Emperor Culture Group (0491) AI Stock Analysis

• Market Cap: HK$138.17M
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -7.95%
• EPS Growth: -89.82%
• Country: HK
• Employees: 651
• Sector: Services
• Sector Strength: N/A
• Industry: Entertainment
• EPS (TTM): -0.02
• Shares Outstanding: 3,213,340,800
• 10 Day Avg. Volume: 2,028,000
• 30 Day Avg. Volume: 2,850,301
• PEG Ratio: 0.12
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.90
• 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: 46 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall score is primarily influenced by the company's financial performance, highlighting significant challenges in profitability and financial stability. Technical analysis offers a slightly positive but cautious outlook, while valuation remains a concern due to negative earnings and no dividends.

Emperor Culture Group Business Overview & Revenue Model

Company Description

Emperor Culture Group Limited, an investment holding company, engages in entertainment, media, and cultural development businesses in the Mainland China, Hong Kong, and rest of Asia Pacific. The company operates through two segments, Cinema Operation; and Investments In Films And Cultural Events. It develops and operates cinemas; and invests in securities. The company was formerly known as See Corporation Limited and changed its name to Emperor Culture Group Limited in June 2017. Emperor Culture Group Limited was incorporated in 1992 and is headquartered in Wan Chai, Hong Kong. Emperor Culture Group Limited operates as a subsidiary of Albert Yeung Entertainment Holdings Limited.

How the Company Makes Money

Emperor 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

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

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

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.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
470.50M	494.54M	456.20M	306.71M	192.91M	126.25M
	Gross Profit
185.59M	293.03M	60.63M	179.00M	111.17M	75.90M
	EBIT
-133.34M	-182.47M	-207.53M	-155.46M	-165.38M	-304.42M
	EBITDA
-402.63M	-374.37M	6.64M	55.34M	12.88M	-156.91M
	Net Income Common Stockholders
-628.75M	-715.15M	-329.94M	-201.38M	-219.78M	-342.18M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
67.18M	84.64M	82.05M	123.26M	62.35M	47.76M
	Total Assets
734.00M	838.79M	1.40B	1.81B	1.73B	1.72B
	Total Debt
1.84B	1.84B	1.68B	1.84B	1.49B	1.30B
	Net Debt
1.77B	1.75B	1.59B	1.72B	1.43B	1.26B
	Total Liabilities
2.08B	2.13B	1.97B	2.14B	1.67B	1.46B
	Stockholders Equity
-1.34B	-1.29B	-568.28M	-233.45M	96.87M	293.67M
Cash Flow		Free Cash Flow
-17.27M	-55.20M	32.33M	-64.36M	-75.32M	-233.52M
	Operating Cash Flow
25.00M	-12.93M	63.15M	-7.83M	-2.13M	112.53M
	Investing Cash Flow
-60.33M	-85.81M	-64.65M	-64.05M	-73.11M	-345.81M
	Financing Cash Flow
38.11M	101.75M	-36.58M	133.08M	89.78M	109.98M

Emperor Culture Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 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:0491, the sentiment is Negative. The current price of 0.04 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 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0491.

Emperor Culture Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$919.38M	5.87	2.43%	4.35%	10.27%	-74.96%
1060	58 Neutral	HK$29.58B	71.64	2.29%	―	24.36%	-18.99%
0491	46 Neutral	HK$138.17M	―		―	-7.95%	-89.82%
0953	46 Neutral	HK$168.93M	―	-1.32%	―	-21.40%	-100.00%
8172	45 Neutral	HK$126.27M	―	-26.83%	―	-81.56%	26.00%
8082	42 Neutral	HK$173.61M	―	-110.51%	―	-33.40%	29.14%
1132	41 Neutral	HK$123.19M	―	-12.77%	―	-8.19%	-498.76%

Emperor Culture Group Corporate Events

Emperor Culture Group Clarifies Pricing Policies in 2025 Framework Agreement

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

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

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.

Emperor Culture Group Announces Board and Committee Roles

Emperor Culture Group Limited has announced the composition of its board of directors and the roles within its five board committees. The board includes both executive and independent non-executive directors, with Mr. Yeung Ching Loong, Alexander serving as Chairman. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders interested in the company’s leadership and strategic direction.