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

• Market Cap: HK$2.30B
• Dividend Yield: 4.32%
• Average Volume (3M): 2.31M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.41
• Revenue Growth: 0.59%
• EPS Growth: N/A
• Country: HK
• Employees: 2,311
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Entertainment
• EPS (TTM): 0.08
• Shares Outstanding: 1,654,937,000
• 10 Day Avg. Volume: 1,675,300
• 30 Day Avg. Volume: 2,307,600
• 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

• Rating: 60 Neutral
• Price Target: HK$1.50 ▲(18.11% Upside)

Cathay Media and Education Group Inc. demonstrates strong financial recovery and a robust balance sheet, which are significant strengths. However, technical indicators suggest bearish momentum, and cash flow volatility remains a concern. The stock's valuation is fair, with an attractive dividend yield, but the lack of earnings call data and corporate events limits further insights.

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

Company Description

Cathay Media and Education Group Inc. (1981) is a leading company operating in the media and education sectors primarily within China. The company focuses on the development, production, and distribution of television dramas, films, and other related media content. Additionally, it offers educational services, encompassing the provision of higher education and vocational training programs. Through its dual focus on media production and educational services, Cathay Media and Education Group aims to cater to the growing demand for quality entertainment and education in the region.

How the Company Makes Money

Cathay Media and Education Group Inc. makes money through a diversified revenue model that includes multiple streams. In the media sector, the company generates income by producing and selling television dramas and films, which are distributed through various channels, including traditional broadcasting networks and digital platforms. Licensing agreements and collaborations with content distributors further enhance revenue generation. In the education sector, the company earns revenue by providing higher education services, including tuition fees collected from students enrolled in its programs. Additionally, the vocational training programs offered by the company attract fees from individuals seeking skill development. Key partnerships with educational institutions and media distributors play a significant role in broadening the company's market reach and sustaining its revenue growth.

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.

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: 1.27
• 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 1.27 is below the 20-day moving average (MA) of 1.34, below the 50-day MA of 1.55, and below the 200-day MA of 1.51, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 72.06 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	―	HK$510.30M	9.71	8.70%	6.50%	32.53%	7.06%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1981	―	HK$2.30B	12.40	7.57%	4.32%	0.59%	―
0136	―	HK$44.28B	33.33	7.01%	―	-13.62%	-8.47%
1060	―	HK$28.98B	72.39	2.29%	―	31.62%	3.08%
1003	―	HK$1.43B	―	―	―	―	―
1159	―	HK$334.78M	1.80	―	―	-57.01%	―

Cathay Media and Education Group Inc. Corporate Events

Cathay Media and Education Group Reports Strong Interim Results for 2025

Cathay Media and Education Group Inc. reported a significant increase in profit for the first half of 2025, with a 136.4% rise compared to the same period in 2024. The company’s revenue from higher education grew by 10%, while its entertainment and livestreaming e-commerce segment saw a decline. The growth in student enrollment at its university, along with the expansion of its vocational and international education programs, highlights the company’s strategic focus on enhancing its educational offerings and market competitiveness.

The most recent analyst rating on (HK:1981) stock is a Hold with a HK$2.00 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.

Cathay Media and Education Group Inc. Announces Significant Profit Increase

Cathay Media and Education Group Inc., a company incorporated in the Cayman Islands, has announced a significant increase in its unaudited consolidated profit for the first half of 2025. The profit is expected to rise from RMB59.3 million in the same period of 2024 to approximately RMB140 million. This increase is primarily attributed to the absence of further impairment losses on major trade receivables from its TV/film production and investment business, as well as bridging loans. The company is in the process of finalizing its financial statements, and stakeholders are advised to exercise caution when dealing with the company’s shares.

The most recent analyst rating on (HK:1981) stock is a Hold with a HK$2.00 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.

Cathay Media and Education Group Inc. Announces Upcoming Board Meeting

Cathay Media and Education Group Inc. has announced that its Board of Directors will meet on August 29, 2025, to review and approve the interim financial results for the first half of 2025 and to discuss the potential payment of an interim dividend. This meeting is significant as it will determine the financial health of the company and any dividends to be distributed, impacting stakeholders’ expectations and the company’s market positioning.