Most Kwai Chung Ltd. (1716) AI Stock Analysis

• Market Cap: HK$137.70M
• Dividend Yield: N/A
• Average Volume (3M): 813.73K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.71
• Revenue Growth: 69.56%
• EPS Growth: N/A
• Country: HK
• Employees: 78
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): <0.01
• Shares Outstanding: 270,000,000
• 10 Day Avg. Volume: 287,000
• 30 Day Avg. Volume: 813,733
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: HK$0.50 ▼(-1.96% Downside)

Most Kwai Chung Ltd. demonstrates strong technical momentum, which is a significant positive factor. Financial performance shows potential with revenue growth and operational recovery, but cash flow issues are a concern. Valuation is moderate, with a high P/E ratio and no dividend yield, making it less attractive for value and income investors.

Most Kwai Chung Ltd. Business Overview & Revenue Model

Company Description

Most Kwai Chung Limited, an investment holding company, provides integrated advertising and media services primarily in Hong Kong. It operates through three segments: Digital Media Services, Print Media Services, and Other Media Services. The Digital Media Services segment offers video, online banner, newsfeed, and advertorial advertising through digital media platforms, third parties' TV channels, and internet and physical advertising spaces. The Printing Media Services segment publishes and sells books. The Other Media Services segment engages in the events organization and artistes' management. It also provides multimedia, and advertising campaign and promotion services; and publishes periodicals. The company was incorporated in 2017 and is headquartered in Kwai Chung, Hong Kong. Most Kwai Chung Limited is a subsidiary of Blackpaper Limited.

How the Company Makes Money

Most Kwai Chung Ltd. generates revenue through multiple streams, primarily from the sale of its consumer electronics and household goods. The company employs a direct sales model, distributing products through retail channels and online platforms, which allows it to reach a broad customer base. Additionally, Most Kwai Chung Ltd. engages in partnerships with key distributors and retailers to enhance its market presence and drive sales. The company also benefits from economies of scale in manufacturing, which helps reduce production costs and improve profit margins. Seasonal promotions and marketing strategies further contribute to boosting sales and overall revenue.

Most Kwai Chung Ltd. Financial Statement Overview

Summary

Most Kwai Chung Ltd. shows promising revenue growth and improved operational margins, indicating a recovery in business performance. The balance sheet remains strong with low leverage and improved equity returns. However, cash flow challenges persist, highlighting the need for better cash management to sustain growth and profitability.

Income Statement

Most Kwai Chung Ltd. has shown a significant improvement in revenue growth, with a 37.08% increase in the latest year. The gross profit margin has improved to 46.29%, indicating better cost management. However, the net profit margin remains relatively low at 6.55%, suggesting room for improvement in profitability. The EBIT and EBITDA margins have turned positive, reflecting operational recovery.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.023, indicating minimal leverage. The return on equity has improved to 11.86%, showing better utilization of equity. The equity ratio is solid, reflecting a stable financial position with a significant portion of assets financed by equity.

Cash Flow

Cash flow performance is weak, with a significant decline in free cash flow growth by 95.57%. The operating cash flow to net income ratio is low at 0.025, indicating challenges in converting income into cash. The negative free cash flow to net income ratio suggests cash flow issues despite reported profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.28M	93.59M	55.20M	39.59M	67.78M	59.11M
Gross Profit	28.91M	43.33M	19.97M	8.75M	9.10M	20.89M
EBITDA	-3.78M	9.15M	-7.11M	-14.39M	-17.07M	8.57M
Net Income	-3.04M	6.13M	-9.21M	-20.39M	-16.32M	9.34M
Balance Sheet
Total Assets	68.69M	71.79M	60.96M	65.93M	88.20M	106.83M
Cash, Cash Equivalents and Short-Term Investments	43.98M	43.91M	42.82M	50.81M	64.31M	84.36M
Total Debt	1.87M	1.21M	1.55M	1.52M	1.19M	1.72M
Total Liabilities	16.47M	17.86M	14.26M	9.60M	11.12M	12.20M
Stockholders Equity	49.74M	51.64M	45.51M	55.69M	76.08M	94.63M
Cash Flow
Free Cash Flow	-7.53M	-334.00K	-10.95M	-12.33M	-12.02M	18.96M
Operating Cash Flow	-6.33M	444.00K	-10.13M	-11.81M	-10.63M	19.27M
Investing Cash Flow	2.31M	2.55M	3.34M	-522.00K	1.11M	-1.27M
Financing Cash Flow	-1.45M	-1.91M	-1.20M	-1.16M	-10.53M	-14.45M

Most Kwai Chung Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1716, the sentiment is Positive. The current price of 0.51 is below the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.51, and above the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.14 is Neutral, neither overbought nor oversold. The STOCH value of 3.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1716.

Most Kwai Chung Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1716	61 Neutral	HK$137.70M	23.35	12.61%	―	69.56%	―
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%
55U	―	€12.83M	36.67	1.00%	―	―	―
0072	53 Neutral	HK$133.92M	―	-9.13%	―	-3.94%	40.24%
1753	45 Neutral	HK$262.74M	―	-3.55%	―	-5.89%	-330.91%
1831	―	HK$322.63M	―		―	―	―
1917	43 Neutral	HK$114.90M	―	-31.88%	―	-5.03%	-35.29%

Most Kwai Chung Ltd. Corporate Events

Most Kwai Chung Limited Announces Annual General Meeting and Share Repurchase Plan

Most Kwai Chung Limited has announced its upcoming annual general meeting scheduled for August 19, 2025, where key agenda items include the re-election of directors, approval of director remuneration, and the re-appointment of Baker Tilly Hong Kong Limited as independent auditor. Additionally, the company seeks shareholder approval to repurchase up to 10% of its issued shares, which may impact its share capital structure and market positioning.

Most Kwai Chung Limited Reports Strong Financial Turnaround for 2025

Most Kwai Chung Limited announced its annual results for the year ending March 31, 2025, showcasing a significant financial turnaround. The company reported a revenue increase to HK$93.6 million from HK$55.2 million the previous year, and a net profit of HK$6.4 million compared to a net loss of HK$9.3 million in 2024. This positive financial performance indicates a strong recovery and improved operational efficiency, which could enhance its market positioning and stakeholder confidence.

Most Kwai Chung Ltd. Appoints New Nomination Committee Member

Most Kwai Chung Limited has announced the appointment of Ms. LEUNG Hoi Yui, an Executive Director, as a member of its Nomination Committee effective from June 26, 2025. This strategic appointment is expected to enhance the governance framework of the company, potentially impacting its operational dynamics and stakeholder engagement positively.

Most Kwai Chung Limited Announces Board Composition and Roles

Most Kwai Chung Limited has announced the composition of its board of directors and their respective roles within the company. The board includes both executive and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement clarifies the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence by ensuring transparency and accountability in its operations.

Most Kwai Chung Limited Establishes Nomination Committee

Most Kwai Chung Limited has announced the establishment of a nomination committee, effective from July 1, 2025. This committee will consist of at least three members, primarily independent non-executive directors, and will include at least one member of a different gender. The formation of this committee is part of the company’s governance structure, aiming to enhance decision-making processes and ensure a diverse representation within its board. Meetings will be held at least once a year, with resolutions passed by a majority vote, reflecting the company’s commitment to robust corporate governance practices.

Most Kwai Chung Limited Projects Positive Profit for 2025

Most Kwai Chung Limited has announced a positive profit alert, expecting a consolidated net profit of up to HK$7 million for the year ending March 2025, a significant turnaround from the previous year’s net loss of HK$9.3 million. This improvement is attributed to increased client numbers and marketing spending in its digital media services segment, revenue growth from performance events, and a fair value gain from acquiring a 31% stake in To Be Honest Limited.

Most Kwai Chung Limited Schedules Board Meeting for Annual Results Approval

Most Kwai Chung Limited has announced that its board of directors will hold a meeting on June 26, 2025, to approve the annual results for the year ending March 31, 2025, and consider the declaration of a final dividend. This announcement may impact the company’s financial strategy and shareholder returns, indicating a focus on transparency and shareholder engagement.