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Values Cultural Investment Limited (HK:1740)
:1740
Hong Kong Market
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Values Cultural Investment Limited (1740) AI Stock Analysis

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HK:1740

Values Cultural Investment Limited

(1740)

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Neutral 43 (OpenAI - 4o)
Rating:43Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
Significant financial challenges, including negative profit margins and cash flows, heavily impact the overall score. The technical analysis indicates weak momentum, and the valuation is unfavorable due to ongoing losses. The absence of earnings call data and corporate events further aligns with the need for cautious consideration.

Values Cultural Investment Limited (1740) vs. iShares MSCI Hong Kong ETF (EWH)

Values Cultural Investment Limited Business Overview & Revenue Model

Company DescriptionValues Cultural Investment Limited, an investment holding company, engages in the production, distribution, and licensing of broadcasting rights of television (TV) and web series in Mainland China. The company invests in TV series, web series, and films as a non-executive producer; and acts as TV series distribution agent. It serves TV stations companies, which are engaged in the business of distribution of TV series, executive producers, and copyright owners of the TV series. Values Cultural Investment Limited was founded in 2013 and is headquartered in Tsuen Wan, Hong Kong.
How the Company Makes MoneyThe company generates revenue through several key streams. Primarily, it earns income from the equity stakes it takes in the creative projects it finances, benefiting from the potential appreciation in value as these projects succeed. Additionally, Values Cultural Investment Limited may charge management fees for overseeing the investments it makes, as well as consulting fees for advising on cultural initiatives. Significant partnerships with government arts councils, private investors, and cultural organizations further bolster its revenue, as these collaborations often involve shared funding arrangements that can lead to profit-sharing agreements. Overall, the diverse range of investments and collaborations positions the company to capitalize on both short-term and long-term financial opportunities in the cultural sector.

Values Cultural Investment Limited Financial Statement Overview

Summary
The company is experiencing significant financial challenges with a drastic revenue decline, negative profit margins, and persistent losses. While the balance sheet shows low leverage, the negative cash flows and equity erosion are major concerns.
Income Statement
20
Very Negative
The company has experienced significant revenue decline over the years, with a drastic drop from 2019 to 2024. Gross profit margins are negative, indicating that the cost of goods sold exceeds revenue. Net profit margins are also negative, reflecting ongoing losses. The EBIT and EBITDA margins are negative, highlighting operational inefficiencies and a lack of profitability.
Balance Sheet
35
Negative
The company's debt-to-equity ratio is low, suggesting minimal leverage, which is a positive aspect. However, the return on equity is negative due to consistent net losses. The equity ratio is relatively strong, indicating a solid equity base compared to total assets, but the declining asset base is a concern.
Cash Flow
25
Negative
Operating cash flow has been negative in recent years, indicating challenges in generating cash from operations. Free cash flow is also negative, reflecting insufficient cash generation to cover capital expenditures. The operating cash flow to net income ratio is unfavorable due to negative net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.21M4.12M62.91M4.09M43.14M87.59M
Gross Profit-36.00M-38.90M-61.10M-38.41M-252.00K33.31M
EBITDA-78.56M-85.80M-97.85M-127.60M-42.22M3.78M
Net Income-89.75M-98.32M-99.44M-141.49M-37.97M1.23M
Balance Sheet
Total Assets101.62M100.03M204.60M302.04M437.00M489.34M
Cash, Cash Equivalents and Short-Term Investments13.50M20.70M42.96M39.05M147.81M147.63M
Total Debt386.00K766.00K2.48M883.00K0.000.00
Total Liabilities29.89M21.76M28.17M26.46M22.52M35.51M
Stockholders Equity71.73M78.27M176.43M275.58M414.48M453.83M
Cash Flow
Free Cash Flow-6.40M-18.15M4.23M-73.63M-24.60M40.30M
Operating Cash Flow-6.40M-18.15M4.33M-73.48M-24.55M40.33M
Investing Cash Flow-500.00K-500.00K-101.00K-7.14M546.00K-3.33M
Financing Cash Flow-391.00K-3.47M-900.00K-900.00K0.0093.54M

Values Cultural Investment Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.10
Price Trends
50DMA
0.09
Positive
100DMA
0.08
Positive
200DMA
0.08
Positive
Market Momentum
MACD
<0.01
Positive
RSI
40.47
Neutral
STOCH
77.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1740, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.47 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1740.

Values Cultural Investment Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
51
Neutral
HK$435.18M-23.06%29.39%-107.44%
46
Neutral
HK$218.37M24.24%-7.90%93.34%
45
Neutral
HK$132.59M-27.50%-86.40%53.43%
43
Neutral
HK$89.23M-77.19%-77.93%11.26%
40
Underperform
HK$82.80M-372.16%-87.05%72.21%
39
Underperform
HK$70.08M60.31%-73.59%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1740
Values Cultural Investment Limited
0.10
-0.03
-23.08%
HK:1132
Orange Sky Golden Harvest Entertainment (Holdings) Limited
0.08
0.02
33.33%
HK:8172
Lajin Entertainment Network Group Limited
0.32
-0.25
-43.86%
HK:9958
Litian Pictures Holdings Limited
0.23
0.00
0.00%
HK:1046
Universe Entertainment and Culture Group Company Limited
0.48
0.12
33.33%
HK:1326
Transmit Entertainment Ltd.
0.03
-0.03
-50.00%

Values Cultural Investment Limited Corporate Events

Values Cultural Investment Limited Changes Auditor Amid Audit Fee Dispute
Jul 25, 2025

Values Cultural Investment Limited announced the resignation of Ernst & Young as its auditor due to disagreements over audit fees. BDO Limited has been appointed as the new auditor, a decision supported by the company’s audit committee, which cited BDO’s competitive fees, technical competence, and market reputation as key factors in their selection. This change is not expected to significantly impact the company’s annual audit for the year ended 31 December 2025.

Values Cultural Investment Limited Announces Key Executive Appointments
Jul 22, 2025

Values Cultural Investment Limited has announced the appointment of Mr. Liu Tieqiang as Chief Operating Officer and Mr. Gui Xiaohua as Chief Marketing Officer, effective July 22, 2025. Mr. Liu brings extensive experience in the capital market and corporate finance, while Mr. Gui offers 20 years of expertise in internet enterprise market operations and product management. These appointments are expected to enhance the company’s operational and marketing capabilities, potentially strengthening its position in the investment and cultural sectors.

Values Cultural Investment Limited Updates Nomination Committee Terms
Jun 30, 2025

Values Cultural Investment Limited has amended the terms of reference for its Nomination Committee, which was originally established by the Board in December 2019. The updated terms, effective from June 2025, emphasize diversity and independence, requiring the committee to have at least three members, a majority of whom must be independent non-executive directors, and at least one member of a different gender. This move is likely to enhance the company’s governance structure and promote a more inclusive decision-making process, potentially impacting its industry positioning positively.

Values Cultural Investment Limited Updates Remuneration Committee Terms
Jun 30, 2025

Values Cultural Investment Limited has announced amendments to the terms of reference for its Remuneration Committee, originally established by the Board on December 12, 2019. The updated terms, effective from June 30, 2025, emphasize the requirement for the Committee to consist of at least three members, with a majority being independent non-executive Directors, and the appointment of an independent non-executive Director as the Chairman. This restructuring aims to enhance governance and ensure independent oversight within the company’s board operations.

Values Cultural Investment Limited Updates Audit Committee Terms
Jun 30, 2025

Values Cultural Investment Limited has revised the terms of reference for its Audit Committee. The changes, effective from June 30, 2025, ensure compliance with the Hong Kong Stock Exchange’s listing rules, enhancing the company’s governance structure by requiring the majority of committee members to be independent non-executive directors with relevant expertise.

Values Cultural Investment Limited Successfully Passes All AGM Resolutions
May 30, 2025

Values Cultural Investment Limited announced that all proposed resolutions at their Annual General Meeting held on May 30, 2025, were passed by shareholders. Key resolutions included the approval of the company’s financial statements, re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. These decisions are expected to support the company’s governance and operational flexibility, potentially impacting its strategic direction and shareholder value.

Values Cultural Investment Appoints Dr. Wong Sze Lok as Alternate Director
May 27, 2025

Values Cultural Investment Limited has announced the appointment of Dr. Wong Sze Lok as an alternate director to represent Mr. Liu Naiyue, the chairman of the board, at the company’s annual general meeting. Dr. Wong brings extensive experience in auditing and corporate governance, having held senior executive roles in various companies listed on the Hong Kong Stock Exchange. This strategic appointment is expected to enhance the company’s governance capabilities and strengthen its leadership team.

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: Aug 01, 2025