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

• Market Cap: HK$896.00M
• Dividend Yield: 8.75%
• Average Volume (3M): 393.60K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.42
• Revenue Growth: 16.66%
• EPS Growth: 99.90%
• Country: HK
• Employees: 8,429
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Footwear & Accessories
• EPS (TTM): 0.08
• Shares Outstanding: 1,120,000,000
• 10 Day Avg. Volume: 616,000
• 30 Day Avg. Volume: 393,600
• PEG Ratio: 0.13
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.95
• Enterprise Value/Market Cap: 0.04
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.52
• Enterprise Value/Ebitda: 0.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$1.00 ▲(25.00%Upside)

Prosperous Industrial (Holdings) Ltd. benefits from strong financial performance and attractive valuation, with effective cost management and a high dividend yield. However, cash flow concerns need addressing, and short-term technical indicators warn of potential pullbacks.

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 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

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: 0.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 0.8 is above the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.71, and above the 200-day MA of 0.74, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 74.23 is Negative, neither overbought nor oversold. The STOCH value of 96.97 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1731	74 Outperform	HK$896.00M	3.85	18.71%	8.75%	16.66%	99.90%
Sector *	64 Neutral	£1.70B	10.48	6.12%	260.21%	0.58%	-32.48%
DPNEF		$113.42M	3.00		11.82%	―	―
2683	78 Outperform	HK$330.99M	5.15	23.19%	21.33%	14.78%	56.67%
1023	54 Neutral	HK$471.72M	5.10	-1.08%	12.24%	-4.68%	-112.44%
8285	51 Neutral	HK$19.60M	―		―	-35.21%	-19.75%
0676	49 Neutral	HK$737.96M	261.76	-1.37%	0.99%	-3.15%	-330.61%

Prosperous Industrial (Holdings) Ltd. Corporate Events

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.

Prosperous Industrial Announces 2025 Annual General Meeting Agenda

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.