Prosperous Industrial (Holdings) (HKSE:01731) Interest Coverage: 55.05 (As of Dec. 2025) — 30% Below Median

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HKSE:01731 Prosperous Industrial (Holdings) Ltd HKSE:01731
59 GF Score
Price HK$0.77
GF Value HK$0.80
Valuation Fairly Valued
! 1 Warning Sign
View Full Analysis

What is Prosperous Industrial (Holdings) Interest Coverage?

Prosperous Industrial (Holdings) HKSE:01731 +1.99% 59 Interest Coverage is 55.05 as of Dec. 2025, which is 30% below its 10-year median of 78.45. GuruFocus rates HKSE:01731 with a GF Score™ of 59/100 and a GF Value™ of HK$0.80 (Fairly Valued). The stock has 1 warning sign investors should review. Among 749 Manufacturing - Apparel & Accessories companies, Prosperous Industrial (Holdings) ranks better than 88.38% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Prosperous Industrial (Holdings)'s Operating Income for the six months ended in Dec. 2025 was HK$84 Mil. Prosperous Industrial (Holdings)'s Interest Expense for the six months ended in Dec. 2025 was HK$-2 Mil. Prosperous Industrial (Holdings)'s interest coverage for the quarter that ended in Dec. 2025 was 55.05. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Prosperous Industrial (Holdings) Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Prosperous Industrial (Holdings)'s Interest Coverage or its related term are showing as below:

HKSE:01731' s Interest Coverage Range Over the Past 10 Years
Min: 5.82   Med: 78.45   Max: No Debt
Current: 99.21


HKSE:01731's Interest Coverage is ranked better than
88.38% of 749 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.42 vs HKSE:01731: 99.21

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Prosperous Industrial (Holdings)  (HKSE:01731) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Prosperous Industrial (Holdings) Interest Coverage Related Terms


Prosperous Industrial (Holdings) Interest Coverage Historical Data

* Premium members only.

The historical data trend for Prosperous Industrial (Holdings)'s Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Prosperous Industrial (Holdings) Interest Coverage Chart

Prosperous Industrial (Holdings) Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.05 26.85 57.99 118.89 98.91

Prosperous Industrial (Holdings) Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 57.07 169.81 82.55 229.25 55.05

HKSE:01731 vs NKE, DECK, ONON: Interest Coverage Comparison

For the Footwear & Accessories subindustry, Prosperous Industrial (Holdings)'s Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Prosperous Industrial (Holdings) Interest Coverage vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Prosperous Industrial (Holdings)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Prosperous Industrial (Holdings)'s Interest Coverage falls into.


HKSE:01731
59GF Score
Prosperous Industrial (Holdings) Ltd HKSE:01731
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Prosperous Industrial (Holdings) Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Prosperous Industrial (Holdings)'s Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Prosperous Industrial (Holdings)'s Interest Expense was HK$-2 Mil. Its Operating Income was HK$202 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$43 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*201.671/-2.039
=98.91

Prosperous Industrial (Holdings)'s Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Prosperous Industrial (Holdings)'s Interest Expense was HK$-2 Mil. Its Operating Income was HK$84 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$43 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*83.947/-1.525
=55.05

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 55.05 mean?
Prosperous Industrial (Holdings) (HKSE:01731) has a Interest Coverage of 55.05 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Prosperous Industrial (Holdings) and its competitors. This is 30% below median its historical median of 78.45. Over the past decade, Prosperous Industrial (Holdings)'s Interest Coverage has ranged from 5.82 to 10,000.00. According to the industry distribution chart, Prosperous Industrial (Holdings) ranks #87 out of 749 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 11.6%.
Is Prosperous Industrial (Holdings)'s Interest Coverage too high?
Prosperous Industrial (Holdings)'s current Interest Coverage of 55.05 is 30% below median its 10-year median of 78.45. Over the past 10 years, this metric has ranged from a low of 5.82 to a high of 10,000.00. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.42. Prosperous Industrial (Holdings)'s value of 55.05 is 915.7% above this industry median. Based on the distribution chart, Prosperous Industrial (Holdings) ranks #87 out of 749 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Prosperous Industrial (Holdings) has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Prosperous Industrial (Holdings)'s Interest Coverage compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Prosperous Industrial (Holdings) ranks #87 out of 749 companies for Interest Coverage. This places Prosperous Industrial (Holdings) in the top 12% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.42. Prosperous Industrial (Holdings)'s value of 55.05 is 915.7% above this benchmark. Historically, Prosperous Industrial (Holdings)'s own Interest Coverage has ranged from 5.82 to 10,000.00 over the past decade. While the company's 10-year median is 78.45 vs. the industry median of 5.42, Prosperous Industrial (Holdings) has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.42, based on 749 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Prosperous Industrial (Holdings)'s current Interest Coverage of 55.05 is 915.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Prosperous Industrial (Holdings) and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prosperous Industrial (Holdings)'s current Interest Coverage is 55.05, which is 30% below median its own 10-year median of 78.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prosperous Industrial (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Prosperous Industrial (Holdings) (HKSE:01731) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.80, compared to a current price of HK$0.77 — trading 3.8% below its estimated fair value. The current Interest Coverage is 55.05, which is 30% below median its 10-year median of 78.45 and 915.7% above the Manufacturing - Apparel & Accessories industry median of 5.42. Prosperous Industrial (Holdings)'s overall GF Score™ is 59/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Prosperous Industrial (Holdings) (HKSE:01731), the current Interest Coverage is 55.05 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Prosperous Industrial (Holdings) (HKSE:01731) Overvalued in 2026?

Based on GuruFocus' analysis, Prosperous Industrial (Holdings) stock appears to be undervalued. The current stock price of HK$0.77 is trading 3.8% below its estimated GF Value™ of HK$0.80. GuruFocus considers Prosperous Industrial (Holdings) to be Fairly Valued.

Key valuation signals for HKSE:01731:

  • Interest Coverage: 55.05 (30% below median its 10-year median of 78.45)
  • GF Value™: HK$0.80 vs. price of HK$0.77 (3.8% below fair value)
  • GF Score™: 59/100 with 1 warning sign
  • Industry Position: 915.7% above the Manufacturing - Apparel & Accessories median (#87 of 749)

No single metric tells the full story. See the HKSE:01731 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Prosperous Industrial (Holdings) Business Description

Address 71-75 Container Port Road, Unit 1-2, 1st Floor, Join-In Hang Sing Centre, Kwai Chung, New Territories, Hong Kong, HKG
Prosperous Industrial (Holdings) Ltd is an investment holding company principally engaged in the manufacturing and sale of sports bags, handbags, and luggage bags. The company's products are categorized as outdoor and sporting bags, including day packs and overnight backpacks, which are designed with larger volumes; functional bags such as camera backpacks with multiple pockets and waterproof hydration backpacks; fashion and casual bags, as well as other bags and packs. Geographically, the company generates revenue from the United States of America, Belgium, Japan, the Chinese Mainland, the Netherlands, Italy, and other countries. The company generates the majority of its revenue from the United States of America.
59GF Score

Get the complete analysis for HKSE:01731

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

HK$0.77
Price
HK$0.80
GF Value