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Precious Dragon Technology Holdings Ltd. (HK:1861)
:1861
Hong Kong Market

Precious Dragon Technology Holdings Ltd. (1861) AI Stock Analysis

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HK

Precious Dragon Technology Holdings Ltd.

(1861)

Rating:75Outperform
Price Target:
The stock's strengths lie in its robust balance sheet and attractive valuation, making it appealing for risk-averse and income-focused investors. However, challenges in financial performance, such as declining margins and cash flow issues, need to be addressed to ensure long-term growth.

Precious Dragon Technology Holdings Ltd. (1861) vs. iShares MSCI Hong Kong ETF (EWH)

Precious Dragon Technology Holdings Ltd. Business Overview & Revenue Model

Company DescriptionPrecious Dragon Technology Holdings Ltd. (1861) is a manufacturer and distributor of aerosol products, primarily focusing on the production of aerosol cans and the associated filling services. The company operates primarily within the household, personal care, automotive, and industrial sectors, offering a variety of customized solutions to meet specific client needs. Their core products include aerosol products for air fresheners, personal care items, and automotive maintenance.
How the Company Makes MoneyPrecious Dragon Technology Holdings Ltd. generates revenue through the manufacturing and sale of aerosol products, including both the cans themselves and the contents. The company provides comprehensive aerosol filling services, which are often tailored to individual client specifications. Key revenue streams include long-term supply agreements with major consumer goods companies, as well as contracts within the automotive and industrial sectors. The company's earnings are bolstered by their ability to offer bespoke solutions and maintain efficient production processes, ensuring cost-effectiveness and reliability for their clients.

Precious Dragon Technology Holdings Ltd. Financial Statement Overview

Summary
Strong balance sheet with a high equity ratio and low leverage. However, declining revenue and net profit margins, alongside cash flow issues, indicate challenges.
Income Statement
75
Positive
The company shows a strong gross profit margin of 37.07% in 2024, reflecting good cost management and pricing power. However, the net profit margin of 5.56% indicates room for improvement, as it has dropped from the previous year. EBIT and EBITDA margins demonstrate stable operational efficiency, but revenue growth is a concern, with a decline from 2023.
Balance Sheet
82
Very Positive
The balance sheet is solid with a strong equity base, as evidenced by an improving equity ratio of 68.39% in 2024. The debt-to-equity ratio of 0.13 suggests low leverage, minimizing financial risk. ROE decreased to 10.45%, indicating a need for more efficient capital use.
Cash Flow
65
Positive
Cash flow management is an area for improvement, with zero free cash flow reported in 2024. Previous years showed positive free cash flow, highlighting potential fluctuations. The operating cash flow to net income ratio is not available for 2024, making it difficult to assess cash conversion efficiency.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
612.97M557.22M559.78M610.35M665.65M
Gross Profit
227.25M175.90M154.19M157.09M223.52M
EBIT
46.28M67.46M60.76M31.41M98.77M
EBITDA
60.92M99.32M83.33M56.00M117.36M
Net Income Common Stockholders
34.07M56.92M42.00M18.09M53.16M
Balance SheetCash, Cash Equivalents and Short-Term Investments
105.61M114.15M91.39M90.35M161.62M
Total Assets
476.53M484.76M475.21M522.81M521.27M
Total Debt
25.32M35.54M50.94M120.37M68.78M
Net Debt
-80.30M-72.19M-40.45M30.02M-92.84M
Total Liabilities
151.05M176.84M207.56M276.48M295.55M
Stockholders Equity
325.91M308.37M267.88M246.50M225.82M
Cash FlowFree Cash Flow
25.91M57.76M47.41M-20.06M22.33M
Operating Cash Flow
42.05M76.45M67.72M59.99M78.84M
Investing Cash Flow
0.00-17.16M-19.38M-79.93M-56.65M
Financing Cash Flow
0.00-39.27M-43.63M-56.65M-1.55M

Precious Dragon Technology Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.14
Price Trends
50DMA
1.06
Positive
100DMA
1.00
Positive
200DMA
1.27
Negative
Market Momentum
MACD
0.02
Negative
RSI
63.97
Neutral
STOCH
90.00
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1861, the sentiment is Positive. The current price of 1.14 is above the 20-day moving average (MA) of 1.07, above the 50-day MA of 1.06, and below the 200-day MA of 1.27, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 90.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1861.

Precious Dragon Technology Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$266.67M7.8310.74%30.16%10.00%-40.16%
72
Outperform
€27.12B8.6219.19%6.68%5.48%38.91%
70
Outperform
$23.37B16.296.68%3.16%0.24%-31.74%
55
Neutral
HK$24.12B4.36-1.73%9.58%-0.05%-66.27%
52
Neutral
HK$75.31M-21.00%-29.79%-146.84%
51
Neutral
$24.78B-11.91%-56.32%-272.70%
47
Neutral
HK$1.05B-10.39%-13.12%-129.61%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1861
Precious Dragon Technology Holdings Ltd.
1.14
-0.46
-28.75%
HK:1616
A Metaverse Company
0.03
<0.01
50.00%
HK:3800
GCL-Poly Energy Holdings
0.86
-0.35
-28.93%
HK:3336
Ju Teng International Holdings Limited
1.24
0.05
4.20%
HK:1258
China Nonferrous Mining Corp. Ltd.
6.95
0.29
4.28%
HK:6869
Yangtze Optical Fibre and Cable Joint Stock Co
17.00
9.24
119.07%

Precious Dragon Technology Holdings Ltd. Corporate Events

Precious Dragon Technology Forms Nomination Committee
Apr 25, 2025

Precious Dragon Technology Holdings Limited has announced the establishment of a nomination committee within its board of directors. The committee is tasked with overseeing the appointment of directors, ensuring diversity and independence among its members, and maintaining effective governance practices.

Precious Dragon Technology Announces AGM and Key Resolutions
Apr 22, 2025

Precious Dragon Technology Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 21, 2025, in Hong Kong. During the AGM, the company will address several key matters, including the consideration of its audited financial statements for the year ending December 31, 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of the company’s auditor. Additionally, the company seeks approval for the directors to have the authority to allot and issue shares, subject to certain conditions. This announcement is crucial for stakeholders as it outlines the company’s financial health, leadership continuity, and strategic plans for capital management.

Precious Dragon Technology Reports Revenue Growth Amid Profit Decline
Mar 21, 2025

Precious Dragon Technology Holdings Ltd. announced its financial results for the year ending December 31, 2024, reporting a revenue increase to HK$612,967,000 from HK$557,221,000 in 2023. Despite the revenue growth, the company experienced a decline in profit before tax to HK$50,255,000 from HK$72,727,000, attributed to higher selling and distribution expenses and impairment losses on financial assets. The overall comprehensive income for the year also decreased, reflecting challenges in foreign operations. The results indicate a need for strategic adjustments to improve profitability and address operational challenges.

Precious Dragon Technology Holdings Announces Final Dividend for 2024
Mar 21, 2025

Precious Dragon Technology Holdings Limited has announced a final ordinary cash dividend of HKD 0.0219 per share for the financial year ending December 31, 2024. The ex-dividend date is set for June 5, 2025, with the payment date scheduled for July 8, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively.

Precious Dragon Technology Issues Profit Warning Amid Operational Challenges
Mar 18, 2025

Precious Dragon Technology Holdings Ltd. has announced a profit warning and plans to recognize an impairment provision of approximately HK$6.6 million for its production plant in Thailand. The anticipated decline in net profit for FY2024 is attributed to increased promotional expenses and operational challenges, including issues with raw material supply and labor turnover in Thailand, leading to an expected decrease in net profit of at least 39% compared to the previous year.

Precious Dragon Technology Holdings Schedules Board Meeting for Annual Results and Dividend Consideration
Mar 11, 2025

Precious Dragon Technology Holdings Ltd. has announced a board meeting scheduled for March 21, 2025, to review and approve the audited annual results for the year ending December 31, 2024. The meeting will also consider the potential declaration of a final dividend for 2024, which could impact shareholder returns and reflect the company’s financial health.

Precious Dragon Technology’s 2025 Master Supply Agreement Approved at EGM
Feb 28, 2025

Precious Dragon Technology Holdings Ltd. announced that the resolution regarding the 2025 Master Supply Agreement was approved at their Extraordinary General Meeting (EGM) held on February 27, 2025. Despite a miscommunication leading to votes being cast by Mr. Lin and his associates, who were supposed to abstain, the resolution passed unanimously with 100% of the votes from eligible shareholders, ensuring the agreement’s execution and related transactions.

Precious Dragon Technology Secures Shareholder Approval for 2025 Master Supply Agreement
Feb 27, 2025

Precious Dragon Technology Holdings Ltd. announced that during its Extraordinary General Meeting held on February 27, 2025, the resolution regarding the 2025 Master Supply Agreement was approved by the independent shareholders. With 100% of the votes cast in favor, the agreement and its associated transactions were ratified, indicating strong shareholder support and potentially impacting the company’s future operations and strategic direction.

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.