Digital Hollywood Interactive Limited (2022) AI Stock Analysis

• Market Cap: HK$92.83M
• Dividend Yield: N/A
• Average Volume (3M): 914.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -5.90%
• EPS Growth: 60.75%
• Country: HK
• Employees: 107
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): >-0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 1,046,000
• 30 Day Avg. Volume: 914,000
• PEG Ratio: 0.09
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 1.38
• P/FCF Ratio: -5.17
• 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: 40 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 40 reflects significant financial challenges, including declining revenues and persistent net losses, combined with bearish technical indicators. The negative P/E ratio and lack of dividend yield further contribute to a challenging investment outlook.

Digital Hollywood Interactive Limited Business Overview & Revenue Model

Company Description

Digital Hollywood Interactive Limited is a leading developer and publisher of online games, primarily focused on the mobile gaming sector. The company specializes in creating immersive gaming experiences and offers a variety of games across different genres. Its core products include mobile games that are distributed globally through various digital platforms.

How the Company Makes Money

Digital Hollywood Interactive Limited generates revenue primarily through the sale of in-game purchases and microtransactions within its mobile games. These purchases can include virtual goods, additional game content, or cosmetic enhancements that enhance the gaming experience. The company may also earn revenue through advertising partnerships, where ads are displayed within their games. Strategic partnerships with other gaming companies and distribution platforms also contribute to its earnings by expanding the reach and accessibility of its games.

Digital Hollywood Interactive Limited Financial Statement Overview

Summary

Digital Hollywood Interactive Limited is facing significant financial challenges with declining revenues, persistent net losses, and inconsistent cash flows. Although the company maintains a strong cash position relative to debt, ongoing operational inefficiencies and shrinking equity highlight risks to financial stability.

Income Statement

The company has experienced declining revenues over recent years, with revenue dropping from 17.9 million in 2019 to 9.1 million in 2024. Profitability metrics such as the gross profit margin remain around 45%, but consistent net losses and negative EBIT and EBITDA margins highlight ongoing financial struggles. Revenue growth is negative, indicating a challenging environment for top-line expansion.

Balance Sheet

The balance sheet shows a strong cash position, with cash consistently exceeding total debt, resulting in negative net debt. However, the stockholders' equity has decreased over time, indicating potential erosion of value. The debt-to-equity ratio remains low, suggesting manageable leverage levels. Despite the asset base contraction, the equity ratio is relatively stable.

Cash Flow

Cash flow analysis reveals inconsistent operating cash flow, with recent years showing negative free cash flow. The company struggles to generate cash from operations, which affects its ability to invest and sustain operations without external financing. The free cash flow to net income ratio is weak, reflecting operational inefficiencies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.12M	9.06M	9.91M	11.14M	12.75M	17.55M
Gross Profit	4.29M	4.14M	4.10M	4.66M	5.41M	9.16M
EBITDA	-2.43M	-2.87M	-4.90M	-4.92M	-2.05M	-2.17M
Net Income	-2.00M	-3.21M	-5.77M	-5.86M	-3.37M	-3.64M
Balance Sheet
Total Assets	31.71M	32.81M	37.96M	44.30M	52.00M	56.27M
Cash, Cash Equivalents and Short-Term Investments	17.83M	19.08M	22.26M	25.03M	32.68M	31.91M
Total Debt	464.10K	640.82K	1.02M	1.27M	1.72M	1.92M
Total Liabilities	7.35M	7.77M	9.78M	10.00M	10.81M	11.17M
Stockholders Equity	24.37M	25.04M	28.18M	34.30M	41.19M	45.11M
Cash Flow
Free Cash Flow	-1.70M	-2.41M	-2.53M	-3.08M	1.83M	6.51M
Operating Cash Flow	-1.70M	-70.68K	-2.47M	-2.96M	1.84M	6.56M
Investing Cash Flow	-1.13M	-2.53M	-63.65K	-2.78M	3.52M	-5.05M
Financing Cash Flow	0.00	-359.96K	-332.45K	-325.95K	-308.04K	-318.11K

Digital Hollywood Interactive Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2022, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.55 is Neutral, neither overbought nor oversold. The STOCH value of -1.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2022.

Digital Hollywood Interactive Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6860	―	HK$344.01M	11.40	3.47%	―	-25.66%	-23.36%
8267	―	HK$192.14M	-33.12	-2.00%	―	20.90%	70.71%
0484	―	€138.05M	―	-15.08%	―	65.41%	-313.74%
8282	―	HK$36.48M	―	-1.54%	―	8.14%	99.25%
2022	―	HK$92.83M	―	-7.87%	―	-5.90%	60.75%
6933	―	HK$147.66M	―	-28.25%	―	-3.02%	72.76%

Digital Hollywood Interactive Limited Corporate Events

Digital Hollywood Interactive Updates Share Option Scheme Details

Digital Hollywood Interactive Limited has issued a supplemental announcement regarding its 2024 Annual Report, specifically providing additional details about its Post-IPO Share Option Scheme. The announcement clarifies the acceptance process for the share options, stating that an option is considered accepted when the grantee signs the acceptance letter and pays a non-refundable RMB1.00 consideration. This update does not affect any other information in the 2024 Annual Report.

Digital Hollywood Interactive Forms Joint Venture for Game Development

Digital Hollywood Interactive Limited announced the formation of a joint venture company with a share capital of HK$28.5 million, in collaboration with a JV Partner. Hollywood HK, a subsidiary of the company, will hold an 80% stake in the new venture, which will focus on game products development. This strategic move aims to enhance the company’s position in the gaming industry by leveraging the JV Partner’s intellectual property rights. The joint venture will be consolidated into the company’s financial statements, reflecting its impact on the company’s operations and market positioning.

Digital Hollywood Interactive Reports Revenue Growth and Strategic Expansion in 2025

Digital Hollywood Interactive Limited reported a slight increase in revenue and a significant reduction in losses for the first half of 2025. The company has made substantial progress in its global expansion strategy, particularly in Latin America, by launching multiple mobile games and optimizing its multi-platform release strategy. This approach has allowed the company to build a diverse product matrix and improve its market positioning. Looking ahead, the company plans to continue supporting small and medium-sized Chinese game developers in going overseas, while enhancing its operational model to increase market share and reduce risks.

Digital Hollywood Interactive Schedules Board Meeting for Interim Results

Digital Hollywood Interactive Limited has announced a board meeting scheduled for August 29, 2025, to discuss and approve the interim results for the first half of 2025 and consider the payment of an interim dividend. This meeting is significant as it may impact the company’s financial strategy and shareholder returns, reflecting its ongoing operational performance and market positioning.