Transmit Entertainment Ltd. (1326) AI Stock Analysis

• Market Cap: HK$70.08M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: 60.31%
• EPS Growth: -73.59%
• Country: HK
• Employees: 23
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 2,595,613,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.55
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 3.78
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.03 ▼(-13.33% Downside)

The overall stock score is heavily influenced by the company's poor financial performance and valuation, reflecting significant financial instability and lack of profitability. Technical analysis provides a neutral perspective but does not offset the negative financial metrics.

Positive Factors

Revenue Growth

Despite financial challenges, the company shows strong revenue growth, indicating potential for market expansion and improved sales strategies.

Cash Generation

Positive operating cash flow suggests the company can generate cash from its core business operations, providing a foundation for future financial stability.

Diversified Revenue Streams

Diversified revenue streams from production, distribution, and co-production reduce dependency on a single income source, enhancing resilience against market fluctuations.

Negative Factors

Negative Profitability

Negative profitability metrics indicate the company struggles to generate profit, which can hinder reinvestment and growth opportunities.

High Leverage

High leverage and negative equity suggest financial instability, increasing the risk of insolvency and limiting financial flexibility.

Declining Revenue Growth Trend

A declining revenue growth trend indicates potential market challenges and could impact the company's ability to sustain long-term growth.

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

The company faces significant financial challenges with negative profitability metrics, declining revenue growth, high leverage, and negative equity. Cash flow shows some positives but is overshadowed by broader instability.

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	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
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	-374.20M	-288.37M	-95.28M	17.76M	213.89M	55.30M
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	106.57M	117.78M	116.10M	119.30M
Total Debt	178.36M	175.10M	271.82M	342.93M	576.37M	1.02B
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	14.40M	32.94M	63.33M	54.57M	65.69M	73.66M
Operating Cash Flow	14.40M	32.94M	59.36M	56.56M	65.80M	85.27M
Investing Cash Flow	61.38M	34.54M	20.95M	-43.76M	-94.99M	-148.68M
Financing Cash Flow	-60.19M	-92.74M	-92.73M	-7.80M	11.43M	53.80M

Transmit Entertainment Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1326, the sentiment is Negative. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.71 is Neutral, neither overbought nor oversold. The STOCH value of 166.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1003	46 Neutral	HK$1.08B	―	―	―	―	―
1132	45 Neutral	HK$187.58M	-6.38	24.24%	―	-7.90%	93.34%
0953	45 Neutral	HK$404.59M	285.00	0.29%	―	206.38%	―
8172	42 Neutral	HK$79.97M	-3.64	-27.50%	―	-86.40%	53.43%
8082	41 Neutral	HK$140.07M	-2.76	-374.96%	―	-60.87%	-61.34%
1326	39 Underperform	HK$70.08M	-0.21	―	―	60.31%	-73.59%

Transmit Entertainment Ltd. Corporate Events

Transmit Entertainment Warns of Continued Annual Report Delays Amid Legal Fight Over Key Subsidiary

Transmit Entertainment Limited has provided a quarterly update confirming that, while trading in its shares on the Hong Kong Stock Exchange remains suspended, its underlying TV and pan‑entertainment businesses in Mainland China continue to operate normally. The company has installed three new directors at its key subsidiary Wenlan and is pursuing legal proceedings in Shanghai to regain full control and obtain necessary financial information, but delays in accessing Wenlan’s data mean the publication of its 2024/2025 annual results and the dispatch of its annual report remain outstanding, prolonging uncertainty for investors and regulatory compliance efforts.

The most recent analyst rating on (HK:1326) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Transmit Entertainment Ltd. stock, see the HK:1326 Stock Forecast page.

Transmit Entertainment Ordered to Meet HKEX Resumption Conditions Amid Ongoing Trading Suspension

Transmit Entertainment Limited has received formal resumption guidance from the Hong Kong Stock Exchange after the prolonged delay in publishing its 2024/2025 annual results and report, leading to the continued suspension of trading in its shares. The exchange has required the company to publish all outstanding financial results, address any audit modifications, complete an independent internal control review, demonstrate compliance with the Listing Rules’ minimum operations and asset requirements, and ensure full market disclosure of material information; if these conditions are not met and trading does not resume by 1 April 2027, the company faces potential cancellation of its listing, although it has stated it is taking steps to comply and will provide quarterly updates until trading resumes or the listing is cancelled.

The most recent analyst rating on (HK:1326) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Transmit Entertainment Ltd. stock, see the HK:1326 Stock Forecast page.

Transmit Entertainment Faces Delays Amid Wenlan Dispute

Transmit Entertainment Ltd. announced a delay in the publication of its 2024/2025 annual results and report due to a dispute with Mr. Shou, a key figure in its subsidiary Wenlan. The conflict arose over dividend distribution, leading to Mr. Shou withholding necessary financial information, which has prompted the company to initiate legal proceedings in China. Despite these challenges, Wenlan’s operations continue normally, and Transmit Entertainment maintains control over the subsidiary.

The most recent analyst rating on (HK:1326) stock is a Sell with a HK$0.03 price target. To see the full list of analyst forecasts on Transmit Entertainment Ltd. stock, see the HK:1326 Stock Forecast page.

Transmit Entertainment Announces Leadership Changes

Transmit Entertainment Limited announced the resignation of Mr. Jiang Lei as Executive Director and CEO, effective October 31, 2025, due to personal commitments. The company expressed gratitude for his contributions. Ms. Chin Shan Shan, with over a decade of experience in the film and television industry, has been appointed as the new Executive Director. Her extensive background in artist management and leadership roles in various entertainment companies positions her as a valuable addition to the company’s board.

Transmit Entertainment Announces Board Composition and Committee Assignments

Transmit Entertainment Limited has announced the composition of its board of directors, which includes executive, non-executive, 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, potentially impacting its strategic direction and stakeholder confidence.

Transmit Entertainment Delays Annual Results, Suspends Trading

Transmit Entertainment Limited has announced a delay in the publication of its 2024/2025 annual results and the dispatch of the corresponding annual report due to ongoing processes required to prepare consolidated financial statements and facilitate audit procedures. Consequently, trading in the company’s shares has been suspended on the Hong Kong Stock Exchange until the announcement of the annual results is made, urging shareholders and potential investors to exercise caution.