Universe Entertainment and Culture Group Company Limited (1046) AI Stock Analysis

• Market Cap: HK$385.32M
• Dividend Yield: N/A
• Average Volume (3M): 303.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 29.39%
• EPS Growth: -107.44%
• Country: HK
• Employees: 116
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.01
• Shares Outstanding: 906,632,260
• 10 Day Avg. Volume: 288,100
• 30 Day Avg. Volume: 303,790
• PEG Ratio: -0.05
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.67
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(21.95% Upside)

The stock score is primarily influenced by the company's strong revenue growth and improved cash flow, which are promising for future performance. However, significant challenges in profitability and negative earnings weigh heavily on its valuation. Technical indicators suggest neutral to bearish momentum, adding caution to potential investments. The absence of dividend yield and negative P/E ratio further impact the score negatively.

Positive Factors

Revenue Growth

Significant revenue growth suggests expanding market reach and product adoption, which can drive long-term business success.

Cash Flow Improvement

Improved cash flow indicates better financial health and operational efficiency, providing more resources for growth and investment.

Financial Stability

A strong equity base and low leverage enhance financial stability, reducing risk and supporting sustainable growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder long-term growth and shareholder returns, necessitating strategic adjustments.

Impairment Losses

Impairment losses reflect declining asset value, impacting financial performance and necessitating strategic reassessment.

Negative Return on Equity

Negative return on equity indicates inefficiency in generating shareholder returns, affecting long-term investor confidence.

Universe Entertainment and Culture Group Company Limited Business Overview & Revenue Model

Company Description

Universe Entertainment and Culture Group Company Limited, an investment holding company, engages in the film distribution and exhibition, and licensing and sub-licensing of film rights and television series businesses. It is also involved in the video distribution, and production of films and television series; leasing of investment properties; entertainment business; wholesale and retail of watches and optical products; and money lending and securities investment businesses. In addition, the company operates an advertising and model agency, and optical shops; licenses and sub-licenses of music programs; invests in concerts; manages contracted artistes; and provides financial printing services, including type-setting, translation, printing, design, distribution of financial print products, and other related services, as well as management services. It operates in Hong Kong, the People's Republic of China, rest of Asian countries, and internationally. The company was formerly known as Universe International Financial Holdings Limited and changed its name to Universe Entertainment and Culture Group Company Limited in October 2018. Universe Entertainment and Culture Group Company Limited was incorporated in 1999 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

Universe Entertainment and Culture Group Company Limited generates revenue through various streams within the entertainment industry. Key revenue sources include box office receipts from film distribution and exhibition, sales and licensing of television content, and music royalties. The company's artist management division earns commissions from talent representation and related services. Live entertainment events such as concerts and performances contribute to its income, along with merchandising and promotional partnerships. Strategic collaborations and distribution deals with other entertainment entities also play a significant role in the company's earnings.

Universe Entertainment and Culture Group Company Limited Financial Statement Overview

Summary

Universe Entertainment and Culture Group Company Limited shows significant revenue growth and improvements in cash flow, but faces challenges with profitability and consistent earnings. The balance sheet is stable with low leverage, yet the negative return on equity highlights ongoing profitability issues. Overall, while growth prospects are promising, the company needs to address profitability to enhance financial health.

Income Statement

The company shows a significant improvement in revenue from the previous year, indicating strong growth potential. However, despite the increase in revenue, the company remains unprofitable with negative net income and EBIT. The gross profit margin has slightly improved, yet the net profit margin remains negative, highlighting ongoing challenges in achieving profitability.

Balance Sheet

The company has a strong equity base with a relatively low debt-to-equity ratio, indicating good financial stability. The equity ratio shows a healthy proportion of equity in the company's asset structure. However, the return on equity is negative due to the net loss, which is a concern for shareholder returns.

Cash Flow

The company has demonstrated a strong recovery in free cash flow, moving from negative to positive, indicating improved cash generation. The operating cash flow to net income ratio is robust, suggesting efficient cash management. However, the reliance on operating activities for cash flow might indicate vulnerabilities if operational performance declines.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	472.59M	365.26M	198.44M	127.64M	602.60M
Gross Profit	68.09M	62.97M	29.23M	22.55M	239.91M
EBITDA	9.71M	218.55M	32.13M	-41.20M	392.02M
Net Income	-63.19M	-30.44M	-92.76M	-76.55M	154.34M
Balance Sheet
Total Assets	435.70M	737.41M	951.57M	1.07B	1.05B
Cash, Cash Equivalents and Short-Term Investments	140.50M	133.67M	82.20M	219.38M	452.80M
Total Debt	7.10M	11.14M	10.42M	13.26M	21.43M
Total Liabilities	197.95M	435.02M	617.41M	645.76M	546.30M
Stockholders Equity	241.30M	306.82M	338.71M	431.63M	508.31M
Cash Flow
Free Cash Flow	0.00	86.63M	-111.52M	-165.54M	173.09M
Operating Cash Flow	0.00	87.73M	19.05M	272.85M	459.97M
Investing Cash Flow	0.00	-27.38M	-141.17M	-427.08M	-179.05M
Financing Cash Flow	0.00	-8.88M	-8.88M	-9.85M	-11.95M

Universe Entertainment and Culture Group Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.41
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1046, the sentiment is Positive. The current price of 0.41 is above the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.42, and below the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1046.

Universe Entertainment and Culture Group Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1046	51 Neutral	HK$385.32M	-6.10	-23.06%	―	29.39%	-107.44%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
1159	47 Neutral	HK$327.69M	1.76	―	―	-57.01%	―
2125	47 Neutral	HK$317.72M	-7.65	-2.12%	―	-41.22%	54.66%
0491	46 Neutral	HK$115.68M	-0.82	―	―	-2.81%	80.19%
0953	45 Neutral	HK$404.59M	285.00	0.29%	―	206.38%	―

Universe Entertainment and Culture Group Company Limited Corporate Events

Universe Entertainment Announces Successful AGM Resolutions

Universe Entertainment and Culture Group Company Limited announced the successful passing of all resolutions at its Annual General Meeting held on December 4, 2025. The resolutions included the adoption of financial statements, re-election of directors, re-appointment of auditors, and granting of mandates to the board regarding shares. This outcome reflects strong shareholder support and positions the company for continued strategic initiatives and operational stability.

The most recent analyst rating on (HK:1046) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Universe Entertainment and Culture Group Company Limited stock, see the HK:1046 Stock Forecast page.

Universe Entertainment Announces 2025 Annual General Meeting

Universe Entertainment and Culture Group Company Limited has announced its upcoming annual general meeting scheduled for December 4, 2025, in Hong Kong. The meeting will address ordinary business matters such as the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, special business resolutions will be considered, including the authorization for directors to issue and manage shares, which could impact the company’s capital structure and market operations.

The most recent analyst rating on (HK:1046) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Universe Entertainment and Culture Group Company Limited stock, see the HK:1046 Stock Forecast page.