Maoyan Entertainment (1896) AI Stock Analysis

• Market Cap: HK$8.60B
• Dividend Yield: N/A
• Average Volume (3M): 4.46M
• Price to Earnings (P/E): 43.4
• Beta (1Y): 1.12
• Revenue Growth: -15.71%
• EPS Growth: -80.38%
• Country: HK
• Employees: 896
• Sector: Communication Services
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 0.17
• Shares Outstanding: 1,151,335,000
• 10 Day Avg. Volume: 5,136,159
• 30 Day Avg. Volume: 4,463,106
• PEG Ratio: -0.59
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.80
• 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$9.10
• Price Target Upside: 21.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: HK$8.00 ▲(7.10%Upside)

The stock's score is primarily driven by its strong balance sheet providing stability amidst declining revenue and liquidity challenges. Technical indicators show positive momentum, supporting the stock's performance. However, high valuation raises concerns about potential overvaluation.

Maoyan Entertainment Business Overview & Revenue Model

Company Description

Maoyan Entertainment (1896) is a leading entertainment service platform in China, primarily engaged in the entertainment and media sector. The company offers a comprehensive range of services including online movie ticketing, entertainment content production, IP development, and marketing and distribution. Maoyan serves as a one-stop shop for consumers looking to explore and engage with entertainment content, leveraging its digital platform to connect users with a wide array of entertainment experiences.

How the Company Makes Money

Maoyan Entertainment generates revenue through multiple channels, primarily focusing on its online ticketing services, which account for a significant portion of its income. The company charges service fees for movie ticket sales conducted through its platform, partnering with cinemas across China. Additionally, Maoyan capitalizes on advertising and marketing services offered to film producers and distributors, leveraging its large user base to promote content effectively. The company also earns income from its content production and investment activities, including film production and IP development, which allow it to participate in box office revenue sharing. Furthermore, strategic partnerships with major entertainment entities enhance its content offerings and expand its reach in the market.

Maoyan Entertainment Financial Statement Overview

Summary

Maoyan Entertainment shows operational efficiency with strong margins and a solid balance sheet. However, revenue decline and liquidity issues, as indicated by the absence of operating and free cash flow, are significant concerns.

Income Statement

The income statement reveals a mixed performance. Gross profit margin and EBITDA margin remain healthy, indicating operational efficiency. However, there is a significant decline in revenue and net income from 2023 to 2024, suggesting potential challenges in sustaining growth. The negative trend in revenue growth rate is concerning for future profitability.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, indicating financial stability and low leverage. The company maintains a high equity ratio, demonstrating robust shareholder equity compared to total assets. This financial strength provides a buffer against potential market volatility.

Cash Flow

The cash flow statement shows concerns, notably the absence of operating and free cash flow in 2024, which may indicate liquidity issues. The lack of free cash flow growth could impact the company's ability to invest in future projects and manage debt.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.08B	4.76B	2.32B	3.32B	1.37B
	Gross Profit
1.63B	2.38B	1.02B	1.84B	537.33M
	EBIT
195.88M	1.10B	315.37M	869.27M	-155.24M
	EBITDA
307.76M	1.28B	347.65M	1.04B	-419.46M
	Net Income Common Stockholders
181.91M	910.41M	105.19M	368.50M	-646.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.51B	3.44B	2.28B	2.66B	2.54B
	Total Assets
12.51B	12.54B	10.26B	11.03B	10.61B
	Total Debt
481.21M	278.47M	373.05M	606.10M	1.08B
	Net Debt
-421.84M	-2.13B	-1.35B	-1.91B	-1.06B
	Total Liabilities
3.46B	3.50B	2.08B	3.04B	2.99B
	Stockholders Equity
9.05B	9.04B	8.17B	7.99B	7.62B
Cash Flow		Free Cash Flow
-860.61M	1.47B	62.91M	559.69M	281.56M
	Operating Cash Flow
-846.26M	1.50B	75.22M	579.26M	294.15M
	Investing Cash Flow
-806.78M	-831.24M	-528.84M	163.50M	332.95M
	Financing Cash Flow
401.00M	-243.37M	-415.63M	-341.07M	16.06M

Maoyan Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.47
• 50DMA: Positive
• 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 Positive. The current price of 7.47 is above the 20-day moving average (MA) of 7.05, above the 50-day MA of 6.99, and below the 200-day MA of 7.52, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.17 is Neutral, neither overbought nor oversold. The STOCH value of 79.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1896.

Maoyan Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9988	81 Outperform	HK$2.26T	15.90	13.02%	0.84%	3.92%	27.80%
1024	80 Outperform	HK$234.50B	15.48	25.82%	―	9.42%	33.34%
1810	80 Outperform	$1.41T	40.43	14.98%	―	38.46%	72.44%
0700	78 Outperform	$4.67T	21.96	21.25%	0.88%	8.88%	54.27%
1896	67 Neutral	HK$8.60B	43.43	2.01%	―	-15.71%	-80.38%
Sector *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
0360	42 Neutral	$1.08B	―	-12.40%	―	-8.28%	21.82%

Maoyan Entertainment Corporate Events

Maoyan Entertainment Grants Share Options to CEO with Performance Targets

Maoyan Entertainment announced the grant of 10,000,000 share options to its CEO, Mr. Zheng Zhihao, under the Post-IPO Share Option Scheme. These options are part of a performance-based vesting schedule, with targets set for annual net profit increases between 15%-25% over the next few years, reflecting the company’s strategic focus on growth and performance.

The most recent analyst rating on (HK:1896) stock is a Buy with a HK$9.80 price target. To see the full list of analyst forecasts on Maoyan Entertainment stock, see the HK:1896 Stock Forecast page.

Maoyan Entertainment Grants 400,000 Restricted Share Units to Employees

Maoyan Entertainment has announced the grant of 400,000 restricted share units (RSUs) to certain employees, representing approximately 0.035% of the total issued shares. The RSUs will vest over a period of four years, with specific conditions for clawback and forfeiture in cases of employment termination or misconduct. This move is likely aimed at incentivizing employees and aligning their interests with the company’s long-term goals, potentially impacting the company’s operational dynamics and stakeholder relations.

Maoyan Entertainment Announces 2025 Annual General Meeting

Maoyan Entertainment has announced its 2025 Annual General Meeting, scheduled for June 25, 2025, in Beijing. Key agenda items include the adoption of the 2024 financial statements, declaration of a final dividend of HK$0.32 per share, re-election of directors, and re-appointment of PricewaterhouseCoopers as the auditor. The meeting will also consider resolutions to authorize the board to allot and issue additional shares.

Maoyan Entertainment Declares Final Dividend with Scrip Option

Maoyan Entertainment has announced a final cash dividend of HKD 0.32 per share for the financial year ending December 31, 2024, with a scrip option available. This announcement reflects the company’s commitment to returning value to its shareholders and may influence its market positioning by attracting investors interested in dividend-paying stocks.

Maoyan Entertainment Reports 2024 Financial Results Amid Industry Challenges

Maoyan Entertainment announced its annual financial results for 2024, revealing a significant decline in revenue and profits compared to the previous year. The company reported a 14.2% decrease in revenue and an 80% drop in profit, reflecting challenges in the film industry, as the nationwide box office also saw a decline. Despite the downturn, the company remains committed to shareholder value, proposing a final dividend and outlining a plan to distribute at least 20% of profits as dividends over the next three years.

Maoyan Entertainment Schedules Board Meeting for Annual Results

Maoyan Entertainment has announced a board meeting scheduled for March 27, 2025, to discuss and approve the company’s annual financial results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend and address other business matters, potentially impacting the company’s financial strategy and shareholder returns.