Strawbear Entertainment Group (2125) AI Stock Analysis

• Market Cap: HK$342.43M
• Dividend Yield: N/A
• Average Volume (3M): 245.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -41.22%
• EPS Growth: 54.66%
• Country: HK
• Employees: 77
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): >-0.01
• Shares Outstanding: 706,041,400
• 10 Day Avg. Volume: 191,900
• 30 Day Avg. Volume: 245,033
• PEG Ratio: 1.58
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 15.61
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$0.50 ▲(4.17% Upside)

The overall stock score of 47 reflects significant challenges faced by Strawbear Entertainment Group. The most impactful factor is the company's inability to convert strong revenue growth into profitability and positive cash flow, which is critical for future success. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

The significant revenue growth demonstrates the company's ability to expand its market reach and increase its content distribution, which is crucial for long-term success in the entertainment industry.

Low Leverage

Low leverage provides financial stability and flexibility, allowing the company to invest in new projects and weather economic downturns without the burden of high debt obligations.

Strong Equity Position

A strong equity position indicates a solid financial foundation, enabling the company to support its operations and invest in growth opportunities without relying heavily on external financing.

Negative Factors

Profitability Challenges

Ongoing net losses and low profit margins hinder the company's ability to generate sustainable profits, which is critical for long-term viability and shareholder value creation.

Cash Flow Issues

Zero operating cash flow suggests difficulties in generating cash from core operations, which could impact the company's ability to fund its activities and invest in future growth.

Low Profit Margins

Low profit margins indicate limited pricing power and cost management challenges, which can restrict the company's ability to improve profitability and reinvest in its business.

Strawbear Entertainment Group Business Overview & Revenue Model

Company Description

Strawbear Entertainment Group engages in the investment, development, production, and distribution of TV series, web series, and films in the People's Republic of China and internationally. The company licenses the broadcasting rights and other copyrights of self-produced drama series to TV channels, online video platforms, and third-party distributors. It also offers production services for made-to-order drama series per online video platforms' orders. In addition, the company engages in literature copyright agency and development; and screenplay development and assessment business. Strawbear Entertainment Group was founded in 2014 and is headquartered in Nanjing, the People's Republic of China.

How the Company Makes Money

Strawbear Entertainment Group generates revenue through multiple streams including box office sales from theatrical releases, subscription fees from streaming services, and licensing agreements for content distribution across television networks and digital platforms. Significant revenue is also derived from merchandise sales linked to popular franchises and characters developed by the company. Additionally, strategic partnerships with major studios and tech companies enhance distribution capabilities and expand audience reach, further bolstering the company's financial performance.

Strawbear Entertainment Group Financial Statement Overview

Summary

Strawbear Entertainment Group shows strong revenue growth of 33.8%, but profitability is a concern with net losses and low margins. The balance sheet is stable with low leverage and a high equity ratio, but cash flow issues are significant, with zero operating and free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	723.29M	1.12B	840.66M	980.92M	1.70B	952.36M
Gross Profit	71.49M	151.47M	63.26M	219.75M	516.18M	259.82M
EBITDA	-3.04M	42.63M	-97.64M	114.40M	275.65M	91.96M
Net Income	-37.51M	-2.12M	-109.31M	50.93M	169.25M	18.43M
Balance Sheet
Total Assets	2.59B	2.66B	2.58B	2.49B	2.84B	1.86B
Cash, Cash Equivalents and Short-Term Investments	153.69M	84.33M	165.54M	242.23M	328.23M	107.39M
Total Debt	270.70M	289.82M	313.60M	281.27M	285.53M	166.52M
Total Liabilities	835.67M	910.82M	844.31M	666.96M	1.07B	1.64B
Stockholders Equity	1.75B	1.75B	1.74B	1.83B	1.77B	223.71M
Cash Flow
Free Cash Flow	109.57M	21.07M	-56.25M	72.37M	-601.12M	10.18M
Operating Cash Flow	109.78M	22.96M	-53.84M	75.36M	-599.30M	12.75M
Investing Cash Flow	-21.00M	-57.69M	-13.40M	-61.24M	-95.43M	23.37M
Financing Cash Flow	-42.80M	-40.25M	13.96M	-109.89M	901.60M	7.13M

Strawbear Entertainment Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 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:2125, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.49, below the 50-day MA of 0.53, and below the 200-day MA of 0.56, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 38.26 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:2125.

Strawbear Entertainment Group 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%
8368	57 Neutral	HK$167.56M	8.92	5.92%	―	-27.68%	-77.19%
1046	51 Neutral	HK$398.92M	-5.88	-23.06%	―	29.39%	-107.44%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
2125	47 Neutral	HK$342.43M	-8.25	-2.12%	―	-41.22%	54.66%
1003	46 Neutral	HK$1.12B	―	―	―	―	―
1159	43 Neutral	HK$248.25M	1.34	―	―	-57.01%	―

Strawbear Entertainment Group Corporate Events

Strawbear Entertainment Group Proposes Renewal of Key Agreements with iQIYI

Strawbear Entertainment Group has announced its proposal to renew its continuing connected transactions with iQIYI through new framework agreements for the period 2026-2028. These agreements include the Made-to-order Audiovisual Works Production Framework, Episodic Content Copyrights Purchasing Framework, and Copyrights Licensing Framework. The renewal aims to continue the company’s operations in providing and licensing audiovisual content, with potential revenue sharing and investment opportunities with iQIYI. The transactions are subject to approval by independent shareholders, as they involve a connected person under the Listing Rules, requiring reporting and annual review.

Strawbear Entertainment Group Enhances Governance with Nomination Committee Amendments

Strawbear Entertainment Group has amended the terms of reference and rules of procedure for its Nomination Committee, aiming to optimize board composition and enhance governance. The committee is responsible for nominating directors and key senior management, reviewing board structure and diversity, and ensuring the independence of non-executive directors, thereby strengthening the company’s governance framework.