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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:1861

Precious Dragon Technology Holdings Ltd.

(1861)

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Outperform 77 (OpenAI - 5.2)
Rating:77Outperform
Price Target:
HK$2.50
▲(28.21% Upside)
Action:ReiteratedDate:01/10/26
The score is driven primarily by solid financial health (notably a strong, low-leverage balance sheet) and supportive technical uptrend signals. Valuation is also favorable with a low P/E and dividend yield, but the overall score is capped by declining revenue, softer net margins, and zero free cash flow in 2024.
Positive Factors
Balance Sheet Strength
Very low leverage and a high equity ratio provide durable financial flexibility. This reduces refinancing and solvency risk, supports funding for strategic investments or contract performance, and gives resilience through industry cycles over the next several months.
Negative Factors
Zero Free Cash Flow in 2024
Absent free cash flow constrains the company's ability to self-fund growth, pay dividends, or build cash buffers. Over a multi-month horizon this forces reliance on external financing or equity, reducing operational flexibility and increasing exposure to financing costs or capital constraints.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and a high equity ratio provide durable financial flexibility. This reduces refinancing and solvency risk, supports funding for strategic investments or contract performance, and gives resilience through industry cycles over the next several months.
Read all positive factors

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

Precious Dragon Technology Holdings Ltd. Business Overview & Revenue Model

Company Description
Precious Dragon Technology Holdings Limited engages in the design, development, manufacture, and sale of aerosol and non-aerosol products used in automotive beauty and maintenance products in the Mainland China, Japan, Asia, the Middle East, the A...
How the Company Makes Money
Precious Dragon Technology Holdings Ltd. generates revenue primarily through the provision of technology services, including software development, system integration, and consulting services. The company's revenue model is built on charging client...

Precious Dragon Technology Holdings Ltd. Financial Statement Overview

Summary
Strong balance sheet strength (low leverage and high equity ratio) supports resilience, and gross margin is solid. However, revenue decline, a lower net margin versus last year, and weak 2024 free cash flow reduce the score.
Income Statement
75
Positive
Balance Sheet
82
Very Positive
Cash Flow
65
Positive
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue663.47M612.97M557.22M559.78M610.35M665.65M
Gross Profit280.94M227.25M175.90M154.19M157.09M223.52M
EBITDA72.07M60.92M99.32M83.33M56.00M117.36M
Net Income62.80M34.07M56.92M42.00M18.09M53.16M
Balance Sheet
Total Assets531.89M476.53M484.76M475.21M522.81M521.27M
Cash, Cash Equivalents and Short-Term Investments155.87M105.61M114.15M104.63M110.13M161.62M
Total Debt38.72M25.32M35.54M50.94M120.37M68.78M
Total Liabilities150.78M151.05M176.84M207.56M276.48M295.55M
Stockholders Equity381.54M325.91M308.37M267.88M246.50M225.82M
Cash Flow
Free Cash Flow37.06M25.91M57.76M47.41M-20.06M22.33M
Operating Cash Flow51.18M48.35M76.45M67.72M59.99M78.84M
Investing Cash Flow21.18M-20.00M-17.16M-19.38M-79.93M-56.65M
Financing Cash Flow-30.66M-32.04M-39.27M-43.63M-56.65M-1.55M

Precious Dragon Technology Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.95
Price Trends
50DMA
1.95
Negative
100DMA
1.94
Negative
200DMA
1.75
Positive
Market Momentum
MACD
-0.04
Positive
RSI
36.47
Neutral
STOCH
35.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1861, the sentiment is Negative. The current price of 1.95 is above the 20-day moving average (MA) of 1.88, above the 50-day MA of 1.95, and above the 200-day MA of 1.75, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 36.47 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1861.

Precious Dragon Technology Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$418.71M7.7915.49%2.76%17.38%15.93%
77
Outperform
HK$2.18B6.9136.38%4.07%23.59%
64
Neutral
HK$465.85M17.691.68%-36.58%-84.25%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
56
Neutral
HK$2.33B9.748.16%4.75%-3.18%-36.46%
49
Neutral
HK$57.38M-5.81-14.54%3.82%68.82%
44
Neutral
HK$218.16M-8.41-3.17%50.72%-434.09%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1861
Precious Dragon Technology Holdings Ltd.
1.79
0.73
68.87%
HK:1759
Sino Gas Holdings Group Limited
1.01
0.21
26.25%
HK:0178
Sa Sa International Holdings Limited
0.75
0.20
36.36%
HK:2101
Fulu Holdings Limited
1.14
-0.24
-17.39%
HK:2420
Zibuyu Group Limited
4.37
-0.28
-6.02%
HK:8536
TL Natural Gas Holdings Limited
0.27
-0.03
-10.00%

Precious Dragon Technology Holdings Ltd. Corporate Events

Precious Dragon Technology Buys Sheung Wan Office for HK$40 Million
Jan 22, 2026
Precious Dragon Technology Holdings Limited has agreed to acquire a commercial office unit in China Merchants Tower at Shun Tak Centre in Sheung Wan, Hong Kong, for HK$40.39 million through its indirect wholly owned subsidiary European Property Ho...
Precious Dragon Discloses Ownership Details of Contractor for Guangzhou Plant Project
Jan 13, 2026
Precious Dragon Technology Holdings Limited has issued a supplemental announcement to its earlier disclosure of a construction agreement for a new production plant in Guangzhou, providing additional details on the ownership of the appointed contra...
Precious Dragon Technology Invests RMB34.8 Million to Expand Guangzhou Production Plant
Jan 7, 2026
Precious Dragon Technology Holdings has entered into a RMB34.8 million construction agreement via its subsidiary Euro Asia Aerosol for the construction and renovation of a production plant in Guangzhou, engaging an independent contractor to build ...
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: Jan 10, 2026