TOM Group (2383) AI Stock Analysis

• Market Cap: HK$1.78B
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• 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: 85
• Industry: Publishing
• EPS (TTM): -0.06
• Shares Outstanding: 3,958,510,500
• 10 Day Avg. Volume: 203,600
• 30 Day Avg. Volume: 1,205,573
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

TOM Group's overall stock score reflects significant financial challenges, including persistent losses, high leverage, and negative cash flow. The technical indicators suggest a neutral to slightly bearish trend, with the stock trading below key moving averages. Valuation metrics further highlight concerns, with a negative P/E ratio and no dividend yield, suggesting limited attractiveness for investors. A strategic and financial restructuring is crucial for improving the company's long-term prospects.

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 persistent losses, declining revenue, and high leverage. The company must address these issues to stabilize its financial position. While there are some improvements in operating margins, the negative equity and cash flow challenges highlight the urgency for strategic and financial restructuring to achieve long-term viability.

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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
784.45M	830.12M	889.37M	867.97M	916.12M
	Gross Profit
212.55M	348.90M	375.16M	359.34M	384.52M
	EBIT
6.95M	2.93M	-33.97M	-96.41M	-169.31M
	EBITDA
138.82M	486.38M	143.96M	-826.54M	129.14M
	Net Income Common Stockholders
-221.43M	142.42M	-107.44M	-1.16B	-196.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
538.23M	481.67M	493.49M	452.92M	371.78M
	Total Assets
3.01B	3.20B	3.03B	3.03B	4.00B
	Total Debt
3.74B	3.55B	3.42B	3.32B	3.21B
	Net Debt
3.24B	3.06B	2.92B	2.86B	2.84B
	Total Liabilities
4.30B	5.37B	4.04B	3.94B	3.82B
	Stockholders Equity
-1.60B	-2.48B	-1.31B	-1.20B	-191.85M
Cash Flow		Free Cash Flow
-176.90M	-63.93M	47.88M	9.11M	-45.87M
	Operating Cash Flow
-60.29M	57.39M	172.47M	140.28M	80.32M
	Investing Cash Flow
9.19M	-115.81M	-181.26M	-134.43M	-261.90M
	Financing Cash Flow
67.48M	89.02M	40.48M	50.93M	168.61M

TOM Group Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2383, the sentiment is Neutral. The current price of 0.46 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.48, and below the 200-day MA of 0.50, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 40.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2383.

TOM Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$13.41B	7.23	-2.74%	3.81%	2.12%	-37.24%
2383	36 Underperform	HK$1.78B	―		―	-4.77%	-15.54%

TOM Group Corporate Events

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.

TOM Group Faces Revenue Decline Amid Economic Challenges in 2024

TOM Group reported a 4.8% decrease in consolidated revenue for 2024, impacted by economic uncertainties and high finance costs, resulting in a loss before net finance costs and taxation of HK$18 million. Despite these challenges, the company’s investment in Ule showed significant improvement, reducing its net loss by 85.9%, while the Publishing Group in Taiwan maintained its market leadership with gross revenue of HK$703 million. The company plans to focus on growth opportunities and maintain financial prudence moving forward.

TOM Group to Announce 2024 Final Results at Upcoming Board Meeting

TOM Group Limited has scheduled a board meeting on March 11, 2025, to discuss and approve the final results for the year ending December 31, 2024. This meeting will determine the company’s annual performance and consider the payment of a final dividend, potentially impacting shareholder returns and reflecting the company’s financial health.