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

• Market Cap: HK$873.60M
• Dividend Yield: 6.41%
• Average Volume (3M): 302.40K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.46
• 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: 360,800
• 30 Day Avg. Volume: 302,400
• PEG Ratio: 0.06
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.20
• Enterprise Value/Market Cap: 0.07
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.96
• Enterprise Value/Ebitda: 0.68
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• 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. 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
	EBIT
27.06M	12.85M	11.09M	2.35M	1.91M
	EBITDA
31.41M	21.16M	14.16M	6.00M	7.41M
	Net Income Common Stockholders
29.84M	14.88M	10.35M	3.90M	2.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.12M	58.51M	48.63M	53.69M	82.52M
	Total Assets
220.56M	195.69M	189.83M	190.78M	192.61M
	Total Debt
2.50M	3.22M	5.13M	7.54M	7.90M
	Net Debt
-68.42M	-39.05M	-38.91M	-43.08M	-74.62M
	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
0.00	16.56M	3.87M	-10.01M	32.04M
	Operating Cash Flow
0.00	18.55M	6.39M	-9.13M	32.64M
	Investing Cash Flow
0.00	-4.72M	-1.37M	22.02M	-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 Price: 0.78
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 0.78 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1731	70 Outperform	HK$873.60M	3.75	18.71%	6.41%	16.66%	99.90%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
SBMFF		$10.87B	46.32	6.14%	1.06%	―	―
GCPEF		$3.27B	―	-11.91%	―	―	―
GTWCF		$3.16B	12.25	4.39%	6.08%	―	―
SNPTF		$9.10B	24.04	11.45%	0.80%	―	―
1399	54 Neutral	HK$215.82M	4.70	-1.11%	―	-14.43%	-161.66%

Prosperous Industrial (Holdings) Ltd. Corporate Events

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.

Prosperous Industrial (Holdings) Limited Reports Strong Financial Growth in 2024

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

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

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

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.