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

• Market Cap: HK$1.79B
• Dividend Yield: 5.71%
• Average Volume (3M): 3.79M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.44
• Revenue Growth: 0.59%
• EPS Growth: N/A
• Country: HK
• Employees: 2,311
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Entertainment
• EPS (TTM): 0.09
• Shares Outstanding: 1,654,937,000
• 10 Day Avg. Volume: 5,126,000
• 30 Day Avg. Volume: 3,793,433
• PEG Ratio: -0.14
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 2.40
• P/FCF Ratio: 7.22
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$1.00 ▲(5.26% Upside)

Cathay Media and Education Group Inc. shows potential with a strong recovery in profitability and an attractive valuation. However, technical indicators suggest bearish momentum, and cash flow volatility remains a concern. The stock's low P/E ratio and high dividend yield are significant positives, but the current market sentiment is cautious.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Revenue Growth

Consistent revenue growth indicates increasing demand for the company's offerings, supporting long-term business expansion and market presence.

Improving Profit Margins

Improving profit margins reflect operational efficiency and effective cost management, enhancing the company's profitability and competitive position.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to fund operations and growth, posing a risk to financial stability if not addressed.

Lack of Earnings Call Data

The absence of earnings call insights limits transparency and investor understanding of strategic direction and financial health.

Cash Flow Fluctuations

Inconsistent cash flow generation may impact the company's ability to maintain operations and invest in future growth, affecting long-term sustainability.

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, primarily focusing on media production and educational services. The company earns income from television advertising, subscription fees for online educational platforms, and sales of educational materials and courses. Additionally, partnerships with educational institutions and media outlets provide significant revenue opportunities through content licensing and co-productions. The increasing demand for digital content and online learning, exacerbated by recent global shifts towards remote education, has further bolstered the company's earnings potential.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	775.08M	782.36M	759.04M	656.82M	578.05M	789.74M
Gross Profit	395.12M	381.15M	277.80M	317.20M	276.17M	353.24M
EBITDA	277.52M	222.69M	-102.14M	115.03M	227.44M	311.12M
Net Income	168.91M	92.06M	-196.26M	96.47M	57.53M	316.44M
Balance Sheet
Total Assets	2.73B	3.06B	3.08B	3.22B	3.70B	3.43B
Cash, Cash Equivalents and Short-Term Investments	846.30M	1.11B	1.14B	1.04B	827.95M	2.13B
Total Debt	0.00	14.58M	18.77M	22.66M	0.00	0.00
Total Liabilities	239.06M	612.01M	662.23M	582.55M	988.43M	558.98M
Stockholders Equity	2.25B	2.22B	2.22B	2.46B	2.55B	2.73B
Cash Flow
Free Cash Flow	454.01M	259.82M	75.00M	232.04M	-379.62M	71.52M
Operating Cash Flow	496.46M	367.43M	373.89M	339.84M	-22.16M	165.13M
Investing Cash Flow	-97.59M	76.79M	-503.19M	113.57M	-710.75M	-88.89M
Financing Cash Flow	-2.51M	-95.50M	-51.23M	-204.10M	-267.43M	1.20B

Cathay Media and Education Group Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.95
• 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:1981, the sentiment is Neutral. The current price of 0.95 is below the 20-day moving average (MA) of 1.02, below the 50-day MA of 1.10, and below the 200-day MA of 1.40, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 50.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	66 Neutral	HK$433.27M	7.76	8.69%	6.04%	25.88%	0.69%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1981	61 Neutral	HK$1.79B	9.63	7.57%	5.71%	0.59%	―
1060	56 Neutral	HK$27.78B	46.50	3.30%	―	40.31%	212.50%
0136	51 Neutral	HK$40.32B	29.63	7.01%	―	-13.62%	-8.47%
1159	47 Neutral	HK$309.25M	1.66	―	―	-57.01%	―
1003	46 Neutral	HK$1.06B	―	―	―	―	―

Cathay Media and Education Group Inc. Corporate Events

Cathay Media and Education Group Secures Cost-Effective Lease Renewal

Cathay Media and Education Group Inc. has renewed its lease agreements for its headquarters with a significant 47% reduction in rental costs. This strategic move, involving connected transactions with the controlling shareholder, Mr. Pu, is expected to enhance the company’s operational efficiency and financial positioning by reducing overhead costs, thereby potentially benefiting stakeholders.

The most recent analyst rating on (HK:1981) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Cathay Media and Education Group Inc. stock, see the HK:1981 Stock Forecast page.