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Precious Dragon Technology Holdings Ltd. (1861) AI Stock Analysis

HK:1861

Precious Dragon Technology Holdings Ltd.

(HKEX:1861)

Select Model
Rating:70Outperform
Price Target:HKD 2.50â–²(8.70% Upside)
Action:reiterated
Date:09/19/26

Strong financial performance from low leverage and robust cash generation is the main positive driver, while negative earnings and mixed technical signals limit the overall score.

Positive Factors
Very Low LeverageDebt-to-equity of about 0.04 in 2025, after substantial debt reduction, gives the company a resilient capital structure. Lower leverage reduces financing pressure and preserves capacity to withstand operating volatility or fund initiatives over the next several quarters.
Negative Factors
Sharp Revenue VolatilityThe sharp revenue decline after growth in the prior year signals substantial operating volatility and makes the improved earnings profile harder to underwrite. Prolonged weakness in the top line could reduce scale benefits, constrain reinvestment, and pressure future profitability.

Precious Dragon Technology Holdings Ltd. (1861) vs. iShares MSCI Hong Kong ETF (EWH)

-20%0%20%40%60%80%100%HK:1861+41.10%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 538.01M
Dividend Yield
3.05%
Average Volume (3M)
57.96K
Price to Earnings (P/E)
-64.6
Beta (1Y)
-0.02
Revenue Growth
0.14%
EPS Growth
-113.22%
Country
Hong Kong
Employees
474
Sector
Consumer Cyclical
Sector Strength
61
Industry
Specialty Retail

Precious Dragon Technology Holdings Ltd. Business Overview & Revenue Model

Company Description

Precious Dragon Technology Holdings Limited specializes in the creation, production, and distribution of both aerosol and non-aerosol solutions, predominantly catering to the automotive beauty and maintenance sector. Its extensive market reach covers...

Precious Dragon Technology Holdings Ltd. Financial Statement Overview

Summary

Recovering revenue with improved margins, very low debt levels, and strong positive operating and free cash flows indicate solid financial health.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

82Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue664.42M655.82M612.97M557.22M559.78M610.35M
Gross Profit262.04M288.47M227.25M175.90M154.19M157.09M
EBITDA100.54M101.46M61.87M99.32M83.33M56.00M
Net Income-8.30M58.82M34.07M56.92M42.00M18.09M
Balance Sheet
Total Assets567.17M524.52M476.53M484.76M475.21M522.81M
Cash, Cash Equivalents and Short-Term Investments139.68M173.23M105.61M114.15M104.63M110.13M
Total Debt60.94M16.44M25.32M35.54M50.94M120.37M
Total Liabilities187.80M147.13M151.05M176.84M207.56M276.48M
Stockholders Equity379.77M377.80M325.91M308.37M267.88M246.50M
Cash Flow
Free Cash Flow-36.46M72.90M25.91M57.76M47.41M-20.06M
Operating Cash Flow38.62M81.86M48.35M76.45M67.72M59.99M
Investing Cash Flow-66.33M26.48M-20.00M-17.16M-19.38M-79.93M
Financing Cash Flow-66.00K-49.07M-32.04M-39.27M-43.63M-56.65M

Precious Dragon Technology Holdings Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price2.30

Price Trends

50DMA2.28Positive
100DMA2.39Negative
200DMA2.15Positive

Market Momentum

MACD0.00Positive
RSI50.05Neutral
STOCH94.44Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1861, the sentiment is Negative. The current price of 2.30 is below the 20-day moving average (MA) of 2.30, above the 50-day MA of 2.28, and above the 200-day MA of 2.15, indicating a neutral trend. The MACD of 0.00 indicates Positive momentum. The RSI at 50.05 is Neutral, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1861.

Precious Dragon Technology Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:1861 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0178HK:017873OutperformHKD 4.05B19.9216.40%2.06%11.19%160.48%
HK:1861HK:186170OutperformHKD 538.01M-64.61-2.19%3.05%0.14%-113.22%
HK:2209HK:220969NeutralHKD 1.21B5.6431.59%3.46%31.51%22.05%
HK:9618HK:961867NeutralHKD 273.63B15.806.63%3.91%7.53%-57.52%
HK:9991HK:999162NeutralHKD 1.59B-9.57-3.70%―11.90%25.23%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
HK:0493HK:049337UnderperformHKD 758.47M-0.0821.77%―-28.44%42.64%

* Consumer Cyclical Sector Average

Performance Comparison

-50%0%50%100%HK:1861HK:0493HK:2209HK:9618HK:9991HK:0178Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1861 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1861Precious Dragon Technology Holdings Ltd.2.300.6337.81%
HK:0493GOME Retail Holdings 0.01-0.01-44.44%
HK:2209YesAsia Holdings Limited2.89-1.92-39.95%
HK:9618JD.com, Inc. Class A100.40-22.35-18.21%
HK:9991Baozun, Inc. Class A8.880.475.65%
HK:0178Sa Sa International Holdings Limited1.300.73126.96%

Precious Dragon Technology Holdings Ltd. Corporate Events

Precious Dragon posts interim loss despite modest revenue growth

Aug 21, 2026

Precious Dragon Technology Holdings Ltd. reported unaudited interim results for the six months ended 30 June 2026, showing revenue of HK$333.3 million, up slightly from HK$324.7 million a year earlier. Despite the top-line growth, gross profit fell t...

Precious Dragon flags interim loss on weaker e-commerce and Thai asset impairment

Aug 18, 2026

Precious Dragon Technology Holdings Ltd. has warned that it expects to swing to a net loss of up to HK$16 million for the six months ended 30 June 2026, compared with a net profit of about HK$52.7 million a year earlier. The reversal is driven by the...

Precious Dragon shareholders clear 2026 master supply deal

Aug 11, 2026

Independent shareholders of Precious Dragon Technology Holdings Ltd. have approved the company’s 2026 Master Supply Agreement and its revised annual caps at an extraordinary general meeting held on 11 August 2026. The poll was conducted with Mr...

Precious Dragon Sets Board Meeting to Approve Interim Results and Consider Dividend

Aug 11, 2026

Precious Dragon Technology Holdings Limited has scheduled a board meeting for 21 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider declaring an interim dividend, signaling potent...

Precious Dragon Calls August EGM to Approve 2026 Master Supply Agreement

Jul 22, 2026

Precious Dragon Technology Holdings will convene an extraordinary general meeting in Hong Kong on 11 August 2026 for shareholders to vote on approving the 2026 Master Supply Agreement and related revised annual caps. The board is also seeking authori...

Precious Dragon Technology Shareholders Back Switch to RSM Hong Kong as Auditor

Jul 17, 2026

Precious Dragon Technology Holdings Ltd. announced that shareholders overwhelmingly approved all resolutions at an extraordinary general meeting held on 17 July 2026 regarding a change of auditor. The poll results showed 100% of votes cast in favour...

Precious Dragon Further Delays Circular on Connected Transactions

Jul 17, 2026

Precious Dragon Technology Holdings Ltd., incorporated in the Cayman Islands and listed in Hong Kong, operates in the manufacturing sector and is engaged in supply arrangements formalised through master supply agreements. The company’s governan...

Precious Dragon Challenges EY Audit Fees as It Backs Switch to RSM

Jul 14, 2026

Precious Dragon Technology Holdings Ltd. has detailed the fee dispute driving its proposal to replace incumbent auditor Ernst & Young with RSM Hong Kong, ahead of an extraordinary general meeting on the change. The company’s audit committee...

Precious Dragon Delays Circular on Connected Transactions for 2026 Master Supply Deal

Jun 30, 2026

Precious Dragon Technology Holdings Limited has announced a delay in sending a shareholder circular related to revising the annual cap and renewing continuing connected transactions under its 2026 Master Supply Agreement. The company had planned to d...

Precious Dragon Calls EGM to Replace Ernst & Young as Auditor

Jun 25, 2026

Precious Dragon Technology Holdings Ltd. has called an extraordinary general meeting in Hong Kong on 17 July 2026 for shareholders to vote on the proposed removal of Ernst & Young as the company’s auditor. The board is seeking authority to...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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: Sep 19, 2026