Prosperous Printing Company Limited (8385) AI Stock Analysis

• Market Cap: HK$9.19M
• Dividend Yield: N/A
• Average Volume (3M): 36.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -65.76%
• EPS Growth: -84.78%
• Country: HK
• Employees: 9
• Sector: Industrials
• Sector Strength: 85
• Industry: Specialty Business Services
• EPS (TTM): N/A
• Shares Outstanding: 104,388,000
• 10 Day Avg. Volume: 55,000
• 30 Day Avg. Volume: 36,333
• PEG Ratio: 0.02
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.21
• 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: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is heavily influenced by poor financial performance, characterized by declining revenues and profitability, high leverage, and cash flow issues. Technical analysis suggests weak momentum and a bearish trend, while valuation is unattractive with a negative P/E ratio and no dividend yield.

Prosperous Printing Company Limited Business Overview & Revenue Model

Company Description

Prosperous Printing Company Limited, together with its subsidiaries, produces and sells books and paper products to print brokers and publishers in Hong Kong, the United States, the United Kingdom, Australia, and other European countries. The company offers case and soft bound book; and saddle stitch book, handcraft products, silk screening, finishing, and cut and stamp products, as well as offers accessories and others. It is also involved in the property investment activities. The company was incorporated in 1992 and is headquartered in Chai Wan, Hong Kong. Prosperous Printing Company Limited is a subsidiary of First Tech Inc.

How the Company Makes Money

Prosperous Printing Company Limited generates revenue through its diverse printing services and products. The company's primary revenue streams include commercial printing services, packaging printing, and custom print solutions tailored to client specifications. It partners with businesses across multiple industries, leveraging its expertise in high-quality printing to secure long-term contracts and repeat business. The company's earnings are significantly bolstered by its ability to provide customized, large-scale print solutions, which often involve higher margins. Additionally, strategic partnerships with suppliers of raw materials and technologies contribute to cost efficiency and competitive pricing, further enhancing the company's profitability.

Prosperous Printing Company Limited Financial Statement Overview

Summary

The company faces significant financial challenges, including declining revenues, negative profitability, high leverage, and concerning cash flow trends. These factors indicate pressing financial instability and the need for substantial improvements.

Income Statement

The company has experienced a significant decline in revenue from 2019 to 2024, with a sharp drop in profitability. Gross profit margins have turned negative, indicating cost management issues or declining sales efficiency. Net profit margins have also been negative, suggesting ongoing losses. Revenue growth has been negative in recent years, reflecting a challenging business environment.

Balance Sheet

The balance sheet shows concerning leverage levels, with a negative stockholders' equity in 2024 indicating insolvency, and a rising debt-to-equity ratio over the years. The equity ratio has deteriorated significantly, suggesting increasing financial risk. These factors point to a weakening financial position.

Cash Flow

The cash flow statement indicates diminishing operating cash flows and consistently negative free cash flows in recent years. The free cash flow to net income ratio is unfavorable, reflecting cash shortfalls relative to reported losses. This trend suggests cash management issues and potential liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
50.06M	146.21M	194.83M	281.81M	278.94M
	Gross Profit
-1.97M	32.27M	57.06M	54.22M	-4.43M
	EBIT
-49.82M	-33.56M	-8.28M	-13.27M	-92.05M
	EBITDA
-45.29M	5.81M	-28.08M	-50.10M	-67.26M
	Net Income Common Stockholders
-45.61M	-22.96M	-59.66M	-83.09M	-100.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
849.00K	3.02M	1.26M	2.05M	1.55M
	Total Assets
158.44M	233.78M	300.50M	381.32M	471.36M
	Total Debt
113.16M	144.93M	180.90M	161.29M	200.15M
	Net Debt
112.31M	141.91M	179.63M	159.25M	198.60M
	Total Liabilities
167.59M	199.52M	242.69M	251.03M	263.01M
	Stockholders Equity
-9.15M	34.26M	57.80M	130.28M	208.35M
Cash Flow		Free Cash Flow
-20.44M	11.76M	5.41M	40.24M	-34.88M
	Operating Cash Flow
-19.86M	11.94M	10.36M	42.55M	-15.10M
	Investing Cash Flow
29.31M	13.26M	5.64M	10.16M	-14.03M
	Financing Cash Flow
-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: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.09, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 is Neutral, 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
8299	66 Neutral	HK$2.30B	30.00	12.85%	―	957.74%	194.12%
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
8385	44 Neutral	HK$9.19M	―	-363.24%	―	-65.76%	-84.78%
8448	42 Neutral	HK$24.35M	―	-818.26%	―	93.85%	66.62%
8076	41 Neutral	HK$26.34M	―	-45.64%	―	-17.39%	-29.73%
8392	37 Underperform	HK$24.00M	―	-17.24%	―	8.53%	64.60%