Asiaray Media Group Ltd. (1993) AI Stock Analysis

• Market Cap: HK$286.89M
• Dividend Yield: N/A
• Average Volume (3M): 30.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -38.24%
• EPS Growth: -31.99%
• Country: HK
• Employees: 579
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): >-0.01
• Shares Outstanding: 484,910,740
• 10 Day Avg. Volume: 22,850
• 30 Day Avg. Volume: 30,266
• PEG Ratio: -0.13
• Price to Book (P/B): 4.58
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 0.63
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, which is the most significant factor. Technical analysis also indicates bearish trends, and valuation metrics are unattractive due to negative earnings and no dividend yield. These factors collectively suggest a high-risk investment with limited upside potential.

Positive Factors

Geographic Reach

Asiaray Media Group's broad geographic presence and strong relationships with advertisers provide a durable competitive advantage, enabling it to secure ongoing contracts and larger deals, which can support long-term revenue stability.

Innovative Advertising Solutions

The company's focus on innovative advertising solutions positions it well in the evolving advertising industry, allowing it to adapt to changing market demands and maintain its competitive edge over time.

Transportation Advertising Partnerships

Partnerships with transportation authorities enhance Asiaray's market position by providing exclusive access to high-traffic advertising spaces, which can drive consistent revenue streams and strengthen its market presence.

Negative Factors

Declining Revenue

A declining revenue trend indicates challenges in maintaining market share and competitiveness, which could hinder long-term growth and profitability if not addressed effectively.

High Leverage

High leverage increases financial risk and limits the company's ability to invest in growth opportunities, potentially impacting its long-term financial stability and operational flexibility.

Lack of Cash Flow

The absence of cash flow generation poses a significant challenge, as it limits the company's ability to fund operations, invest in growth, and manage debt obligations, threatening its long-term viability.

Asiaray Media Group Ltd. Business Overview & Revenue Model

Company Description

Asiaray Media Group Limited, an investment holding company, operates as an out-of-home media company in Mainland China, Hong Kong, Macau, and Southeast Asia. It operates through Airports Business, Metro and Billboards Business, and Bus and Other Business segments. The company develops and operates out-of-home advertising media, including advertising in airports, metro lines, and billboards and building solutions. It also offers advertising services in bus exterior and interior, and bus shelter, as well as advertising services from other media spaces. In addition, the company provides design, consultancy, construction, and maintenance services; and advertising production, installation, and dismantling services, as well as invests in properties. The company was founded in 1993 and is headquartered in Quarry Bay, Hong Kong. Asiaray Media Group Limited is a subsidiary of Media Cornerstone Limited.

How the Company Makes Money

Asiaray Media Group Ltd. generates revenue primarily through the sale of advertising space on its media platforms, including billboards and digital displays. The company operates on a revenue model that includes leasing advertising space to brands and advertisers for specific durations, typically ranging from short-term campaigns to long-term contracts. Key revenue streams include direct sales from advertising contracts, digital advertising services, and partnerships with transportation authorities to place ads in transit systems. The company's extensive geographic reach and established relationships with major advertisers and agencies also contribute significantly to its earnings, as they help secure ongoing contracts and larger advertising deals.

Asiaray Media Group Ltd. Financial Statement Overview

Summary

The company is experiencing severe financial challenges. Revenue has declined significantly, and profitability is negative. The balance sheet shows high leverage with a very high debt-to-equity ratio, and cash flow generation is non-existent, indicating substantial financial strain.

Income Statement

The company has experienced a significant decline in revenue from the previous year, marking a -36% revenue growth. The gross profit margin is moderate at 28.7%, but the net profit margin is negative due to the net loss, indicating challenges in profitability. EBITDA margin is very low at 1.3%, reflecting low operating efficiency.

Balance Sheet

The debt-to-equity ratio is extremely high at 17.61, signaling high leverage and potential financial risk. ROE is negative, consistent with the net losses, and the equity ratio stands at a low 3.77%, indicating a thin equity buffer.

Cash Flow

The company reports zero operating cash flow and free cash flow, suggesting difficulties in generating cash. This absence of cash flow makes it challenging to gauge the company's cash-generating efficiency relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.02B	1.14B	1.78B	1.87B	2.29B	1.56B
Gross Profit	287.72M	326.36M	376.55M	304.62M	431.79M	336.89M
EBITDA	5.84M	15.00M	937.73M	-6.24M	1.27B	1.02B
Net Income	-45.11M	-55.14M	-34.27M	-127.50M	-176.26M	-163.36M
Balance Sheet
Total Assets	1.79B	2.19B	3.17B	3.15B	6.67B	5.28B
Cash, Cash Equivalents and Short-Term Investments	185.09M	229.13M	368.13M	409.93M	418.92M	378.51M
Total Debt	1.07B	1.45B	2.29B	2.43B	5.69B	4.46B
Total Liabilities	1.52B	1.91B	3.16B	2.88B	6.21B	4.90B
Stockholders Equity	71.12M	82.35M	126.67M	157.60M	330.77M	295.02M
Cash Flow
Free Cash Flow	467.85M	600.53M	724.53M	749.87M	967.47M	650.93M
Operating Cash Flow	519.20M	649.80M	744.16M	801.52M	1.04B	672.01M
Investing Cash Flow	-39.66M	-37.87M	-12.95M	-91.50M	-67.29M	-5.78M
Financing Cash Flow	-138.25M	-787.92M	-701.43M	-700.22M	-968.26M	-720.03M

Asiaray Media Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1993, the sentiment is Negative. The current price of 0.6 is below the 20-day moving average (MA) of 0.63, below the 50-day MA of 0.68, and below the 200-day MA of 0.72, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 28.27 is Positive, neither overbought nor oversold. The STOCH value of 62.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1993.

Asiaray Media Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0205	54 Neutral	HK$838.31M	-54.84	-6.02%	―	-4.13%	76.38%
1762	53 Neutral	HK$1.21B	480.00	0.45%	―	35.73%	-88.89%
1753	45 Neutral	HK$239.05M	-4.77	-3.55%	―	-5.89%	-330.91%
1917	43 Neutral	HK$340.11M	-20.72	-31.88%	―	-5.03%	-35.29%
0343	41 Neutral	HK$285.34M	-6.04	-57.02%	―	-0.57%	-159.63%
1993	39 Underperform	HK$286.89M	-5.57	―	―	-38.24%	-31.99%

Asiaray Media Group Ltd. Corporate Events

Asiaray Media Group Announces Strategic Advertising Agreement

Asiaray Media Group Ltd. has announced a connected transaction involving an Advertising Agreement between its subsidiary, Zhejiang Yatie, and Dandelion, a company partially owned by Asiaray’s chairman. This agreement, which involves digital advertising services at a Hangzhou Metro station, highlights Asiaray’s strategic move to strengthen its market position in digital advertising. The transaction is subject to reporting requirements but is exempt from certain regulatory approvals, indicating a streamlined process for execution.