Digital Hollywood Interactive Limited (2022) AI Stock Analysis

• Market Cap: HK$103.97M
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -8.88%
• EPS Growth: 44.44%
• Country: HK
• Employees: 107
• Sector: Communication Services
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 1,960,400
• 30 Day Avg. Volume: 1,243,066
• PEG Ratio: -0.15
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.18
• Enterprise Value/Market Cap: -0.05
• Enterprise Value/Revenue: -0.14
• Enterprise Value/Gross Profit: -1.24
• Enterprise Value/Ebitda: 0.32
• 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, an investment holding company, publishes online games for China-based game developers in North America, Europe, the People's Republic of China, and internationally. The company develops, operates, and publishes various games comprising casual games, and mid-and hardcore games in web and mobile formats to various demographic user communities; and provides game redesign, optimization, marketing, distribution, monetization, payment support, and other user-related services. It also offers marketing and technical support services. The company was founded in 2010 and is headquartered in Guangzhou, China.

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
	EBIT
-3.46M	-5.73M	-5.58M	-2.57M	-2.80M
	EBITDA
-2.87M	-4.90M	-4.92M	-2.05M	-2.17M
	Net Income Common Stockholders
-3.21M	-5.77M	-5.86M	-3.37M	-3.64M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.08M	22.26M	25.03M	32.68M	31.91M
	Total Assets
32.81M	37.96M	44.30M	52.00M	56.27M
	Total Debt
640.82K	1.02M	1.27M	1.72M	1.92M
	Net Debt
-18.44M	-21.24M	-23.76M	-29.96M	-25.00M
	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
0.00	-2.53M	-3.08M	1.83M	6.51M
	Operating Cash Flow
0.00	-2.47M	-2.96M	1.84M	6.56M
	Investing Cash Flow
0.00	-63.65K	-2.78M	3.52M	-5.05M
	Financing Cash Flow
0.00	-332.45K	-325.95K	-308.04K	-318.11K

Digital Hollywood Interactive Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	61 Neutral	$14.59B	5.85	-4.31%	3.69%	2.76%	-30.36%
2022	43 Neutral	HK$103.97M	―	-12.08%	―	-8.88%	44.44%
MPNGF		$110.38B	20.02	23.82%	―	―	―
CRBJF		$23.73B	6.17	9.66%	6.59%	―	―
XIACF		$175.59B	40.59	14.98%	―	―	―
735		€36.35B	89.86	33.41%	0.39%	―	―
2400	63 Neutral	HK$19.50B	21.74	38.63%	―	44.92%	―

Digital Hollywood Interactive Limited Corporate Events

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.

Digital Hollywood Interactive Reports 2024 Financial Results and Strategic Expansion

Digital Hollywood Interactive Limited announced its annual results for 2024, reporting a revenue decline of 8.6% to approximately US$9.1 million, but a 1.0% increase in gross profit to US$4.14 million. The company reduced its losses by 44.4% to US$3.2 million. Despite challenging economic conditions, the company has expanded its mobile platform, launched new games, and increased its user base in Latin America, enhancing its market position and product offerings.

Digital Hollywood Interactive Schedules Board Meeting for Annual Results

Digital Hollywood Interactive Limited has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend, which could impact the company’s financial strategy and shareholder returns.