New Provenance Everlasting Holdings Limited (2326) AI Stock Analysis

• Market Cap: HK$231.92M
• Dividend Yield: N/A
• Average Volume (3M): 8.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 28.43%
• EPS Growth: 21.74%
• Country: HK
• Employees: 135
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.00
• Shares Outstanding: 21,084,072,000
• 10 Day Avg. Volume: 7,864,000
• 30 Day Avg. Volume: 8,467,000
• PEG Ratio: -0.10
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -59.53
• 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: 44 Neutral
• Price Target: HK$0.01 ▲(10.00% Upside)

The score is weighed down primarily by deteriorating profitability and volatile revenue, alongside mixed cash generation (negative free cash flow). A low-debt balance sheet provides some stability, but technical indicators are conflicting and valuation is weak due to ongoing losses and no dividend support.

Positive Factors

Conservative balance sheet / very low leverage

Low leverage and essentially no debt in FY2025 materially reduce refinancing and interest-rate risk, giving the company durable financial flexibility. This conservative capital structure provides runway to stabilize operations, fund selective investments, and absorb cyclical shocks while profitability is restored.

Positive operating cash flow trend

Consistent positive operating cash flow through FY2023–FY2025, with a sharp improvement in FY2025, demonstrates the business can convert sales into cash. Durable OCF supports working capital needs and operational continuity, reducing near-term reliance on external financing while management works to return to profitability.

Revenue rebound in FY2025

A year-over-year revenue increase in FY2025 after prior volatility suggests demand recovery or regained sales traction. Sustained topline growth is a structural positive since it can enable scale economies and, if coupled with cost control, drive gradual margin recovery and improved returns over the medium term.

Negative Factors

Deteriorating profitability and negative margins

A shift from profit to larger multi-year losses and negative gross profit erodes retained earnings and shareholder value. Persistent negative margins limit reinvestment capacity, pressure liquidity over time, and increase the risk of structural changes (cost cuts, asset sales) that could impair long-term competitiveness.

Negative free cash flow

Despite positive operating cash flow, persistently negative free cash flow in FY2024–FY2025 indicates ongoing cash absorption from capex or working-capital needs. This structural FCF shortfall constrains the firm's ability to reduce liabilities, invest for growth, or return capital, increasing reliance on external financing if unresolved.

Contracting asset base and negative ROE

Material asset contraction alongside negative ROE signals declining scale and poor capital efficiency. A shrinking operating base limits revenue-generating capacity and reduces strategic optionality, making it harder to recover margins or invest in growth initiatives without rebuilding assets or improving returns.

New Provenance Everlasting Holdings Limited Business Overview & Revenue Model

Company Description

New Provenance Everlasting Holdings Limited, an investment holding company, sources and sells metal minerals and related industrial materials in the People's Republic of China. It is also involved in the production and sale of industrial products; provision of logistics services, including warehousing, transportation, and cargo handling, as well as management services. The company was formerly known as BEP International Holdings Limited and changed its name to New Provenance Everlasting Holdings Limited in October 2017. The company was founded in 1984 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

New Provenance Everlasting Holdings Limited generates revenue primarily through its financial services and trading operations. The company earns income from its investment activities, which include equity investments, bonds, and other financial instruments. Additionally, it engages in trading activities that involve the buying and selling of goods and services, contributing to its revenue streams. The company's strategic partnerships and investments in diverse industries also play a significant role in enhancing its earnings and expanding its market presence.

New Provenance Everlasting Holdings Limited Financial Statement Overview

Summary

Operating performance is weak: profitability deteriorated from a small profit in FY2023 to larger losses in FY2024–FY2025, with FY2025 gross profit slightly negative and margins deeply negative. Revenue has been highly volatile and the balance sheet is a key offset (very low leverage and essentially no debt in FY2025), but cash flow quality is mixed with negative free cash flow in FY2024–FY2025 despite improved operating cash flow.

Income Statement

Profitability has deteriorated meaningfully: the company moved from a small profit in FY2023 to larger losses in FY2024 and FY2025, with FY2025 gross profit turning slightly negative and operating/EBITDA margins remaining deeply negative. Revenue has also been highly volatile—after a strong FY2023 level, sales fell sharply in FY2024 and again in FY2025, despite FY2025 showing a positive year-over-year growth rate. The main positive is that revenue growth can rebound, but the current margin structure suggests weak pricing power and/or elevated cost base, keeping earnings quality pressured.

Balance Sheet

The balance sheet looks conservatively financed with very low leverage across the period and essentially no debt in FY2025, which reduces refinancing and interest-rate risk. However, returns on equity are negative in FY2024–FY2025 due to net losses, and total assets contracted materially from FY2023 to FY2025, pointing to a smaller operating base and/or asset reductions. Overall, the company has financial flexibility, but it needs to restore profitability to improve shareholder returns.

Cash Flow

Cash generation is mixed. Operating cash flow is positive in FY2023–FY2025 and improved sharply from FY2024 to FY2025, but free cash flow is negative in FY2024–FY2025 (and fell further in FY2025), suggesting ongoing cash investment needs and/or working-capital pressure. Earlier years show volatility as well, including a very large operating cash outflow in FY2021 followed by a very large inflow in FY2020, indicating uneven cash conversion. The key strength is recent positive operating cash flow; the key weakness is the inability to sustain positive free cash flow while losses persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	470.31M	470.31M	864.30M	1.89B	262.23M	601.95M
Gross Profit	-6.93M	-4.03M	12.03M	19.11M	10.91M	11.07M
EBITDA	-38.15M	-35.33M	-20.26M	12.34M	5.60M	3.63M
Net Income	-45.88M	-45.88M	-30.78M	1.84M	-5.45M	-18.30M
Balance Sheet
Total Assets	508.35M	508.35M	560.36M	1.81B	625.02M	977.77M
Cash, Cash Equivalents and Short-Term Investments	3.13M	3.13M	6.50M	7.53M	9.02M	7.52M
Total Debt	0.00	0.00	4.18M	6.49M	16.67M	21.84M
Total Liabilities	132.70M	132.70M	133.97M	1.32B	103.00M	472.43M
Stockholders Equity	385.07M	385.07M	435.63M	493.21M	531.08M	514.17M
Cash Flow
Free Cash Flow	-3.54M	-3.54M	-708.00K	8.16M	8.45M	-148.53M
Operating Cash Flow	6.91M	6.91M	1.27M	11.17M	12.55M	-147.31M
Investing Cash Flow	-10.41M	-10.41M	-1.96M	-3.01M	-4.09M	155.47M
Financing Cash Flow	0.00	0.00	0.00	-9.56M	-6.88M	-6.96M

New Provenance Everlasting Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2623	66 Neutral	HK$1.58B	19.02	14.56%	―	-70.82%	5182.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1370	51 Neutral	HK$490.60M	-1.44	-41.19%	―	-6.51%	41.00%
8028	46 Neutral	HK$134.07M	-8.95	-25.89%	―	90.42%	48.07%
2326	44 Neutral	HK$231.92M	-6.11	-9.31%	―	28.43%	21.74%
1380	44 Neutral	HK$410.87M	-2.55	―	―	-52.58%	27.72%
6128	38 Underperform	HK$249.45M	-1.23	-23.14%	―	-27.07%	47.86%

New Provenance Everlasting Holdings Limited Corporate Events

New Provenance Everlasting Holdings Limited Reports Improved Interim Financial Results

New Provenance Everlasting Holdings Limited reported its interim results for the six months ended 30 September 2025, revealing a revenue increase to HK$371,705,000 from HK$291,858,000 in the previous year. Despite the revenue growth, the company experienced a loss of HK$9,430,000, though this was an improvement from the previous year’s loss of HK$17,403,000, indicating a potential positive trend in financial performance.

New Provenance Everlasting Holdings Issues Profit Warning Amid Inventory Write-Downs

New Provenance Everlasting Holdings Limited has issued a profit warning, indicating an expected unaudited loss of up to HK$11,000,000 for the six months ending September 30, 2025, compared to a loss of approximately HK$17,403,000 for the same period in 2024. This anticipated loss is primarily due to inventory write-downs, and the company advises shareholders and potential investors to exercise caution when dealing with its securities.

New Provenance Everlasting Holdings to Announce Interim Results

New Provenance Everlasting Holdings Limited has announced a board meeting scheduled for November 26, 2025. The meeting will focus on approving and publishing the interim results for the six months ending September 30, 2025, which could provide insights into the company’s financial health and operational performance.