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Universe Entertainment and Culture Group Company Limited (HK:1046)
:1046
Hong Kong Market
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Universe Entertainment and Culture Group Company Limited (1046) AI Stock Analysis

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HK:1046

Universe Entertainment and Culture Group Company Limited

(1046)

Rating:51Neutral
Price Target:
HK$0.50
▲(38.89% 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.

Universe Entertainment and Culture Group Company Limited (1046) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionUniverse 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 MoneyUniverse 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
The company exhibits strong revenue growth and improved cash flow, indicating potential for future growth. However, profitability remains a significant challenge, with negative net income and return on equity. The balance sheet is stable, but the company needs to enhance profitability to improve financial health.
Income Statement
45
Neutral
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
60
Neutral
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
70
Positive
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.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue365.26M198.44M127.64M602.60M226.77M
Gross Profit62.97M29.41M22.55M239.91M103.54M
EBITDA218.55M32.13M-41.20M392.02M31.15M
Net Income-30.44M-92.76M-76.55M154.34M-27.06M
Balance Sheet
Total Assets737.41M951.57M1.07B1.05B683.79M
Cash, Cash Equivalents and Short-Term Investments133.67M82.20M219.38M452.80M218.89M
Total Debt11.14M10.42M13.26M21.43M15.47M
Total Liabilities435.02M617.41M645.76M546.30M328.90M
Stockholders Equity306.82M338.71M431.63M508.31M355.70M
Cash Flow
Free Cash Flow89.14M-111.52M-165.54M173.09M54.81M
Operating Cash Flow87.73M19.05M272.85M459.97M89.45M
Investing Cash Flow-27.38M-141.17M-427.08M-179.05M-148.54M
Financing Cash Flow-8.88M-8.88M-9.85M-11.95M-12.18M

Universe Entertainment and Culture Group Company Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.36
Price Trends
50DMA
0.39
Negative
100DMA
0.42
Negative
200DMA
0.38
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
39.66
Neutral
STOCH
4.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1046, the sentiment is Negative. The current price of 0.36 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.39, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.66 is Neutral, neither overbought nor oversold. The STOCH value of 4.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1046.

Universe Entertainment and Culture Group Company Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$41.49B-3.35-10.67%4.00%2.70%-41.55%
55
Neutral
HK$581.61M
-49.75%48.12%
54
Neutral
HK$266.89M-1.32%-21.40%-100.00%
51
Neutral
HK$321.85M-36.91%-30.68%-63.06%
49
Neutral
HK$409.50M-0.12%30.84%98.34%
46
Neutral
HK$568.68M-20.32%27.72%-117.07%
46
Neutral
HK$112.47M
-7.95%-89.82%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1046
Universe Entertainment and Culture Group Company Limited
0.36
-0.03
-7.69%
HK:0491
Emperor Culture Group
0.04
0.00
0.00%
HK:0391
Mei Ah Entertainment Group Limited
0.10
-0.04
-28.57%
HK:1159
Starlight Culture Entertainment Group Limited
3.84
2.30
149.35%
HK:0953
Shaw Brothers Holdings Limited
0.22
0.11
100.00%
HK:2125
Strawbear Entertainment Group
0.59
0.11
22.92%

Universe Entertainment and Culture Group Company Limited Corporate Events

Universe Entertainment Issues Profit Warning Amid Increased Losses
Jul 11, 2025

Universe Entertainment and Culture Group Company Limited has issued a profit warning, expecting a significant increase in losses for the year ending June 30, 2025, compared to the previous year. The anticipated loss, ranging from HK$57.0 million to HK$67.0 million, is attributed to a substantial impairment loss on film rights and related assets due to decreased income expectations. Stakeholders are advised to exercise caution as the annual results are still being finalized.

Universe Entertainment Sets Nomination Committee Guidelines
Jun 30, 2025

Universe Entertainment and Culture Group Company Limited has announced the terms of reference for its Nomination Committee, which was originally established in 2005. The committee, consisting primarily of independent non-executive directors, is responsible for nominating board members and ensuring proper governance. The announcement outlines the committee’s structure, meeting protocols, and responsibilities, which are aimed at enhancing the company’s governance framework.

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: Aug 01, 2025