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Century Entertainment International Holdings Limited (HK:0959)
:0959
Hong Kong Market

Century Entertainment International Holdings Limited (0959) AI Stock Analysis

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HK

Century Entertainment International Holdings Limited

(0959)

Rating:20Underperform
Price Target:
Century Entertainment International Holdings Limited exhibits critical financial weaknesses, with severe operational challenges reflected in the income statement, balance sheet, and cash flow. Although technical analysis shows a slight upward trend in stock price, the lack of profitability and negative valuation metrics highlight substantial risks. Immediate action is required to stabilize the company's financial health.

Century Entertainment International Holdings Limited (0959) vs. iShares MSCI Hong Kong ETF (EWH)

Century Entertainment International Holdings Limited Business Overview & Revenue Model

Company DescriptionCentury Entertainment International Holdings Limited, an investment holding company, engages in the gaming and entertainment related businesses in the People's Republic of China and Hong Kong. It operates through Gaming and Entertainment Related Businesses, and AR/VR and Mobile Games Solutions segments. The company is involved in the operation of VIP rooms; and VIP gaming tables. It also develops mobile games and augmented reality/virtual reality applications for clients. The company was formerly known as Amax International Holdings Limited and changed its name to Century Entertainment International Holdings Limited in December 2019. The company was incorporated in 1997 and is headquartered in Sheung Wan, Hong Kong.
How the Company Makes MoneyCentury Entertainment International Holdings Limited generates revenue primarily through its casino management and operation services. The company makes money by managing gaming tables and other casino-related activities, where it earns a percentage of the gaming revenue or a fixed management fee from casino operators. Additionally, Century Entertainment may be involved in joint ventures or partnerships with other gaming entities to expand its influence and revenue streams within the industry. Revenue can also be influenced by the company's strategic decisions on investing in new gaming or entertainment projects that align with its core business.

Century Entertainment International Holdings Limited Financial Statement Overview

Summary
Century Entertainment International Holdings Limited faces significant financial challenges across all key areas. The absence of revenue growth, coupled with negative margins, points to operational difficulties. The balance sheet is highly leveraged with negative equity, leading to potential solvency risks. Cash flow issues further compound the company’s financial problems, with reliance on external financing to maintain liquidity. Immediate strategic interventions are essential to address these financial instabilities.
Income Statement
12
Very Negative
The company has experienced a significant decline in revenue, dropping from HKD 45.9 million in 2020 to zero in the last two years, signaling severe operational challenges. Gross profit margin and net profit margin are both negative, indicating the inability to generate profits even when revenues were present. The consistently negative EBIT and EBITDA margins reflect ongoing losses and inefficiencies.
Balance Sheet
5
Very Negative
The balance sheet reveals a highly leveraged position with a debt-to-equity ratio that is undefined due to negative equity. Stockholders' equity has been negative for the last three years, indicating potential solvency issues. The equity ratio is also negative, showcasing a financial structure reliant on debt, posing risks to financial stability.
Cash Flow
15
Very Negative
The cash flow situation is precarious, with consistently negative free cash flow and operating cash flow, highlighting liquidity issues. There is no positive cash flow to support operations or growth. The company relies heavily on financing cash flows to offset negative operational cash flows, which is unsustainable long-term.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue0.000.000.00200.00K727.00K45.92M
Gross Profit-134.00K-267.00K0.00160.00K127.00K23.99M
EBITDA-6.90M-11.11M-32.59M21.03M-16.79M-38.94M
Net Income-18.03M-24.21M-62.55M-3.67M-43.00M-39.22M
Balance Sheet
Total Assets32.26M90.44M91.12M133.56M114.38M157.02M
Cash, Cash Equivalents and Short-Term Investments4.01M3.94M3.81M59.64M3.50M3.22M
Total Debt104.08M148.14M143.04M146.65M128.21M136.40M
Total Liabilities123.45M170.22M158.61M160.22M137.37M146.88M
Stockholders Equity-91.20M-79.78M-67.50M-26.67M-23.00M10.14M
Cash Flow
Free Cash Flow-7.02K-6.89M-12.47M-15.24M-13.95K-11.41M
Operating Cash Flow-7.02K-6.89M-12.47M-15.24M-13.95K-10.07M
Investing Cash Flow68.0071.00K19.00K11.00K47.00-762.00K
Financing Cash Flow7.08K6.95M12.50M15.49M14.18K12.85M

Century Entertainment International Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.72
Price Trends
50DMA
0.62
Positive
100DMA
0.51
Positive
200DMA
0.43
Positive
Market Momentum
MACD
0.03
Positive
RSI
65.82
Neutral
STOCH
70.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0959, the sentiment is Positive. The current price of 0.72 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.62, and above the 200-day MA of 0.43, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 65.82 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0959.

Century Entertainment International Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
HK$93.60M0.30
60
Neutral
HK$39.00M9.7420.64%70.92%
56
Neutral
HK$24.88B3.87-2.03%6.54%-0.32%-67.68%
41
Neutral
HK$18.64M1.34
28.76%-185.50%
20
Underperform
HK$92.34M
63.60%
€9.90M-8.56%
39
Underperform
HK$59.80M-28.31%-0.38%51.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0959
Century Entertainment International Holdings Limited
0.72
0.50
227.27%
DE:MRU3
Rich Goldman Holdings Limited
HK:1655
Okura Holdings Limited
0.14
-0.12
-46.15%
HK:8052
Luk Hing Entertainment Group Holdings Limited
0.03
-0.01
-25.00%
HK:8308
Gudou Holdings Limited
0.05
-0.05
-50.00%
HK:8400
Asia Pioneer Entertainment Holdings Ltd.
0.04
0.00
0.00%

Century Entertainment International Holdings Limited Corporate Events

Century Entertainment Announces Board Reshuffle with New Appointments
May 2, 2025

Century Entertainment International Holdings Limited has announced changes in its board of directors, with the resignation of Ms. Yeung Pui Han and Mr. Yuen Sing Wai Lester as independent non-executive directors, effective May 1, 2025. They are succeeded by Mr. Wong Yun Pun and Mr. Michael Tan Defensor, who bring extensive experience in finance, governance, and public administration, potentially strengthening the company’s strategic direction and governance framework.

Century Entertainment Announces Board Composition and Committee Roles
May 2, 2025

Century Entertainment International Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of its executive and independent non-executive directors. The board has established four committees to oversee various aspects of the company’s governance, with specific directors assigned as chairpersons and members, reflecting the company’s commitment to structured leadership and compliance.

Century Entertainment Changes Auditor to Fan, Chan & Co.
Apr 9, 2025

Century Entertainment International Holdings Limited has announced a change of auditor, with Elite Partners CPA Limited resigning due to internal resource constraints and Fan, Chan & Co. Limited being appointed as the new auditor. The transition is not expected to have a material impact on the company’s operations, and the new appointment is deemed beneficial for the company and its shareholders.

Century Entertainment Diversifies into Camellia Seed Oil Market
Mar 21, 2025

Century Entertainment International Holdings Limited is expanding its business by entering the camellia seed oil market, leveraging China’s position as the largest producer of this nutritious oil. This strategic move aims to diversify the company’s business, reduce reliance on its entertainment sector, and enhance profitability by tapping into a rapidly growing market. The initiative also supports sustainable development and community growth, aligning with government policies to boost the camellia industry, increase farmers’ income, and ensure food security.

Century Entertainment Appoints Mr. Tang Ho Ka as Non-Executive Director
Mar 19, 2025

Century Entertainment International Holdings Limited announced the appointment of Mr. Tang Ho Ka as a non-executive director effective March 19, 2025. Mr. Tang brings over 40 years of financial and management experience, having held significant roles in various organizations, including as Chief Financial Officer of Shenzhen Zhongqi South Investment Co., Ltd. His appointment is expected to strengthen the company’s board with his extensive experience in the financial sector and the camellia oil industry.

Century Entertainment Announces Board Composition and Roles
Mar 19, 2025

Century Entertainment International Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement clarifies the leadership structure and committee memberships, which could impact the company’s governance and strategic direction.

Century Entertainment Faces Non-Compliance Incident During Black-Out Period
Mar 3, 2025

Century Entertainment International Holdings Limited announced a non-compliance incident involving its executive director, Mr. Ng Man Sun, who conducted securities transactions during a black-out period. This oversight, which breached Hong Kong Stock Exchange rules, was deemed unintentional and does not affect Mr. Ng’s role or integrity. The company has taken steps to ensure sufficient working capital and has implemented remedial actions to prevent future occurrences. The incident highlights the company’s reliance on Mr. Ng for financial stability and its ongoing efforts to maintain operational viability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 07, 2025