Values Cultural Investment Limited (1740) AI Stock Analysis

• Market Cap: HK$61.21M
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -91.55%
• EPS Growth: 1.34%
• Country: HK
• Employees: 22
• Sector: Communication Services
• Sector Strength: 82
• Industry: Entertainment
• EPS (TTM): -0.09
• Shares Outstanding: 1,037,500,000
• 10 Day Avg. Volume: 1,364,500
• 30 Day Avg. Volume: 1,033,666
• PEG Ratio: -0.19
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.75
• 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: 38 Underperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

Values Cultural Investment Limited is under significant financial strain, with substantial revenue declines and negative profitability metrics leading to a low financial performance score. The technical analysis indicates bearish momentum, and the stock's valuation is unattractive due to negative earnings and no dividend yield. These factors collectively result in a low overall stock score.

Values Cultural Investment Limited Business Overview & Revenue Model

Company Description

Values Cultural Investment Limited (1740) is a company engaged in the cultural and entertainment sectors, focusing on the production, distribution, and promotion of cultural content. This includes films, television programs, and other media formats. The company aims to contribute to the cultural industry by investing in content that resonates with diverse audiences and supports cultural exchange.

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

The company's financial performance is severely challenged, with significant revenue decline and negative profitability metrics. The balance sheet shows low leverage but is overshadowed by declining equity and negative cash flow, posing substantial financial 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
EBITDA	-85.80M	-97.85M	-127.60M	-42.22M	3.78M
Net Income	-98.32M	-99.44M	-141.49M	-37.97M	1.23M
Balance Sheet
Total Assets	100.03M	204.60M	302.04M	437.00M	489.34M
Cash, Cash Equivalents and Short-Term Investments	20.70M	42.96M	39.05M	146.01M	147.63M
Total Debt	766.00K	2.48M	883.00K	0.00	0.00
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	-18.15M	4.23M	-73.63M	-24.60M	40.30M
Operating Cash Flow	-18.15M	4.33M	-73.48M	-24.55M	40.33M
Investing Cash Flow	-500.00K	-101.00K	-7.14M	546.00K	-3.33M
Financing Cash Flow	-3.47M	-900.00K	-900.00K	0.00	93.54M

Values Cultural Investment Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 0.06 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 29.75 is Positive, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, 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 *	55 Neutral	HK$64.21B	-2.10	-3.61%	6.53%	-4.24%	-17.51%
1046	55 Neutral	HK$385.32M	―	-36.91%	―	-30.68%	-63.06%
1132	48 Neutral	HK$125.99M	―	-12.77%	―	-8.19%	-498.76%
9958	47 Neutral	HK$36.00M	―	-372.16%	―	-87.05%	72.21%
8172	45 Neutral	HK$122.06M	―	-26.83%	―	-81.56%	26.00%
1326	42 Neutral	HK$109.02M	―		―	60.31%	-73.59%
1740	38 Underperform	HK$61.21M	―	-76.84%	―	-91.55%	1.34%

Values Cultural Investment Limited Corporate Events

Values Cultural Investment Limited Updates Nomination Committee Terms

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

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

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

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

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.

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.