stockholders Equity	268.81M	290.71M	256.63M	234.41M	204.13M	192.00M
Cash Flow
Free Cash Flow	92.10M	75.77M	88.47M	38.04M	32.85M	17.05M
Operating Cash Flow	118.13M	107.52M	102.33M	79.20M	75.68M	50.32M
Investing Cash Flow	-26.27M	-25.98M	-17.97M	-44.12M	-41.26M	-24.36M
Financing Cash Flow	-70.29M	-79.60M	-83.22M	-25.02M	-33.95M	-22.68M

Progressive Path Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.18 is above the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 74.75 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	72 Outperform	HK$72.62M	2.13	12.46%	―	25.43%	53.36%
9930	71 Outperform	HK$4.00B	5.50	7.82%	7.72%	7.48%	-32.35%
1496	68 Neutral	HK$147.74M	12.13	5.19%	5.03%	-7.95%	17.50%
8425	52 Neutral	HK$25.94M	-1.05	-26.79%	―	-1.62%	-4280.00%
1341	50 Neutral	HK$2.22B	-9.60	-21.76%	―	-16.18%	59.05%
8612	40 Underperform	HK$8.61M	-0.28	-207.90%	―	1.88%	34.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Progressive Path Group Holdings Ltd. Corporate Events

Progressive Path Group Holdings Ltd. Announces AGM and Key Resolutions

Progressive Path Group Holdings Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for August 22, 2025, in Hong Kong. Key agenda items include the approval of audited financial statements for the year ending March 31, 2025, re-election of directors, and re-appointment of the company’s auditor. Additionally, the company seeks shareholder approval for a general mandate to issue new shares, which could impact its capital structure and shareholder value.

Progressive Path Group Holdings Sees Revenue Surge by 25.4% in 2025

Progressive Path Group Holdings Limited, listed on the Hong Kong Stock Exchange, reported a significant financial performance for the year ending March 31, 2025. The company achieved a 25.4% increase in revenue, amounting to approximately HK$913.8 million, and a 53.4% rise in profit attributable to owners, reaching HK$34.1 million. Despite the growth in revenue and profit, the gross profit margin decreased from 7.9% to 6.9%. The board decided not to recommend a final dividend for the year.

Progressive Path Group Holdings Forms Nomination Committee to Enhance Board Governance

Progressive Path Group Holdings Limited has established a Nomination Committee to oversee the nomination process for its board of directors. The committee is tasked with developing and reviewing the nomination policy, assessing board composition and diversity, and recommending qualified individuals for board positions. This move aims to enhance the company’s corporate governance and align its board composition with its corporate strategy, potentially impacting its operational effectiveness and stakeholder confidence.

Progressive Path Group Holdings Expects Significant Profit Growth

Progressive Path Group Holdings Limited has issued a positive profit alert, indicating an expected increase in net profit for the year ending March 31, 2025, ranging from approximately HK$32.0 million to HK$35.0 million, compared to HK$22.2 million the previous year. This growth is attributed to an income tax credit and a 25% revenue increase due to new contracts and variation orders. The final results are yet to be audited, and stakeholders are advised to await the official annual results announcement.

Progressive Path Group Holdings Schedules Board Meeting to Approve Annual Results

Progressive Path Group Holdings Limited has announced an upcoming board meeting scheduled for June 27, 2025. During this meeting, the board will consider and approve the company’s annual results for the fiscal year ending March 31, 2025, and discuss the potential recommendation of a final dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting investor confidence and market positioning.