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Emperor Culture Group (HK:0491)
:0491
Hong Kong Market

Emperor Culture Group (0491) AI Stock Analysis

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HK

Emperor Culture Group

(0491)

Rating:40Underperform
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall stock score for Emperor Culture Group is significantly impacted by its poor financial performance, characterized by high leverage and negative profitability. Technical analysis further suggests weak market sentiment, while valuation metrics highlight ongoing financial challenges.

Emperor Culture Group (0491) vs. iShares MSCI Hong Kong ETF (EWH)

Emperor Culture Group Business Overview & Revenue Model

Company DescriptionEmperor Culture Group (0491) is a diversified entertainment company based in Hong Kong. The company is engaged in the production, distribution, and exhibition of films and television programs, as well as cinema operations. It is a prominent player in the Asian entertainment industry, focusing on delivering high-quality media content and providing entertainment experiences through its various platforms.
How the Company Makes MoneyEmperor Culture Group makes money primarily through its film and television production and distribution activities. The company generates revenue by producing films and TV shows that are distributed both domestically and internationally. In addition to content creation, the company operates cinemas, which contribute to its earnings through ticket sales and concessions. These cinema operations are a significant revenue stream, capitalizing on the demand for theatrical releases. The company may also engage in partnerships or collaborations with other media entities to expand its distribution network and maximize its content reach. Additionally, merchandise sales and licensing deals related to its film and television properties can provide supplementary income.

Emperor Culture Group Financial Statement Overview

Summary
Emperor Culture Group faces significant financial challenges. Despite revenue growth, the company struggles with persistent profitability issues, high leverage, and negative equity, indicating substantial financial risk and limited flexibility.
Income Statement
25
Negative
Emperor Culture Group has experienced significant revenue growth over the years, with a notable increase from 2022 to 2023. However, the company has consistently reported negative net income and EBIT, indicating ongoing profitability challenges. The gross profit margin has improved, but the persistent negative EBIT and net profit margins are concerning for future profitability.
Balance Sheet
15
Very Negative
The balance sheet reveals a concerning financial structure, with negative stockholders' equity indicating insolvency risks. The company has a high level of debt compared to its equity, as evidenced by the negative equity and increasing total liabilities. This high leverage poses significant financial risk and limits the company's financial flexibility.
Cash Flow
30
Negative
The cash flow analysis shows fluctuating operating cash flows but a negative free cash flow in the most recent period. The company struggles with maintaining positive free cash flow due to substantial capital expenditures, which could hinder its ability to invest in growth opportunities without external financing.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue470.50M494.54M456.20M306.71M192.91M126.25M
Gross Profit185.59M293.03M60.63M179.00M111.17M75.90M
EBITDA-402.63M-374.37M6.64M55.34M12.88M-156.91M
Net Income-628.75M-715.15M-329.94M-201.38M-219.78M-342.18M
Balance Sheet
Total Assets734.00M838.79M1.40B1.81B1.73B1.72B
Cash, Cash Equivalents and Short-Term Investments67.18M84.64M82.05M123.26M62.35M47.76M
Total Debt1.84B1.84B1.68B1.84B1.49B1.30B
Total Liabilities2.08B2.13B1.97B2.14B1.67B1.46B
Stockholders Equity-1.34B-1.29B-568.28M-233.45M96.87M293.67M
Cash Flow
Free Cash Flow-17.27M-55.20M32.33M-64.36M-75.32M-233.52M
Operating Cash Flow25.00M-12.93M63.15M-7.83M-2.13M112.53M
Investing Cash Flow-60.33M-85.81M-64.65M-64.05M-73.11M-345.81M
Financing Cash Flow38.11M101.75M-36.58M133.08M89.78M109.98M

Emperor Culture Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.03
Price Trends
50DMA
0.04
Negative
100DMA
0.04
Negative
200DMA
0.04
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
49.16
Neutral
STOCH
8.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0491, the sentiment is Neutral. The current price of 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.16 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0491.

Emperor Culture Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
58
Neutral
HK$28.08B73.882.29%24.36%-18.99%
55
Neutral
HK$2.87B4.89-9.32%8.03%12.55%-102.16%
53
Neutral
HK$221.46M-1.32%-21.40%-100.00%
49
Neutral
HK$201.28M-110.51%-33.40%29.14%
45
Neutral
HK$130.48M-26.83%-81.56%26.00%
45
Neutral
HK$151.18M-12.77%-8.19%-498.76%
40
Underperform
HK$109.25M
-7.95%-89.82%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0491
Emperor Culture Group
0.04
0.00
0.00%
HK:1060
Alibaba Pictures Group Limited
0.94
0.52
123.81%
HK:0953
Shaw Brothers Holdings Limited
0.18
0.06
50.00%
HK:8172
Lajin Entertainment Network Group Limited
0.32
-0.06
-15.79%
HK:1132
Orange Sky Golden Harvest Entertainment (Holdings) Limited
0.05
>-0.01
-16.67%
HK:8082
Sun Entertainment Group Limited
0.08
-0.02
-20.00%

Emperor Culture Group Corporate Events

Emperor Culture Group Updates Nomination Committee Terms
Jun 30, 2025

Emperor Culture Group Limited has amended and re-adopted the terms of reference for its Nomination Committee as of June 30, 2025. The committee, primarily composed of independent non-executive directors, is tasked with ensuring board diversity, assessing the board’s structure, and recommending candidates for directorship. This move is aimed at enhancing the board’s effectiveness and aligning with the company’s corporate strategy, potentially impacting the company’s governance and stakeholder confidence.

Emperor Culture Group Changes Auditor Amid Cost Control Measures
Jun 25, 2025

Emperor Culture Group Limited, a company listed on the Hong Kong Stock Exchange, announced a change in its auditing firm due to a disagreement over audit fees with Ernst & Young (EY). The company has appointed Cheng & Cheng Limited as the new auditor, a decision aimed at maintaining audit quality while implementing cost control measures to support future business development.

Emperor Culture Group Clarifies Pricing Policies in 2025 Framework Agreement
Jun 6, 2025

Emperor Culture Group Limited has provided additional details regarding its 2025 Framework Agreement, specifically concerning the pricing policy for Film Rental Licence Transactions and Film Promotion Transactions. The company outlines that the licence fees for film rentals are determined based on a percentage of the gross box office, influenced by factors like expected demand and market popularity. Meanwhile, fees for film promotion are calculated based on the redemption of movie vouchers or coupons. This supplemental announcement aims to clarify these aspects for shareholders and potential investors, ensuring transparency and maintaining the terms negotiated at arm’s length.

Emperor Culture Group Renews Film Exhibition Agreement
May 23, 2025

Emperor Culture Group has entered into a new 2025 Framework Agreement with EMP to continue its Film Rental Licence and Film Promotion Transactions. This agreement is crucial for the company’s operations in film exhibition and promotional activities within its cinemas. The transactions, exempt from shareholder approval due to their size, will be governed by the terms set out in the agreement, ensuring the continuation of film exhibition services until June 2028.

Emperor Culture Group Expands Cinema Operations in Chengdu with New Tenancy Agreement
May 8, 2025

Emperor Culture Group has entered into a Supplemental Tenancy Agreement for a cinema located in Chengdu, PRC, marking a significant step in their expansion strategy. The agreement, effective from May 15, 2024, extends the lease term to 15 years and outlines a structured rent payment plan, which includes both base and turnover rent components. This move is expected to bolster the company’s market presence in the region, leveraging the high occupancy rate of the Shin Kong Place to drive business growth.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 10, 2025