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Paradise Entertainment (HK:1180)
:1180

Paradise Entertainment (1180) AI Stock Analysis

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HK

Paradise Entertainment

(OTC:1180)

Rating:68Neutral
Price Target:
HK$1.00
▲(28.21%Upside)
Paradise Entertainment's stock score is primarily driven by its strong financial performance and attractive valuation, suggesting potential for growth and income. However, technical indicators reflect bearish trends, requiring careful monitoring of market momentum.

Paradise Entertainment (1180) vs. iShares MSCI Hong Kong ETF (EWH)

Paradise Entertainment Business Overview & Revenue Model

Company DescriptionParadise 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 MoneyParadise Entertainment generates revenue through two main channels: casino management services and the development and sale of gaming systems. In the casino management services segment, the company earns a percentage of the gaming revenue generated by the casinos it manages, providing operational expertise and management services. In the gaming systems segment, revenue is generated from the sale and leasing of electronic gaming machines and systems, as well as through maintenance and support services. Key revenue drivers include the performance of managed casinos in Macau and the demand for electronic gaming solutions in various jurisdictions. Partnerships with casino operators and regulatory approvals in different markets also play a significant role in the company's earnings.

Paradise Entertainment Financial Statement Overview

Summary
Paradise Entertainment shows strong financial recovery with significant revenue and profit growth in 2024, improved profit margins, and a solid balance sheet. However, the lack of recent cash flow data and historical earnings volatility suggest caution.
Income Statement
78
Positive
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
72
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.08B634.28M297.82M494.13M351.74M
Gross Profit677.07M309.70M11.51M173.25M-2.28M
EBITDA462.60M135.91M-110.83M-19.14M-109.66M
Net Income361.06M65.78M-154.56M-86.11M-189.15M
Balance Sheet
Total Assets826.87M522.39M447.27M551.26M660.45M
Cash, Cash Equivalents and Short-Term Investments389.18M59.63M20.18M64.04M129.24M
Total Debt174.94M206.15M224.71M151.00M153.84M
Total Liabilities286.82M303.88M289.58M232.23M254.39M
Stockholders Equity501.62M197.69M129.31M279.90M364.59M
Cash Flow
Free Cash Flow0.0088.69M-89.81M-29.92M-88.82M
Operating Cash Flow0.00103.36M-74.49M-10.63M-77.26M
Investing Cash Flow0.00-27.64M-14.25M-30.51M-19.49M
Financing Cash Flow0.00-40.16M46.20M-23.76M-21.75M

Paradise Entertainment Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.78
Price Trends
50DMA
1.46
Negative
100DMA
1.56
Negative
200DMA
1.21
Negative
Market Momentum
MACD
-0.23
Positive
RSI
27.44
Positive
STOCH
25.57
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 0.78 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.46, and below the 200-day MA of 1.21, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 27.44 is Positive, neither overbought nor oversold. The STOCH value of 25.57 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$820.70M2.27103.02%14.10%71.04%449.12%
56
Neutral
HK$23.97B4.08-1.57%8.88%0.06%-64.88%
$2.30B3,200.000.03%
$1.15B-220.97%
$6.16B10.18
4.09%
$2.03B18.105.24%
$3.63B8.79
6.90%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1180
Paradise Entertainment
0.78
0.01
1.30%
SJMHF
SJM Holdings
0.32
-0.01
-3.03%
MDEVF
Melco International
0.49
-0.01
-2.00%
MCHVF
MGM China Holdings
1.58
0.12
8.22%
NGCRF
NagaCorp
0.45
-0.03
-6.25%
WYNMF
Wynn Macau
0.69
-0.09
-11.54%

Paradise Entertainment Corporate Events

Paradise Entertainment Updates Nomination Committee Terms
Jun 27, 2025

Paradise Entertainment Limited has revised the terms of reference for its Nomination Committee as of June 27, 2025. The committee is tasked with formulating and implementing the company’s nomination policy, reviewing the board’s structure and diversity, and ensuring the independence and effectiveness of its directors. These changes aim to enhance corporate governance and align with strategic goals, potentially impacting board operations and shareholder relations.

The most recent analyst rating on (HK:1180) stock is a Buy with a HK$1.60 price target. To see the full list of analyst forecasts on Paradise Entertainment stock, see the HK:1180 Stock Forecast page.

Paradise Entertainment Faces Revenue Impact as Casino Management Contract Ends
Jun 9, 2025

Paradise Entertainment Limited announced that its service agreement with SJM Resorts for casino management services at Casino Kam Pek Paradise in Macau will not be renewed after its expiration on December 31, 2025. This agreement accounted for 66.2% of the company’s revenue in 2024, and its conclusion is expected to significantly reduce revenue and profit from January 2026. Despite this challenge, Paradise Entertainment is committed to enhancing its electronic gaming segment and exploring new business opportunities to diversify its operations and mitigate risks.

The most recent analyst rating on (HK:1180) stock is a Buy with a HK$1.60 price target. To see the full list of analyst forecasts on Paradise Entertainment stock, see the HK:1180 Stock Forecast page.

Paradise Entertainment Initiates Trading Halt Pending Key Announcement
Jun 9, 2025

Paradise Entertainment Limited has requested a trading halt on its shares on the Hong Kong Stock Exchange as of June 9, 2025, pending an announcement regarding inside information. This move indicates a significant development that could impact the company’s operations and market positioning, potentially affecting stakeholders and investors.

The most recent analyst rating on (HK:1180) stock is a Buy with a HK$1.60 price target. To see the full list of analyst forecasts on Paradise Entertainment stock, see the HK:1180 Stock Forecast page.

Paradise Entertainment Announces Successful AGM Resolutions
May 27, 2025

Paradise Entertainment Limited announced that all resolutions proposed at its Annual General Meeting held on May 27, 2025, were approved by shareholders. Key resolutions included the re-election of directors, approval of a final dividend, and the adoption of a new share option scheme. These decisions reflect the company’s strategic direction and commitment to enhancing shareholder value, potentially impacting its market position and stakeholder interests.

The most recent analyst rating on (HK:1180) stock is a Buy with a HK$1.60 price target. To see the full list of analyst forecasts on Paradise Entertainment stock, see the HK:1180 Stock Forecast page.

Paradise Entertainment Announces AGM and Key Resolutions
Apr 29, 2025

Paradise Entertainment Limited has announced its annual general meeting to be held on May 27, 2025, in Hong Kong. Key resolutions include the adoption of financial statements, re-election of directors, approval of a final dividend, and authorization for the board to manage share-related activities. These decisions are poised to impact the company’s governance and shareholder value positively.

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: Jun 24, 2025