Culturecom Holdings Limited (0343) AI Stock Analysis

• Market Cap: HK$383.79M
• Dividend Yield: N/A
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -0.57%
• EPS Growth: -159.63%
• Country: HK
• Employees: 50
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.02
• Shares Outstanding: 1,668,656,900
• 10 Day Avg. Volume: 3,323,969
• 30 Day Avg. Volume: 4,025,223
• PEG Ratio: -0.32
• Price to Book (P/B): 3.65
• Price to Sales (P/S): 18.01
• P/FCF Ratio: -25.10
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.16 ▼(-7.65% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and significant losses. Technical analysis further indicates bearish momentum, while valuation metrics are unattractive due to negative earnings and lack of dividends. These factors collectively suggest a high-risk investment profile.

Positive Factors

Low Debt Levels

Maintaining low debt levels provides financial flexibility and reduces the risk of financial distress, supporting long-term stability.

Stable Capital Structure

A stable capital structure can help the company weather financial challenges and position it for future growth opportunities.

Strategic Partnerships

Strategic partnerships can drive revenue growth and expand market reach by leveraging collaborative projects and joint ventures.

Negative Factors

Declining Revenue

Persistent revenue decline challenges the company's ability to sustain operations and invest in growth, impacting long-term viability.

Negative Profit Margins

Decreasing profit margins indicate operational inefficiencies and pressure on profitability, threatening long-term financial health.

Cash Flow Challenges

Negative cash flow limits the company's ability to fund operations and growth initiatives, posing risks to financial sustainability.

Culturecom Holdings Limited Business Overview & Revenue Model

Company Description

Culturecom Holdings Limited is a Hong Kong-based investment holding company primarily engaged in the development and distribution of multimedia products and services. The company operates in various sectors, including digital entertainment, media, and technology. Its core offerings include mobile applications, online games, and digital content, catering to a diverse audience in the rapidly evolving digital landscape.

How the Company Makes Money

Culturecom Holdings generates revenue through multiple streams, primarily from the sale of digital content and mobile applications. The company monetizes its products through direct sales, in-app purchases, and advertising partnerships, which allow it to reach a broad audience. Additionally, Culturecom has established strategic partnerships with other technology firms and content providers, enhancing its product offerings and expanding its market reach. Revenue is also supplemented by licensing agreements and collaborations within the multimedia sector, which further contribute to its earnings.

Culturecom Holdings Limited Financial Statement Overview

Summary

Culturecom Holdings Limited is facing significant financial challenges, with declining revenues and persistent losses impacting profitability and cash flow. The company maintains a low debt level, but its inability to generate positive returns and cash flow poses risks to financial stability.

Income Statement

The company has faced declining revenues over the years, with a negative revenue growth rate of -6.81% in the most recent year. Gross profit margins have decreased from 48.87% to 44.02%, indicating pressure on profitability. The net profit margin is significantly negative at -161.37%, reflecting substantial losses. EBIT and EBITDA margins are also deeply negative, suggesting operational challenges.

Balance Sheet

The company's debt-to-equity ratio is low at 0.064, indicating low leverage, which is a positive aspect. However, the return on equity is negative at -32.71%, showing that the company is not generating returns for shareholders. The equity ratio is relatively healthy, suggesting a stable capital structure despite ongoing losses.

Cash Flow

The company has negative operating cash flow and free cash flow, with a free cash flow growth rate of -22.64%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is slightly positive, suggesting that cash flow is somewhat aligned with reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.59M	17.33M	20.16M	30.60M	62.37M	206.60M
Gross Profit	7.57M	7.63M	9.85M	10.87M	19.67M	32.79M
EBITDA	-23.54M	-23.33M	-19.86M	-35.38M	-34.16M	-59.95M
Net Income	-18.23M	-27.96M	-20.78M	-37.22M	-28.94M	-56.98M
Balance Sheet
Total Assets	115.28M	97.86M	126.28M	162.51M	206.01M	245.72M
Cash, Cash Equivalents and Short-Term Investments	25.40M	19.13M	39.94M	63.82M	135.40M	117.57M
Total Debt	6.32M	5.49M	8.33M	2.55M	601.00K	40.85M
Total Liabilities	17.01M	17.74M	17.60M	15.11M	15.12M	73.14M
Stockholders Equity	103.97M	85.48M	113.79M	138.55M	182.84M	165.29M
Cash Flow
Free Cash Flow	-16.07M	-12.43M	-19.78M	-62.63M	901.00K	-66.42M
Operating Cash Flow	-16.05M	-12.43M	-19.75M	-57.69M	911.00K	-63.03M
Investing Cash Flow	-4.34M	-553.00K	-3.53M	-9.73M	12.41M	-5.49M
Financing Cash Flow	-5.25M	-7.06M	5.48M	-1.53M	1.36M	4.52M

Culturecom Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0343, the sentiment is Negative. The current price of 0.17 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.22, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.28 is Neutral, neither overbought nor oversold. The STOCH value of 15.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0343.

Culturecom Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0205	54 Neutral	HK$347.83M	-25.40	-6.02%	―	-4.13%	76.38%
1490	51 Neutral	HK$206.67M	-52.65	-0.67%	―	2.85%	-118.89%
1753	45 Neutral	HK$239.05M	―	-3.55%	―	-5.89%	-330.91%
0343	41 Neutral	HK$383.79M	-13.69	-57.02%	―	-0.57%	-159.63%
0164	41 Neutral	HK$112.06M	-19.54	―	―	-1.65%	92.30%
8500	39 Underperform	HK$93.31M	-4.88	-96.94%	―	-55.50%	84.93%

Culturecom Holdings Limited Corporate Events

Culturecom Holdings Discloses CEO Emoluments in Supplemental Announcement

Culturecom Holdings Limited has released a supplemental announcement regarding the emoluments of its CEOs for several financial years. The company disclosed that records for the emoluments of former CEO Mr. Yu Huaguo for FY2009 to FY2011 are unavailable, while details for Mr. Sun Wei and Mr. Liu Hin Wang Leris for FY2022 to FY2025 have been provided. This announcement aims to enhance transparency in executive compensation, potentially impacting stakeholder trust and corporate governance perceptions.

The most recent analyst rating on (HK:0343) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Culturecom Holdings Limited stock, see the HK:0343 Stock Forecast page.

Culturecom Holdings Completes Warrant Placement for HK$5.45 Million

Culturecom Holdings Limited has successfully completed the placing of 200,000,000 non-listed warrants under a specific mandate, with the placing agent distributing them to at least six independent third-party placees. The net proceeds of approximately HK$5,450,000 from this warrant placement will be used for general working capital, including salaries, rental expenses, IT services, and other office overheads. This strategic move does not result in any of the placees becoming substantial shareholders, and it potentially enhances the company’s financial flexibility and operational capacity.

Culturecom Holdings AGM Results: Resolutions Passed with One Exception

Culturecom Holdings Limited announced the results of its Annual General Meeting held on August 26, 2025. The company successfully passed all proposed resolutions except for the re-election of Dr. Liu Ka Ying Rebecca as a non-executive director. The resolutions included approving financial statements, director fees, re-appointments, and granting mandates for share repurchase and issuance. This outcome reflects shareholder support for the company’s governance and operational strategies, although the rejection of one director’s re-election indicates some level of dissent.

Culturecom Holdings Limited Announces Board Composition

Culturecom Holdings Limited has announced the composition of its Board of Directors, which includes a mix of executive, non-executive, and independent non-executive directors. This announcement outlines the roles and functions of each board member, as well as their participation in various board committees, which could influence the company’s governance and strategic direction.