Pacific Online (0543) AI Stock Analysis

• Market Cap: HK$429.58M
• Dividend Yield: 12.94%
• Average Volume (3M): 90.22K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.66
• Revenue Growth: -15.60%
• EPS Growth: N/A
• Country: HK
• Employees: 733
• Sector: Communication Services
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): 0.04
• Shares Outstanding: 1,135,597,700
• 10 Day Avg. Volume: 33,400
• 30 Day Avg. Volume: 90,224
• PEG Ratio: 0.97
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.02
• 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: 56 Neutral
• Price Target: HK$0.50 ▲(31.58%Upside)

Pacific Online's stock score reflects moderate financial performance with stable balance sheet but declining revenue and cash flow challenges. Technical analysis indicates neutral momentum, while valuation metrics suggest potential undervaluation due to a low P/E ratio and high dividend yield. The absence of earnings call and corporate events data limited additional insights.

Pacific Online Business Overview & Revenue Model

Company Description

Pacific Online (0543) is a Hong Kong-based investment holding company primarily engaged in providing online advertising services. The company operates through its subsidiaries to offer a wide range of internet services, including the operation of internet portals and the provision of advertising spaces on these platforms. Its core business revolves around digital marketing and online promotional services, catering to a diverse clientele seeking to enhance their online presence and reach a broader audience.

How the Company Makes Money

Pacific Online makes money primarily through its online advertising services, which include selling advertisement space on its internet portals. These portals attract significant web traffic, making them attractive platforms for businesses looking to advertise their products and services. The company generates revenue by charging advertisers for display ads, sponsored content, and promotional campaigns. Additionally, Pacific Online may engage in partnerships with other internet companies or media enterprises to expand its service offerings and increase its advertising reach. These collaborations can contribute additional revenue streams through joint marketing initiatives or revenue-sharing agreements.

Pacific Online Financial Statement Overview

Summary

Pacific Online's financial performance presents a mixed picture. The company faces declining revenue and inconsistent profitability, yet it maintains a solid balance sheet with low debt levels. Cash flows have been unstable, reflecting challenges in consistent cash generation. While the equity position provides a buffer, the overall trends suggest moderate financial health with potential growth limitations.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	635.04M	740.11M	813.73M	852.15M	967.47M
Gross Profit	267.31M	262.70M	331.13M	399.37M	560.46M
EBITDA	57.66M	15.95M	8.58M	68.62M	207.87M
Net Income	43.73M	-32.34M	-7.01M	49.92M	161.89M
Balance Sheet
Total Assets	982.30M	1.05B	1.23B	1.31B	1.51B
Cash, Cash Equivalents and Short-Term Investments	263.49M	271.82M	399.99M	481.75M	474.06M
Total Debt	415.00K	922.00K	380.00K	549.00K	382.00K
Total Liabilities	286.46M	343.36M	384.48M	347.32M	448.24M
Stockholders Equity	695.83M	697.76M	842.18M	958.30M	1.06B
Cash Flow
Free Cash Flow	18.62M	-20.07M	18.52M	125.97M	159.84M
Operating Cash Flow	20.50M	-16.52M	21.74M	129.55M	206.26M
Investing Cash Flow	21.00M	4.09M	97.06M	61.85M	-150.77M
Financing Cash Flow	-49.61M	-114.17M	-113.94M	-157.85M	-122.78M

Pacific Online Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 0.38 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.39, and above the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.06 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
0150	73 Outperform	$315.35M	6.52	-4.67%	4.77%	-14.09%	5.79%
3601	72 Outperform	HK$274.38M	7.25	5.31%	9.80%	64.11%	-20.33%
0543	56 Neutral	HK$429.58M	9.09	6.28%	12.94%	-15.60%	―
Sector *	54 Neutral	HK$64.26B	-2.16	-3.61%	7.14%	-4.24%	-17.51%
1739	54 Neutral	HK$184.06M	―	-13.24%	26.99%	-12.47%	-30.56%
1980	51 Neutral	$728.55M	34.90	0.88%	2.98%	-85.34%	―
2008	49 Neutral	$584.26M	―	-8.33%	―	-9.43%	2.47%

Pacific Online Corporate Events

Pacific Online Limited Declares Final Dividend for 2024

Pacific Online Limited has announced a final cash dividend of RMB 0.045 per share for the financial year ending December 31, 2024, which will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.07639. This announcement reflects the company’s financial health and commitment to returning value to shareholders, with the payment date set for June 6, 2025.

Pacific Online Limited Successfully Passes All AGM Resolutions

Pacific Online Limited announced that all resolutions proposed at its Annual General Meeting on May 6, 2025, were successfully passed. Key resolutions included the approval of the audited financial statements for 2024, the declaration of a final dividend, the re-election of directors, and the re-appointment of auditors. The company also granted mandates to its directors for share repurchase and issuance, indicating a strategic focus on financial management and shareholder value.

Pacific Online Limited Announces 2025 Annual General Meeting

Pacific Online Limited has announced its Annual General Meeting to be held on May 6, 2025, in Hong Kong. The meeting will cover several key agenda items, including the approval of the audited financial statements for 2024, declaration of a final dividend, re-election of directors, and re-appointment of auditors. Additionally, resolutions will be considered for authorizing the directors to purchase company shares and to issue new shares, which could impact the company’s market operations and shareholder value.