Paradise Entertainment (1180) AI Stock Analysis

• Market Cap: HK$641.83M
• Dividend Yield: 30.33%
• Average Volume (3M): 825.93K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.61
• Revenue Growth: 43.64%
• EPS Growth: 130.37%
• Country: HK
• Employees: 330
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.16
• Shares Outstanding: 1,052,185,300
• 10 Day Avg. Volume: 686,260
• 30 Day Avg. Volume: 825,933
• PEG Ratio: <0.01
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 2.22
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$1.00 ▲(58.73% Upside)

Paradise Entertainment's overall stock score reflects a strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust revenue and profit growth, coupled with a low P/E ratio and high dividend yield, are significant positives. However, the current bearish momentum and lack of recent cash flow data introduce caution.

Positive Factors

Revenue Growth

The 70.99% revenue growth indicates robust demand for the company's gaming solutions, enhancing its market position and supporting long-term expansion.

Margin Improvement

Improved margins reflect enhanced operational efficiency and profitability, strengthening the company's financial health and competitive edge.

Balance Sheet Strength

A strong equity position and manageable leverage indicate financial stability, providing flexibility for future investments and growth opportunities.

Negative Factors

Earnings Volatility

Earnings volatility can undermine investor confidence and complicate long-term planning, posing a risk to sustained profitability.

Cash Flow Uncertainty

Lack of current cash flow data raises concerns about ongoing cash generation capabilities, potentially affecting liquidity and investment capacity.

Liabilities Increase

Rising liabilities, despite strong equity growth, could pressure financial resources, impacting the company's ability to manage debt effectively.

Paradise Entertainment Business Overview & Revenue Model

Company Description

Paradise Entertainment Limited, an investment holding company, primarily provides casino management services in Macau and internationally. It operates through Casino Management Services and Gaming Systems segments. The company operates Casino Kam Pek Paradise, which offers various games, such as baccarat, roulette, sic bo, etc. on live multi gaming terminals, traditional tables, and slot machines. It also engages in the development, sale, and leasing of electronic gaming equipment and systems. The company's gaming products include the Live Multi Game system, which provides live table gaming to play various games on different tables while being on the same terminal; slot machines that provide chance games, bingo jackpots, and bonuses; horse racing gaming, which creates virtual sports events for betting purpose that are provided to the bet acceptance system; Personal Dice/ Personal Sic Bo, a standalone gaming terminal; Chips on Me that are member self-service chips exchange terminals; Intelligent Card Shoe that helps casino operators to handle their card games; fever screening thermographic turret cameras; trend tracker displays; X Stadium Live, a display and animation system; and systems. In addition, it provides management and consulting services; properties holding, market development, and technology and software development services; develops and sells healthcare products; and imports, exports, and sells frozen food products and packaged meats. The company was formerly known as LifeTec Group Limited and changed its name to Paradise Entertainment Limited in May 2007. The company was incorporated in 1996 and is headquartered in Central, Hong Kong. Paradise Entertainment Limited is a subsidiary of August Profit Investments Limited.

How the Company Makes Money

Paradise Entertainment generates revenue through multiple streams, primarily from the sale and leasing of its electronic gaming machines and systems to casinos. The company earns income from the operation of its gaming machines, which are placed in partner casinos under revenue-sharing agreements. Additionally, Paradise Entertainment has a significant revenue stream from its proprietary gaming technology and software solutions, which are licensed to operators in various jurisdictions. Strategic partnerships with gaming operators and continuous innovation in gaming technology further contribute to its earnings, allowing the company to capitalize on the growing demand for advanced gaming solutions.

Paradise Entertainment Financial Statement Overview

Summary

Paradise Entertainment shows strong financial recovery with significant revenue and profit growth in 2024, improved margins, and a solid balance sheet. However, the absence of recent cash flow data and historical earnings volatility suggest caution.

Income Statement

Paradise Entertainment has demonstrated strong revenue growth with a significant increase in total revenue from $634M in 2023 to $1,084M in 2024, representing a growth rate of 70.99%. The gross profit margin improved from 48.8% to 62.4% in 2024, indicating enhanced operational efficiency. The net profit margin also increased significantly from 10.4% to 33.3%, reflecting improved profitability. However, the historical volatility in earnings, as seen from past losses, suggests potential risks.

Balance Sheet

The company's balance sheet shows a strong equity position with stockholders' equity rising to $502M in 2024. The debt-to-equity ratio improved to 0.36, indicating manageable leverage. The equity ratio of 60.7% underscores financial stability. Although liabilities have increased, the significant growth in equity and assets demonstrates financial health. Historical fluctuations in equity are a potential concern.

Cash Flow

The absence of reported operating and free cash flows for 2024 hinders a comprehensive cash flow analysis. However, historical data shows a positive free cash flow in 2023. The operating cash flow to net income ratio was favorable in 2023, but the lack of current data raises some uncertainty about ongoing cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	1.08B	634.28M	297.82M	494.13M	351.74M
Gross Profit	747.50M	677.07M	309.70M	11.51M	173.25M	-2.28M
EBITDA	469.12M	462.60M	135.91M	-110.83M	-19.14M	-109.66M
Net Income	417.40M	361.06M	65.78M	-154.56M	-86.11M	-189.15M
Balance Sheet
Total Assets	845.15M	826.87M	522.39M	447.27M	551.26M	660.45M
Cash, Cash Equivalents and Short-Term Investments	417.76M	389.18M	59.63M	20.18M	64.04M	129.24M
Total Debt	143.91M	174.94M	206.15M	224.71M	151.00M	153.84M
Total Liabilities	254.62M	286.82M	303.88M	289.58M	232.23M	254.39M
Stockholders Equity	555.61M	501.62M	197.69M	129.31M	279.90M	364.59M
Cash Flow
Free Cash Flow	512.62M	431.34M	88.69M	-89.81M	-29.92M	-88.82M
Operating Cash Flow	526.17M	448.49M	103.36M	-74.49M	-10.63M	-77.26M
Investing Cash Flow	-9.97M	-15.49M	-27.64M	-14.25M	-30.51M	-19.49M
Financing Cash Flow	-232.51M	-103.54M	-40.16M	46.20M	-23.76M	-21.75M

Paradise Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1180, the sentiment is Negative. The current price of 0.63 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.71, and below the 200-day MA of 1.08, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 39.77 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1180.

Paradise Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2282	74 Outperform	$60.76B	14.12	452.88%	5.73%	5.59%	-4.38%
1180	66 Neutral	HK$641.83M	1.54	97.12%	30.33%	43.64%	130.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1128	61 Neutral	$32.86B	17.78	―	5.92%	-4.41%	-31.45%
3918	55 Neutral	HK$21.19B	10.49	11.98%	1.63%	8.23%	175.51%
0200	45 Neutral	HK$10.19B	-52.72	-28.54%	―	13.18%	86.18%
0880	40 Neutral	$17.68B	-1,078.26	-0.13%	―	12.29%	98.20%

Paradise Entertainment Corporate Events

Paradise Entertainment Ends Casino Management Services, Shifts Focus to Gaming Equipment

Paradise Entertainment Limited announced that it will cease providing casino management services to SJM Resorts at Casino Kam Pek Paradise in Macau starting December 2, 2025. The company is shifting its strategic focus towards expanding its electronic gaming equipment and systems segment, which it sees as having significant growth potential. Paradise Entertainment is also exploring new business opportunities to diversify its operations and reduce risks, aiming to strengthen its position in the gaming industry.