Prinx Chengshan Holdings Limited (1809) AI Stock Analysis

• Market Cap: HK$5.10B
• Dividend Yield: 5.63%
• Average Volume (3M): 70.92K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.04
• Revenue Growth: 8.48%
• EPS Growth: 25.41%
• Country: HK
• Employees: 6,818
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): 2.23
• Shares Outstanding: 637,694,000
• 10 Day Avg. Volume: 42,950
• 30 Day Avg. Volume: 70,916
• PEG Ratio: 0.14
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Prinx Chengshan Holdings Limited's strong financial performance, characterized by robust revenue and profit growth and low financial leverage, underpins its solid stock score. The company's attractive valuation, with a low P/E ratio and high dividend yield, enhances its investment appeal. However, the neutral technical indicators suggest a balanced market sentiment. High capital expenditures are a potential risk factor.

Prinx Chengshan Holdings Limited Business Overview & Revenue Model

Company Description

Prinx Chengshan Holdings Limited (1809) is a prominent player in the tire manufacturing industry, specializing in the design, development, production, and sale of a wide range of tires. The company operates across several sectors, including passenger vehicle tires, commercial vehicle tires, and specialty tires. With a strong emphasis on innovation and quality, Prinx Chengshan serves both domestic and international markets, offering products under its well-known brands such as 'Prinx,' 'Chengshan,' and 'Austone.'

How the Company Makes Money

Prinx Chengshan Holdings Limited generates revenue primarily through the sale of its tire products. The company's key revenue streams include the domestic market in China and international markets across Asia, Europe, and the Americas. Prinx Chengshan benefits from its extensive distribution network and strategic partnerships with automotive manufacturers, which boost its sales channels. Additionally, the company invests in research and development to enhance its product offerings, ensuring a competitive edge in the tire industry. This focus on innovation not only helps in retaining existing customers but also attracts new ones, contributing significantly to its earnings.

Prinx Chengshan Holdings Limited Financial Statement Overview

Summary

Prinx Chengshan Holdings Limited shows strong financial performance with robust revenue and profit growth, efficient operations, and a solid balance sheet with low leverage. The company generates healthy cash flows, though high capital expenditures could impact future cash flows.

Income Statement

The company demonstrates robust revenue growth with a Revenue Growth Rate of 10.3% in the latest year. Gross Profit Margin stands at 21.2%, and Net Profit Margin at 11.9%, indicating strong profitability. EBIT and EBITDA Margins are 12.9% and 17.1%, respectively, reflecting efficient operational management. However, the gross profit margin has slightly decreased from the previous year.

Balance Sheet

Prinx Chengshan's balance sheet is strong, with a Debt-to-Equity Ratio of 0.12, indicating low reliance on debt financing. The Return on Equity (ROE) is impressive at 20.1%, showcasing effective use of equity to generate profits. The Equity Ratio is 59.3%, revealing a solid equity base. The overall financial health is stable, though slightly impacted by a decrease in cash and equivalents.

Cash Flow

The company has achieved a Free Cash Flow Growth Rate of 19.6%, highlighting improved cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 0.95, suggesting strong cash flow relative to profits. The Free Cash Flow to Net Income Ratio is 0.51, indicating effective cash management. However, the capital expenditure remains significant, which could impact future cash flows.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
9.95B	8.15B	7.54B	6.28B	5.59B
	Gross Profit
2.12B	1.17B	1.04B	1.40B	1.08B
	EBIT
1.20B	426.31M	271.04M	689.16M	539.44M
	EBITDA
1.71B	833.18M	574.07M	924.80M	755.54M
	Net Income Common Stockholders
1.03B	393.78M	276.30M	604.82M	479.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
726.28M	1.24B	835.97M	716.64M	1.10B
	Total Assets
10.60B	9.99B	9.10B	7.49B	5.83B
	Total Debt
2.14B	3.12B	2.79B	1.21B	902.14M
	Net Debt
1.59B	2.14B	2.06B	643.59M	-12.35M
	Total Liabilities
5.17B	5.53B	5.18B	3.71B	2.41B
	Stockholders Equity
5.43B	4.45B	3.92B	3.78B	3.41B
Cash Flow		Free Cash Flow
558.58M	208.12M	-1.02B	-582.10M	-696.32M
	Operating Cash Flow
996.80M	805.42M	382.13M	649.69M	649.69M
	Investing Cash Flow
-306.31M	-681.67M	-1.34B	-1.17B	-990.44M
	Financing Cash Flow
-1.13B	89.88M	1.14B	209.10M	-139.61M

Prinx Chengshan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1809, the sentiment is Positive. The current price of 7.99 is above the 20-day moving average (MA) of 7.51, above the 50-day MA of 7.84, and above the 200-day MA of 7.84, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.88 is Neutral, neither overbought nor oversold. The STOCH value of 91.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1809.

Prinx Chengshan Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1809	78 Outperform	HK$5.10B	3.58	21.97%	5.63%	8.48%	25.41%
1836	77 Outperform	$12.25B	8.94	15.89%	7.23%	3.18%	18.35%
3899	64 Neutral	HK$12.49B	10.49	9.63%	4.87%	2.96%	-4.32%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%
2038	43 Neutral	$6.19B	―	-1.35%	―	-11.86%	83.17%

Prinx Chengshan Holdings Limited Corporate Events

Prinx Chengshan Holdings Limited Announces AGM and Key Resolutions

Prinx Chengshan Holdings Limited has announced its upcoming annual general meeting (AGM) scheduled for May 23, 2025, where key resolutions will be discussed. The agenda includes the adoption of the company’s financial statements for 2024, a proposed final dividend of HK$0.50 per share, re-election of directors, and the re-appointment of PricewaterhouseCoopers as auditors. Additionally, the meeting will consider authorizing the board to issue additional shares, which could impact the company’s capital structure and shareholder value.

Prinx Chengshan Announces 2024 Annual Results

Prinx Chengshan Holdings Limited has announced its audited results for the year ending December 31, 2024. The announcement complies with the Hong Kong Stock Exchange’s requirements and signifies the company’s commitment to transparency and regulatory adherence. The annual report will be accessible online by April 30, 2025, providing stakeholders with detailed insights into the company’s financial performance and strategic direction.

Prinx Chengshan Announces Final Dividend for 2024

Prinx Chengshan Holdings Limited has announced a final cash dividend of HKD 0.5 per share for the financial year ending December 31, 2024. The dividend will be paid on June 27, 2025, following shareholder approval on May 23, 2025. The company will withhold a 10% enterprise income tax for non-resident enterprise shareholders, as required by Chinese tax law, unless documentation is provided to exempt this withholding.

Prinx Chengshan to Discuss Annual Results and Dividend

Prinx Chengshan Holdings Limited has announced a board meeting scheduled for March 28, 2025, to approve the audited annual results for the year ending December 31, 2024. The meeting will also consider recommending a final dividend and address other business matters, potentially impacting the company’s financial strategies and shareholder returns.