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: 75
• 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 ▲(11.11%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 (2383) is a multimedia and internet conglomerate based in Hong Kong. The company operates primarily in the Greater China region, focusing on sectors such as e-commerce, mobile internet, publishing, outdoor media, and television and entertainment. TOM Group is known for its diverse portfolio of businesses that range from digital content and services to media advertising and publishing.

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
EBITDA	112.77M	138.82M	486.38M	143.96M	-826.54M
Net Income	-256.03M	-221.43M	142.42M	-107.44M	-1.16B
Balance Sheet
Total Assets	2.80B	3.01B	3.20B	3.03B	3.03B
Cash, Cash Equivalents and Short-Term Investments	448.32M	538.23M	481.67M	493.49M	452.92M
Total Debt	3.93B	3.74B	3.55B	3.42B	3.32B
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: 0.45
• 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 Negative. The current price of 0.45 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 40.56 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, 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
0018	67 Neutral	€899.22M	17.12	3.08%	18.67%	-7.40%	-38.30%
0423	61 Neutral	HK$353.91M	7.94	-4.21%	12.20%	-13.01%	-165.84%
Sector *	55 Neutral	HK$64.05B	-1.33	-3.49%	5.64%	-3.85%	-17.10%
1762	52 Neutral	HK$1.20B	437.50	0.17%	―	22.80%	-87.20%
1105	49 Neutral	HK$198.12M	―	-5.06%	―	-5.21%	-71.81%
6820	42 Neutral	HK$1.70B	―	-4.15%	―	7.55%	64.78%
2383	40 Neutral	$1.80B	―		―	-4.77%	-15.54%

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.