Prinx Chengshan Holdings Limited (1809) AI Stock Analysis

• Market Cap: HK$4.85B
• Dividend Yield: 13.14%
• Average Volume (3M): 550.62K
• Price to Earnings (P/E): 3.4
• Beta (1Y): 0.02
• Revenue Growth: 8.48%
• EPS Growth: 25.41%
• Country: HK
• Employees: 6,818
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): 2.23
• Shares Outstanding: 637,694,000
• 10 Day Avg. Volume: 542,150
• 30 Day Avg. Volume: 550,616
• PEG Ratio: 0.20
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.42
• 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

• Rating: 81 Outperform
• Price Target: HK$9.50 ▲(24.84%Upside)

Prinx Chengshan Holdings Limited receives a high overall score due to strong financial performance, attractive valuation, and positive technical indicators. The low P/E ratio and high dividend yield significantly enhance its investment appeal. The stock's technical indicators suggest continued positive momentum, though attention should be paid to capital expenditures impacting cash flows.

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's key revenue streams include the domestic market in China and international markets across Asia, Europe, and the Americas. Prinx Chengshan benefits from its extensive distribution network and strategic partnerships with automotive manufacturers, which boost its sales channels. Additionally, the company invests in research and development to enhance its product offerings, ensuring a competitive edge in the tire industry. This focus on innovation not only helps in retaining existing customers but also attracts new ones, contributing significantly to its earnings.

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 generates healthy cash flows, though high capital expenditures could impact future cash flows.

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

Prinx Chengshan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.61
• 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 Positive. The current price of 7.61 is below the 20-day moving average (MA) of 7.69, above the 50-day MA of 7.56, and above the 200-day MA of 7.47, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 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	81 Outperform	HK$4.85B	3.41	21.97%	13.14%	8.48%	25.41%
Sector *	62 Neutral	C$5.25B	11.07	18.94%	3.79%	5.08%	6.52%
CWWGF		$187.08M	4.64	4.62%	3.23%	―	―
TIANF		$908.14M	7.06	7.12%	0.30%	―	―
XNGIF		$306.62M	6.49	4.28%	12.94%	―	―
W4K1		€1.03B	21.38	9.28%	1.19%	―	―
1571	82 Outperform	HK$3.82B	6.26	16.20%	15.75%	1.42%	-8.76%

Prinx Chengshan Holdings Limited Corporate Events

Prinx Chengshan Approves HK$35 Million Payment for Share Award Scheme

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

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

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.

Prinx Chengshan Holdings Limited Announces AGM and Key Resolutions

Prinx Chengshan Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 23, 2025, where key resolutions will be discussed. The agenda includes the adoption of the company’s financial statements for 2024, a proposed final dividend of HK$0.50 per share, re-election of directors, and the re-appointment of PricewaterhouseCoopers as auditors. Additionally, the meeting will consider authorizing the board to issue additional shares, which could impact the company’s capital structure and shareholder value.