Prosperous Industrial (Holdings) Ltd. AI Stock Analysis
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Prosperous Industrial (Holdings) Ltd. (1731) AI Stock Analysis
Prosperous Industrial (Holdings) Ltd.
(HKEX:1731)
The overall score is driven primarily by strong financial health and quality, with robust margin expansion, solid ROE, low leverage, and consistent free cash flow supporting a resilient profile despite a recent 2% revenue decline. A very attractive valuation, combining a low P/E and double-digit dividend yield, further boosts the score and indicates meaningful upside potential relative to fundamentals. Technicals contribute positively but less decisively, reflecting stable, modestly bullish price action rather than aggressive momentum, which tempers the score slightly below the top of the range.
Prosperous Industrial (Holdings) Ltd. (1731) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 789.60M
- Dividend Yield
- 12.06%
- Average Volume (3M)
- 175.06K
- Price to Earnings (P/E)
- 4.5
- Beta (1Y)
- 0.42
- Revenue Growth
- 1.89%
- EPS Growth
- -11.34%
- Country
- Hong Kong
- Employees
- 7,800
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Apparel - Footwear & Accessories
Prosperous Industrial (Holdings) Ltd. Business Overview & Revenue Model
Company Description
Prosperous Industrial (Holdings) Limited operates as an investment holding company, primarily focusing on the comprehensive lifecycle of recreational bags and packs – from initial design and development through manufacturing and sales. Its product po...
Prosperous Industrial (Holdings) Ltd. Financial Statement Overview
Summary
Financials are strong overall: revenue grew 63% from 2021 to 2024, margins improved meaningfully (net margin rising from 2.7% to 10.3%), ROE peaked at 17.5% and remains solid at 12.9%, the balance sheet is very conservative with debt-to-equity under 4% and growing equity near HK$190M, and operating/free cash flow are consistently positive with free cash flow covering 94% of net income. The main drag on the score is the recent 2% revenue decline in 2025, which signals possible demand softness in a cyclical apparel market.
Income Statement
82Very PositiveBalance Sheet
92Very PositiveCash Flow
88Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 243.39M | 238.75M | 243.61M | 208.14M | 218.19M | 146.67M |
| Gross Profit | 56.60M | 58.11M | 61.01M | 43.75M | 40.59M | 31.27M |
| EBITDA | 30.15M | 30.25M | 34.42M | 21.16M | 16.91M | 8.97M |
| Net Income | 22.16M | 24.55M | 29.84M | 14.88M | 10.35M | 3.90M |
Balance Sheet | ||||||
| Total Assets | 247.93M | 243.66M | 220.56M | 195.69M | 189.83M | 190.78M |
| Cash, Cash Equivalents and Short-Term Investments | 85.40M | 86.06M | 77.12M | 58.51M | 48.63M | 53.69M |
| Total Debt | 9.48M | 7.22M | 2.50M | 3.22M | 5.13M | 7.54M |
| Total Liabilities | 56.09M | 53.68M | 49.65M | 46.74M | 48.21M | 51.24M |
| Stockholders Equity | 191.84M | 189.98M | 170.91M | 148.95M | 141.62M | 139.54M |
Cash Flow | ||||||
| Free Cash Flow | 18.94M | 25.59M | 25.13M | 16.56M | 3.87M | -10.01M |
| Operating Cash Flow | 20.17M | 27.28M | 27.04M | 18.55M | 6.39M | -9.13M |
| Investing Cash Flow | -26.28M | -10.32M | 11.05M | -4.72M | -1.37M | 22.02M |
| Financing Cash Flow | -8.37M | -11.22M | -9.06M | -7.73M | -7.43M | -12.79M |
Prosperous Industrial (Holdings) Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1731, the sentiment is Negative. The current price of 0.70 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.74, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 31.43 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1731.
Prosperous Industrial (Holdings) Ltd. Peers Comparison
Overall Rating
- HK:173187.75Outperform
HK:268379Outperform
HK:183673Outperform
HK:105843Neutral
HK:117042Neutral
HK:102339Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:1731 | 88Outperform | HKD 789.60M | 4.54 | 11.61% | 12.06% | 1.89% | -11.34% |
| HK:2683 | 79Outperform | HKD 469.92M | 5.39 | 26.54% | 10.43% | 17.32% | 34.39% |
| HK:1836 | 73Outperform | HKD 10.82B | 11.01 | 11.35% | 10.51% | 2.33% | -22.20% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| HK:1058 | 43Neutral | HKD 185.62M | -21.95 | -177.38% | ― | -15.97% | 73.93% |
| HK:1170 | 42Neutral | HKD 263.10M | -3.75 | -6.97% | 12.61% | -2.99% | -111.29% |
| HK:1023 | 39Underperform | HKD 361.01M | -2.99 | -8.17% | 16.00% | -6.14% | 31.24% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1731 | Prosperous Industrial (Holdings) Ltd. | 0.70 | 0.01 | 1.73% | |
| HK:1170 | Kingmaker Footwear Holdings | 0.40 | -0.05 | -11.50% | |
| HK:1836 | Stella International Holdings | 12.85 | -1.54 | -10.68% | |
| HK:1058 | Guangdong Tannery Limited | 0.34 | -0.08 | -17.86% | |
| HK:1023 | Sitoy Group Holdings Limited | 0.38 | -0.11 | -23.47% | |
| HK:2683 | Wah Sun Handbags International Holdings Ltd. | 1.15 | 0.16 | 15.93% |
Prosperous Industrial (Holdings) Ltd. Corporate Events
Prosperous Industrial Sets Board Meeting to Review Interim Results and Dividend
Prosperous Industrial (Holdings) Limited has scheduled a board meeting for 21 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026. The board will also consider the potential declaration of an interim...
Prosperous Industrial Wins Strong Shareholder Backing at 2026 AGM
Prosperous Industrial (Holdings) Ltd. reported that all resolutions proposed at its 17 June 2026 annual general meeting were approved by shareholders via poll, with no treasury shares held and no shareholders required to abstain. The meeting confirme...
Prosperous Industrial Sets 2026 AGM to Approve Dividend, Board Mandates and Share Issuance Authority
Prosperous Industrial (Holdings) Ltd. has called its annual general meeting for 17 June 2026 in Hong Kong, where shareholders will vote on adopting the 2025 audited financial statements and approving a final dividend. Investors will also decide on th...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 17, 2026