Evergreen Products Group Ltd. (1962) AI Stock Analysis

• Market Cap: HK$317.91M
• Dividend Yield: 11.2%
• Average Volume (3M): 520.53K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.06
• Revenue Growth: 3.79%
• EPS Growth: -18.75%
• Country: HK
• Employees: 21,337
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Household & Personal Products
• EPS (TTM): 0.06
• Shares Outstanding: 636,182,000
• 10 Day Avg. Volume: 157,200
• 30 Day Avg. Volume: 520,533
• PEG Ratio: 0.27
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.04
• 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: 63 Neutral
• Price Target: HK$0.50 ▲(0.00%Upside)

The stock score is driven by a strong valuation appeal due to an attractive dividend yield, offset by weak financial performance and technical analysis indicators. While the company's valuation is compelling, investors should be cautious of operational and cash flow issues.

Evergreen Products Group Ltd. Business Overview & Revenue Model

Company Description

Evergreen Products Group Ltd., established in 1962, is a leading manufacturer and distributor in the hair products industry. The company specializes in a wide array of products, including wigs, hairpieces, and hair extensions, catering to both fashion and medical needs across various markets worldwide.

How the Company Makes Money

Evergreen Products Group Ltd. generates revenue primarily through the sale of its diverse range of hair products. The company operates via multiple sales channels, including direct sales to consumers, wholesale distribution to retailers, and partnerships with beauty salons and clinics. Its revenue model is bolstered by its strong distribution network and strategic partnerships with key players in the beauty and healthcare sectors. The company's earnings are further enhanced by its focus on innovation and quality, allowing it to maintain a competitive edge and attract a loyal customer base globally.

Evergreen Products Group Ltd. Financial Statement Overview

Summary

Evergreen Products Group Ltd. demonstrates stable revenue and operational performance. However, declining net income and significant cash flow issues present concerns. The balance sheet is strong with a solid equity position, but leverage has increased.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	979.24M	1.10B	1.21B	890.20M
Gross Profit	243.54M	233.23M	257.10M	248.81M	152.66M
EBITDA	129.34M	140.78M	106.23M	122.35M	46.12M
Net Income	39.92M	51.01M	66.29M	54.07M	-17.98M
Balance Sheet
Total Assets	1.53B	1.63B	1.57B	1.72B	1.76B
Cash, Cash Equivalents and Short-Term Investments	115.71M	90.58M	78.61M	68.44M	70.23M
Total Debt	572.36M	615.00M	549.90M	670.64M	783.28M
Total Liabilities	739.71M	786.47M	682.49M	794.28M	884.24M
Stockholders Equity	800.14M	851.63M	896.41M	917.79M	872.25M
Cash Flow
Free Cash Flow	364.68M	356.93M	394.82M	244.57M	56.54M
Operating Cash Flow	356.31M	384.18M	421.59M	270.18M	79.26M
Investing Cash Flow	13.42M	-26.64M	-38.50M	-14.74M	-42.70M
Financing Cash Flow	-378.34M	-342.89M	-368.40M	-258.17M	-4.05M

Evergreen Products Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 0.5 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.53, and above the 200-day MA of 0.50, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.69 is Neutral, neither overbought nor oversold. The STOCH value of 15.71 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
1925	74 Outperform	HK$522.50M	4.06	24.41%	6.98%	22.46%	91.73%
8512	73 Outperform	HK$280.14M	1.74	29.75%	―	4.99%	88.39%
1338	63 Neutral	HK$164.45M	23.18	4.61%	―	4.77%	-53.19%
1962	63 Neutral	HK$317.91M	8.18	4.83%	11.20%	3.79%	-18.75%
2023	63 Neutral	HK$418.03M	7.52	12.01%	―	25.55%	14.47%
Sector *	56 Neutral	HK$23.69B	3.90	-1.57%	6.91%	0.06%	-64.88%
6893	40 Underperform	HK$194.34M	―	-27.11%	―	-6.77%	-26.30%

Evergreen Products Group Ltd. Corporate Events

Evergreen Products Group Updates Nomination Committee Composition

Evergreen Products Group Limited has announced a change in the composition of its Nomination Committee, effective from June 5, 2025. Ms. Jia Ziying, an executive director, has been appointed as a member of the committee, which now consists of five members. This change reflects the company’s ongoing efforts to strengthen its governance and leadership structure.

Evergreen Products Group Announces Board Composition and Committee Roles

Evergreen Products Group Limited has announced the composition of its board of directors and their respective roles within the company. The board includes executive directors, non-executive directors, and independent non-executive directors, with Mr. Chang Yoe Chong Felix serving as the Chairman and CEO. The company has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned as members or chairpersons of these committees. This announcement outlines the governance structure of Evergreen Products Group, which is crucial for stakeholders to understand the leadership and decision-making framework within the company.

Evergreen Products Group Forms Nomination Committee to Enhance Board Structure

Evergreen Products Group Limited has established a Nomination Committee to oversee the structure of its Board of Directors. The committee, which will consist of at least three members with a majority being independent non-executive directors, is tasked with regularly reviewing and recommending changes to the Board’s structure. This move is aimed at enhancing the governance and operational efficiency of the company.

Evergreen Products Group Ltd. AGM Resolutions Unanimously Approved

Evergreen Products Group Limited announced the results of its Annual General Meeting held on May 14, 2025, where all proposed resolutions were unanimously approved. Key decisions included the adoption of the company’s financial statements, the declaration of a final dividend, the re-election of directors, and the appointment of Forvis Mazars CPA Limited as auditors. The meeting also granted the board a mandate to repurchase shares, reflecting strong shareholder support and potentially enhancing shareholder value.

Evergreen Products Group Ltd. Announces AGM and Share Repurchase Plan

Evergreen Products Group Ltd. has announced its upcoming Annual General Meeting scheduled for May 14, 2025, where key resolutions will be discussed, including the adoption of financial statements, declaration of a final dividend, re-election of directors, and the appointment of auditors. Additionally, the company seeks approval for a share repurchase program, allowing the repurchase of up to 10% of its issued shares, which could potentially impact shareholder value and market perception.

Evergreen Products Group Proposes Auditor Change

Evergreen Products Group Limited has announced a proposed change of auditor, with Deloitte Touche Tohmatsu set to retire following the upcoming annual general meeting. The company plans to appoint Forvis Mazars CPA Limited as the new auditor, citing benefits such as maintaining independence and objectivity, which align with good corporate governance practices. The decision is supported by the Audit Committee and the Board, who have assessed Forvis Mazars’ experience, resources, and reputation as suitable for the role.