Alibaba Pictures Group Limited (1060) AI Stock Analysis

• Market Cap: HK$30.77B
• Dividend Yield: N/A
• Average Volume (3M): 479.22M
• Price to Earnings (P/E): 76.9
• Beta (1Y): 1.22
• Revenue Growth: 24.36%
• EPS Growth: -18.99%
• Country: HK
• Employees: 1,556
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): <0.01
• Shares Outstanding: 29,875,865,000
• 10 Day Avg. Volume: 699,367,776
• 30 Day Avg. Volume: 479,223,921
• PEG Ratio: 0.16
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.88
• 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: HK$0.92
• Price Target Upside: -10.68% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ―

Alibaba Pictures Group Limited's overall stock score reflects strong financial performance, with notable improvements in revenue and profitability, alongside a solid balance sheet. However, technical analysis suggests potential resistance and mixed momentum signals, while the high P/E ratio raises concerns about overvaluation. These factors combine to produce a moderate score, indicating a need for cautious optimism pending further growth validation.

Alibaba Pictures Group Limited Business Overview & Revenue Model

Company Description

Alibaba Pictures Group Limited, an investment holding company, operates an Internet-based integrated platform in the People's Republic of China. The company operates through Content, Technology, and IP Merchandising and Commercialization segments. Its platform covers content production, promotion and distribution, intellectual property licensing and integrated management, cinema ticketing management, and Internet data services for the entertainment industry. The company is also involved in the production of broadcasting and television programs; exchanging and planning of screen-based cultural and art events; and film and TV copyrights investment, production, and distribution, as well as performance brokerage activities. In addition, it engages in the design, production, agency sale, and releasing of advertisements; development, consultation, service, and transfer of network technologies; and software design and development activities. Further, the company offers technical promotion, computer system, and factoring services; advertises and sells entertainment related merchandise and derivatives; issues digital collectibles and establishes platforms; creates literary and artistic services; and digital content production services. Additionally, it is involved in the provision of artists management, talent and ticketing agency, film screening, investment management, exhibition, internet information, and marketing services; industrial investment and consultation, and e-commerce activities; supplying of cinema ticketing and connecting software systems; and sale of pop toys. The company was formerly known as ChinaVision Media Group Limited and changed its name to Alibaba Pictures Group Limited in June 2014. Alibaba Pictures Group Limited is headquartered in Causeway Bay, Hong Kong. Alibaba Pictures Group Limited operates as a subsidiary of Ali CV Investment Holding Limited.

How the Company Makes Money

Alibaba Pictures generates revenue through multiple channels, primarily focusing on film and television production and distribution. The company creates and acquires content, which it then distributes through various platforms, including cinemas, online streaming services, and television networks. Additionally, Alibaba Pictures benefits from its integration with other Alibaba Group services, such as leveraging big data for targeted marketing and utilizing the Alipay platform for ticketing transactions. Its online ticketing platform, Taopiaopiao, also contributes significantly to its revenue by facilitating cinema ticket sales and offering promotional services to moviegoers. Strategic partnerships with other entertainment companies and collaborations within the Alibaba ecosystem further enhance its revenue potential.

Alibaba Pictures Group Limited Financial Statement Overview

Summary

Alibaba Pictures Group Limited has demonstrated a strong financial performance with significant improvements across income, balance sheet, and cash flow metrics. Revenue and profitability have shown commendable growth, and the balance sheet remains solid with low leverage. Cash flow generation is robust, supporting the company's ongoing operations and potential growth opportunities. While the company is on a positive trajectory, careful management of expenses and investments is crucial to maintain financial health.

Income Statement

Alibaba Pictures Group Limited has shown impressive growth, with a significant revenue increase from the previous year, indicating a strong recovery. The gross profit margin is solid at approximately 44.1%, and the net profit margin has turned positive at 5.7% after being negative in previous years, reflecting improved profitability. EBIT and EBITDA margins have also improved, demonstrating enhanced operational efficiency.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio of 0.03, indicating minimal leverage and strong equity financing. Return on equity has improved to 1.8%, showing better utilization of shareholder funds. The equity ratio is high at 73.3%, reflecting financial stability. Overall, the financial position shows low risk and strong asset management.

Cash Flow

Cash flow generation is healthy, with a strong free cash flow of HKD 810.3 million, up significantly from the previous year. The operating cash flow to net income ratio is 2.89, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 2.85, showcasing strong cash conversion. However, the company should monitor capital expenditures to sustain positive free cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
3.05B	5.04B	3.52B	3.65B	2.86B	2.87B
	Gross Profit
1.32B	2.22B	1.13B	1.50B	1.39B	1.57B
	EBIT
527.45M	309.68M	-220.97M	204.79M	231.75M	-470.94M
	EBITDA
582.48M	355.03M	-13.01M	239.40M	-18.07M	-443.35M
	Net Income Common Stockholders
336.60M	284.79M	-278.91M	169.85M	-117.19M	-1.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.99B	7.42B	3.92B	3.55B	3.90B	4.41B
	Total Assets
23.06B	21.46B	15.57B	15.58B	15.54B	15.85B
	Total Debt
447.82M	544.30M	145.77M	177.25M	326.47M	702.49M
	Net Debt
-996.09M	-3.87B	-3.77B	-3.36B	-3.57B	-3.30B
	Total Liabilities
6.91B	5.64B	1.46B	1.53B	1.70B	1.87B
	Stockholders Equity
16.02B	15.72B	14.07B	14.02B	13.79B	13.90B
Cash Flow		Free Cash Flow
-606.35M	810.31M	570.51M	-514.17M	242.49M	-787.99M
	Operating Cash Flow
-575.25M	822.19M	580.36M	-497.63M	264.95M	-776.15M
	Investing Cash Flow
-2.74B	-298.76M	-232.78M	262.02M	54.37M	1.67B
	Financing Cash Flow
424.07M	-93.55M	-48.32M	-80.46M	-387.75M	-420.18M

Alibaba Pictures Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.03
• 50DMA: Positive
• 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:1060, the sentiment is Positive. The current price of 1.03 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.63, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 72.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1060.

Alibaba Pictures Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.79B	5.90	-3.99%	6.20%	2.67%	-30.30%
1060	58 Neutral	HK$30.77B	76.87	2.29%	―	24.36%	-18.99%
PANHF		$1.99B	90.39	0.96%	―	―	―
PCFBF		$1.28B	8.27	7.27%	8.77%	―	―
SIMTF		$81.86M	1.08	-6.17%	―	―	―
XJNGF		$5.10B	12.46	5.64%	1.65%	―	―
1982	68 Neutral	HK$1.89B	5.10	14.66%	60.24%	4.95%	94.03%

Alibaba Pictures Group Limited Corporate Events

Alibaba Pictures Enters Lease Agreement for Office Premises

Alibaba Pictures Group Limited, through its subsidiary Zhonglian Shengshi, has entered into a lease agreement with Chuanfu Yunxi for office premises, valued at approximately RMB212 million. This connected transaction, involving entities associated with Alibaba Holding, is subject to reporting requirements under Hong Kong’s Listing Rules but does not require independent shareholders’ approval.

Alibaba Pictures Renews Key Agreements to Enhance Operations

Alibaba Pictures Group Limited has announced the renewal of its continuing connected transactions through new agreements with Cainiao and Youku Information, both entities associated with Alibaba Holding. These agreements, effective from March 31, 2025, aim to maintain and enhance the company’s technological and cooperative capabilities, potentially strengthening its market position and operational efficiency.

Alibaba Pictures Revises Annual Caps Amid Growing Cloud Service Demand

Alibaba Pictures Group Limited has announced a revision of its annual caps for continuing connected transactions under the Cloud Services Framework Agreement. The company anticipates that the original caps will not meet its business needs due to stronger-than-expected performance and increased demand for cloud services. As a result, the board has proposed increasing the caps for the financial years ending March 31, 2025, 2026, and 2027. This revision reflects the company’s growth trajectory and its reliance on cloud services to support its operations, potentially impacting its financial planning and stakeholder interests.