Most Kwai Chung Ltd. (1716) AI Stock Analysis

• Market Cap: HK$114.75M
• Dividend Yield: N/A
• Average Volume (3M): 56.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: 41.80%
• EPS Growth: 82.62%
• Country: HK
• Employees: 78
• Sector: Communication Services
• Sector Strength: 79
• Industry: Advertising Agencies
• EPS (TTM): 0.02
• Shares Outstanding: 270,000,000
• 10 Day Avg. Volume: 120,200
• 30 Day Avg. Volume: 56,666
• PEG Ratio: -0.50
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.44
• 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

• Rating: 38 Underperform
• Price Target: ―

Most Kwai Chung Ltd. presents a high-risk profile due to its ongoing financial struggles with negative profitability and cash flow issues. Despite some stability in technical indicators, the negative P/E ratio and lack of dividends highlight valuation concerns. The company needs to significantly improve its financial health and operational efficiencies to enhance its stock attractiveness.

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 Limited generates revenue through multiple streams. Its primary source of income is advertising, where it collaborates with brands to create engaging content that is distributed across its digital platforms. This includes native advertising, branded content, and sponsorships. Additionally, the company's print media services contribute to its revenue through the sale of its magazine '100Most' and other related publications. The other media services segment includes events management and the production of multimedia content for third parties. These diversified revenue streams leverage the company's media influence and creative capabilities to monetize its audience and content effectively.

Most Kwai Chung Ltd. Financial Statement Overview

Summary

Most Kwai Chung Ltd. faces significant financial challenges with consistent losses and negative cash flows. While there is improvement in revenue and some financial stability due to strong equity, the company needs to address operational inefficiencies and enhance profitability to ensure long-term sustainability. The low leverage is a positive aspect, reducing financial risk, but the ongoing struggles with profitability and cash flow management are critical areas for improvement.

Income Statement

Most Kwai Chung Ltd. has shown some improvement in gross profit margin and net income over the years, but the company has been struggling with consistent net losses for the past three years. The revenue growth rate for the most recent period indicates recovery, but negative EBIT and EBITDA margins suggest operational inefficiencies and ongoing challenges in profitability.

Balance Sheet

The company maintains a solid equity position with a high equity ratio, indicating financial stability. However, the negative return on equity reflects ongoing losses, which is a concern. The debt-to-equity ratio is low, suggesting limited leverage, which can be positive in terms of financial risk.

Cash Flow

Negative operating and free cash flows highlight cash management challenges, although there has been a slight improvement in free cash flow from the previous year. The operating cash flow to net income ratio is concerning, as negative values indicate cash flow issues relative to earnings.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
68.28M	55.20M	39.59M	67.78M	59.11M	76.91M
	Gross Profit
28.91M	19.97M	8.75M	9.10M	20.89M	31.15M
	EBIT
-4.45M	-10.32M	-16.32M	-19.14M	6.13M	12.06M
	EBITDA
-3.78M	-7.11M	-14.39M	-17.07M	8.57M	15.38M
	Net Income Common Stockholders
-3.04M	-9.21M	-20.39M	-16.32M	9.34M	13.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
42.82M	42.82M	50.81M	64.31M	84.36M	80.81M
	Total Assets
60.96M	60.96M	65.93M	88.20M	106.83M	106.55M
	Total Debt
1.55M	1.55M	1.52M	1.19M	1.72M	2.16M
	Net Debt
-41.27M	-41.27M	-49.30M	-63.12M	-82.64M	-78.65M
	Total Liabilities
14.26M	14.26M	9.60M	11.12M	12.20M	8.31M
	Stockholders Equity
45.51M	45.51M	55.69M	76.08M	94.63M	98.25M
Cash Flow		Free Cash Flow
-7.53M	-10.95M	-12.33M	-12.02M	18.96M	9.31M
	Operating Cash Flow
-6.33M	-10.13M	-11.81M	-10.63M	19.27M	9.43M
	Investing Cash Flow
3.36M	3.34M	-522.00K	1.11M	-1.27M	-1.72M
	Financing Cash Flow
-1.45M	-1.20M	-1.16M	-10.53M	-14.45M	-15.27M

Most Kwai Chung Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 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:1716, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.39, and above the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.51 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 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
8023	67 Neutral	HK$203.13M	18.38	8.56%	2.94%	0.80%	-13.95%
Sector *	61 Neutral	$14.64B	5.81	-3.99%	6.03%	2.71%	-31.56%
8087	48 Neutral	HK$125.28M	―	-67.25%	―	0.20%	57.51%
1716	38 Underperform	HK$114.75M	―	-5.88%	―	41.80%	82.62%

Most Kwai Chung Ltd. Corporate Events

Most Kwai Chung Ltd. Announces Strategic Use of Proceeds for Growth

Most Kwai Chung Ltd. has released supplemental information regarding the use of proceeds from its annual and interim reports. The company has allocated funds to pursue growth through mergers and acquisitions, expand its customer base, upgrade IT infrastructure, and strengthen event organization efforts. Some proceeds remain unutilized, with plans to apply them by March 2025, indicating a strategic focus on future growth and operational efficiency.