Prinx Chengshan Holdings Limited (1809) AI Stock Analysis

• Market Cap: HK$4.53B
• Dividend Yield: 9.05%
• Average Volume (3M): 108.93K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.11
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: HK$8.00 ▲(11.42% 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.

Prinx Chengshan Holdings Limited Business Overview & Revenue Model

Company Description

Prinx Chengshan Holdings Limited (1809) is a leading tire manufacturer headquartered in China, specializing in the production of a wide range of tires for various applications including passenger vehicles, commercial vehicles, and industrial machinery. The company operates in the automotive sector, focusing on the design, research and development, manufacturing, and distribution of tires that cater to both domestic and international markets. With a commitment to quality and innovation, Prinx Chengshan has established itself as a competitive player in the global tire industry.

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: Positive
• Last Price: 7.18
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 7.18 is above the 20-day moving average (MA) of 7.13, above the 50-day MA of 7.16, and below the 200-day MA of 7.39, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 44.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$4.53B	4.16	15.64%	9.05%	2.85%	-33.83%
1571	76 Outperform	HK$3.97B	7.62	13.59%	12.72%	-3.80%	-27.62%
1899	75 Outperform	$2.58B	8.70	4.28%	17.43%	-6.74%	-44.75%
0819	69 Neutral	HK$9.59B	8.62	6.29%	1.99%	-44.94%	-43.85%
0951	65 Neutral	$1.56B	4.96	4.54%	3.07%	24.79%	-2.24%
1057	65 Neutral	HK$10.29B	19.39	9.59%	1.36%	35.32%	24.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Prinx Chengshan Holdings Limited Corporate Events

Prinx Chengshan Updates on Thailand Tire Production Base

Prinx Chengshan Holdings Limited announced an update regarding its tire production base in Thailand, which has undergone improvement work and is temporarily suspended from September 5, 2025. The company assures compliance with Thai laws and regulations and does not anticipate a significant financial impact from recent events in Thailand.

The most recent analyst rating on (HK:1809) stock is a Buy with a HK$8.00 price target. To see the full list of analyst forecasts on Prinx Chengshan Holdings Limited stock, see the HK:1809 Stock Forecast page.

Prinx Chengshan Updates Governance Structure with Revised Committee Terms

Prinx Chengshan Holdings Limited has revised the terms of reference for its Nomination and Remuneration Committee, effective from July 2025, to align with the Corporate Governance Codes of the HKEx. This move is expected to enhance the company’s governance structure by ensuring a majority of independent non-executive directors and promoting diversity within the committee.

The most recent analyst rating on (HK:1809) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Prinx Chengshan Holdings Limited stock, see the HK:1809 Stock Forecast page.

Prinx Chengshan Releases 2025 Interim Results

Prinx Chengshan Holdings Limited announced its unaudited condensed consolidated interim results for the first half of 2025, highlighting compliance with Hong Kong Stock Exchange regulations. The interim report, available by the end of September 2025, provides stakeholders with insights into the company’s financial performance and governance practices, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (HK:1809) stock is a Buy with a HK$8.50 price target. To see the full list of analyst forecasts on Prinx Chengshan Holdings Limited stock, see the HK:1809 Stock Forecast page.

Prinx Chengshan Holdings to Review Interim Results and Dividend

Prinx Chengshan Holdings Limited has announced a board meeting scheduled for August 26, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact shareholder returns and reflect the company’s financial health.

Prinx Chengshan Resumes Tire Production in Thailand

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

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.