Cathay Media and Education Group Inc. (1981) AI Stock Analysis

• Market Cap: HK$2.45B
• Dividend Yield: 4.05%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.48
• Revenue Growth: 1.09%
• EPS Growth: N/A
• Country: HK
• Employees: 2,311
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 1,654,937,000
• 10 Day Avg. Volume: 4,134,800
• 30 Day Avg. Volume: 2,187,766
• PEG Ratio: 0.05
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.78
• 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: 60 Neutral
• Price Target: HK$1.50 ▲(2.04%Upside)

Cathay Media and Education Group Inc. shows potential for growth with strong profitability recovery and a solid balance sheet. However, cash flow volatility and a lack of dividend yield impact investor appeal. Technical indicators show a moderate trend, aligning with the fair valuation.

Cathay Media and Education Group Inc. Business Overview & Revenue Model

Company Description

Cathay Media and Education Group Inc., an investment holding company, engages in the television series and film production business in the People's Republic of China and internationally. The company operates through Television Series and Film Productions and Investment; and Higher Education (Media and Arts) and Vocational Education segments. It provides youth education; and art training and consulting services. The company was incorporated in 2017 and is headquartered in Beijing, the People's Republic of China. Cathay Media and Education Group Inc. is a subsidiary of Cathay Media Holding Inc.

How the Company Makes Money

Cathay Media and Education Group Inc. generates revenue through multiple streams. In the media sector, the company earns money by producing and distributing television dramas and films, monetizing these through sales to broadcasters, streaming platforms, and other media outlets. The company may also earn from licensing fees and advertising revenues associated with its media properties. In the education sector, revenue is derived from tuition fees for its training programs in media and arts education. The company might also engage in partnerships with educational institutions or media companies to enhance its offerings and expand its market reach.

Cathay Media and Education Group Inc. Financial Statement Overview

Summary

Cathay Media and Education Group Inc. shows a strong recovery in profitability metrics, with improving margins and a robust balance sheet. However, cash flow inconsistencies pose a risk, stressing the need for stable cash generation. The company exhibits potential for growth, provided it addresses cash flow volatility.

Income Statement

The company showed a positive revenue growth rate of 3.07% from 2023 to 2024, with an increase in gross profit margin to 48.71% in 2024. However, the net profit margin improved significantly from negative to 11.76% in 2024, indicating recovery from previous losses. EBIT and EBITDA margins are now positive, further supporting profitability improvements.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 72.65% in 2024. Debt-to-equity ratio remains low at 0.01, indicating minimal leverage. Return on Equity has improved to 4.15%, showing effective use of equity despite previous challenges.

Cash Flow

Cash flow analysis shows volatility, with operating cash flow significantly dropping to zero in 2024. Free cash flow fluctuates, complicating consistency assessments. Previous periods showed stronger cash flow performance, indicating potential risks if negative trends continue.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	782.36M	759.04M	656.82M	578.05M	789.74M
Gross Profit	381.15M	277.80M	317.20M	276.17M	353.24M
EBITDA	222.69M	-102.14M	305.15M	290.70M	311.12M
Net Income	92.06M	-196.26M	96.47M	125.50M	316.44M
Balance Sheet
Total Assets	3.06B	3.08B	3.22B	3.70B	3.43B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.14B	1.04B	827.95M	2.13B
Total Debt	14.58M	18.77M	22.66M	0.00	0.00
Total Liabilities	612.01M	662.23M	582.55M	988.43M	558.98M
Stockholders Equity	2.22B	2.22B	2.46B	2.55B	2.73B
Cash Flow
Free Cash Flow	259.82M	75.00M	232.04M	-379.62M	71.52M
Operating Cash Flow	367.43M	373.89M	339.84M	-22.16M	165.13M
Investing Cash Flow	76.79M	-503.19M	113.57M	-710.75M	-88.89M
Financing Cash Flow	-95.50M	-51.23M	-204.10M	-267.43M	1.20B

Cathay Media and Education Group Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1981, the sentiment is Positive. The current price of 1.47 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.36, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 70.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1981.

Cathay Media and Education Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	78 Outperform	HK$539.18M	10.26	9.05%	15.57%	5.26%	7.46%
Sector *	61 Neutral	$40.40B	-0.91	-12.15%	3.89%	2.03%	-69.70%
0136	61 Neutral	HK$42.21B	27.01	-1.40%	―	0.52%	-124.50%
1981	60 Neutral	HK$2.45B	24.07	4.16%	4.05%	1.09%	―
1060	58 Neutral	HK$28.08B	73.88	2.29%	―	24.36%	-18.99%
1159	56 Neutral	HK$391.43M	―		―	-49.75%	48.12%
1003	43 Neutral	HK$1.33B	―		―	―	―

Cathay Media and Education Group Inc. Corporate Events

Cathay Media and Education Group Inc. Updates Nomination Committee Terms

Cathay Media and Education Group Inc. has revised the terms of reference for its Nomination Committee, which is responsible for identifying and recommending candidates for the board of directors, overseeing board performance evaluation, and developing nomination guidelines. The committee will consist of a majority of independent non-executive directors and will meet at least once annually, with a focus on maintaining compliance with applicable laws and listing standards. This move is likely to enhance the company’s governance practices and ensure a diverse and independent board, potentially strengthening its market position and stakeholder confidence.

Cathay Group Holdings Enhances Nomination Committee with New Appointments

Cathay Group Holdings Inc., a company incorporated in the Cayman Islands, has announced the appointment of Ms. Jacqueline Luo and Mr. Huang Yu to its Nomination Committee, effective June 27, 2025. This strategic move enhances the committee’s composition, now consisting of three independent non-executive directors and two executive directors, potentially strengthening the company’s governance and decision-making processes.

Cathay Media and Education Group Inc. Announces Board Composition and Roles

Cathay Media and Education Group Inc. has announced the composition of its board of directors, highlighting the roles and functions of each member. The board consists of both executive and independent non-executive directors, with committees focused on audit, remuneration, and nomination. This announcement provides clarity on the leadership structure, which is crucial for stakeholders to understand the company’s governance and decision-making processes.

Cathay Group’s AGM Approves All Resolutions, Signaling Stability and Growth

Cathay Media and Education Group Inc. held its Annual General Meeting on May 30, 2025, where all proposed resolutions were passed. These resolutions included the approval of financial statements, declaration of dividends, re-election of directors, and granting of mandates for share buybacks and issuance. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability and strategic growth.

Cathay Media and Education Group Announces Annual General Meeting and Key Resolutions

Cathay Media and Education Group Inc. has announced its upcoming annual general meeting to be held on May 30, 2025, in Nanjing, China. The meeting will address several key resolutions, including the approval of financial statements, the declaration of dividends, the re-election of directors, and the authorization for share buy-backs. These resolutions are set to impact the company’s governance and shareholder returns, potentially influencing its market positioning and operational strategies.