Evergreen Products Group Ltd. (1962) AI Stock Analysis

• Market Cap: HK$298.84M
• Dividend Yield: 10.21%
• Average Volume (3M): 57.93K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.07
• Revenue Growth: -6.67%
• EPS Growth: -29.55%
• Country: HK
• Employees: 21,337
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.02
• Shares Outstanding: 636,182,000
• 10 Day Avg. Volume: 88,400
• 30 Day Avg. Volume: 57,933
• PEG Ratio: -0.40
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 0.81
• 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: HK$0.50
• Price Target Upside: 6.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: HK$0.50 ▲(6.38% Upside)

The overall stock score is driven by solid valuation metrics, including a high dividend yield and reasonable P/E ratio. However, financial performance is hindered by declining net income and cash flow issues, while technical indicators suggest neutral market sentiment.

Evergreen Products Group Ltd. Business Overview & Revenue Model

Company Description

Evergreen Products Group Limited, an investment holding company, designs, manufactures, trades in, and sells hair products in the United States, the People's Republic of China, the United Kingdom, Japan, Germany, and internationally. The company offers fashion wigs, including long, medium and short, and half wigs; lace wigs, such as lace front, parting, braided, and 4x4 lace wigs; hairpieces and accessories comprising Melrose clips, drawstrings, domes/buns, and head band pieces; hair extensions and weaving products; men's wigs and toupees; Halloween wigs; costumes; moustaches and beards; and doll wigs. It is also involved in the technological development of hair products; property investment and holding activities; trading of hair products through internet; carton business; and export and impor of hair products. The company was founded in 1962 and is headquartered in Kwai Chung, Hong Kong. Evergreen Products Group Limited is a subsidiary of Evergreen Enterprise Holdings Limited.

How the Company Makes Money

Evergreen Products Group Ltd. generates revenue through the manufacture and sale of its hair products, which include synthetic and human hair wigs, hairpieces, and hair accessories. The company sells its products to wholesalers, retailers, and directly to consumers through various distribution channels. Key revenue streams include direct sales to salons and beauty supply stores, as well as online retail platforms. The company may also engage in strategic partnerships or collaborations with hair salons and beauty brands to expand its market reach and enhance its product offerings. Additionally, factors such as product innovation, brand reputation, and global market trends in the beauty and personal care industry significantly contribute to its earnings.

Evergreen Products Group Ltd. Financial Statement Overview

Summary

Evergreen Products Group Ltd. shows a solid revenue base and stable operational performance, but declining net income pressures profitability. The balance sheet reflects good equity levels but increased leverage. Cash flow concerns need addressing, particularly with free cash flow management. Overall, the company is in a stable position but must focus on boosting profitability and cash flow generation.

Income Statement

The company experienced a slight increase in total revenue in 2024 compared to 2023, reflecting moderate revenue growth. Gross Profit Margin improved slightly, indicating efficient cost management. However, the Net Profit Margin decreased due to a decline in net income. The EBIT and EBITDA margins were relatively stable, showing consistent operational performance.

Balance Sheet

Evergreen Products Group Ltd. maintains a strong equity position with an Equity Ratio of over 50%, indicating financial stability. The Debt-to-Equity Ratio remains manageable, though slightly increased from previous years, reflecting moderate leverage. Return on Equity (ROE) declined as net income fell, impacting shareholder returns.

Cash Flow

The company's free cash flow dropped significantly in 2024, raising concerns about cash generation. Operating Cash Flow to Net Income Ratio was not calculable due to zero operating cash flow, highlighting potential cash flow management issues. The absence of free cash flow data in 2024 suggests challenges in capital expenditure and cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	956.88M	1.02B	979.24M	1.10B	1.21B	890.20M
Gross Profit	238.65M	243.54M	233.23M	257.10M	248.81M	152.66M
EBITDA	119.36M	129.34M	140.78M	106.23M	122.35M	46.12M
Net Income	30.54M	39.92M	51.01M	66.29M	54.07M	-16.18M
Balance Sheet
Total Assets	1.60B	1.53B	1.63B	1.57B	1.72B	1.76B
Cash, Cash Equivalents and Short-Term Investments	142.27M	115.71M	90.58M	78.61M	68.44M	70.23M
Total Debt	645.05M	572.36M	615.00M	549.90M	670.64M	783.28M
Total Liabilities	814.74M	739.71M	786.47M	682.49M	794.28M	884.24M
Stockholders Equity	787.27M	800.14M	851.63M	896.41M	917.79M	872.25M
Cash Flow
Free Cash Flow	294.70M	364.68M	356.93M	394.82M	244.57M	56.54M
Operating Cash Flow	322.29M	393.65M	384.18M	421.59M	270.18M	79.26M
Investing Cash Flow	-9.46M	13.42M	-26.29M	-38.50M	-14.74M	-42.70M
Financing Cash Flow	-301.97M	-378.34M	-342.89M	-368.40M	-234.50M	-4.05M

Evergreen Products Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1962, the sentiment is Negative. The current price of 0.47 is below the 20-day moving average (MA) of 0.49, below the 50-day MA of 0.48, and below the 200-day MA of 0.47, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.51 is Neutral, neither overbought nor oversold. The STOCH value of 0.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1962.

Evergreen Products Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8512	77 Outperform	HK$270.96M	2.22	19.34%	―	-3.12%	1.92%
1925	74 Outperform	HK$441.50M	4.52	17.17%	8.18%	21.99%	11.36%
1962	64 Neutral	HK$298.84M	9.96	3.77%	10.21%	-6.67%	-29.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2023	62 Neutral	HK$368.85M	6.48	10.92%	―	11.10%	-4.38%
1338	56 Neutral	HK$117.01M	41.11	1.83%	―	5.99%	-74.29%
6893	41 Neutral	HK$211.81M	―	-27.11%	―	-0.79%	-34.52%

Evergreen Products Group Ltd. Corporate Events

Evergreen Products Group Reports Decline in Interim Financial Results for 2025

Evergreen Products Group Limited reported a decline in its financial performance for the first half of 2025, with revenue dropping by 11.3% to HK$465.7 million and net profit decreasing by 21.1% to HK$18.8 million compared to the same period in 2024. The company attributed these declines to trade policy uncertainties and increased US tariffs affecting customer sentiment, leading to reduced order shipments, alongside higher distribution and selling expenses due to new overseas sales offices. Despite these challenges, the company declared an interim dividend of HK$2.0 cents per share, reflecting a lower payout ratio of 67.6% compared to the previous year.

The most recent analyst rating on (HK:1962) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Evergreen Products Group Ltd. stock, see the HK:1962 Stock Forecast page.

Evergreen Products Group Announces Interim Dividend

Evergreen Products Group Limited announced an interim dividend of HKD 0.02 per share for the six months ending June 30, 2025. The dividend will be paid on November 28, 2025, with a record date of September 12, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (HK:1962) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Evergreen Products Group Ltd. stock, see the HK:1962 Stock Forecast page.

Evergreen Products Group Schedules Board Meeting for Interim Results

Evergreen Products Group Limited has announced that its board of directors will meet on August 22, 2025, to discuss and approve the interim results for the six months ending June 30, 2025. The meeting will also consider the potential payment of an interim dividend, which could impact the company’s financial outlook and shareholder returns.