Oriental Enterprise Holdings Limited (0018) AI Stock Analysis

• Market Cap: HK$851.26M
• Dividend Yield: 11.27%
• Average Volume (3M): 208.20K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 0.29
• Revenue Growth: -7.40%
• EPS Growth: -38.30%
• Country: HK
• Employees: 817
• Sector: Communication Services
• Sector Strength: 83
• Industry: Publishing
• EPS (TTM): 0.01
• Shares Outstanding: 2,397,918,000
• 10 Day Avg. Volume: 99,920
• 30 Day Avg. Volume: 208,199
• PEG Ratio: 0.00
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.09
• 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: 67 Neutral
• Price Target: ―

Oriental Enterprise Holdings Limited's stock score reflects a combination of solid financial stability due to its strong balance sheet, offset by declining income and cash flow challenges. The technical indicators show a stable price trend, but a lack of strong momentum. The valuation is appealing with a reasonable P/E ratio and a very high dividend yield, although the yield raises concerns about financial sustainability. Overall, while the company has a strong financial foundation, it faces significant challenges in revenue growth and cash flow management.

Oriental Enterprise Holdings Limited Business Overview & Revenue Model

Company Description

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How the Company Makes Money

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Oriental Enterprise Holdings Limited Financial Statement Overview

Summary

Oriental Enterprise Holdings Limited faces challenges with declining revenues and profitability, impacting income statement metrics. Despite these challenges, the company maintains a strong balance sheet with low leverage and high equity, providing financial stability. However, cash flow issues indicate the need for improved liquidity management. Overall, while the company's financial foundation is solid, it must focus on reversing revenue declines and enhancing cash flow generation to improve its financial health.

Income Statement

Oriental Enterprise Holdings Limited has experienced a decline in revenue, decreasing from HK$735.78M in 2022 to HK$628.99M in 2024. The gross profit margin for 2024 is approximately 24.6%, showing a decrease from previous years. The net profit margin for 2024 is around 11.9%, reflecting a notable decline compared to earlier periods. EBIT and EBITDA margins have shown some improvement, with the EBIT margin at 28.3% in 2024. However, the overall reduction in revenue and net income margins highlights challenges in maintaining top-line growth and profitability.

Balance Sheet

The balance sheet of Oriental Enterprise Holdings Limited reveals a strong equity base, with a debt-to-equity ratio of 0.008 in 2024, indicating low leverage. The equity ratio stands at 91%, showing financial stability and a solid capital structure. Return on equity has declined to 4.2% in 2024, reflecting reduced profitability. Despite the challenges in income, the company's balance sheet remains robust, with substantial cash reserves and low debt levels.

Cash Flow

Cash flow analysis shows a significant decline, with a negative operating cash flow of HK$113.19M in 2024. The free cash flow has also turned negative, highlighting challenges in cash generation. The operating cash flow to net income ratio has become unfavorable, impacting liquidity. The company needs to address its cash flow management to ensure sustainable operations.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	620.49M	629.00M	677.16M	735.78M	699.62M	823.01M
Gross Profit	161.68M	539.79M	212.15M	282.16M	191.54M	131.30M
EBITDA	93.89M	127.47M	161.88M	209.34M	123.01M	39.16M
Net Income	69.45M	75.10M	166.56M	166.74M	211.24M	-10.99M
Balance Sheet
Total Assets	1.87B	1.96B	1.89B	2.06B	2.08B	1.90B
Cash, Cash Equivalents and Short-Term Investments	540.77M	560.94M	665.20M	633.59M	654.26M	594.11M
Total Debt	13.99M	14.13M	7.57M	7.05M	7.11M	5.72M
Total Liabilities	171.46M	162.33M	162.32M	193.83M	143.96M	148.40M
Stockholders Equity	1.68B	1.78B	1.72B	1.86B	1.93B	1.74B
Cash Flow
Free Cash Flow	-86.06M	-121.78M	98.51M	219.33M	103.10M	121.60M
Operating Cash Flow	-80.52M	-113.19M	103.13M	228.60M	107.31M	129.68M
Investing Cash Flow	249.22M	17.68M	180.55M	-8.65M	-3.65M	-7.21M
Financing Cash Flow	-174.93M	-1.30M	-263.77M	-239.79M	-47.96M	-47.96M

Oriental Enterprise Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0018, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.39, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.76 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0018.

Oriental Enterprise Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0113	76 Outperform	HK$2.65B	13.63	5.58%	2.91%	-19.93%	-43.35%
0001	75 Outperform	$183.84B	10.76	3.16%	6.31%	2.10%	-27.28%
0002	75 Outperform	HK$165.61B	14.10	11.36%	3.84%	4.35%	76.44%
0083	69 Neutral	$79.42B	20.89	2.17%	1.73%	-30.38%	-43.73%
0018	67 Neutral	HK$851.26M	16.21	3.08%	11.27%	-7.40%	-38.30%
0017	56 Neutral	$13.97B	―	-10.34%	9.01%	-56.64%	-3398.20%
Sector *	55 Neutral	HK$63.77B	-1.81	-3.61%	6.50%	-4.24%	-17.51%

Oriental Enterprise Holdings Limited Corporate Events

Oriental Enterprise Holdings Limited Forms Nomination Committee

Oriental Enterprise Holdings Limited has established a Nomination Committee as a sub-committee of its board of directors. The committee is tasked with reviewing the board’s structure, size, and composition, ensuring a diverse range of skills and perspectives. The committee, which must consist mainly of independent non-executive directors, will meet at least once a year and has the authority to seek external professional advice.

Oriental Enterprise Holdings Limited Forms Audit Committee to Strengthen Governance

Oriental Enterprise Holdings Limited has established an Audit Committee as a sub-committee of its board of directors. This committee is composed of at least three members, primarily independent non-executive directors, with at least one member possessing professional qualifications in accounting or financial management. The committee’s responsibilities include overseeing financial reporting and compliance with the Listing Rules of the Hong Kong Stock Exchange. The establishment of this committee is expected to enhance the company’s governance and ensure adherence to financial regulations, thereby strengthening its market position and stakeholder confidence.

Oriental Enterprise Holdings Limited Forms Remuneration Committee to Enhance Governance

Oriental Enterprise Holdings Limited has established a Remuneration Committee as a sub-committee of its board of directors. This committee is primarily composed of independent non-executive directors and is tasked with overseeing remuneration matters within the company. The committee will meet at least once a year and has the authority to seek necessary information from the company and consult with external advisers. This move is aimed at enhancing governance and ensuring fair remuneration practices, potentially impacting the company’s operational transparency and stakeholder confidence.