Transmit Entertainment Ltd. (1326) AI Stock Analysis

• Market Cap: HK$109.02M
• Dividend Yield: N/A
• Average Volume (3M): 740.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: 60.31%
• EPS Growth: -73.59%
• Country: HK
• Employees: 23
• Sector: Communication Services
• Sector Strength: 80
• Industry: Entertainment
• EPS (TTM): -0.13
• Shares Outstanding: 2,595,613,800
• 10 Day Avg. Volume: 796,800
• 30 Day Avg. Volume: 740,266
• PEG Ratio: -0.01
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.20
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 42 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score is predominantly influenced by severe financial distress and an unappealing valuation, both scoring at the lowest end of the range. Technical analysis offers a slightly more stable outlook but is insufficient to offset the broader financial and valuation challenges.

Transmit Entertainment Ltd. Business Overview & Revenue Model

Company Description

Transmit Entertainment Limited, an investment holding company, operates as a media and entertainment company in the Hong Kong, Macau, the People's republic of China, Mainland China, and internationally. The company operates through four segments: Film and TV Series Production, Distribution, and Licensing; Film Exhibition; and Pan Entertainment. It engages in the production of Chinese films and TV series; and operation of a Hong Kong based cinema. The company is also involved in the e-commerce; and advertising, marketing, and publication businesses. In addition, it provides film promotion; cinema, screenwriter, artiste, and director management; and Internet celebrity services. The company was formerly known as Pegasus Enter tainment Holdings Limited and changed its name to Transmit Entertainment Limited in February 2018. The company was founded in 2009 and is headquartered in Wan Chai, Hong Kong. Transmit Entertainment Limited is a subsidiary of Nice Rich Group Limited.

How the Company Makes Money

Transmit Entertainment Ltd. generates revenue through multiple streams within the media and entertainment sector. The primary source of income is the production and distribution of films and television content, where the company earns by selling distribution rights to broadcasters, online platforms, and theaters. Additionally, Transmit Entertainment may engage in co-production agreements, which allows it to share production costs and revenue with partners. The company also potentially earns from licensing content for merchandising or adaptation into other formats. Significant partnerships with other entertainment companies and distribution networks enhance its market reach and revenue potential.

Transmit Entertainment Ltd. Financial Statement Overview

Summary

Transmit Entertainment Ltd. faces significant financial challenges. The income statement highlights persistent losses and declining revenue growth, while the balance sheet reveals high leverage and negative equity, indicating financial distress. Although the cash flow statement shows some operational cash generation, it is overshadowed by broader financial instability. Strategic financial restructuring and operational improvements are necessary to address these issues and improve long-term viability.

Income Statement

The company exhibits a concerning financial trajectory with consistently negative profitability metrics. The gross profit margin and net profit margin are negative, indicating that the company is not generating profit from its operations. The revenue growth rate shows a declining trend over the years, further impacting the overall financial health. EBIT and EBITDA margins are also negative, emphasizing challenges in generating operational profits.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity indicating that liabilities exceed assets. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio is also negative. This highlights high leverage and potential insolvency risks, which are critical concerns for stakeholders.

Cash Flow

The cash flow statement presents mixed signals. While operating cash flow is positive, indicating some ability to generate cash, the free cash flow growth rate is inconsistent, and the free cash flow to net income ratio is not meaningful due to negative net income. The company's cash flow management needs improvement to enhance financial stability.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	253.85M	292.60M	166.43M	703.98M	456.99M	465.53M
Gross Profit	-84.50M	-71.42M	46.19M	126.14M	131.13M	173.70M
EBITDA	-144.75M	-288.37M	-95.28M	17.76M	213.89M	56.16M
Net Income	-336.05M	-350.51M	-186.92M	-92.17M	-7.63M	-126.60M
Balance Sheet
Total Assets	355.04M	395.39M	922.56M	1.26B	1.63B	1.78B
Cash, Cash Equivalents and Short-Term Investments	72.25M	69.14M	95.96M	105.87M	116.10M	119.30M
Total Debt	178.36M	175.10M	271.82M	342.93M	576.37M	995.98M
Total Liabilities	562.14M	580.49M	755.38M	865.26M	1.38B	1.58B
Stockholders Equity	-247.97M	-226.78M	113.78M	342.93M	195.06M	166.72M
Cash Flow
Free Cash Flow	12.97M	32.94M	63.33M	54.57M	121.08M	73.66M
Operating Cash Flow	12.97M	32.94M	59.36M	56.56M	121.19M	85.27M
Investing Cash Flow	11.28M	34.54M	20.95M	-43.76M	-93.95M	-148.68M
Financing Cash Flow	-43.92M	-92.74M	-92.73M	-7.80M	-44.99M	53.80M

Transmit Entertainment Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.04
• 50DMA: Negative
• 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:1326, the sentiment is Neutral. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1326.

Transmit Entertainment Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$40.68B	-1.16	-12.05%	3.89%	2.04%	-69.68%
0953	53 Neutral	HK$235.66M	―	-1.32%	―	-21.40%	-100.00%
1132	52 Neutral	HK$134.38M	―	-12.77%	―	-8.19%	-498.76%
8082	49 Neutral	HK$201.28M	―	-110.51%	―	-33.40%	29.14%
8172	45 Neutral	HK$132.59M	―	-26.83%	―	-81.56%	26.00%
1003	43 Neutral	HK$1.43B	―		―	―	―
1326	42 Neutral	HK$109.02M	―		―	60.31%	-73.59%

Transmit Entertainment Ltd. Corporate Events

Transmit Entertainment Appoints New Independent Director and Restructures Board Committees

Transmit Entertainment Limited has announced the appointment of Ms. Ye Dandan as an independent non-executive director, effective from April 22, 2025. Ms. Ye brings approximately 19 years of experience in the financial industry, having held senior positions at several prominent financial institutions. Her appointment is part of a broader change in the composition of the company’s board committees, with Ms. Ye also joining the audit committee. These changes are expected to enhance the company’s governance and compliance with listing rules, potentially strengthening its market position and stakeholder confidence.

Transmit Entertainment Ltd. Announces Board Composition and Committee Roles

Transmit Entertainment Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles. The board includes executive directors, a non-executive director, and independent non-executive directors. The company has also established three board committees: Audit, Nomination, and Remuneration, with specific directors assigned to each committee. This announcement provides clarity on the governance structure of Transmit Entertainment Limited, which may impact its strategic decisions and stakeholder relations.