TOM Group (2383) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: N/A
• Average Volume (3M): 137.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -4.77%
• EPS Growth: -15.54%
• Country: HK
• Employees: 1,100
• Sector: Communication Services
• Sector Strength: 82
• Industry: Publishing
• EPS (TTM): -0.06
• Shares Outstanding: 3,958,510,500
• 10 Day Avg. Volume: 247,200
• 30 Day Avg. Volume: 137,177
• PEG Ratio: -0.08
• Price to Book (P/B): -1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -40.22
• 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: 40 Neutral
• Price Target: HK$0.50 ▲(8.70%Upside)

TOM Group faces significant financial challenges, with negative equity, high leverage, and declining revenue as the most impactful factors. Technical analysis does not provide a strong directional signal, while valuation metrics reflect ongoing profitability issues without a dividend yield to attract investors.

TOM Group Business Overview & Revenue Model

Company Description

TOM Group Limited, an investment holding company, operates as a technology and media company in Hong Kong, Mainland China, Taiwan, and other Asian countries. The company operates through five segments: E-Commerce Group, Mobile Internet Group, Social Network Group, Publishing Group, and Advertising Group. The company's E-Commerce Group segment provides services to users using the mobile and Internet-based marketplace; and technical services for e-commerce/retail operations. Its Mobile Internet Group segment offers mobile Internet services, online advertising services, and commercial enterprise solutions. The company's Social Network Group segment provides services of online community and social networking websites, and related online advertising. Its Publishing Group segment is involved in the magazine and book publishing and circulation activities; and sale of advertising and other related products. The company's Advertising Group segment provides outdoor media services; and media sales, event production, and marketing services. This segment is also involved in the advertising sale of outdoor media assets. The company also holds trademarks and domain names; operates a mobile and Internet-based C2C marketplace; provides Internet content, online advertising, telecom value-added, management, and email services; and owns and operates a website, an e-marketplace for agricultural products. In addition, it is involved in the development of software, electronics, and computer network systems; supply of online community and social networking websites; publishing, distribution, and retail of books and magazines; and event management and media buying businesses. The company was formerly known as TOM.COM LIMITED and changed its name to TOM Group Limited in 2004. TOM Group Limited was incorporated in 1999 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

TOM Group generates revenue through various streams tied to its diversified business operations. The company's e-commerce platforms facilitate online sales and transactions, earning revenue from transaction fees, advertising, and sales commissions. In mobile internet, TOM Group monetizes through digital content services, mobile applications, and advertising. The publishing segment involves the production and distribution of books and magazines, generating income from sales and advertising. Outdoor media revenues are derived from leasing advertising space on billboards and other outdoor locations. In the television and entertainment sector, TOM Group earns through content production, licensing, and broadcast advertising. Strategic partnerships and collaborations with other media and tech companies also contribute to its revenue by expanding its market reach and technological capabilities.

TOM Group Financial Statement Overview

Summary

TOM Group's financial statements indicate significant challenges with declining revenue, persistent losses, high leverage, and negative equity, which reflect financial instability and a need for strategic restructuring.

Income Statement

TOM Group's income statement reveals several challenges, including declining revenue and net losses over recent years. The gross profit margin is relatively low, and the net profit margin is negative, indicating ongoing profitability issues. While there is a slight improvement in EBIT and EBITDA margins over the past year, overall revenue growth has been negative, suggesting a need for strategic adjustments to drive growth and profitability.

Balance Sheet

The balance sheet highlights significant financial challenges for TOM Group, with negative stockholders' equity indicating financial instability. The debt-to-equity ratio is extremely high, and the equity ratio is negative, both of which signal high leverage and financial risk. These factors suggest a need for improved financial management and potential restructuring to ensure long-term sustainability.

Cash Flow

Cash flow analysis shows TOM Group is facing difficulties in generating positive free cash flow, which has been negative for several years. The operating cash flow to net income ratio is negative, reflecting ongoing operational challenges. However, the company has managed to maintain some level of cash flow from financing activities, which may provide temporary relief but is not a sustainable long-term solution.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
747.02M	784.45M	830.12M	889.37M	867.97M
	Gross Profit
303.86M	212.55M	348.90M	375.16M	359.34M
	EBIT
-18.48M	6.95M	2.93M	-33.97M	-96.41M
	EBITDA
112.77M	138.82M	486.38M	143.96M	-826.54M
	Net Income Common Stockholders
-256.03M	-221.43M	142.42M	-107.44M	-1.16B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
448.32M	538.23M	481.67M	493.49M	452.92M
	Total Assets
2.80B	3.01B	3.20B	3.03B	3.03B
	Total Debt
3.93B	3.74B	3.55B	3.42B	3.32B
	Net Debt
3.49B	3.24B	3.06B	2.92B	2.86B
	Total Liabilities
4.47B	4.30B	5.37B	4.04B	3.94B
	Stockholders Equity
-1.96B	-1.60B	-2.48B	-1.31B	-1.20B
Cash Flow		Free Cash Flow
-228.48M	-176.90M	-63.93M	47.88M	9.11M
	Operating Cash Flow
-82.95M	-60.29M	57.39M	172.47M	140.28M
	Investing Cash Flow
-91.64M	9.19M	-115.81M	-181.26M	-134.43M
	Financing Cash Flow
155.84M	67.48M	89.02M	40.48M	50.93M

TOM Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2383, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.46, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.16 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2383.

TOM Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.74B	5.90	-4.02%	6.40%	2.72%	-31.67%
2383	40 Neutral	$1.80B	―		―	-4.77%	-15.54%
HKGEF		$42.89M	6.20	-4.21%	13.61%	―	―
OPQ		€103.13M	11.91	4.07%	20.45%	―	―
1762	61 Neutral	HK$1.40B	512.50	0.17%	―	22.80%	-87.20%
6820	56 Neutral	HK$2.22B	―	-4.15%	―	7.55%	64.78%
1105	47 Neutral	HK$184.91M	―	-5.06%	―	-5.21%	-71.81%

TOM Group Corporate Events

TOM Group Updates Audit Committee Terms to Enhance Governance

TOM Group Limited has updated the terms of reference for its Audit Committee, which was originally established in January 2000. The revised terms, approved by the board, align with the Corporate Governance Code under the Listing Rules of the Hong Kong Stock Exchange. Key updates include the composition of the committee, meeting protocols, and the roles of the secretary and attendees, aiming to enhance governance and operational efficiency.

TOM Group’s AGM Sees Unanimous Approval of Key Resolutions

TOM Group Limited held its Annual General Meeting on May 12, 2025, where all proposed resolutions were passed with overwhelming support. Key resolutions included the adoption of financial statements, re-election of directors, re-appointment of PricewaterhouseCoopers as auditors, and granting mandates for share issuance and repurchase. This successful AGM reflects strong shareholder confidence and positions the company for continued strategic initiatives.

TOM Group Schedules 2025 Annual General Meeting with Key Resolutions

TOM Group Limited has announced its upcoming annual general meeting, which will be held as a hybrid event on May 12, 2025, with provisions for rescheduling in case of severe weather conditions. The meeting’s agenda includes the adoption of financial statements for the year ending December 31, 2024, the re-election of certain directors, and the re-appointment of PricewaterhouseCoopers as the independent auditor. Additionally, shareholders will consider a resolution to grant the directors a mandate to issue additional shares, subject to certain conditions.