Maoyan Entertainment (1896) AI Stock Analysis

• Market Cap: HK$8.12B
• Dividend Yield: 4.71%
• Average Volume (3M): 6.42M
• Price to Earnings (P/E): 99.0
• Beta (1Y): 1.18
• Revenue Growth: -7.61%
• EPS Growth: -90.51%
• Country: HK
• Employees: 896
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.18
• Shares Outstanding: 1,162,146,900
• 10 Day Avg. Volume: 6,059,370
• 30 Day Avg. Volume: 6,416,131
• PEG Ratio: -0.59
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 2.11
• P/FCF Ratio: -9.99
• 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$8.65
• Price Target Upside: 26.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$7.00 ▲(2.04% Upside)

Maoyan Entertainment's overall stock score is primarily impacted by its challenging financial performance, with declining profitability and cash flow issues. The technical analysis suggests a bearish trend, and the high P/E ratio indicates potential overvaluation. The dividend yield offers some support, but overall, the stock faces significant headwinds.

Positive Factors

Stable Balance Sheet

A low debt-to-equity ratio indicates low financial leverage, reducing financial risk and providing stability in uncertain economic conditions.

Strong Capital Structure

A strong equity ratio suggests a solid capital structure, offering resilience against financial volatility and supporting long-term growth initiatives.

Revenue Diversification

Diversified revenue streams reduce dependency on a single income source, enhancing stability and providing multiple growth avenues in the entertainment sector.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate rising costs or pricing pressures, which can erode profitability and affect the company's ability to reinvest in growth.

Negative Cash Flow

Negative cash flow suggests operational inefficiencies and could limit the company's ability to fund new projects or manage debt, impacting long-term sustainability.

Reduced Profitability

A decline in return on equity indicates reduced profitability for shareholders, which may affect investor confidence and the company's ability to attract new capital.

Maoyan Entertainment Business Overview & Revenue Model

Company Description

Maoyan Entertainment operates a platform that provides internet-empowered entertainment services in the People's Republic of China. The company offers online entertainment ticketing, entertainment content, advertising, and other services. It provides online movie and entertainment event ticketing services; movie distribution and promotion services; computer technology research, film project technology advisory, and e-business services; film and TV series investment and distribution services; economic and trade consultation; and network technology and commercial factoring services. The company also engages in acting agent and literary creation and performance; production and operation of radio and TV programs; technology and goods import and export; production, distribution, and promotion of movies, games, variety shows, cartoons, radio dramas, TV dramas, and advertisements; audio-visual distribution; and performance venue management activities. Its customers primarily include cinemas, entertainment content producers and distributors, and advertisers. Maoyan Entertainment was incorporated in 2017 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Maoyan Entertainment generates revenue through multiple streams, predominantly from its online ticketing platform, where it earns commissions on movie ticket sales. The company also monetizes its data analytics services by providing insights and market intelligence to filmmakers and studios, helping them optimize their marketing strategies and enhance audience engagement. Additionally, Maoyan earns revenue from advertising on its platforms, leveraging its extensive user base to offer targeted promotional opportunities. Significant partnerships with film studios and distributors further contribute to its earnings, allowing Maoyan to capture a larger share of the box office revenue while enhancing its service offerings in the competitive entertainment landscape.

Maoyan Entertainment Financial Statement Overview

Summary

Maoyan Entertainment faces a challenging financial environment. The income statement shows declining profitability with reduced margins, and the cash flow statement indicates significant cash flow issues. However, the balance sheet remains strong with low leverage.

Income Statement

Maoyan Entertainment's income statement shows a mixed performance. The TTM data indicates a modest revenue growth rate of 3.56%, but the gross profit margin has decreased to 32.06% from 39.81% in the previous year, indicating pressure on profitability. The net profit margin has also declined to 1.72% from 4.46%. EBIT and EBITDA margins have similarly decreased, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet remains relatively stable with a low debt-to-equity ratio of 0.03, indicating low leverage and financial risk. However, the return on equity has decreased to 0.84% from 2.01%, suggesting reduced profitability for shareholders. The equity ratio remains strong at approximately 68.23%, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative at -40.45%, and the operating cash flow to net income ratio is also negative, indicating cash flow issues. Despite a free cash flow to net income ratio above 1, the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.38B	4.08B	4.76B	2.32B	3.32B	1.37B
Gross Profit	1.41B	1.63B	2.38B	1.02B	1.84B	537.33M
EBITDA	221.81M	307.76M	1.28B	372.85M	942.06M	-419.46M
Net Income	75.54M	181.91M	910.41M	105.19M	368.50M	-646.27M
Balance Sheet
Total Assets	12.99B	12.51B	12.54B	10.26B	11.03B	10.61B
Cash, Cash Equivalents and Short-Term Investments	2.46B	2.51B	3.44B	2.28B	2.66B	2.54B
Total Debt	272.56M	481.21M	278.47M	373.05M	606.10M	1.08B
Total Liabilities	4.13B	3.46B	3.50B	2.08B	3.04B	2.99B
Stockholders Equity	8.86B	9.05B	9.04B	8.17B	7.99B	7.62B
Cash Flow
Free Cash Flow	-364.44M	-860.61M	1.47B	62.91M	559.69M	281.56M
Operating Cash Flow	-354.59M	-846.26M	1.50B	75.22M	579.26M	294.15M
Investing Cash Flow	-217.79M	-806.78M	-831.24M	-528.84M	163.50M	332.95M
Financing Cash Flow	-27.04M	401.00M	-243.37M	-415.63M	-341.07M	16.06M

Maoyan Entertainment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1896, the sentiment is Neutral. The current price of 6.86 is below the 20-day moving average (MA) of 6.87, below the 50-day MA of 6.98, and below the 200-day MA of 7.24, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 76.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1896.

Maoyan Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1024	75 Outperform	HK$326.12B	17.04	25.67%	―	11.37%	16.74%
1698	73 Outperform	HK$193.55B	18.06	14.50%	1.01%	13.62%	80.52%
1357	66 Neutral	HK$36.37B	37.13	19.44%	2.92%	15.57%	94.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9898	60 Neutral	HK$20.49B	6.22	12.49%	8.13%	-1.40%	22.37%
0772	52 Neutral	HK$36.08B	250.14	0.67%	―	-10.26%	-85.75%
1896	49 Neutral	HK$8.12B	99.01	0.82%	4.71%	-7.61%	-90.51%