Strawbear Entertainment Group (2125) AI Stock Analysis

• Market Cap: HK$402.44M
• Dividend Yield: N/A
• Average Volume (3M): 364.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 30.84%
• EPS Growth: 98.34%
• Country: HK
• Employees: 77
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): -0.05
• Shares Outstanding: 706,041,400
• 10 Day Avg. Volume: 451,600
• 30 Day Avg. Volume: 364,733
• PEG Ratio: -1.78
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.67
• 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: 49 Neutral
• Price Target: HK$0.50 ▼(-12.28%Downside)

The overall score is primarily impacted by the strong revenue growth, providing a positive aspect, while significant challenges in profitability and cash flow generation weigh heavily. Technical analysis indicates a neutral trend with no strong momentum, and the high valuation risk adds further concern.

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 shows strong revenue growth of 33.8%, but remains unprofitable with a net loss. The balance sheet is stable with low leverage and a strong equity position, but the cash flow statement reveals liquidity challenges 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	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
EBITDA	42.63M	-97.64M	114.40M	275.65M	91.96M
Net Income	-2.12M	-109.31M	50.93M	169.25M	18.43M
Balance Sheet
Total Assets	2.66B	2.58B	2.49B	2.84B	1.86B
Cash, Cash Equivalents and Short-Term Investments	84.33M	165.54M	219.45M	302.80M	95.60M
Total Debt	289.82M	313.60M	281.27M	285.53M	166.52M
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	21.07M	-56.25M	72.37M	-601.12M	10.18M
Operating Cash Flow	22.96M	-53.84M	75.36M	-599.30M	12.75M
Investing Cash Flow	-57.69M	-13.40M	-61.24M	-95.43M	23.37M
Financing Cash Flow	-40.25M	13.96M	-109.89M	901.60M	7.13M

Strawbear Entertainment Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 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 0.57 is above the 20-day moving average (MA) of 0.57, above the 50-day MA of 0.56, and above the 200-day MA of 0.56, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 56.02 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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
8368	64 Neutral	HK$444.90M	16.81	8.58%	―	-18.38%	-60.45%
Sector *	62 Neutral	$40.75B	-1.21	-12.05%	3.97%	2.04%	-69.68%
1159	56 Neutral	HK$390.25M	―		―	-49.75%	48.12%
1046	55 Neutral	HK$385.32M	―	-36.91%	―	-30.68%	-63.06%
2125	49 Neutral	HK$402.44M	―	-0.12%	―	30.84%	98.34%
0391	46 Neutral	HK$580.53M	―	-20.32%	―	27.72%	-117.07%
1003	43 Neutral	HK$1.39B	―		―	―	―

Strawbear Entertainment Group Corporate Events

Strawbear Entertainment Group Invests in Wealth Management Products

Strawbear Entertainment Group has announced a discloseable transaction involving the subscription of wealth management products, utilizing surplus cash reserves. The company has invested a total of US$5 million in structured notes from BNP, Barclays, and UBS, all facilitated by Nomura Singapore. This strategic financial move is subject to reporting and announcement requirements under Hong Kong’s Listing Rules, though it does not require shareholder approval. The investments are expected to enhance the company’s financial portfolio, potentially impacting its market positioning and stakeholder interests.

Strawbear Entertainment Group Secures Unanimous Approval at AGM

Strawbear Entertainment Group announced that all resolutions proposed at their Annual General Meeting held on June 16, 2025, were approved unanimously. Key resolutions included the re-election of directors, reappointment of auditors, and granting of mandates for issuing and repurchasing shares, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility.

Strawbear Entertainment Group Reallocates Proceeds to Boost Drama Series Production

Strawbear Entertainment Group has announced a further change in the use of its net proceeds from the global offering, reallocating the remaining HK$79.6 million to fund drama series investment, production, and distribution. This strategic shift aims to bolster the company’s market position and enhance its drama series capabilities, reflecting a continued focus on strengthening its core entertainment offerings.

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.