Digital Hollywood Interactive Limited (2022) AI Stock Analysis

• Market Cap: HK$92.83M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• Revenue Growth: -8.88%
• EPS Growth: 44.44%
• Country: HK
• Employees: 107
• Sector: Communication Services
• Sector Strength: 92
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 398,000
• 30 Day Avg. Volume: 1,068,266
• PEG Ratio: -0.14
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.45
• Enterprise Value/Market Cap: -0.07
• Enterprise Value/Revenue: -0.17
• Enterprise Value/Gross Profit: -1.53
• Enterprise Value/Ebitda: 0.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 43 Neutral
• Price Target: ―

Digital Hollywood Interactive Limited faces significant challenges, driven primarily by declining financial performance with continuous net losses and negative cash flows. Technical indicators suggest weak momentum, while valuation metrics highlight concerns over profitability. Without any earnings call data or notable corporate events to offset these issues, the stock's outlook remains cautious.

Digital Hollywood Interactive Limited Business Overview & Revenue Model

Company Description

Digital Hollywood Interactive Limited is a Hong Kong-based company primarily engaged in the development, operation, and publishing of online games. The company focuses on providing an immersive gaming experience through a diverse portfolio of games catering to various demographics and interests. Its core products include massively multiplayer online role-playing games (MMORPGs) and browser games, designed to captivate players with rich storytelling, engaging gameplay, and social interaction features.

How the Company Makes Money

Digital Hollywood Interactive Limited generates revenue primarily through the sale of in-game virtual goods and currency, which players purchase to enhance their gaming experience. These microtransactions are a significant source of income, allowing players to access premium content, customization options, and advanced features. Additionally, the company may earn revenue through advertising partnerships within its gaming platforms and collaborations with other developers or publishers to expand its reach and game offerings. Strategic collaborations and a robust online presence contribute to its sustained earnings by attracting a broad user base and encouraging player engagement.

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. Strategic adjustments may be necessary to reverse the negative trends and improve financial health.

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

Digital Hollywood Interactive Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 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:2022, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, 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
6860	70 Neutral	HK$319.84M	9.01	4.10%	―	-7.48%	416.22%
Sector *	61 Neutral	$41.40B	-1.28	-14.21%	3.95%	2.45%	-73.69%
8267	45 Neutral	HK$143.51M	―	-12.06%	―	4.62%	-60.86%
8282	44 Neutral	HK$21.28M	―	-9.03%	―	-65.72%	96.84%
0484	44 Neutral	€119.53M	―	-10.95%	―	35.28%	-236.70%
2022	43 Neutral	HK$92.83M	―	-12.08%	―	-8.88%	44.44%
6933	29 Underperform	HK$102.88M	―	-30.59%	―	395.82%	73.06%

Digital Hollywood Interactive Limited Corporate Events

Digital Hollywood Interactive Secures Unanimous Shareholder Approval at AGM

Digital Hollywood Interactive Limited announced that all resolutions proposed at their Annual General Meeting on June 26, 2025, were unanimously approved by shareholders. This includes the re-election of directors, authorization for the board to fix directors’ remuneration, reappointment of auditors, and granting of mandates for share issuance and repurchase, indicating strong shareholder support and potentially enhancing the company’s operational flexibility.

Digital Hollywood Interactive Announces 2025 AGM Agenda

Digital Hollywood Interactive Limited has announced its Annual General Meeting, scheduled for June 26, 2025, in Guangzhou, PRC. Key agenda items include the adoption of financial statements for 2024, re-election of directors, and authorization of director and auditor remunerations. The meeting will also address resolutions for share allotment and issuance, enhancing the company’s operational flexibility and potentially impacting its market positioning.