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

• Market Cap: HK$996.80M
• Dividend Yield: 7.87%
• Average Volume (3M): 389.07K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 0.45
• Revenue Growth: 16.66%
• EPS Growth: 99.90%
• Country: HK
• Employees: 8,429
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.10
• Shares Outstanding: 1,120,000,000
• 10 Day Avg. Volume: 368,800
• 30 Day Avg. Volume: 389,066
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$1.00
• Price Target Upside: 12.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$1.00 ▲(12.36% Upside)

The overall stock score is driven by strong financial performance, particularly in revenue and profit growth, and attractive valuation with a low P/E ratio and high dividend yield. However, cash flow concerns and overbought technical indicators present cautionary signals.

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

Company Description

Prosperous 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 Money

Prosperous 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

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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	243.61M	208.14M	218.19M	146.67M	156.02M
Gross Profit	61.01M	43.75M	40.59M	31.27M	31.02M
EBITDA	31.41M	21.16M	14.16M	6.00M	7.41M
Net Income	29.84M	14.88M	10.35M	3.90M	2.99M
Balance Sheet
Total Assets	220.56M	195.69M	189.83M	190.78M	192.61M
Cash, Cash Equivalents and Short-Term Investments	77.12M	58.51M	48.63M	53.69M	82.52M
Total Debt	2.50M	3.22M	5.13M	7.54M	7.90M
Total Liabilities	49.65M	46.74M	48.21M	51.24M	47.80M
Stockholders Equity	170.91M	148.95M	141.62M	139.54M	144.81M
Cash Flow
Free Cash Flow	25.13M	16.56M	3.87M	-10.01M	32.04M
Operating Cash Flow	27.04M	18.55M	6.39M	-9.13M	32.64M
Investing Cash Flow	11.05M	-4.72M	-1.37M	22.02M	-29.48M
Financing Cash Flow	-9.06M	-7.73M	-7.43M	-12.79M	-2.46M

Prosperous Industrial (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.89
• 50DMA: Positive
• 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:1731, the sentiment is Positive. The current price of 0.89 is above the 20-day moving average (MA) of 0.86, above the 50-day MA of 0.80, and above the 200-day MA of 0.77, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 67.90 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1731	72 Outperform	HK$996.80M	4.28	18.71%	7.87%	16.66%	99.90%
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
DPNEF	―	$121.52M	7.06	15.44%	5.02%	―	―
2683	82 Outperform	HK$326.90M	5.09	23.19%	8.86%	21.82%	125.68%
1023	62 Neutral	HK$500.61M	5.10	-1.08%	11.32%	-4.68%	-112.44%
0676	50 Neutral	HK$745.26M	261.76	-1.37%	0.98%	-3.15%	-330.61%
8285	39 Underperform	HK$18.48M	―		―	-35.21%	-19.75%

Prosperous Industrial (Holdings) Ltd. Corporate Events

Prosperous Industrial Announces Board Changes

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

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.

Prosperous Industrial Secures Shareholder Approval for Key Resolutions at AGM

Prosperous Industrial (Holdings) Limited announced that all resolutions proposed at their annual general meeting on June 16, 2025, were approved by shareholders. The resolutions included the adoption of financial statements, approval of a final dividend, re-election of directors, and re-appointment of Ernst & Young as auditors. Additionally, mandates were granted to issue and repurchase shares. The approval of these resolutions reflects strong shareholder support and positions the company for continued operational and strategic initiatives.