Pacific Online (0543) AI Stock Analysis

• Market Cap: $384.37M
• Dividend Yield: 15.61%
• Average Volume (3M): 63.06K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.76
• 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: 0.50
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 0.79
• Enterprise Value/Ebitda: 6.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(56.25% Upside)

The overall stock score of 55 reflects moderate financial performance and bearish technical indicators, offset by attractive valuation metrics. The company's strong equity base and high dividend yield are positive factors, but declining revenue and bearish momentum present significant risks.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt levels provides financial stability and flexibility, enabling the company to weather economic fluctuations and invest in growth opportunities.

Improved Profit Margins

The recovery in profit margins indicates better cost management and operational efficiency, which can enhance long-term profitability and shareholder value.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single source, providing resilience against market changes and supporting sustainable growth.

Negative Factors

Declining Revenue

Consistent revenue decline suggests challenges in market competitiveness and product demand, potentially impacting long-term growth and market position.

Volatile Cash Flow

Volatile cash flow can hinder the company's ability to fund operations and growth initiatives, affecting financial stability and strategic flexibility.

Decreased Gross Margins

Decreasing gross margins indicate rising production costs or pricing pressures, which can erode profitability and limit competitive advantage over time.

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

Pacific Online's financial performance is moderate, with declining revenue and inconsistent profitability. The company maintains a strong balance sheet with low debt levels, but cash flows have been unstable, reflecting challenges in consistent cash generation.

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: 0.32
• 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:0543, the sentiment is Negative. The current price of 0.32 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.35, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 31.58 is Neutral, 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
3601	61 Neutral	HK$271.69M	8.90	4.24%	10.99%	-11.92%	-17.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1739	57 Neutral	HK$344.40M	―	-10.06%	9.60%	-29.48%	28.14%
0543	55 Neutral	$384.37M	14.17	3.89%	15.61%	-9.35%	57.89%
0150	54 Neutral	$417.33M	―	-7.63%	1.87%	-28.29%	-167.19%
1980	52 Neutral	HK$737.25M	-15.53	-2.08%	4.48%	15.66%	47.36%
2008	46 Neutral	HK$828.95M	―	-9.70%	―	-13.10%	13.01%

Pacific Online Corporate Events

Pacific Online Limited Reports Interim Loss Amid Rising Costs

Pacific Online Limited reported its interim results for the first half of 2025, showing a decrease in revenue to RMB 272,860,000 from RMB 276,378,000 in the same period last year. The company experienced a net loss of RMB 8,571,000 compared to a profit of RMB 10,130,000 in 2024, attributed to increased costs and reduced other income, impacting its financial performance and potentially affecting stakeholder confidence.

The most recent analyst rating on (HK:0543) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Pacific Online stock, see the HK:0543 Stock Forecast page.

Pacific Online Limited Schedules Board Meeting for Interim Results

Pacific Online Limited has announced an upcoming board meeting scheduled for August 27, 2025, to discuss and approve the consolidated interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, highlighting the company’s ongoing financial assessments and potential shareholder returns.