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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:74Outperform
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. (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.
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
Positive
Last Price0.80
Price Trends
50DMA
0.71
Positive
100DMA
0.74
Positive
200DMA
0.74
Positive
Market Momentum
MACD
0.02
Negative
RSI
74.23
Negative
STOCH
96.97
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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$896.00M3.8518.71%8.75%16.66%99.90%
64
Neutral
£1.70B10.486.12%260.21%0.58%-32.48%
$113.42M3.00
11.82%
78
Outperform
HK$330.99M5.1523.19%21.33%14.78%56.67%
54
Neutral
HK$471.72M5.10-1.08%12.24%-4.68%-112.44%
51
Neutral
HK$19.60M
-35.21%-19.75%
49
Neutral
HK$737.96M261.76-1.37%0.99%-3.15%-330.61%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1731
Prosperous Industrial (Holdings) Ltd.
0.80
0.22
37.93%
DPNEF
Daphne International Holdings
0.02
0.00
0.00%
HK:1023
Sitoy Group Holdings Limited
0.50
-0.03
-5.66%
HK:2683
Wah Sun Handbags International Holdings Ltd.
0.74
0.37
100.00%
HK:0676
Pegasus International Holdings Limited
1.01
0.22
27.85%
HK:8285
Sling Group Holdings Ltd.
0.04
0.02
100.00%

Prosperous Industrial (Holdings) Ltd. Corporate Events

Prosperous Industrial Secures Shareholder Approval for Key Resolutions at AGM
Jun 16, 2025

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
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.

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: Jul 08, 2025