Asiaray Media Group Ltd. (1993) AI Stock Analysis

• Market Cap: HK$301.24M
• Dividend Yield: N/A
• Average Volume (3M): 30.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.48 ▼(-12.36% 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

Asset-backed OOH network

Owning and operating transit and high-traffic site media is a durable competitive asset: physical placements drive reliable reach, create entry barriers and enable long-term contracts with advertisers. Location exclusivity and scale support sustained demand vs. digital-only competitors.

Contracted advertising and service revenue streams

Revenue derived from placement fees and campaign services implies contractual and repeat client relationships with agencies and brands. Such recurring, service-linked revenue supports predictable cash inflows over campaign cycles and fosters client stickiness when network reach is valuable.

Moderate gross profit margin

A ~28.7% gross margin indicates the core advertising product retains meaningful revenue after direct costs, suggesting underlying pricing power or efficient media production. This margin provides some buffer to cover fixed infrastructure costs if demand normalizes, supporting long-term viability.

Negative Factors

Extremely high leverage

A debt-to-equity ratio near 18x leaves minimal equity cushion and creates persistent refinancing and interest-service risk. Over months, high leverage constrains capital allocation, raises default risk in downturns, and impairs ability to invest in network upgrades or pursue strategic opportunities.

No operating or free cash flow

Absence of operating and free cash flow undermines self-funding for maintenance, capex and debt service. Reliance on external financing or asset sales is likely, reducing long-term resilience and hampering ability to sustain advertising assets or invest in digital upgrades critical for future competitiveness.

Steep revenue decline and negative profitability

A roughly 36–38% revenue drop and net losses signal structural demand or execution issues that erode scale economics. Sustained top-line contraction reduces utilization of fixed assets, pressures margins and weakens advertiser relationships, making recovery and margin restoration more difficult over coming quarters.

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: Positive
• Last Price: 0.55
• 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:1993, the sentiment is Positive. The current price of 0.55 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.60, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 75.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
1762	55 Neutral	HK$2.10B	820.00	0.45%	―	35.73%	-88.89%
1917	47 Neutral	HK$287.26M	-18.12	-31.88%	―	-5.03%	-35.29%
0205	47 Neutral	HK$1.14B	-72.58	-6.02%	―	-4.13%	76.38%
1753	45 Neutral	HK$217.52M	-4.22	-3.55%	―	-5.89%	-330.91%
0343	44 Neutral	HK$302.03M	-6.22	-57.02%	―	-0.57%	-159.63%
1993	39 Underperform	HK$301.24M	-5.85	―	―	-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.

The most recent analyst rating on (HK:1993) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Asiaray Media Group Ltd. stock, see the HK:1993 Stock Forecast page.