Culturecom Holdings Limited (0343) AI Stock Analysis

• Market Cap: HK$233.61M
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -19.06%
• EPS Growth: 40.11%
• Country: HK
• Employees: 50
• Sector: Communication Services
• Sector Strength: 93
• Industry: Advertising Agencies
• EPS (TTM): -0.01
• Shares Outstanding: 1,668,656,900
• 10 Day Avg. Volume: 1,162,500
• 30 Day Avg. Volume: 1,235,036
• PEG Ratio: -0.81
• Price to Book (P/B): 5.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.79
• 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: 47 Neutral
• Price Target: ―

Culturecom Holdings Limited faces significant financial challenges, with declining revenue and consistent losses affecting its financial health. The technical analysis shows market stability, but without strong indicators of growth. The negative P/E ratio further reflects poor valuation. Overall, the stock's outlook is cautious, primarily due to financial and valuation concerns.

Culturecom Holdings Limited Business Overview & Revenue Model

Company Description

Culturecom Holdings Limited (0343) is a diversified investment holding company primarily engaged in the sectors of publishing, digital entertainment, and technology. The company offers a range of products and services including comic and animation content, digital games, and technology solutions. With a focus on leveraging its intellectual property, Culturecom aims to capture the interests of a broad audience through its innovative and culturally relevant offerings.

How the Company Makes Money

Culturecom Holdings Limited generates revenue through multiple streams primarily involving its intellectual property assets. The company earns money by publishing and distributing comic books and animated content, both in print and digital formats. This content often serves as a foundation for digital games and other entertainment products, which contribute to its earnings. Additionally, Culturecom engages in licensing deals and partnerships with other firms to expand the reach of its content, thereby generating licensing fees and royalties. Furthermore, the company invests in technology solutions and platforms that support its content distribution, adding another layer of revenue through technology services and solutions. Strategic partnerships and collaborations with industry players also play a significant role in enhancing its market presence and revenue potential.

Culturecom Holdings Limited Financial Statement Overview

Summary

Culturecom Holdings Limited is facing financial challenges with declining revenue and consistent net losses, negatively impacting profitability. The balance sheet shows a strong equity position with low leverage, but the ongoing net losses and negative free cash flow are concerning, indicating potential liquidity issues.

Income Statement

Culturecom Holdings Limited has shown a significant decline in revenue over the past few years, indicating a negative revenue growth trend. The company also reported consistent net losses, impacting the net profit margins negatively. Both EBIT and EBITDA margins are negative, which points to operational inefficiencies and high operating expenses relative to revenue.

Balance Sheet

The balance sheet shows a relatively strong equity position with a high equity ratio, suggesting low financial leverage. However, the company has a low return on equity due to consistent net losses. The debt-to-equity ratio is low, indicating conservative financial leverage, but the company's profitability remains a concern.

Cash Flow

The cash flow statement reflects negative free cash flow, indicating potential liquidity issues. Operating cash flow is also negative, which highlights challenges in generating cash from operations. The free cash flow to net income ratio is unfavorable due to significant net losses and negative cash flow.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	18.59M	20.16M	30.60M	62.37M	206.60M	153.29M
Gross Profit	7.57M	9.85M	10.87M	19.67M	32.79M	18.55M
EBITDA	-23.54M	-19.47M	-35.38M	-34.16M	-59.95M	-53.06M
Net Income	-18.23M	-20.78M	-37.22M	-28.94M	-56.98M	-58.03M
Balance Sheet
Total Assets	115.28M	126.28M	162.51M	206.01M	245.72M	286.55M
Cash, Cash Equivalents and Short-Term Investments	27.90M	39.94M	63.82M	135.40M	117.57M	177.26M
Total Debt	6.32M	8.33M	2.55M	601.00K	40.85M	26.10M
Total Liabilities	17.01M	17.60M	15.11M	15.12M	73.14M	50.83M
Stockholders Equity	103.97M	113.79M	138.55M	182.84M	165.29M	220.87M
Cash Flow
Free Cash Flow	-16.07M	-19.78M	-62.63M	901.00K	-66.42M	-30.79M
Operating Cash Flow	-16.05M	-19.75M	-57.69M	911.00K	-63.03M	-30.30M
Investing Cash Flow	-4.29M	-3.53M	-9.73M	12.41M	-5.49M	8.83M
Financing Cash Flow	-5.31M	5.48M	-1.53M	1.36M	4.52M	-16.35M

Culturecom Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0343, the sentiment is Neutral. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.15, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 60.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0343.

Culturecom Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0700	78 Outperform	$4.66T	21.88	21.25%	0.88%	8.88%	54.27%
1928	73 Outperform	$134.03B	16.44	203.51%	11.90%	6.04%	50.60%
1044	72 Outperform	$26.03B	10.25	11.12%	6.77%	-6.53%	-18.43%
0775	65 Neutral	HK$8.27B	―	-3.29%	―	3.76%	-833.33%
0012	62 Neutral	$133.62B	21.22	1.94%	9.42%	-7.64%	-32.01%
Sector *	55 Neutral	HK$65.49B	-1.57	-1.91%	7.66%	-4.18%	-13.99%
0343	47 Neutral	HK$233.61M	―	-28.07%	―	-19.06%	40.11%

Culturecom Holdings Limited Corporate Events

Culturecom Holdings Announces Proposed Warrant Placing

Culturecom Holdings Limited has announced a proposed placing of non-listed warrants under a specific mandate. The company plans to issue up to 200,000,000 warrants, allowing for the subscription of an equivalent number of warrant shares at an initial exercise price of HK$0.3 per share. This initiative is expected to raise gross proceeds of approximately HK$6.2 million and net proceeds of about HK$5.45 million, which will be used for general working capital. The proceeds from the full exercise of the subscription rights could raise an additional HK$60 million, with the total aggregate net proceeds of HK$65.45 million aimed at revitalizing and promoting the company’s intellectual properties and covering general working expenses.