Evergreen Products Group Ltd. (1962) AI Stock Analysis

• Market Cap: HK$308.38M
• Dividend Yield: 10.32%
• Average Volume (3M): 57.93K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.03
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$0.53 ▲(15.22% Upside)

The score is driven primarily by mixed financial performance: stable operations and a solid balance sheet are offset by weakening profitability and significant cash flow pressure. Technicals are supportive with the stock above key moving averages and positive momentum. Valuation is also favorable given the low P/E and high dividend yield.

Positive Factors

Strong equity position

A consistent equity ratio above 50% gives Evergreen a durable capital buffer versus creditors, supporting resilience through demand cycles. This financial strength preserves strategic optionality for capex, partnerships or acquisitions without immediate reliance on volatile external financing.

Operational margin stability

Slightly improving gross margin alongside stable EBIT/EBITDA margins indicates persistent cost control and core operating efficiency. That stability supports sustained cash generation potential from core operations if revenue trends recover, underpinning long-term margin resilience.

Sustainability-focused model & partnerships

A product portfolio centered on sustainable goods aligns with structural consumer and regulatory trends toward eco-friendly solutions. Combined with multi-channel sales and strategic partnerships, this supports durable demand, distribution scale and brand differentiation over the medium term.

Negative Factors

Weak cash generation

A significant FCF decline and zero operating cash flow signal structural cash conversion problems. Persistent weak OCF limits ability to fund capex, pay dividends or reduce debt organically, increasing dependence on external financing and constraining long-term strategic flexibility.

Declining profitability

Falling net profit margins and reduced ROE reflect weakening bottom-line performance even if operating margins are stable. Over time this can erode retained earnings, reduce reinvestment capacity and weaken shareholder returns, limiting growth funding and competitive reinvestment.

Revenue and earnings headwinds

Negative top-line growth and a sharp EPS decline point to demand or mix pressures that impair scale economics. Continued revenue and earnings deterioration would undermine operating leverage, squeeze margins further and reduce ability to invest in product development or channel expansion.

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 primarily through the sale of its eco-friendly products to various retail channels, including supermarkets, specialty stores, and online platforms. The company employs a multi-faceted revenue model that includes direct sales, wholesale distribution, and partnerships with businesses seeking sustainable solutions. Key revenue streams include bulk orders from commercial clients, retail product sales, and collaborations with environmentally conscious brands. Additionally, Evergreen Products Group Ltd. benefits from strategic partnerships with organizations focused on sustainability, which enhance its market reach and contribute to its earnings through joint marketing initiatives and co-branded product lines.

Evergreen Products Group Ltd. Financial Statement Overview

Summary

Moderate operating performance with slightly improving gross margin and stable EBIT/EBITDA margins, supported by a solid equity position. However, profitability weakened (lower net profit margin/ROE) and cash generation is a key concern given the significant free cash flow drop and zero operating cash flow noted.

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: Neutral
• Last Price: 0.46
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 0.46 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.48, and below the 200-day MA of 0.48, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$473.90M	4.77	17.17%	8.33%	21.99%	11.36%
8512	73 Outperform	HK$289.33M	2.37	19.34%	―	-3.12%	1.92%
1962	69 Neutral	HK$308.38M	10.28	3.77%	10.32%	-6.67%	-29.55%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2023	58 Neutral	HK$368.85M	6.48	10.92%	―	11.10%	-4.38%
1338	56 Neutral	HK$113.85M	40.00	1.83%	―	5.99%	-74.29%
6893	49 Neutral	HK$333.00M	-8.31	-23.55%	―	10.42%	11.14%