Prinx Chengshan Holdings Limited (1809) AI Stock Analysis

• Market Cap: HK$5.24B
• Dividend Yield: 8.39%
• Average Volume (3M): 108.93K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.17
• Revenue Growth: 2.85%
• EPS Growth: -33.83%
• Country: HK
• Employees: 6,818
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.87
• Shares Outstanding: 638,645,000
• 10 Day Avg. Volume: 91,700
• 30 Day Avg. Volume: 108,933
• PEG Ratio: 0.12
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 6.59
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$9.50 ▲(19.65% Upside)

Prinx Chengshan Holdings Limited's stock is supported by strong financial performance and attractive valuation metrics, including a low P/E ratio and high dividend yield. However, the technical analysis indicates a neutral market sentiment, which slightly tempers the overall score.

Positive Factors

Strong balance sheet and low leverage

Very low debt and a strong equity base provide structural financial resilience across cycles. A 20% ROE indicates efficient capital deployment, supporting reinvestment or shareholder returns while lowering refinancing risk during auto-industry downturns over the next 2–6 months.

Robust profitability and margin profile

Sustained mid-teens EBITDA and double-digit net margins reflect operational efficiency and pricing power across OEM and replacement channels. These margins create durable cash flow buffers to absorb demand variability and support long-term competitiveness and investment plans.

Strong cash generation and FCF growth

Nearly 20% FCF growth and operating cash conversion close to 1x indicate high earnings quality and sustainable cash generation. This strengthens ability to fund capex, dividends or strategic initiatives without heavy reliance on external financing in the medium term.

Negative Factors

Significant capital expenditure needs

High ongoing capex materially reduces free cash available despite strong FCF growth. Persistent investment needs can constrain distributable cash and raise execution risk if demand weakens, requiring sustained revenue and margin performance to justify continued spending.

Negative recent EPS growth

A substantial decline in EPS signals potential profit-per-share pressure despite revenue or margin strengths. If EPS contraction persists, it can limit dividend capacity, reduce internal funding flexibility and indicate one-off or structural earnings headwinds that must be addressed.

Exposure to volatile raw material costs

Heavy reliance on natural rubber and petrochemical inputs exposes margins to commodity price swings and supply shocks. Without durable hedging, pricing power or vertical integration, sustained input inflation could erode profitability and require price increases that risk volume loss.

Prinx Chengshan Holdings Limited Business Overview & Revenue Model

Company Description

Prinx 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 Money

Prinx Chengshan Holdings Limited generates revenue primarily through the sale of its tire products. The company has a diverse revenue model that includes direct sales to original equipment manufacturers (OEMs), aftermarket sales through distributors and retailers, and exports to international markets. Key revenue streams consist of passenger car tires, truck and bus tires, and specialty tires for industrial applications. The company benefits from strategic partnerships with automotive manufacturers and a robust distribution network, which enhances its market reach. Additionally, Prinx Chengshan invests in research and development to innovate and improve its product offerings, thereby attracting a broader customer base and increasing sales. Factors contributing to its earnings include global demand for tires, advancements in production technology, and effective marketing strategies.

Prinx Chengshan Holdings Limited Financial Statement Overview

Summary

Prinx Chengshan Holdings Limited demonstrates 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.32B	10.97B	9.95B	8.15B	7.54B	6.28B
Gross Profit	1.96B	2.33B	2.12B	1.17B	1.04B	1.40B
EBITDA	1.46B	1.87B	1.71B	833.18M	574.07M	924.80M
Net Income	1.01B	1.31B	1.03B	393.78M	276.30M	604.82M
Balance Sheet
Total Assets	10.98B	11.02B	10.60B	9.99B	9.10B	7.49B
Cash, Cash Equivalents and Short-Term Investments	326.01M	704.57M	726.28M	1.24B	835.97M	716.64M
Total Debt	749.30M	809.26M	2.14B	3.12B	2.79B	1.21B
Total Liabilities	4.25B	4.48B	5.17B	5.53B	5.18B	3.71B
Stockholders Equity	6.74B	6.54B	5.43B	4.45B	3.92B	3.78B
Cash Flow
Free Cash Flow	471.33M	667.78M	558.58M	208.12M	-1.02B	-582.10M
Operating Cash Flow	923.14M	1.25B	996.80M	805.42M	382.13M	649.69M
Investing Cash Flow	-451.45M	-515.28M	-306.31M	-681.67M	-1.34B	-1.17B
Financing Cash Flow	-588.91M	-733.82M	-1.13B	89.88M	1.14B	209.10M

Prinx Chengshan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1809, the sentiment is Neutral. The current price of 7.94 is below the 20-day moving average (MA) of 8.18, above the 50-day MA of 7.86, and above the 200-day MA of 7.52, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 62.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1809.

Prinx Chengshan Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1809	78 Outperform	HK$5.24B	4.80	15.64%	8.39%	2.85%	-33.83%
1571	76 Outperform	HK$3.88B	7.44	13.59%	13.26%	-3.80%	-27.62%
1899	75 Outperform	HK$2.96B	9.79	4.28%	18.39%	-6.74%	-44.75%
1057	65 Neutral	HK$15.23B	22.69	9.59%	1.37%	35.32%	24.24%
0951	65 Neutral	HK$1.52B	4.86	4.54%	3.09%	24.79%	-2.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0819	56 Neutral	HK$8.22B	7.39	6.29%	2.39%	-44.94%	-43.85%