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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
▲(56.25% 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 (1046) is a diversified entertainment company based in Hong Kong. The company operates in multiple sectors, including film and television production, distribution, and exhibition, as well as music production and publishing. Additionally, the company is involved in artist management, live entertainment events, and other related cultural and entertainment activities.
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
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
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.
BreakdownTTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue317.86M365.26M198.44M127.64M602.60M226.77M
Gross Profit41.85M62.97M29.41M22.55M239.91M103.54M
EBITDA-21.70M218.55M32.13M-41.20M392.02M31.15M
Net Income-105.24M-30.44M-92.76M-76.55M154.34M-27.06M
Balance Sheet
Total Assets526.48M737.41M951.57M1.07B1.05B683.79M
Cash, Cash Equivalents and Short-Term Investments115.80M133.67M82.20M219.38M452.80M218.89M
Total Debt7.83M11.14M10.42M13.26M21.43M15.47M
Total Liabilities298.86M435.02M617.41M645.76M546.30M328.90M
Stockholders Equity232.49M306.82M338.71M431.63M508.31M355.70M
Cash Flow
Free Cash Flow-30.91M89.14M-111.52M-165.54M173.09M54.81M
Operating Cash Flow-29.95M87.73M19.05M272.85M459.97M89.45M
Investing Cash Flow-22.73M-27.38M-141.17M-427.08M-179.05M-148.54M
Financing Cash Flow-8.10M-8.88M-8.88M-9.85M-11.95M-12.18M

Universe Entertainment and Culture Group Company Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.32
Price Trends
50DMA
0.37
Negative
100DMA
0.42
Negative
200DMA
0.38
Negative
Market Momentum
MACD
-0.02
Positive
RSI
36.74
Neutral
STOCH
43.72
Neutral
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 0.32 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.37, and below the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 43.72 is Neutral, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$44.05B4.50-12.81%4.08%1.86%-43.08%
55
Neutral
HK$452.52M2.40
-57.01%
55
Neutral
HK$416.56M-0.12%30.84%98.34%
51
Neutral
HK$294.66M-36.91%-30.68%-63.06%
51
Neutral
HK$489.77M0.29%206.38%
46
Neutral
HK$562.76M-20.32%-6.36%-166.67%
46
Neutral
HK$118.89M
-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
0.32
0.02
6.67%
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
3.06
1.76
135.38%
HK:0953
Shaw Brothers Holdings Limited
0.35
0.24
218.18%
HK:2125
Strawbear Entertainment Group
0.59
0.07
13.46%

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