Strawbear Entertainment Group (2125) AI Stock Analysis

• Market Cap: HK$416.56M
• Dividend Yield: N/A
• Average Volume (3M): 293.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: 30.84%
• EPS Growth: 98.97%
• Country: HK
• Employees: 77
• Sector: Communication Services
• Sector Strength: 84
• Industry: Entertainment
• EPS (TTM): -0.05
• Shares Outstanding: 706,041,400
• 10 Day Avg. Volume: 372,100
• 30 Day Avg. Volume: 293,166
• PEG Ratio: 0.42
• Price to Book (P/B): 32.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 164.02
• 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: 47 Neutral
• Price Target: ―

Strawbear Entertainment Group demonstrates strong revenue growth, but faces major challenges with profitability and cash flow generation. The stock shows weak technical indicators, with bearish momentum across all major moving averages and other indicators. Additionally, the lack of positive valuation metrics, such as a negative P/E ratio and no dividend, further impacts the stock's attractiveness to investors. The company's ability to improve profitability and cash flow will be essential for future performance.

Strawbear Entertainment Group Business Overview & Revenue Model

Company Description

Strawbear Entertainment Group (2125) is a leading player in the Chinese entertainment industry, primarily engaged in the production and distribution of television series and films. The company operates in the media and entertainment sector, offering a diverse range of content that caters to the evolving tastes of Chinese audiences. Its core products include scripted dramas, variety shows, and feature films, which are distributed through various platforms, including television networks and online streaming services.

How the Company Makes Money

Strawbear Entertainment Group generates revenue through multiple streams, primarily focusing on content production and distribution. The company earns money by producing television series and films and selling broadcasting rights to television networks and streaming platforms. Additionally, Strawbear engages in strategic partnerships and co-productions with other media companies to expand its content reach and diversify its offerings. The company also benefits from licensing its content to international markets, contributing to its overall earnings. Furthermore, Strawbear may engage in advertising and sponsorship deals, leveraging its popular content to attract brands seeking to reach its vast audience.

Strawbear Entertainment Group Financial Statement Overview

Summary

Strawbear Entertainment Group exhibits strong revenue growth, but profitability remains a challenge, with net losses affecting return metrics. The balance sheet is strong with low leverage, providing financial stability, yet the cash flow statement raises concerns due to a lack of positive cash generation. The company's ability to convert revenue growth into profitability and cash flow is crucial for future success.

Income Statement

Strawbear Entertainment Group shows mixed performance in income statement metrics. The revenue has grown by 33.8% from the previous year, indicating strong top-line growth. However, the company is currently unprofitable with a net loss, affecting its net profit margin negatively. The gross profit margin is relatively low at 13.5%, and the EBIT margin is 3.6%, reflecting limited profitability. The EBITDA margin stands at 3.8%, suggesting some operational efficiency. Overall, while revenue growth is promising, profitability remains a concern.

Balance Sheet

The balance sheet reveals a moderate level of financial stability. The debt-to-equity ratio is 0.17, indicating low leverage, which is a positive sign. The return on equity is negative due to net losses, which is a concern for profitability. The equity ratio is high at 65.8%, reflecting a strong equity position relative to total assets. Overall, the company has low leverage and a solid equity base, but profitability issues weigh on the balance sheet strength.

Cash Flow

The cash flow statement shows significant challenges, with operating cash flow at zero for the current period, indicating potential liquidity issues. Free cash flow is also zero, suggesting the company is not generating cash from its operations after capital expenditures. The lack of positive cash flow metrics highlights concerns about cash generation capabilities, which are crucial for maintaining operations and supporting growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.12B	840.66M	980.92M	1.70B	952.36M
	Gross Profit
151.47M	63.26M	219.75M	516.18M	259.82M
	EBIT
41.05M	-95.68M	134.24M	273.29M	58.16M
	EBITDA
42.63M	-97.64M	114.40M	275.65M	91.96M
	Net Income Common Stockholders
-2.12M	-109.31M	50.93M	169.25M	18.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
84.33M	165.54M	219.45M	302.80M	95.60M
	Total Assets
2.66B	2.58B	2.49B	2.84B	1.86B
	Total Debt
289.82M	313.60M	281.27M	285.53M	166.52M
	Net Debt
210.49M	159.21M	73.22M	-17.26M	70.92M
	Total Liabilities
910.82M	844.31M	666.96M	1.07B	1.64B
	Stockholders Equity
1.75B	1.74B	1.83B	1.77B	223.71M
Cash Flow		Free Cash Flow
0.00	-56.25M	72.37M	-601.12M	10.18M
	Operating Cash Flow
0.00	-53.84M	75.36M	-599.30M	12.75M
	Investing Cash Flow
0.00	-13.40M	-61.24M	-95.43M	23.37M
	Financing Cash Flow
0.00	13.96M	-109.89M	901.60M	7.13M

Strawbear Entertainment Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2125, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.52, and above the 200-day MA of 0.56, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 57.74 is Neutral, neither overbought nor oversold. The STOCH value of 48.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2125.

Strawbear Entertainment Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1316	73 Outperform	$13.05B	27.10	3.13%	0.45%	1.31%	67.13%
Sector *	61 Neutral	$14.33B	5.90	-3.82%	8.01%	2.79%	-33.24%
1060	58 Neutral	HK$26.59B	66.42	2.29%	―	24.36%	-18.99%
2125	47 Neutral	HK$416.56M	―	-0.12%	―	30.84%	98.97%
1973	44 Neutral	HK$537.10M	―		―	―	―

Strawbear Entertainment Group Corporate Events

Strawbear Entertainment Group Announces AGM with Key Resolutions

Strawbear Entertainment Group has announced its upcoming Annual General Meeting (AGM) scheduled for June 16, 2025, in Beijing, China. Key agenda items include the approval of the company’s 2024 financial statements, re-election of directors, and re-appointment of Ernst & Young as auditors. The meeting will also consider resolutions to authorize the board to issue additional shares, which could impact the company’s capital structure and shareholder value.

Strawbear Entertainment Group Reports Strong Financial Turnaround in 2024

Strawbear Entertainment Group reported significant financial improvements for the year ended December 31, 2024. The company achieved a revenue increase of 33.8% to approximately RMB1,124.5 million and a gross profit rise of 139.5% to approximately RMB151.5 million compared to the previous year. The company’s loss decreased by 97.2% to approximately RMB3.0 million, and it recorded an adjusted net profit of RMB12.2 million, marking a substantial turnaround from the adjusted net loss of RMB88.1 million in 2023. Despite these improvements, the Board decided not to recommend any dividend for the year.

Strawbear Entertainment Group Schedules Board Meeting to Discuss Annual Results

Strawbear Entertainment Group has announced a board meeting scheduled for March 26, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024, and to consider the recommendation of a final dividend. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and potential returns on investment.