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

Prinx Chengshan Holdings Limited (1809) AI Stock Analysis

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HK

Prinx Chengshan Holdings Limited

(1809)

Rating:81Outperform
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 (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 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
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
Positive
Last Price7.61
Price Trends
50DMA
7.56
Positive
100DMA
7.46
Positive
200DMA
7.47
Positive
Market Momentum
MACD
0.02
Positive
RSI
48.75
Neutral
STOCH
20.00
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$4.85B3.4121.97%13.14%8.48%25.41%
62
Neutral
C$5.25B11.0718.94%3.79%5.08%6.52%
$187.08M4.644.62%3.23%
$908.14M7.067.12%0.30%
$306.62M6.494.28%12.94%
€1.03B21.389.28%1.19%
82
Outperform
HK$3.82B6.2616.20%15.75%1.42%-8.76%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1809
Prinx Chengshan Holdings Limited
7.61
0.61
8.71%
CWWGF
Chaowei Power Holdings
0.17
>-0.01
-5.56%
TIANF
Tianneng Power International
1.00
0.32
47.06%
XNGIF
Xingda International Holdings
0.13
-0.02
-13.33%
DE:W4K1
Zhejiang Shibao Co. Ltd. Class H
0.59
0.36
156.52%
HK:1571
Xin Point Holdings Limited
3.81
1.18
44.87%

Prinx Chengshan Holdings Limited Corporate Events

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.

Prinx Chengshan Holdings Limited Announces AGM and Key Resolutions
Apr 28, 2025

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.

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: Jun 24, 2025