Mei Ah Entertainment Group Limited (0391) AI Stock Analysis

• Market Cap: HK$544.98M
• Dividend Yield: N/A
• Average Volume (3M): 311.86K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• Revenue Growth: -6.36%
• EPS Growth: -166.67%
• Country: HK
• Employees: 90
• Sector: Communication Services
• Sector Strength: 96
• Industry: Entertainment
• EPS (TTM): >-0.01
• Shares Outstanding: 5,923,739,000
• 10 Day Avg. Volume: 445,250
• 30 Day Avg. Volume: 311,860
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 1

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's weak financial performance, characterized by declining revenues and persistent losses. Technical analysis indicates bearish momentum, further weighing on the stock's outlook. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, making the stock less attractive to investors.

Positive Factors

Cash Flow Improvement

Improved free cash flow indicates better cash management, which enhances the company's ability to invest in growth opportunities and manage debt, contributing positively to long-term financial stability.

Digital Content Distribution

Leveraging digital distribution channels allows Mei Ah to expand its market reach and cater to evolving consumer preferences, supporting sustained revenue streams and competitive positioning.

Diverse Revenue Streams

Diverse revenue streams reduce reliance on a single market segment, providing resilience against industry-specific downturns and enhancing long-term financial stability.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, which can impact the company's ability to sustain operations and invest in growth over the long term.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and challenges in cost management, which can hinder the company's ability to achieve profitability and financial health.

Negative Return on Equity

A negative return on equity indicates that the company is not effectively using shareholder funds to generate profits, which can deter investment and limit growth potential.

Mei Ah Entertainment Group Limited Business Overview & Revenue Model

Company Description

Mei Ah Entertainment Group Limited (0391) is a prominent entertainment company based in Hong Kong, primarily engaged in the production and distribution of films and television programs. The company operates across various sectors, including film production, television broadcasting, music production, and the distribution of digital content. Mei Ah is well-known for its extensive catalog of Hong Kong films, television dramas, and music, catering to both local and international audiences.

How the Company Makes Money

Mei Ah Entertainment generates revenue through multiple streams, primarily from the production and distribution of films and television content. The company earns money by producing films that are released in cinemas, followed by revenue from home video sales and licensing of content for television and streaming platforms. Additionally, Mei Ah has a significant presence in the music industry, generating income through music sales, licensing, and live performances. The company's partnerships with various distribution channels, both domestically and internationally, enhance its reach and revenue potential. Furthermore, Mei Ah capitalizes on the rising demand for digital content by distributing its products on online platforms, contributing to its overall financial performance.

Mei Ah Entertainment Group Limited Financial Statement Overview

Summary

Mei Ah Entertainment Group Limited is facing significant financial challenges, with declining revenues and persistent losses impacting its income statement. The balance sheet shows moderate leverage, but the negative return on equity is concerning. Cash flow improvements are a positive sign, but overall financial health remains weak, requiring strategic adjustments to improve profitability and stability.

Income Statement

The company has experienced declining revenue over the past year, with a significant revenue drop of 19.77%. Gross profit margin has decreased substantially from previous years, indicating challenges in maintaining profitability. Net profit margin remains negative, reflecting ongoing losses. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio has increased slightly, indicating a moderate level of leverage. Return on equity is negative, showing that the company is not generating positive returns for shareholders. However, the equity ratio remains stable, suggesting a relatively balanced capital structure.

Cash Flow

The company has shown a remarkable improvement in free cash flow growth, indicating better cash management. Operating cash flow to net income ratio is positive, suggesting that the company is generating cash despite reporting losses. However, the free cash flow to net income ratio indicates that cash generation is not sufficient to cover net losses entirely.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.53M	110.34M	117.84M	75.57M	78.22M	95.59M
Gross Profit	40.08M	11.12M	56.60M	4.05M	26.73M	22.44M
EBITDA	-27.61M	-1.96M	5.00M	-323.00K	-21.95M	-14.61M
Net Income	-52.95M	-56.68M	-21.45M	-48.91M	-39.23M	-58.25M
Balance Sheet
Total Assets	624.27M	588.18M	661.14M	694.48M	762.81M	785.77M
Cash, Cash Equivalents and Short-Term Investments	25.81M	41.98M	32.59M	58.73M	44.33M	56.66M
Total Debt	223.94M	213.85M	215.16M	227.78M	257.45M	244.93M
Total Liabilities	347.74M	334.80M	346.09M	354.77M	393.93M	402.01M
Stockholders Equity	272.84M	249.42M	308.55M	331.19M	359.37M	374.55M
Cash Flow
Free Cash Flow	886.00K	26.90M	1.56M	43.94M	-11.12M	-1.47M
Operating Cash Flow	6.62M	45.38M	22.36M	52.86M	2.79M	12.91M
Investing Cash Flow	-23.92M	-19.24M	-25.03M	-9.75M	-15.11M	-11.07M
Financing Cash Flow	-10.98M	-10.61M	-14.40M	-13.12M	-3.01M	-6.40M

Mei Ah Entertainment Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 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:0391, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.82 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0391.

Mei Ah Entertainment Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	78 Outperform	HK$539.18M	10.26	8.70%	5.04%	32.53%	7.06%
Sector *	60 Neutral	$47.27B	4.55	-11.27%	4.14%	1.88%	-40.90%
1046	51 Neutral	HK$290.12M	―	-36.91%	―	-30.68%	-63.06%
1159	47 Neutral	HK$312.08M	2.17		―	-57.01%	―
0391	45 Neutral	HK$544.98M	―	-20.32%	―	-6.36%	-166.67%
8172	45 Neutral	HK$126.27M	―	-27.50%	―	-86.40%	53.43%
1003	43 Neutral	HK$1.19B	―		―	―	―