Medialink Group Ltd. (2230) AI Stock Analysis

• Market Cap: HK$568.07M
• Dividend Yield: 4.78%
• Average Volume (3M): 2.10M
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.33
• Revenue Growth: 32.53%
• EPS Growth: 7.06%
• Country: HK
• Employees: 177
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): <0.01
• Shares Outstanding: 1,992,000,000
• 10 Day Avg. Volume: 1,083,500
• 30 Day Avg. Volume: 2,100,166
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ―

Medialink Group Ltd. is well-positioned with strong financial stability and bullish technical indicators. The stock's reasonable valuation and attractive dividend yield further enhance its appeal. However, declining profitability margins and cash flow management are areas to watch.

Medialink Group Ltd. Business Overview & Revenue Model

Company Description

Medialink Group Ltd. (2230) is a leading media and communications company based in Hong Kong, specializing in providing a diverse range of advertising and marketing solutions. The company operates primarily in the media and entertainment sectors, delivering services such as media buying, strategic planning, digital marketing, and content creation. With a focus on leveraging technology and data analytics, Medialink Group aims to optimize advertising effectiveness and enhance brand visibility for its clients across various platforms.

How the Company Makes Money

Medialink Group Ltd. generates revenue through multiple streams, primarily from its advertising and media services. The company earns money by charging clients for media buying services, where it purchases advertising space and time on behalf of brands. Additionally, Medialink offers consulting and strategic planning services, which provide clients with insights and recommendations to maximize their marketing budgets. The company also generates income from digital marketing initiatives, including social media campaigns, search engine marketing, and content marketing. Significant partnerships with media outlets and digital platforms enhance its service offerings and revenue potential, while data analytics capabilities allow Medialink to provide targeted advertising solutions, further driving client engagement and satisfaction.

Medialink Group Ltd. Financial Statement Overview

Summary

Medialink Group Ltd. shows strong revenue growth and a solid balance sheet with minimal leverage. However, profitability margins have declined, and cash flow management needs improvement, particularly in free cash flow growth.

Income Statement

Medialink Group Ltd. has demonstrated strong revenue growth with a 21% increase in the latest year, indicating robust demand for its offerings. The gross profit margin is healthy at approximately 48%, though it has slightly decreased from the previous year. Net profit margin has decreased to 8.1%, suggesting increased costs or expenses. EBIT and EBITDA margins have also declined, indicating potential pressure on operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.0077, reflecting strong financial stability and low leverage risk. Return on equity is stable at 8.5%, showcasing effective utilization of shareholder equity. The equity ratio stands at a solid 63.3%, indicating a strong equity base relative to total assets.

Cash Flow

Free cash flow has decreased by 9.5%, which could be a concern for future investments or debt repayments. However, the operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is close to 1, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	535.36M	647.81M	488.81M	473.90M	397.88M	335.18M
Gross Profit	262.17M	309.98M	235.87M	220.41M	191.70M	159.88M
EBITDA	75.04M	63.26M	69.09M	61.69M	63.90M	66.85M
Net Income	55.16M	52.31M	48.96M	47.52M	42.43M	38.57M
Balance Sheet
Total Assets	1.07B	971.53M	921.58M	909.96M	884.11M	762.42M
Cash, Cash Equivalents and Short-Term Investments	356.85M	337.79M	235.73M	281.74M	283.28M	246.13M
Total Debt	7.30M	4.72M	9.53M	13.39M	18.13M	1.21M
Total Liabilities	443.92M	356.70M	333.86M	344.52M	342.02M	250.08M
Stockholders Equity	625.23M	614.83M	587.72M	565.44M	542.09M	512.34M
Cash Flow
Free Cash Flow	133.92M	121.26M	-18.84M	16.30M	52.10M	-26.36M
Operating Cash Flow	134.73M	123.94M	-13.35M	17.56M	69.27M	-14.28M
Investing Cash Flow	-25.24M	9.76M	-6.51M	9.65M	-13.28M	-22.80M
Financing Cash Flow	-34.32M	-35.37M	-35.40M	-29.63M	-19.46M	-13.86M

Medialink Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 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:2230, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.28, and above the 200-day MA of 0.23, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2230.

Medialink Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	78 Outperform	HK$568.07M	10.07	8.70%	4.78%	32.53%	7.06%
8368	59 Neutral	404.46M	20.31	7.92%	―	-27.68%	-77.19%
2125	57 Neutral	444.81M	-10.54	-0.12%	―	-41.22%	54.66%
1046	51 Neutral	281.06M	-2.58	0.00%	―	-30.68%	-63.06%
6698	48 Neutral	717.37M	-3.46	-8.75%	―	-57.29%	88.62%
0391	45 Neutral	533.14M	-9.17	-22.73%	―	-6.36%	-166.67%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Medialink Group Ltd. Corporate Events

Medialink Group Ltd. Acquires Shares for Award Scheme

Medialink Group Ltd. announced the purchase of 695,000 shares under its Share Award Scheme between April 1 and April 24, 2025. This purchase represents approximately 0.0349% of the company’s total issued shares. The shares were acquired at an average price of HK$0.2077 each, totaling approximately HK$144,338. Currently, no candidates have been identified for the grant of the Award Shares, and all shares held by the Trustee are considered public under the Listing Rules.

Medialink Group Ltd. Grants Share Awards to Director and Staff

Medialink Group Ltd. announced the grant of 6,550,000 Director Award Shares to Ms. Noletta Chiu, an executive Director, recognizing her significant contributions to the company’s brand licensing business. Additionally, the company has granted 5,000,000 award shares to 33 staff members, aiming to reward their contributions and align their interests with shareholders.

Medialink Group Ltd. Announces First Live Music Concert

Medialink Group Ltd. announced its first live music concert, ‘Tatsuya Kitani Asia Tour 2025 in Hong Kong & Bangkok’, under its Ani-Music-One® brand in collaboration with Prime Entertainment. This venture aligns with the company’s strategic plan to expand its music and live performance business, capitalizing on the growing demand for anime-related entertainment.