Television Broadcasts Limited (0511) AI Stock Analysis

• Market Cap: HK$1.42B
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: -0.98%
• EPS Growth: 14.30%
• Country: HK
• Employees: 3,304
• Sector: Communication Services
• Sector Strength: 97
• Industry: Broadcasting
• EPS (TTM): -0.23
• Shares Outstanding: 466,961,820
• 10 Day Avg. Volume: 871,442
• 30 Day Avg. Volume: 1,062,445
• PEG Ratio: 0.07
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 7.28
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$3.00 ▼(-1.64% Downside)

The overall stock score is heavily influenced by poor financial performance and valuation metrics. The company's ongoing losses and negative cash flow generation are significant concerns. Technical indicators also suggest bearish momentum, further impacting the stock's attractiveness.

Positive Factors

Improved Gross Profit Margin

The improvement in gross profit margin indicates better cost management, which can enhance profitability if sustained, providing a stronger foundation for future financial performance.

Diverse Revenue Streams

Diverse revenue streams from advertising, content licensing, and subscriptions provide resilience against market fluctuations, supporting long-term revenue stability.

International Market Presence

Expanding international market presence through content licensing and distribution strengthens TVB's competitive position and growth potential in global markets.

Negative Factors

Consistent Losses

Ongoing losses and declining revenue trends highlight operational challenges, which can undermine long-term financial health and investor confidence.

Negative Cash Flow

Negative cash flow from operations and free cash flow constraints indicate inefficiencies in cash generation, potentially limiting investment and growth opportunities.

High Financial Leverage

Increased financial leverage can strain the company's balance sheet, raising risk levels and potentially impacting its ability to finance future operations and growth.

Television Broadcasts Limited Business Overview & Revenue Model

Company Description

Television Broadcasts Limited, together with its subsidiaries, engages in terrestrial television broadcasting, program production, and other television-related activities. It operates through Hong Kong TV Broadcasting, Over-The-Top (OTT) Streaming, e-Commerce Business, Mainland China Operations, and International Operations segments. The Hong Kong TV Broadcasting segment is involved in the broadcasting of television programs and commercials on terrestrial TV platforms; production of programs; operation of online social media platform; and music entertainment, and event and digital marketing activities. The OTT Streaming segment provides OTT services; and operates website portals. The e-Commerce Business segment operates e-Commerce platforms under the names Ztore, Neigbuy, and Big Big Shop. The Mainland China Operations segment co-produces dramas; and distributes television programs and channels to telecast, video, and media operators in Mainland China. The International Operations segment offers pay television and OTT services to subscribers; and distributes television programs and channels to telecast, video, and media operators in Malaysia, Singapore and internationally. The company also offers agency services on design, production, and exhibition of advertisements, as well as film rights and management services; provides consultancy, management, and agency services to artistes; and produces, publishes, and licenses musical works and sells sound recordings, as well as offers corporate finance services. In addition, it produces motion pictures for theatrical release and distribution; and provides satellite and subscription television programs, and program licensing and dealership services. Further, the company engages in provision of programs and marketing materials; property investment and other activities; and online sale of groceries. The company was founded in 1967 and is based in Kowloon, Hong Kong.

How the Company Makes Money

TVB generates revenue through several key streams. The primary source of income comes from advertisement sales on its various television channels, where advertisers pay for commercial slots during popular programs. Additionally, TVB earns revenue from subscription fees for its digital content services, including its streaming platform, which offers on-demand access to its extensive library of programs. The company also monetizes its content through syndication rights, allowing other broadcasters to air its programs in different regions. Partnerships with advertisers, local and international content distributors, and collaborations for co-productions further enhance its earnings. Additionally, TVB produces and distributes films, contributing to its overall revenue through box office sales and licensing agreements.

Television Broadcasts Limited Financial Statement Overview

Summary

Television Broadcasts Limited faces financial challenges, with consistent losses impacting profitability and cash flow generation. Improvements in gross profit margins are noted, but high financial leverage and continued negative cash flow pose significant risks.

Income Statement

The income statement shows negative profitability with a declining trend in revenue over recent years. The gross profit margin improved to 40.8% in 2024 from 30.8% in 2023, indicating better cost management. However, the net profit margin remains negative, reflecting consistent losses. EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet indicates a stable asset base with a decreasing trend in stockholders' equity. The debt-to-equity ratio increased, reflecting higher financial leverage, but remains below 1. Return on Equity is negative due to ongoing losses. The equity ratio is relatively stable, suggesting some balance in asset financing.

Cash Flow

Cash flow statements reveal challenges in generating positive cash flows. The operating cash flow to net income ratio is negative, indicating inefficiencies in cash generation from operations. Free cash flow also remains negative, pointing to cash constraints. There is a lack of positive free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.24B	3.26B	3.32B	3.59B	2.90B	2.72B
Gross Profit	1.32B	1.33B	1.02B	1.01B	721.83M	847.23M
EBITDA	233.43M	-99.42M	-298.35M	-454.24M	-240.87M	152.34M
Net Income	-455.71M	-491.05M	-762.80M	-807.13M	-646.74M	-280.88M
Balance Sheet
Total Assets	5.54B	5.45B	6.25B	7.05B	7.65B	9.83B
Cash, Cash Equivalents and Short-Term Investments	879.42M	711.42M	787.28M	1.09B	1.22B	3.42B
Total Debt	2.34B	2.16B	2.33B	2.26B	2.06B	3.79B
Total Liabilities	3.46B	3.25B	3.51B	3.44B	3.06B	4.53B
Stockholders Equity	2.17B	2.26B	2.72B	3.50B	4.36B	5.13B
Cash Flow
Free Cash Flow	119.33M	186.85M	-293.56M	-545.93M	-525.88M	-165.37M
Operating Cash Flow	160.68M	251.78M	-154.50M	-370.61M	-344.50M	4.26M
Investing Cash Flow	32.16M	-17.54M	-126.74M	162.98M	2.07B	-1.22B
Financing Cash Flow	117.28M	-233.26M	181.52M	-207.06M	-1.87B	1.33B

Television Broadcasts Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.05
• 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:0511, the sentiment is Negative. The current price of 3.05 is below the 20-day moving average (MA) of 3.10, below the 50-day MA of 3.21, and below the 200-day MA of 3.44, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0511.

Television Broadcasts Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	66 Neutral	HK$464.08M	8.31	8.69%	6.04%	25.88%	0.69%
1709	63 Neutral	HK$3.77B	8.64	27.59%	1.12%	22.22%	196.73%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0205	49 Neutral	HK$763.24M	-49.19	-6.02%	―	-4.13%	76.38%
1003	46 Neutral	HK$1.15B	―	―	―	―	―
0511	41 Neutral	HK$1.42B	-3.13	-19.45%	―	-0.98%	14.30%
1993	39 Underperform	HK$277.33M	-5.39	―	―	-38.24%	-31.99%

Television Broadcasts Limited Corporate Events

TVB Reports Strong Q3 2025 Performance and AI Integration Milestone

Television Broadcasts Limited reported strong performance in its TV broadcasting and digital media businesses for the third quarter of 2025, maintaining an 80% market share in Hong Kong’s terrestrial TV viewership. The company anticipates continued growth in advertising income, bolstered by upcoming drama premieres and increased digital advertising revenue. TVB also achieved a milestone by integrating AI into its content creation, with AI-generated dramas airing in Hong Kong and mainland China. The company expects year-on-year growth in EBITDA and net profit for the full year of 2025.