Medialink Group Ltd. (2230) AI Stock Analysis

• Market Cap: HK$654.72M
• Dividend Yield: 13.84%
• Average Volume (3M): 5.53M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.38
• Revenue Growth: 5.26%
• EPS Growth: 7.46%
• Country: HK
• Employees: 177
• Sector: Communication Services
• Sector Strength: 87
• Industry: Entertainment
• EPS (TTM): 0.03
• Shares Outstanding: 1,992,000,000
• 10 Day Avg. Volume: 13,595,300
• 30 Day Avg. Volume: 5,532,433
• PEG Ratio: 0.63
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.44
• 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: 78 Outperform
• Price Target: ―

Medialink Group Ltd. shows strong financial stability and profitability, supported by positive technical indicators and attractive valuation metrics. However, cash flow challenges could hinder potential growth, making it essential for the company to improve cash generation.

Medialink Group Ltd. Business Overview & Revenue Model

Company Description

Medialink Group Limited distributes third-party owned media content primarily in Mainland China, Hong Kong, the United States, Japan, Singapore, Italy, Taiwan, the United Kingdom, Thailand, France, Indonesia, Philippines, and internationally. The company operates in two segments, Media Content Distribution and Brand Licensing. The Media Content Distribution segment distributes media content acquired from media content licensors, including content relating to animation series, variety shows, drama series, animated and live-action feature films, and other video content. The Brand Licensing segment is involved in licensing and sub-licensing various rights in relation to brands owned by brand licensors comprising merchandising rights for use in the toys, apparels and footwear, health and beauty products, and food and beverage; location-based entertainment rights for events, theme parks, shopping malls, cafes, and restaurants; and promotion rights. It also invests in media content production. The company was founded in 2000 and is headquartered in Tsim Sha Tsui East, Hong Kong.

How the Company Makes Money

Medialink Group Ltd. generates revenue primarily through two key streams: media content distribution and brand licensing. In its Media Content Distribution Business, the company earns money by acquiring distribution rights for media content and licensing these rights to broadcasters, streaming platforms, and other media outlets. This includes television networks, online streaming services, and home entertainment platforms. In the Brand Licensing Business, Medialink Group Ltd. capitalizes on the popularity of well-known franchises by licensing intellectual properties for use in consumer products, such as toys, apparel, and accessories. The company forms significant partnerships with content creators and rights holders to manage and expand their brand presence in various markets, contributing to its revenue growth.

Medialink Group Ltd. Financial Statement Overview

Summary

Medialink Group Ltd. exhibits strong revenue growth and profitability, supported by a solid balance sheet with minimal leverage. However, cash flow challenges pose a risk to sustaining growth opportunities.

Income Statement

Medialink Group Ltd. demonstrates solid growth in revenue and profitability. The revenue growth rate from 2023 to 2024 was 3.15%, indicating stable expansion. Gross profit margin stands at a robust 48.26%, and net profit margin is 10.02%, reflecting efficient cost management. EBIT and EBITDA margins are 19.65% and 14.14%, respectively, showcasing strong operating performance. However, a slight decrease in EBIT from the previous year suggests some pressure on operating efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.02, reflecting minimal leverage and financial risk. The equity ratio is a healthy 63.77%, indicating strong capitalization. Return on equity is commendable at 8.33%, signaling effective use of shareholders' funds. Overall, the company's financial stability and low leverage are significant strengths.

Cash Flow

Cash flow performance is an area of concern, with a decline in free cash flow growth. The free cash flow has turned negative, and the operating cash flow to net income ratio is negative, indicating cash flow challenges. The negative free cash flow to net income ratio further emphasizes the need for improved cash generation. While the company has shown strong revenue and profit growth, converting this into positive cash flow remains a challenge.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
535.36M	488.81M	473.90M	397.88M	335.18M	315.12M
	Gross Profit
262.17M	235.87M	220.41M	191.70M	159.88M	141.85M
	EBIT
100.98M	95.76M	108.30M	88.23M	56.26M	53.01M
	EBITDA
75.04M	69.09M	61.69M	63.90M	66.85M	52.59M
	Net Income Common Stockholders
55.16M	48.96M	47.52M	42.43M	38.57M	35.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
356.85M	235.73M	281.74M	283.28M	246.13M	298.05M
	Total Assets
1.07B	921.58M	909.96M	884.11M	762.42M	696.73M
	Total Debt
7.30M	9.53M	13.39M	18.13M	1.21M	4.11M
	Net Debt
-349.55M	-226.20M	-268.35M	-265.15M	-244.92M	-293.93M
	Total Liabilities
443.92M	333.86M	344.52M	342.02M	250.08M	213.15M
	Stockholders Equity
625.23M	587.72M	565.44M	542.09M	512.34M	483.58M
Cash Flow		Free Cash Flow
133.92M	-18.84M	16.30M	52.10M	-26.36M	-23.32M
	Operating Cash Flow
134.73M	-13.35M	17.56M	69.27M	-14.28M	-10.30M
	Investing Cash Flow
-20.71M	-6.51M	9.65M	-13.28M	-22.80M	-31.72M
	Financing Cash Flow
-34.32M	-35.40M	-29.63M	-19.46M	-13.86M	176.52M

Medialink Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 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 0.32 is above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.24, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 63.48 is Neutral, neither overbought nor oversold. The STOCH value of 66.84 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$654.72M	11.81	9.05%	13.84%	5.26%	7.46%
Sector *	61 Neutral	$14.74B	5.97	-3.99%	6.57%	2.79%	-32.84%
SNPTF		$8.92B	23.75	11.45%	0.83%	―	―
SZHIF		$10.23B	11.82	18.17%	4.83%	―	―
CGR0		€6.39M	―	-39.44%	―	―	―
0593		$103.70M	―		―	―	―
2001		HK$1.79B	2.10	18.95%	0.56%	―	―

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.