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

Prosperous Industrial (Holdings) Ltd. (1731) AI Stock Analysis

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HK

Prosperous Industrial (Holdings) Ltd.

(1731)

Rating:70Outperform
Price Target:
Prosperous Industrial (Holdings) Ltd. has strong financial performance with robust revenue and profit growth, but cash flow management needs attention. The stock is undervalued with a high dividend yield and low P/E ratio. However, bearish technical indicators suggest caution in the near term.

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 manufactured electronic and electrical components. The company leverages its expertise in design and development to create products that meet the specific needs of its clients. Revenue streams primarily include direct sales to industrial and commercial customers, as well as potential partnerships with distributors and other businesses in related sectors. The company's earnings are supported by its commitment to innovation and maintaining competitive pricing strategies, which help capture market share and drive consistent sales growth.

Prosperous Industrial (Holdings) Ltd. Financial Statement Overview

Summary
Prosperous Industrial (Holdings) Ltd. shows strong revenue and profit growth with efficient operations and a solid balance sheet. The company has a low debt-to-equity ratio and high return on equity. However, the cash flow situation requires attention due to zero operating and free cash flow in 2024.
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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
243.61M208.14M218.19M146.67M156.02M
Gross Profit
61.01M43.75M40.59M31.27M31.02M
EBIT
27.06M12.85M11.09M2.35M1.91M
EBITDA
31.41M21.16M14.16M6.00M7.41M
Net Income Common Stockholders
29.84M14.88M10.35M3.90M2.99M
Balance SheetCash, Cash Equivalents and Short-Term Investments
77.12M58.51M48.63M53.69M82.52M
Total Assets
220.56M195.69M189.83M190.78M192.61M
Total Debt
2.50M3.22M5.13M7.54M7.90M
Net Debt
-68.42M-39.05M-38.91M-43.08M-74.62M
Total Liabilities
49.65M46.74M48.21M51.24M47.80M
Stockholders Equity
170.91M148.95M141.62M139.54M144.81M
Cash FlowFree Cash Flow
0.0016.56M3.87M-10.01M32.04M
Operating Cash Flow
0.0018.55M6.39M-9.13M32.64M
Investing Cash Flow
0.00-4.72M-1.37M22.02M-29.48M
Financing Cash Flow
0.00-7.73M-7.43M-12.79M-2.46M

Prosperous Industrial (Holdings) Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.78
Price Trends
50DMA
0.76
Positive
100DMA
0.82
Negative
200DMA
0.80
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
54.29
Neutral
STOCH
88.89
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1731, the sentiment is Positive. The current price of 0.78 is above the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.76, and below the 200-day MA of 0.80, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1731.

Prosperous Industrial (Holdings) Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$873.60M3.7518.71%6.41%16.66%99.90%
62
Neutral
$6.90B11.052.80%4.27%2.67%-24.92%
$10.87B46.326.14%1.06%
$3.27B-11.91%
$3.16B12.254.39%6.08%
$9.10B24.0411.45%0.80%
54
Neutral
HK$215.82M4.70-1.11%-14.43%-161.66%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1731
Prosperous Industrial (Holdings) Ltd.
0.78
0.16
25.81%
SBMFF
Sino Biopharmaceutical
0.70
0.35
100.00%
GCPEF
GCL-Poly Energy Holdings
0.11
-0.05
-31.25%
GTWCF
Greentown China Holdings
1.07
0.08
8.08%
SNPTF
Sunny Optical Technology (Group) Co
8.58
2.39
38.61%
HK:1399
Veson Holdings Limited
0.20
-0.02
-9.09%

Prosperous Industrial (Holdings) Ltd. Corporate Events

Prosperous Industrial Announces 2025 Annual General Meeting Agenda
Apr 29, 2025

Prosperous Industrial (Holdings) Limited announced its upcoming annual general meeting scheduled for June 16, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for 2024, approval of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize its directors to issue additional shares, which could impact its capital structure and market positioning.

Prosperous Industrial (Holdings) Limited Reports Strong Financial Growth in 2024
Mar 21, 2025

Prosperous Industrial (Holdings) Limited reported its annual financial results for the year ending December 31, 2024, showing significant growth. The company achieved a revenue of US$243.6 million, up from US$208.1 million in 2023, and a gross profit of US$60.8 million, compared to US$43.8 million the previous year. The profit attributable to shareholders more than doubled to US$29.8 million from US$14.9 million in 2023, indicating a strong financial performance and improved operational efficiency. Despite a slight decrease in other comprehensive income, the overall comprehensive income for shareholders increased to US$29.1 million from US$13.3 million, reflecting the company’s robust market positioning and potential positive implications for stakeholders.

Prosperous Industrial Announces Final Dividend for 2024
Mar 21, 2025

Prosperous Industrial (Holdings) Limited has announced a final cash dividend of HKD 0.07 per share for the financial year ending 31 December 2024. The dividend reflects the company’s financial performance and commitment to returning value to shareholders, with the payment scheduled for 18 July 2025, following shareholder approval on 16 June 2025. This announcement may enhance investor confidence and influence the company’s market positioning positively.

Prosperous Industrial Schedules Board Meeting to Approve Annual Results
Mar 11, 2025

Prosperous Industrial (Holdings) Limited has announced that its Board of Directors will meet on March 21, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend payment, which could impact shareholders and the company’s financial strategy.

Prosperous Industrial Expects Up to 110% Profit Surge in FY2024
Feb 28, 2025

Prosperous Industrial (Holdings) Limited has announced a significant expected increase in profit for the fiscal year ending December 31, 2024, with an anticipated rise of 90% to 110% compared to the previous year. This growth is attributed to strong demand in Asia and Europe and improved production efficiency, although the results are preliminary and subject to final adjustments.

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.