Values Cultural Investment Limited (1740) AI Stock Analysis

• Market Cap: HK$75.74M
• Dividend Yield: N/A
• Average Volume (3M): 627.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 170.29%
• EPS Growth: 30.69%
• Country: HK
• Employees: 22
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.09
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 1,512,000
• 30 Day Avg. Volume: 627,166
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.75
• 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: 37 Underperform
• Price Target: ―

Values Cultural Investment Limited faces significant financial challenges, with declining revenues and continuous losses impacting financial stability. Despite a low debt burden, the company's inability to generate cash flow remains a critical concern. Technical indicators suggest a bearish trend, and the valuation lacks appeal due to the negative P/E ratio. Overall, the stock's outlook is concerning without clear improvement strategies.

Values Cultural Investment Limited Business Overview & Revenue Model

Company Description

Values 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 Money

Values Cultural Investment Limited generates revenue primarily through the distribution and licensing of its cultural content. This includes selling broadcasting rights to television networks and streaming platforms, as well as distributing films to theaters and other outlets. Additionally, the company may engage in co-production partnerships with other media companies to expand its content library and distribution channels. Revenue is also derived from ancillary markets such as merchandising and international sales, leveraging the global appeal of its cultural properties.

Values Cultural Investment Limited Financial Statement Overview

Summary

Values Cultural Investment Limited is facing significant financial challenges. The company has been unable to maintain revenue growth, and profitability metrics are concerning, with continuous losses impacting both income and cash flow statements. While the balance sheet reflects low leverage, the declining equity and inability to generate cash flow from operations pose substantial risks.

Income Statement

The company has experienced significant revenue decline from 2019 to 2024, with Total Revenue dropping from 212.6 million in 2019 to 4.1 million in 2024. Gross Profit Margin and Net Profit Margin have been negative in recent years, indicating the company is struggling to cover costs. The EBIT and EBITDA Margins are also negative, reflecting operational inefficiencies and high fixed costs.

Balance Sheet

The balance sheet shows a high equity ratio, with Stockholders' Equity being a significant portion of total assets. However, the Return on Equity is negative due to consistent net losses. The Debt-to-Equity ratio is low, suggesting low leverage, but this is overshadowed by declining equity levels due to continuous losses.

Cash Flow

The cash flow analysis reveals negative free cash flow in recent years, except for 2020, when it was slightly positive. The Operating Cash Flow to Net Income Ratio is low, indicating that the company struggles to generate cash from operations. The Free Cash Flow to Net Income Ratio is also unfavorable, highlighting cash flow challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.12M	62.91M	4.09M	43.14M	87.59M
	Gross Profit
-38.90M	-61.10M	-38.41M	-252.00K	33.31M
	EBIT
-85.90M	-92.21M	-57.91M	-14.72M	21.75M
	EBITDA
-85.80M	-97.85M	-127.60M	-42.22M	3.78M
	Net Income Common Stockholders
-98.32M	-99.44M	-141.49M	-37.97M	1.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
20.70M	42.96M	39.05M	146.01M	147.63M
	Total Assets
100.03M	204.60M	302.04M	437.00M	489.34M
	Total Debt
766.00K	2.48M	883.00K	0.00	0.00
	Net Debt
-19.94M	-40.19M	-38.17M	-117.99M	-143.37M
	Total Liabilities
21.76M	28.17M	26.46M	22.52M	35.51M
	Stockholders Equity
78.27M	176.43M	275.58M	414.48M	453.83M
Cash Flow		Free Cash Flow
0.00	4.23M	-73.63M	-24.60M	40.30M
	Operating Cash Flow
0.00	4.33M	-73.48M	-24.55M	40.33M
	Investing Cash Flow
0.00	-101.00K	-7.14M	546.00K	-3.33M
	Financing Cash Flow
0.00	-900.00K	-900.00K	0.00	93.54M

Values Cultural Investment Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1740, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.58 is Neutral, neither overbought nor oversold. The STOCH value of 2.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1740.

Values Cultural Investment Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.33B	5.90	-3.82%	8.01%	2.79%	-33.24%
1046	52 Neutral	HK$317.32M	―	-36.91%	―	-30.68%	-63.06%
8172	45 Neutral	HK$126.27M	―	-26.83%	―	-81.56%	26.00%
1326	42 Neutral	HK$111.61M	―		―	60.31%	-73.59%
1132	41 Neutral	HK$117.59M	―	-12.77%	―	-8.19%	-498.76%
9958	38 Underperform	HK$35.64M	―	-372.16%	―	-87.05%	72.21%
1740	37 Underperform	HK$75.74M	―	-76.84%	―	170.29%	30.69%

Values Cultural Investment Limited Corporate Events

Values Cultural Investment Limited Announces 2025 AGM and Key Resolutions

Values Cultural Investment Limited has announced its annual general meeting to be held on May 30, 2025, in Hong Kong. Key agenda items include the approval of financial statements for 2024, re-election of directors, and re-appointment of auditors. The company also seeks shareholder approval to authorize the board to issue new shares, which could impact its market positioning by potentially increasing capital for future investments.

Values Cultural Investment Limited Reports Significant Revenue Decline in 2024

Values Cultural Investment Limited reported a significant decrease in revenue by approximately 93.4% to RMB4.1 million for the year ended 31 December 2024, compared to the previous year. Despite the revenue drop, the company managed to reduce its gross and net losses slightly, with a gross loss of RMB38.9 million and a net loss of RMB98.3 million. The company decided not to recommend the payment of final dividends for the year. This financial performance reflects ongoing challenges in the company’s operations, impacting its financial stability and stakeholder returns.

Values Cultural Investment Limited Announces Board Meeting for Financial Results

Values Cultural Investment Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s final results for the year ending December 31, 2024, and to consider recommending a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

Values Cultural Investment Limited Issues Profit Warning for 2024

Values Cultural Investment Limited has issued a profit warning, indicating an expected net loss between RMB90 million and RMB100 million for the year ending December 31, 2024. This anticipated loss is attributed to decreased revenue due to tighter procurement budgets of TV stations and online platforms, delays in broadcasting schedules, increased provisions for asset impairments, and slower collection of trade receivables. The company is still finalizing its annual results, which are expected to be released in late March 2025.