Pacific Online (0543) AI Stock Analysis

• Market Cap: HK$367.41M
• Dividend Yield: 14.25%
• Average Volume (3M): 63.06K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.79
• Revenue Growth: -9.35%
• EPS Growth: 57.89%
• Country: HK
• Employees: 733
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): >-0.01
• Shares Outstanding: 1,135,597,700
• 10 Day Avg. Volume: 84,531
• 30 Day Avg. Volume: 63,059
• PEG Ratio: -0.03
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 17.44
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$0.38 ▲(8.57% Upside)

Overall score reflects moderate financial performance amid declining revenue and uneven cash generation, partially offset by a strong, low-debt balance sheet. Technical indicators are modestly positive, and valuation is helped by a moderate P/E and a very high dividend yield.

Positive Factors

Balance Sheet Strength

Very low leverage and a high equity ratio provide durable financial flexibility. This conservative capital structure supports resilience through industry cycles, enables opportunistic investment or M&A, and reduces refinancing risk over the next several months to years.

Profitability Recovery

Return to positive net margin signals structural improvement in cost control or pricing. Sustained profitability enables reinvestment in product development, supports dividend capacity, and reduces the likelihood of recurring operating losses over the medium term.

Diversified Revenue Model

Multiple revenue streams across gaming verticals and advertising reduce single-market dependence and increase resilience to regulatory or demand shifts. Diversification helps stabilize intake and supports cross-sell and monetization initiatives over quarters.

Negative Factors

Declining Revenue Trend

Sustained top-line contraction erodes scale economics, weakens pricing leverage, and constrains reinvestment. Continued revenue decline can limit marketing reach and product development, making it harder to sustain growth and margins over the coming months.

Margin Compression

A pronounced drop in gross margins indicates rising content or platform costs, or weaker pricing power. If structural, this reduces operating leverage and profitability potential, limiting long-term free cash flow generation and shareholder returns.

Volatile Cash Generation

Irregular operating and free cash flow creates uncertainty around funding for capex, dividends, or strategic initiatives. Volatility increases reliance on external financing in downturns and raises execution risk for multi-quarter growth plans.

Pacific Online Business Overview & Revenue Model

Company Description

Pacific Online (0543) is a leading online gaming and entertainment company based in Asia, primarily focusing on providing interactive gaming experiences across various platforms. The company operates in the online gaming sector, offering a diverse range of products including casino games, sports betting, and lottery services. With a robust technological infrastructure, Pacific Online aims to deliver innovative gaming solutions that cater to a wide audience, enhancing user engagement and retention.

How the Company Makes Money

Pacific Online generates revenue through multiple streams, primarily by offering online gaming services such as casino games, sports betting, and lottery products. The company earns money through transaction fees on bets placed by users, as well as from the sale of virtual goods and in-game purchases. Additionally, Pacific Online may engage in partnerships with other gaming platforms or affiliates to expand its user base and drive traffic to its services. Advertising partnerships and sponsorships also contribute to its revenue, allowing the company to monetize its platform further. The growth of its user base and the frequency of user engagement play a significant role in sustaining its earnings.

Pacific Online Financial Statement Overview

Summary

Mixed fundamentals: revenue has declined over multiple years and gross margin fell materially (62.8% in 2019 to 42.1% in 2024). Profitability improved in 2024 (net margin 6.9%) after losses in 2022–2023, and the balance sheet is stable with low leverage (debt-to-equity 0.06; equity ratio above 60%), but cash flow has been volatile and below 2019 levels.

Income Statement

Pacific Online has seen declining revenue over the years with a notable drop from 2020 to 2024. Gross profit margins have decreased from 62.8% in 2019 to 42.1% in 2024, indicating reduced efficiency in managing production costs. The net profit margin improved to 6.9% in 2024 after facing negative margins in 2023 and 2022, suggesting a recovery in profitability. However, the overall revenue decline and fluctuating profitability indicate moderate performance.

Balance Sheet

The company maintains a strong equity base, with an equity ratio consistently above 60% from 2019 to 2024, indicating financial stability. The debt-to-equity ratio remains low, at 0.06 in 2024, showing conservative leverage usage. However, the overall decrease in total assets and equity over the years suggests a reduction in the company's scale and potential growth constraints.

Cash Flow

Operating cash flow has been volatile, with significant declines in 2023 but improvement in 2024. The free cash flow to net income ratio was positive in 2024, suggesting healthy cash conversion. However, the overall cash flow from operations has decreased from 2019 levels, and the company has faced periods of negative free cash flow, indicating challenges in sustaining cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	631.52M	635.04M	740.11M	813.73M	852.15M	967.47M
Gross Profit	242.26M	267.31M	262.70M	331.13M	399.37M	560.46M
EBITDA	30.35M	57.66M	15.95M	8.58M	68.62M	207.87M
Net Income	25.03M	43.73M	-32.34M	-6.65M	49.92M	161.89M
Balance Sheet
Total Assets	867.09M	982.30M	1.05B	1.23B	1.31B	1.51B
Cash, Cash Equivalents and Short-Term Investments	240.03M	263.49M	271.82M	399.99M	481.75M	474.06M
Total Debt	947.00K	415.00K	922.00K	380.00K	549.00K	382.00K
Total Liabilities	229.88M	286.46M	343.36M	384.48M	347.32M	448.24M
Stockholders Equity	637.20M	695.83M	697.76M	842.18M	958.30M	1.06B
Cash Flow
Free Cash Flow	35.03M	18.62M	-20.07M	18.52M	125.97M	159.84M
Operating Cash Flow	37.68M	20.50M	-16.52M	21.74M	129.55M	206.26M
Investing Cash Flow	2.57M	21.00M	4.09M	97.06M	61.85M	-150.77M
Financing Cash Flow	-52.91M	-49.61M	-114.17M	-113.94M	-157.85M	-122.78M

Pacific Online Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.35
• 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:0543, the sentiment is Negative. The current price of 0.35 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.33, and below the 200-day MA of 0.37, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 5.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0543.

Pacific Online Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0543	61 Neutral	HK$367.41M	13.54	3.89%	14.25%	-9.35%	57.89%
3601	61 Neutral	HK$260.93M	8.55	4.24%	10.87%	-11.92%	-17.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0150	56 Neutral	HK$331.83M	-9.48	-7.63%	1.89%	-28.29%	-167.19%
1739	55 Neutral	HK$259.71M	-2.57	-10.06%	12.10%	-29.48%	28.14%
1980	52 Neutral	HK$834.83M	-17.58	-2.08%	4.48%	15.66%	47.36%
2008	46 Neutral	HK$948.80M	-3.47	-9.70%	―	-13.10%	13.01%

Pacific Online Corporate Events

Pacific Online Tightens Nomination Committee Rules to Bolster Governance and Diversity

Pacific Online Limited has updated and formalised the terms of reference for its Nomination Committee, effective 31 December 2025, setting out membership requirements, gender diversity provisions, chairmanship, secretarial duties and detailed meeting procedures. The revised framework strengthens governance by requiring a majority of independent non-executive directors, at least one member of a different gender, clear conflict-of-interest rules and minimum meeting frequency, signalling the company’s commitment to higher board transparency, diversity and compliance with evolving corporate governance standards in Hong Kong.

The most recent analyst rating on (HK:0543) stock is a Hold with a HK$0.37 price target. To see the full list of analyst forecasts on Pacific Online stock, see the HK:0543 Stock Forecast page.

Pacific Online Adds Independent Director to Nomination Committee

Pacific Online Limited has appointed independent non-executive director Ms. Lee Kit Ying as a member of its nomination committee, effective 31 December 2025. Following this change, the nomination committee now consists of four members, and the board continues to be composed of three executive directors and four independent non-executive directors, underscoring the company’s ongoing efforts to strengthen governance and oversight through an expanded role for independent directors in key board committees.

The most recent analyst rating on (HK:0543) stock is a Hold with a HK$0.37 price target. To see the full list of analyst forecasts on Pacific Online stock, see the HK:0543 Stock Forecast page.

Pacific Online Clarifies Board Composition and Committee Roles

Pacific Online Limited announced the current composition of its board of directors and detailed the roles and functions of each director across its four key board committees. Chairman and CEO Dr. Lam Wai Yan leads both the Board and the Executive and Nomination Committees, while independent non-executive director Mr. Tsui Yiu Wa, Alec chairs the Audit and Remuneration Committees, with other independent directors and executives serving as members. The clarified allocation of responsibilities among executive and independent directors is aimed at reinforcing corporate governance, internal oversight and remuneration and nomination processes, which are important for regulatory compliance and investor confidence in the company’s leadership structure.

The most recent analyst rating on (HK:0543) stock is a Hold with a HK$0.37 price target. To see the full list of analyst forecasts on Pacific Online stock, see the HK:0543 Stock Forecast page.