Prosperous Future Holdings (1259) AI Stock Analysis

• Market Cap: $52.88M
• Dividend Yield: N/A
• Average Volume (3M): 17.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -1.73%
• EPS Growth: -42.35%
• Country: HK
• Employees: 164
• Sector: Real Estate
• Sector Strength: 64
• Industry: Household & Personal Products
• EPS (TTM): -0.02
• Shares Outstanding: 2,203,361,000
• 10 Day Avg. Volume: 30,171,600
• 30 Day Avg. Volume: 17,066,200
• PEG Ratio: 0.05
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.19
• 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: 41 Neutral
• Price Target: ―

The stock score is low due to significant financial performance challenges, including declining revenues and consistent net losses. Technical indicators suggest negative momentum, and valuation metrics highlight unattractiveness due to ongoing losses. A strategic turnaround is necessary to improve the company's outlook.

Prosperous Future Holdings Business Overview & Revenue Model

Company Description

Prosperous Future Holdings (1259) is a diversified investment holding company that operates across various sectors, including financial services, real estate, and technology. The company focuses on strategic investments that aim to drive growth and create long-term value for its stakeholders. By leveraging its expertise and industry knowledge, Prosperous Future Holdings seeks to identify and invest in high-potential opportunities within its target markets.

How the Company Makes Money

Prosperous Future Holdings generates revenue primarily through its strategic investments and business operations within its core sectors. In the financial services sector, the company earns income from interest, dividends, and capital gains on its investment portfolio. In real estate, it generates revenue through property sales, leasing, and management services. Additionally, the technology sector provides income through investments in tech startups and partnerships that deliver innovative solutions. The company's earnings are also bolstered by strategic alliances and joint ventures that enhance its market position and expand its revenue streams.

Prosperous Future Holdings Financial Statement Overview

Summary

Prosperous Future Holdings struggles with declining revenues and consistent net losses, as well as fluctuating cash flows. Although the balance sheet shows a strong cash position relative to debt, the company's overall financial health is impacted by profitability issues and inconsistent cash generation.

Income Statement

Prosperous Future Holdings has experienced declining revenue trends, with a significant drop from 2020 to 2024. The company consistently reported negative net income, indicating ongoing profitability challenges. Gross profit margin remained relatively stable, but the negative EBIT and EBITDA margins highlight operational inefficiencies and challenges in managing costs.

Balance Sheet

The company maintains a healthy cash position, with cash and equivalents consistently higher than total debt, resulting in a negative net debt. The debt-to-equity ratio is low, indicating conservative leverage. However, stockholders' equity has been decreasing, and total assets have declined, which could be a concern for long-term growth.

Cash Flow

Cash flow from operations has been inconsistent, with a notable drop to zero in 2024. The free cash flow was negative in several years, reflecting challenges in generating cash after capital expenditures. The lack of consistent operating cash flow raises concerns about the company's ability to fund operations without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
477.86M	517.43M	580.12M	602.69M	1.18B
	Gross Profit
122.68M	118.15M	118.80M	128.51M	254.99M
	EBIT
-42.84M	-30.27M	-35.34M	7.07M	9.46M
	EBITDA
-43.90M	-19.69M	―	35.49M	―
	Net Income Common Stockholders
-50.49M	-38.75M	-101.20M	-104.89M	-33.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
365.94M	358.31M	349.75M	466.54M	470.69M
	Total Assets
1.02B	810.79M	1.04B	1.54B	1.69B
	Total Debt
9.32M	20.89M	34.12M	190.45M	212.68M
	Net Debt
-356.63M	-337.42M	-315.64M	-254.84M	-213.92M
	Total Liabilities
364.71M	177.11M	289.60M	748.69M	839.40M
	Stockholders Equity
652.92M	599.57M	712.09M	735.20M	804.00M
Cash Flow		Free Cash Flow
0.00	67.43M	-68.26M	15.31M	-14.22M
	Operating Cash Flow
0.00	68.33M	-52.27M	45.70M	31.28M
	Investing Cash Flow
0.00	2.22M	―	-11.88M	-113.47M
	Financing Cash Flow
0.00	-19.34M	-102.14M	-10.56M	45.68M

Prosperous Future Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1259, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1259.

Prosperous Future Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0719	70 Outperform	HK$9.42B	8.51	8.89%	4.98%	4.91%	-11.80%
0686	65 Neutral	HK$2.93B	31.67	1.64%	9.84%	23.69%	92.69%
Sector *	60 Neutral	$2.76B	10.33	0.49%	8508.28%	5.95%	-17.56%
0610	59 Neutral	HK$499.67M	―	-48.43%	―	13.91%	-94.05%
0808	55 Neutral	$2.04B	―	-1.09%	9.29%	-5.60%	-1261.11%
1259	41 Neutral	$52.88M	―	-8.28%	―	-1.73%	-42.35%

Prosperous Future Holdings Corporate Events

Prosperous Future Holdings to Hold AGM and Consider Share Repurchase

Prosperous Future Holdings Limited has announced its Annual General Meeting (AGM) scheduled for June 19, 2025, in Hong Kong. The meeting will address ordinary business matters such as the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, a special resolution will be considered to authorize the company’s directors to repurchase up to 10% of its shares on the stock exchange, reflecting strategic financial management and potential shareholder value enhancement.

Prosperous Future Holdings Reports 2024 Financial Results

Prosperous Future Holdings Limited reported its annual financial results for the year ended December 31, 2024, showing a slight decrease in revenue from continuing operations to HK$508.5 million, down 1.7% from the previous year. Despite the revenue decline, the company achieved a 10.5% increase in gross profit, reaching HK$130.5 million, and improved its gross profit margin to 25.7%. However, the company experienced a higher loss attributable to equity holders, amounting to HK$53.7 million, compared to HK$38.7 million in 2023, indicating challenges in managing costs and investments.

Prosperous Future Holdings Issues Profit Warning Amid Expansion Efforts

Prosperous Future Holdings Limited has issued a profit warning, indicating an expected increase in net loss after tax for the year ending December 31, 2024, estimated to be between HKD48.0 million and HKD54.0 million. This anticipated loss is attributed primarily to a significant fair value loss on investment properties and increased labor costs due to the expansion of its money lending and credit card business. Stakeholders are advised to exercise caution when dealing with the company’s securities.

Prosperous Future Holdings Announces Board Meeting for Annual Results

Prosperous Future Holdings Limited has announced that its board of directors will hold a meeting on March 28, 2025, to consider and approve the consolidated annual results for the year ending December 31, 2024. The board will also discuss the potential recommendation for the payment of a final dividend. This meeting is significant as it will determine the company’s financial performance and shareholder returns, impacting its market positioning and stakeholder interests.