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Prinx Chengshan Holdings Limited (HK:1809)
:1809
Hong Kong Market
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Prinx Chengshan Holdings Limited (1809) AI Stock Analysis

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HK:1809

Prinx Chengshan Holdings Limited

(1809)

Rating:76Outperform
Price Target:
HK$8.00
▲(15.27% Upside)
Prinx Chengshan Holdings Limited has a strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. However, technical indicators suggest a bearish trend, which slightly offsets the positive financial and valuation aspects.

Prinx Chengshan Holdings Limited (1809) vs. iShares MSCI Hong Kong ETF (EWH)

Prinx Chengshan Holdings Limited Business Overview & Revenue Model

Company DescriptionPrinx Chengshan Holdings Limited, an investment holding company, together with its subsidiaries, designs, manufactures, trades in, and distributes tires in the People's Republic of China, Thailand, rest of Asia, the Americas, Africa, the Middle East, and internationally. The company offers steel radial, semi-steel radial, and bias tires used in light and pick-up trucks, buses, mixed road or off-road vehicles, passenger vehicles, sport utility vehicles, and agricultural and industrial off-road vehicles under the Prinx, ChengShan, Austone, and Fortune brand names. It also engages in the research and development of tire technology and equipment, as well as provision of related technical services; trading of inflatable and related products; and provides tire rentals. The company was formerly known as Prinx Chengshan (Cayman) Holding Limited and changed its name to Prinx Chengshan Holdings Limited in June 2021. The company was founded in 1976 and headquartered in Rongcheng, the People's Republic of China. Prinx Chengshan Holdings Limited is a subsidiary of Chengshan Group Co., Ltd.
How the Company Makes MoneyPrinx Chengshan Holdings Limited makes money primarily through the sale of its tire products. The company's revenue streams include its diverse product offerings, which cater to different segments of the automotive market, including passenger cars, trucks, and specialty vehicles. It generates revenue through distribution networks, partnerships, and direct sales to automotive manufacturers and aftermarket retailers. The company benefits from its strategic positioning in the market, leveraging its manufacturing capabilities and innovative product development to maintain competitiveness. Additionally, its presence in both domestic and international markets allows it to capitalize on global automotive trends and demands.

Prinx Chengshan Holdings Limited Financial Statement Overview

Summary
Prinx Chengshan Holdings Limited shows strong financial performance with robust revenue and profit growth, efficient operations, and a solid balance sheet with low leverage. The company is generating healthy cash flows, although high capital expenditures warrant attention.
Income Statement
87
Very Positive
The company demonstrates robust revenue growth with a Revenue Growth Rate of 10.3% in the latest year. Gross Profit Margin stands at 21.2%, and Net Profit Margin at 11.9%, indicating strong profitability. EBIT and EBITDA Margins are 12.9% and 17.1%, respectively, reflecting efficient operational management. However, the gross profit margin has slightly decreased from the previous year.
Balance Sheet
82
Very Positive
Prinx Chengshan's balance sheet is strong, with a Debt-to-Equity Ratio of 0.12, indicating low reliance on debt financing. The Return on Equity (ROE) is impressive at 20.1%, showcasing effective use of equity to generate profits. The Equity Ratio is 59.3%, revealing a solid equity base. The overall financial health is stable, though slightly impacted by a decrease in cash and equivalents.
Cash Flow
75
Positive
The company has achieved a Free Cash Flow Growth Rate of 19.6%, highlighting improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 0.95, suggesting strong cash flow relative to profits. The Free Cash Flow to Net Income Ratio is 0.51, indicating effective cash management. However, the capital expenditure remains significant, which could impact future cash flows.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.97B9.95B8.15B7.54B6.28B
Gross Profit2.33B2.12B1.17B1.04B1.40B
EBITDA1.87B1.71B833.18M574.07M924.80M
Net Income1.31B1.03B393.78M276.30M604.82M
Balance Sheet
Total Assets11.02B10.60B9.99B9.10B7.49B
Cash, Cash Equivalents and Short-Term Investments704.57M726.28M1.24B835.97M716.64M
Total Debt809.26M2.14B3.12B2.79B1.21B
Total Liabilities4.48B5.17B5.53B5.18B3.71B
Stockholders Equity6.54B5.43B4.45B3.92B3.78B
Cash Flow
Free Cash Flow667.78M558.58M208.12M-1.02B-582.10M
Operating Cash Flow1.25B996.80M805.42M382.13M649.69M
Investing Cash Flow-515.28M-306.31M-681.67M-1.34B-1.17B
Financing Cash Flow-733.82M-1.13B89.88M1.14B209.10M

Prinx Chengshan Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.94
Price Trends
50DMA
7.47
Negative
100DMA
7.48
Negative
200DMA
7.37
Negative
Market Momentum
MACD
-0.13
Positive
RSI
35.86
Neutral
STOCH
19.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1809, the sentiment is Negative. The current price of 6.94 is below the 20-day moving average (MA) of 7.23, below the 50-day MA of 7.47, and below the 200-day MA of 7.37, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 35.86 is Neutral, neither overbought nor oversold. The STOCH value of 19.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1809.

Prinx Chengshan Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$4.48B4.1115.64%9.37%2.85%-33.83%
61
Neutral
$17.99B12.87-3.58%2.97%1.27%-14.28%
$209.61M5.184.54%
$1.23B7.656.29%2.67%
$301.36M6.494.28%23.60%
€1.01B19.009.35%
82
Outperform
HK$4.16B7.9813.59%7.16%-3.80%-27.62%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1809
Prinx Chengshan Holdings Limited
6.94
-0.77
-9.99%
CWWGF
Chaowei Power Holdings
0.19
0.02
11.76%
TIANF
Tianneng Power International
0.97
0.08
8.99%
XNGIF
Xingda International Holdings
0.13
-0.05
-27.78%
DE:W4K1
Zhejiang Shibao Co. Ltd. Class H
0.52
0.28
116.67%
HK:1571
Xin Point Holdings Limited
4.19
1.26
43.00%

Prinx Chengshan Holdings Limited Corporate Events

Prinx Chengshan Resumes Tire Production in Thailand
Aug 8, 2025

Prinx Chengshan Holdings Limited announced the resumption of its tire production base in Thailand after receiving approval from the Industrial Estate Authority of Thailand (IEAT). The production base will undergo a 28-day trial period to test equipment for air quality sample collection, ensuring compliance with local regulations. The company does not anticipate any significant financial impact from recent events in Thailand and will keep investors informed as necessary.

Prinx Chengshan Temporarily Halts Tire Production in Thailand
Aug 4, 2025

Prinx Chengshan Holdings Limited has announced a temporary suspension of its tire production base in Thailand due to alleged breaches of industrial waste disposal regulations and pending inspection acceptance for an expansion production line. The company is actively negotiating with the Industrial Estate Authority of Thailand to resolve the issue and expects to clarify the duration of the closure within one to two weeks. While the financial impact is still being assessed, the company does not anticipate a significant effect on its financial condition if the suspension is not prolonged.

Prinx Chengshan Announces Change in Share Registrar
Jul 14, 2025

Prinx Chengshan Holdings Limited has announced a change in its Hong Kong Branch Share Registrar and Transfer Office, effective from 21 July 2025. The new registrar will be Tricor Investor Services Limited, and all applications for registration and transfer of shares should be directed to them from the effective date. This change is part of the company’s administrative updates, potentially impacting stakeholders who need to collect share certificates from the new registrar’s office.

Prinx Chengshan Approves HK$35 Million Payment for Share Award Scheme
Jun 13, 2025

Prinx Chengshan Holdings Limited has announced the approval of a maximum payment of HK$35 million to Futu Trustee Limited, the trustee of its 2024 Share Award Scheme. This payment, intended to cover the purchase price and expenses related to shares granted under the scheme, is considered a connected transaction under the Hong Kong Listing Rules. The transaction is deemed fair and reasonable by the board, aligning with the company’s interests and those of its shareholders.

Prinx Chengshan Announces AGM Results and Board Decisions
May 23, 2025

Prinx Chengshan Holdings Limited announced the results of its Annual General Meeting held on May 23, 2025. Key resolutions passed include the adoption of the company’s financial statements, approval of a final dividend of HK$0.5 per share, re-election of directors, and authorization for the board to determine remuneration and appoint auditors. The meeting also granted the board general mandates to issue and repurchase shares, reflecting a strategic focus on maintaining financial flexibility and shareholder value.

Prinx Chengshan Updates Board of Directors and Roles
May 23, 2025

Prinx Chengshan Holdings Limited has announced the list of its board of directors and their respective roles within the company. This update highlights the company’s governance structure, which includes executive, non-executive, and independent non-executive directors, indicating a balanced approach to management and oversight, potentially impacting its strategic direction and stakeholder confidence.

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: Aug 27, 2025