Shaw Brothers Holdings Limited (0953) AI Stock Analysis

• Market Cap: HK$170.35M
• Dividend Yield: N/A
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: -21.40%
• EPS Growth: -100.00%
• Country: HK
• Employees: 51
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): >-0.01
• Shares Outstanding: 1,419,610,000
• 10 Day Avg. Volume: 2,350,000
• 30 Day Avg. Volume: 1,917,000
• PEG Ratio: 5.10
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.01
• 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: ―

Shaw Brothers Holdings Limited's overall stock score is 46, primarily due to poor financial performance characterized by declining revenues and profitability, despite strong cash positions. Technical analysis suggests a neutral to slightly bearish trend, while valuation metrics highlight potential overvaluation given the negative P/E ratio. There is no notable impact from earnings calls or corporate events to improve the outlook.

Shaw Brothers Holdings Limited Business Overview & Revenue Model

Company Description

Shaw Brothers Holdings Limited, an investment holding company, invests in, produces, and distributes films, drama, and non-drama in the People's Republic of China and Hong Kong. It also provides artiste and event management services and others. The company was formerly known as Meike International Holdings Limited and changed its name to Shaw Brothers Holdings Limited in June 2016. Shaw Brothers Holdings Limited was incorporated in 2009 and is based in Causeway Bay, Hong Kong.

How the Company Makes Money

Shaw Brothers Holdings Limited generates revenue primarily through the production and distribution of entertainment content. The company earns money by producing films and TV shows, which are then distributed across various platforms, including cinemas, television networks, and streaming services. Revenue is also generated through the licensing of content rights, allowing other entities to broadcast or distribute Shaw Brothers' productions. Additionally, the company may receive income from co-production partnerships and investments in media-related ventures, which can include profit-sharing arrangements or equity stakes in other entertainment businesses.

Shaw Brothers Holdings Limited Financial Statement Overview

Summary

Shaw Brothers Holdings Limited faces challenges in revenue growth and profitability, with declining income statement metrics. Despite a strong cash position and low leverage on the balance sheet, the company struggles with cash flow generation. The overall financial health is concerning, with a need for strategic improvements to reverse the downward trajectory.

Income Statement

Shaw Brothers Holdings Limited has experienced declining revenues, with a significant drop from 2019 to 2024. The gross profit margin has decreased, indicating challenges in maintaining profitability. The company has consistently reported negative EBIT and EBITDA figures in recent years, highlighting operational inefficiencies. The net profit margin is negative, reflecting ongoing losses.

Balance Sheet

The company maintains a strong cash position, with substantial cash and short-term investments exceeding total liabilities, resulting in negative net debt. The debt-to-equity ratio is low, demonstrating low leverage. However, the equity ratio has seen a slight decline, and stockholders' equity has decreased over the years, indicating potential risks to financial stability.

Cash Flow

The cash flow statement shows inconsistent performance, with negative operating and free cash flows in recent years, indicating cash management challenges. The company lacks positive free cash flow growth, and the operating cash flow to net income ratio is unfavorable due to negative earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
51.63M	64.54M	161.05M	215.52M	114.37M
	Gross Profit
21.94M	30.29M	50.31M	80.88M	42.11M
	EBIT
-13.86M	-11.88M	3.46M	38.36M	-12.76M
	EBITDA
-13.13M	-2.62M	-3.39M	38.99M	-12.35M
	Net Income Common Stockholders
-5.78M	-2.90M	-302.00K	16.40M	2.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
318.15M	306.20M	322.83M	312.06M	293.03M
	Total Assets
512.56M	491.53M	533.12M	582.75M	586.93M
	Total Debt
7.34M	10.82M	9.77M	6.50M	760.00K
	Net Debt
-310.81M	-295.38M	-313.06M	-305.55M	-292.27M
	Total Liabilities
105.77M	61.48M	95.09M	172.33M	181.58M
	Stockholders Equity
430.51M	449.21M	452.79M	418.98M	413.59M
Cash Flow		Free Cash Flow
0.00	-30.06M	-19.57M	55.71M	-4.38M
	Operating Cash Flow
0.00	-29.56M	-19.48M	57.72M	-3.59M
	Investing Cash Flow
0.00	-69.47M	2.04M	-29.80M	-1.41M
	Financing Cash Flow
0.00	-2.96M	2.79M	-1.34M	-14.28M

Shaw Brothers Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 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:0953, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0953.

Shaw Brothers Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.55B	5.92	-3.82%	8.36%	2.79%	-33.24%
0953	46 Neutral	HK$170.35M	―	-1.32%	―	-21.40%	-100.00%
8172	45 Neutral	HK$126.27M	―	-26.83%	―	-81.56%	26.00%
1003	43 Neutral	HK$1.57B	―		―	―	―
1326	42 Neutral	HK$101.23M	―		―	60.31%	-73.59%
8082	42 Neutral	HK$176.12M	―	-110.51%	―	-33.40%	29.14%
1132	41 Neutral	HK$123.19M	―	-12.77%	―	-8.19%	-498.76%

Shaw Brothers Holdings Limited Corporate Events

Shaw Brothers Holdings Reports Revenue Decline Amid Project Delays

Shaw Brothers Holdings Limited reported a decline in revenue for the year ended December 31, 2024, with a notable decrease in both its film, drama, and non-drama segment and its artiste and event management segment. The company’s financial performance was impacted by postponed project releases and decreased participation in film or drama projects, leading to a significant increase in losses attributable to the owners. Despite these challenges, the company maintains a stable cash position.

Shaw Brothers Holdings Limited Appoints New Executive Director

Shaw Brothers Holdings Limited has announced the appointment of Mr. Gu Jiong as an executive director and member of the executive committee, effective from March 14, 2025. Mr. Gu brings nearly 30 years of experience in accounting and corporate finance management, having held significant roles at CMC Capital Partners and other prominent firms. His extensive background in financial management and leadership in media and entertainment investments is expected to bolster Shaw Brothers Holdings Limited’s strategic direction and operational capabilities.

Shaw Brothers Holdings Announces Board Restructuring

Shaw Brothers Holdings Limited announced changes to its Board of Directors, effective 14 March 2025. The announcement details the roles and functions of the board members, including the appointment of Li Ruigang as Chairman and Non-executive Director, and various committee roles for other directors. These changes are likely to impact the company’s governance and strategic direction.