International Entertainment Corporation (1009) AI Stock Analysis

• Market Cap: HK$1.70B
• Dividend Yield: N/A
• Average Volume (3M): 181.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.56
• Revenue Growth: 146.39%
• EPS Growth: -113.80%
• Country: HK
• Employees: 1,215
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.14
• Shares Outstanding: 1,369,157,200
• 10 Day Avg. Volume: 111,400
• 30 Day Avg. Volume: 181,750
• PEG Ratio: -0.05
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 4.17
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$1.00 ▼(-19.35% Downside)

The overall score is primarily affected by the company's weak financial performance, characterized by significant losses and negative cash flows. Technical indicators offer some stabilization signs, but the negative valuation metrics highlight ongoing profitability issues. Improvement in operational efficiency and revenue growth is critical for a positive outlook.

Positive Factors

Revenue Growth

Despite past inconsistencies, the company's ability to achieve a 79.69% revenue growth rate indicates potential for future expansion and market capture.

Corporate Governance

The formation of a Nomination Committee reflects a commitment to improved governance, potentially leading to better strategic decisions and investor confidence.

Business Expansion

Engaging in major construction projects indicates strategic expansion efforts, which could enhance revenue streams and strengthen market position in the hospitality sector.

Negative Factors

Negative Cash Flow

Persistent negative cash flow highlights cash constraints, limiting the company's ability to invest in growth opportunities and meet financial obligations without external financing.

High Operating Expenses

High operating expenses reduce profitability and can strain financial resources, impacting long-term sustainability and operational efficiency.

Negative Return on Equity

Negative return on equity indicates inefficiency in generating returns for shareholders, potentially deterring investment and affecting long-term growth prospects.

International Entertainment Corporation Business Overview & Revenue Model

Company Description

International Entertainment Corporation, an investment holding company, engages in the leasing of properties equipped with entertainment equipment in the Philippines, the United Kingdom, and internationally. The company operates through Hotel, Leasing, and Live Events segments. It also operates hotels in Metro Manila that includes restaurants, business centers, swimming pool, and fitness centers, and live poker events. The company was formerly known as Cyber On-Air Group Company Limited and changed its name to International Entertainment Corporation in December 2004. The company was founded in 1998 and is headquartered in Central, Hong Kong. International Entertainment Corporation is a subsidiary of Brighten Path Limited.

How the Company Makes Money

International Entertainment Corporation generates revenue through the operation of its casino and hotel facilities, primarily by offering gaming services, accommodations, food and beverage services, and entertainment activities. The company earns money through customer spending on gaming activities, room bookings, dining, and events hosted at its properties. Additionally, partnerships with local and international tour operators and marketing efforts help drive customer traffic to their venues, enhancing revenue streams. Factors such as location, customer service quality, and the range of entertainment options available significantly contribute to its earnings.

International Entertainment Corporation Financial Statement Overview

Summary

The company faces significant financial challenges, with persistent losses and negative cash flows. Despite a strong gross profit margin, high operating expenses and a reliance on financing activities undermine financial stability. The balance sheet shows moderate leverage but is affected by increasing liabilities and negative return on equity.

Income Statement

The income statement reflects a challenging financial position for the company. The TTM (Trailing-Twelve-Months) data shows a negative net income of -190.86 million and an EBITDA of -45.58 million, indicating operating losses. The gross profit margin is relatively high at approximately 82.11%, but this is overshadowed by negative net and EBIT margins due to significant operating expenses. Revenue growth has been inconsistent, with a substantial decline since 2020.

Balance Sheet

The balance sheet shows a moderate level of financial stability. The debt-to-equity ratio is approximately 0.63 in the TTM, indicating a manageable level of leverage. However, the company's equity ratio of about 35.29% and return on equity is negative due to the net loss, suggesting inefficiency in generating returns on shareholder equity. While total assets have grown, the increase in liabilities is a concern.

Cash Flow

The cash flow statement highlights significant challenges in cash generation. The TTM period shows a negative operating cash flow of -122.90 million and a free cash flow of -141.09 million, indicating cash constraints. The free cash flow to net income ratio is negative due to persistent losses. There is a heavy reliance on financing activities to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	566.36M	391.11M	229.79M	207.22M	85.53M	64.90M
Gross Profit	386.15M	391.11M	132.43M	136.63M	79.08M	4.52M
EBITDA	-88.09M	-85.82M	-40.70M	89.21M	-177.52M	-188.81M
Net Income	-282.14M	-282.14M	-131.96M	18.28M	-256.39M	-242.04M
Balance Sheet
Total Assets	2.54B	2.54B	2.32B	1.90B	1.87B	2.30B
Cash, Cash Equivalents and Short-Term Investments	580.82M	580.82M	513.81M	497.75M	520.32M	617.51M
Total Debt	1.40B	1.40B	1.11B	503.26M	513.57M	524.63M
Total Liabilities	1.76B	1.76B	1.31B	691.27M	678.88M	709.54M
Stockholders Equity	773.10M	773.10M	1.02B	1.21B	1.20B	1.59B
Cash Flow
Free Cash Flow	-46.52M	0.00	-114.22M	5.42M	-4.62M	-25.18M
Operating Cash Flow	-46.52M	0.00	-30.55M	6.66M	-763.00K	-9.81M
Investing Cash Flow	1.17M	0.00	-570.61M	7.22M	3.85M	-15.51M
Financing Cash Flow	489.06M	0.00	562.80M	-37.84M	-30.47M	-34.16M

International Entertainment Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1009, the sentiment is Positive. The current price of 1.24 is above the 20-day moving average (MA) of 1.21, above the 50-day MA of 1.22, and above the 200-day MA of 1.23, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.24 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1009.

International Entertainment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0237	50 Neutral	HK$830.25M	―	-7.65%	3.92%	22.76%	-300.57%
0105	49 Neutral	HK$1.89B	-3.37	-3.07%	7.31%	-2.39%	61.81%
1009	46 Neutral	HK$1.70B	-6.02	-31.53%	―	146.39%	-113.80%
0163	46 Neutral	€1.04B	―	-21.92%	3.03%	76.62%	2.27%
0727	45 Neutral	HK$254.37M	10.85	-7.00%	―	-49.07%	94.90%
0037	41 Neutral	HK$327.35M	-15.99	-4.23%	―	-32.80%	57.37%

International Entertainment Corporation Corporate Events

International Entertainment Corporation Forms Nomination Committee to Boost Governance

International Entertainment Corporation has established a Nomination Committee to enhance its corporate governance structure. The committee will consist of at least three members, including a diverse representation and a majority of independent non-executive directors. This move is expected to strengthen the company’s decision-making processes and ensure a more balanced and inclusive approach to board nominations.

International Entertainment Corporation Engages in Major Construction Contract

International Entertainment Corporation announced that its subsidiary, NCLI, has entered into a Phase 2 Construction Contract with a contractor for construction works at a hotel and casino, valued at approximately PHP1,053.14 million. This contract, part of a series of transactions, is classified as a discloseable transaction under the Hong Kong Stock Exchange Listing Rules, requiring reporting and announcement but exempt from shareholder approval.