Prosperous Printing Company Limited (8385) AI Stock Analysis

• Market Cap: HK$32.88M
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -92.47%
• EPS Growth: 14.17%
• Country: HK
• Employees: 9
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.25
• Shares Outstanding: 104,388,000
• 10 Day Avg. Volume: 386,600
• 30 Day Avg. Volume: 1,034,100
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.83
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -0.37
• 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$0.31 ▲(245.56% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative profit margins, and insolvency risks. While technical analysis shows some positive momentum, valuation concerns due to negative earnings further weigh down the score.

Positive Factors

Business Model Diversity

A diverse business model with both commercial and digital printing services allows the company to cater to a wide range of customer needs, potentially stabilizing revenue streams over time.

Revenue Streams

The ability to attract a diverse client base for printing services can provide a stable revenue stream, enhancing long-term business sustainability.

Partnership Opportunities

Potential partnerships can expand service offerings and market reach, providing opportunities for growth and increased market penetration.

Negative Factors

Declining Revenue

Declining revenues indicate challenges in maintaining market share or competitive positioning, which can impact long-term financial health and growth prospects.

Negative Profit Margins

Negative profit margins suggest cost management challenges, which can erode profitability and hinder the company's ability to invest in growth opportunities.

Liquidity Issues

Liquidity issues, indicated by negative cash flows, can limit the company's ability to meet short-term obligations and invest in strategic initiatives, impacting long-term viability.

Prosperous Printing Company Limited Business Overview & Revenue Model

Company Description

Prosperous Printing Company Limited (8385) is a prominent player in the printing industry, specializing in high-quality commercial printing services. The company operates across various sectors, including packaging, advertising, and publishing, offering a wide range of products such as brochures, business cards, packaging materials, and promotional items. With a commitment to innovation and sustainability, Prosperous Printing employs advanced printing technologies and environmentally friendly practices to meet the diverse needs of its clients.

How the Company Makes Money

The company generates revenue primarily through the sale of its printing services and products. Key revenue streams include custom printing orders from businesses for marketing materials, packaging solutions for retail products, and publishing services for authors and content creators. Prosperous Printing may also engage in long-term contracts with corporate clients, providing consistent printing services that ensure a steady income. Additionally, partnerships with local businesses and e-commerce platforms enhance its market reach and customer base, further contributing to its earnings.

Prosperous Printing Company Limited Financial Statement Overview

Summary

The company is experiencing severe financial difficulties, with declining revenues, negative profit margins, and insolvency risks. The balance sheet shows negative equity, and cash flow analysis indicates liquidity issues, necessitating immediate strategic actions.

Income Statement

The income statement reveals a concerning trend with declining revenues and persistent losses. The gross profit margin has turned negative, indicating cost management issues. Net profit margin is also negative, reflecting ongoing profitability challenges. Revenue has decreased significantly over the years, and EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows a deteriorating financial position with negative stockholders' equity, indicating insolvency risk. The debt-to-equity ratio is not calculable due to negative equity, but high total liabilities suggest significant leverage. The equity ratio is negative, reflecting a weak capital structure. The company faces substantial financial instability.

Cash Flow

Cash flow analysis indicates negative operating cash flow and free cash flow, suggesting liquidity issues. The free cash flow has declined, and the operating cash flow to net income ratio is negative, reflecting cash generation challenges. Despite some positive investing cash flow, overall cash flow management appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.79M	50.06M	146.21M	194.83M	281.81M	278.94M
Gross Profit	-5.76M	-1.97M	34.89M	57.06M	54.22M	-4.43M
EBITDA	-33.24M	-45.29M	5.81M	-28.08M	-50.10M	-67.26M
Net Income	-42.54M	-45.61M	-22.96M	-59.66M	-83.09M	-100.82M
Balance Sheet
Total Assets	100.49M	158.44M	233.78M	300.50M	381.32M	471.36M
Cash, Cash Equivalents and Short-Term Investments	19.00K	849.00K	3.02M	1.26M	2.05M	1.55M
Total Debt	123.89M	113.16M	144.93M	180.90M	161.29M	200.15M
Total Liabilities	162.40M	167.59M	199.52M	242.69M	251.03M	263.01M
Stockholders Equity	-61.91M	-9.15M	34.26M	57.80M	130.28M	208.35M
Cash Flow
Free Cash Flow	-21.65M	-20.44M	11.76M	5.41M	40.24M	-34.88M
Operating Cash Flow	-21.07M	-19.86M	11.94M	10.36M	42.55M	-15.10M
Investing Cash Flow	45.08M	29.31M	13.26M	5.64M	10.16M	-14.03M
Financing Cash Flow	-14.59M	-11.23M	-22.75M	-21.08M	-45.08M	1.55M

Prosperous Printing Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8385, the sentiment is Positive. The current price of 0.09 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.18, and below the 200-day MA of 0.11, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 69.27 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8385.

Prosperous Printing Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1540	74 Outperform	HK$216.92M	6.11	12.81%	18.39%	-7.56%	-2.06%
1127	74 Outperform	HK$947.74M	4.55	14.20%	8.33%	-4.03%	8.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1975	63 Neutral	HK$184.80M	―	-20.83%	9.09%	-26.30%	-617.37%
1841	53 Neutral	HK$88.00M	―	-3.56%	―	-14.40%	-180.62%
0450	50 Neutral	€819.78M	―	-3.21%	13.19%	-11.14%	-280.56%
8385	44 Neutral	HK$32.88M	―	―	―	-92.47%	14.17%