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Prosperous Industrial (Holdings) Ltd. (HK:1731)
:1731
Hong Kong Market
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Prosperous Industrial (Holdings) Ltd. (1731) AI Stock Analysis

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HK:1731

Prosperous Industrial (Holdings) Ltd.

(1731)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
HK$1.00
▲(28.21% Upside)
The stock is supported by strong financial performance and attractive valuation metrics, particularly its low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, and the lack of cash flow is a critical risk that needs to be managed.

Prosperous Industrial (Holdings) Ltd. (1731) vs. iShares MSCI Hong Kong ETF (EWH)

Prosperous Industrial (Holdings) Ltd. Business Overview & Revenue Model

Company DescriptionProsperous Industrial (Holdings) Limited, an investment holding company, designs, develops, manufactures, and sells recreational bags and packs. Its products include luggage bags, sport bags, laptop cases, and cosmetic bags. The company also trades in and retails sport bags, handbags, and luggage bags; and provides supply chain management services for sports and lifestyle brands. It has operations in the United States, Mainland China, Belgium, Japan, the Netherlands, Hong Kong, and internationally. The company was founded in 1970 and is headquartered in Kwai Chung, Hong Kong. Prosperous Industrial (Holdings) Limited is a subsidiary of Prosperous Holdings (Overseas) Limited.
How the Company Makes MoneyProsperous Industrial (Holdings) Ltd. generates revenue through the sale of its industrial products to a diverse customer base. The company leverages its manufacturing capabilities to produce a wide array of goods, catering to different industrial sectors. Key revenue streams include direct sales to businesses and long-term supply contracts, which provide a stable income. Additionally, the company may engage in strategic partnerships that enhance its market position and expand its distribution channels, contributing to its overall earnings.

Prosperous Industrial (Holdings) Ltd. Financial Statement Overview

Summary
The company shows strong revenue and profit growth with improved margins and a robust balance sheet. However, the lack of operating and free cash flow in 2024 is a significant concern, indicating potential liquidity issues that need addressing.
Income Statement
85
Very Positive
The company exhibits strong revenue growth with a 17% increase from 2023 to 2024. Gross profit margin improved to 25%, and net profit margin increased to 12%, indicating enhanced efficiency and profitability. EBIT and EBITDA margins also showed positive trends, reflecting effective cost management and operational strength.
Balance Sheet
78
Positive
The balance sheet is robust with a low debt-to-equity ratio of 0.01, suggesting minimal leverage and financial stability. Equity ratio is high at 77%, indicating strong shareholder equity backing. Return on equity improved to 17%, highlighting effective utilization of equity to generate profits.
Cash Flow
60
Neutral
Cash flow analysis shows a concerning trend with zero operating and free cash flow in 2024. This raises questions about cash generation capabilities despite strong profitability. Previous years showed positive free cash flow, indicating potential for recovery if cash management is addressed.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue243.61M208.14M218.19M146.67M156.02M
Gross Profit61.01M43.75M40.59M31.27M31.02M
EBITDA31.41M21.16M14.16M6.00M7.41M
Net Income29.84M14.88M10.35M3.90M2.99M
Balance Sheet
Total Assets220.56M195.69M189.83M190.78M192.61M
Cash, Cash Equivalents and Short-Term Investments77.12M58.51M48.63M53.69M82.52M
Total Debt2.50M3.22M5.13M7.54M7.90M
Total Liabilities49.65M46.74M48.21M51.24M47.80M
Stockholders Equity170.91M148.95M141.62M139.54M144.81M
Cash Flow
Free Cash Flow25.13M16.56M3.87M-10.01M32.04M
Operating Cash Flow27.04M18.55M6.39M-9.13M32.64M
Investing Cash Flow11.05M-4.72M-1.37M22.02M-29.48M
Financing Cash Flow-9.06M-7.73M-7.43M-12.79M-2.46M

Prosperous Industrial (Holdings) Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.78
Price Trends
50DMA
0.82
Negative
100DMA
0.78
Positive
200DMA
0.77
Positive
Market Momentum
MACD
-0.01
Positive
RSI
39.77
Neutral
STOCH
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1731, the sentiment is Negative. The current price of 0.78 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.82, and above the 200-day MA of 0.77, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1731.

Prosperous Industrial (Holdings) 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
82
Outperform
HK$367.76M5.7221.79%7.78%21.82%125.68%
70
Outperform
HK$873.60M4.4714.86%8.97%6.92%4.74%
69
Neutral
HK$890.37M7.3214.95%4.44%
62
Neutral
HK$481.35M-2.7612.00%-1.38%-275.02%
47
Neutral
HK$716.04M-64.05-1.39%1.02%-33.72%-550.00%
45
Neutral
HK$19.04M-4.72101.71%-48.40%66.36%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1731
Prosperous Industrial (Holdings) Ltd.
0.78
0.11
16.42%
HK:0210
Daphne International Holdings
0.45
0.21
85.19%
HK:1023
Sitoy Group Holdings Limited
0.51
-0.05
-8.93%
HK:2683
Wah Sun Handbags International Holdings Ltd.
0.90
0.53
143.24%
HK:0676
Pegasus International Holdings Limited
0.98
0.09
10.11%
HK:8285
Sling Group Holdings Ltd.
0.03
<0.01
50.00%

Prosperous Industrial (Holdings) Ltd. Corporate Events

Prosperous Industrial Reports Decline in Interim Profits for 2025
Aug 22, 2025

Prosperous Industrial (Holdings) Limited announced its interim results for the six months ending June 30, 2025, revealing a slight decrease in revenue and profit compared to the same period in 2024. The company’s revenue fell from US$130,719,000 in 2024 to US$126,983,000 in 2025, while profit attributable to shareholders decreased from US$18,858,000 to US$14,108,000. Despite these declines, the company reported a positive exchange difference on foreign operations, contributing to a total comprehensive income of US$14,887,000 for the period.

The most recent analyst rating on (HK:1731) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Prosperous Industrial (Holdings) Ltd. stock, see the HK:1731 Stock Forecast page.

Prosperous Industrial Schedules Board Meeting for Interim Results and Dividend Consideration
Aug 12, 2025

Prosperous Industrial (Holdings) Limited has announced that its Board of Directors will meet on August 22, 2025, to discuss and approve the company’s unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the potential payment of an interim dividend, reflecting the company’s ongoing financial performance and shareholder returns.

Prosperous Industrial Announces Board Changes
Jul 31, 2025

Prosperous Industrial (Holdings) Limited announced a change in its board of directors, with Mr. Lin Wang-Chyan resigning as a non-executive director due to personal commitments, and Mr. Shih Chih-Hung being appointed as his replacement. Mr. Shih brings extensive experience in corporate governance and supply chain management, having held various significant roles in other listed companies. This change is expected to strengthen the company’s board with Mr. Shih’s diverse expertise.

Prosperous Industrial Announces Board Composition and Roles
Jul 31, 2025

Prosperous Industrial (Holdings) Limited has announced the composition of its board of directors and the roles of each member. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit, Nomination, and Remuneration Committees. This announcement clarifies the governance structure and committee responsibilities, potentially impacting decision-making and strategic direction.

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: Sep 20, 2025