International Entertainment Corporation (1009) AI Stock Analysis

• Market Cap: HK$1.60B
• Dividend Yield: N/A
• Average Volume (3M): 202.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: 79.69%
• EPS Growth: -1559.52%
• Country: HK
• Employees: 1,215
• Sector: Real Estate
• Sector Strength: 63
• Industry: Real Estate - Services
• EPS (TTM): -0.14
• Shares Outstanding: 1,369,157,200
• 10 Day Avg. Volume: 153,200
• 30 Day Avg. Volume: 202,866
• PEG Ratio: 4.39
• Price to Book (P/B): 15.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -98.89
• 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: 41 Neutral
• Price Target: ―

International Entertainment Corporation faces significant financial challenges, with persistent losses and negative cash flows being the main concerns. Technical indicators suggest weak momentum, and the valuation is unattractive due to a negative P/E ratio. Improvement in financial performance and revenue growth is essential for a better outlook.

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 makes money through various revenue streams, primarily from its gaming and hospitality operations. The company generates income from casino operations, including table games and electronic gaming machines. Additionally, it earns revenue from hotel accommodations, food and beverage sales, and entertainment offerings within its facilities. Significant partnerships with gaming technology providers and hospitality service firms contribute to enhancing its service offerings, thereby driving customer engagement and revenue growth. The company also focuses on expanding its presence in key markets to capitalize on growing demand in the leisure and entertainment sectors.

International Entertainment Corporation Financial Statement Overview

Summary

International Entertainment Corporation is experiencing financial difficulties, characterized by persistent losses and negative cash flows. The income statement shows negative net income and EBITDA, with inconsistent revenue growth. The balance sheet indicates moderate leverage but negative return on equity. Cash flow challenges are significant, with negative operating and free cash flows, indicating reliance on financing activities.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
536.44M	229.79M	207.22M	85.53M	64.90M	226.97M
	Gross Profit
296.72M	132.43M	136.63M	21.95M	4.52M	148.53M
	EBIT
9.18M	-76.43M	50.70M	-192.70M	-166.77M	-225.04M
	EBITDA
-45.58M	-40.70M	89.21M	-177.52M	-188.81M	-160.02M
	Net Income Common Stockholders
-190.86M	-131.96M	18.28M	-256.39M	-242.04M	-234.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
704.13M	513.81M	497.75M	520.32M	617.51M	716.61M
	Total Assets
2.61B	2.32B	1.90B	1.87B	2.30B	2.54B
	Total Debt
578.44M	1.11B	503.26M	513.57M	524.63M	499.12M
	Net Debt
-104.25M	689.09M	10.81M	1.46M	-40.31M	-124.05M
	Total Liabilities
1.69B	1.31B	691.27M	678.88M	709.54M	750.19M
	Stockholders Equity
922.04M	1.02B	1.21B	1.20B	1.59B	1.79B
Cash Flow		Free Cash Flow
-141.09M	-114.22M	5.42M	-4.62M	-25.18M	-124.70M
	Operating Cash Flow
-122.90M	-30.55M	6.66M	-763.00K	-9.81M	10.88M
	Investing Cash Flow
-519.74M	-584.14M	7.22M	3.85M	-15.51M	400.52M
	Financing Cash Flow
301.58M	562.80M	-37.84M	-30.47M	-34.16M	-27.26M

International Entertainment Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.17
• 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:1009, the sentiment is Neutral. The current price of 1.17 is below the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.20, and above the 200-day MA of 0.96, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 22.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1009.

International Entertainment Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0027	76 Outperform	$146.27B	16.90	11.92%	3.37%	17.34%	28.21%
2282	76 Outperform	$42.04B	9.03		2.04%	26.22%	74.49%
1928	66 Neutral	HK$128.52B	15.62	203.51%	1.74%	6.04%	50.60%
1128	64 Neutral	HK$27.97B	8.64		4.92%	16.27%	172.71%
Sector *	61 Neutral	$2.82B	10.89	0.42%	8438.96%	5.74%	-20.95%
1009	41 Neutral	HK$1.60B	―	-18.29%	―	79.69%	-1559.52%
0880	39 Underperform	$16.76B	5,875.00	0.03%	―	31.24%	―

International Entertainment Corporation Corporate Events

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.