Vobile Group (3738) AI Stock Analysis

• Market Cap: HK$10.43B
• Dividend Yield: N/A
• Average Volume (3M): 33.45M
• Price to Earnings (P/E): 47.6
• Beta (1Y): 1.77
• Revenue Growth: 22.86%
• EPS Growth: 5105.88%
• Country: HK
• Employees: 535
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.05
• Shares Outstanding: 2,500,920,200
• 10 Day Avg. Volume: 24,431,056
• 30 Day Avg. Volume: 33,450,141
• PEG Ratio: -0.03
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 3.52
• P/FCF Ratio: -38.22
• 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: HK$8.01
• Price Target Upside: 90.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$5.00 ▲(18.76% Upside)

Vobile Group's stock score is primarily influenced by its strong financial performance, particularly in revenue growth and profitability. However, the stock's high valuation and technical indicators suggest caution. The absence of earnings call insights and corporate events limits additional context.

Positive Factors

Revenue Growth

The company's strong revenue growth of 10.21% indicates its ability to expand market reach and capitalize on increasing demand for digital content protection.

Profitability Improvement

Improved profit margins reflect better cost management and pricing power, enhancing long-term profitability and competitive positioning.

Debt Management

Moderate leverage with a healthy debt-to-equity ratio suggests financial stability and the ability to fund growth initiatives without excessive risk.

Negative Factors

Cash Flow Challenges

Persistent cash flow issues could hinder the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term sustainability.

Operational Efficiency

Moderate operational efficiency indicates potential for cost optimization, which is crucial for sustaining profitability in a competitive market.

Liquidity Concerns

Liquidity concerns may limit the company's ability to respond to market changes or invest in strategic initiatives, affecting its long-term growth prospects.

Vobile Group Business Overview & Revenue Model

Company Description

Vobile Group (3738) is a technology company specializing in digital content protection and monetization solutions. The company operates primarily in the media and entertainment sector, offering a suite of services that leverage its proprietary technology to safeguard video content against unauthorized use and piracy. Vobile's core products include content identification and management tools, which help content owners track and manage their digital assets across various platforms, ensuring compliance and maximizing revenue opportunities.

How the Company Makes Money

Vobile Group generates revenue through several key streams, including licensing fees from its content protection and management services, subscription fees for its technology platforms, and transaction-based revenues from content monetization services. The company partners with major media companies, streaming platforms, and content distributors, allowing them to effectively monitor and protect their intellectual property. Additionally, Vobile benefits from a growing demand for digital content as more businesses seek to secure their assets in an increasingly online environment, further enhancing its revenue potential.

Vobile Group Financial Statement Overview

Summary

Vobile Group shows promising revenue growth and improved profitability, with a strong income statement. However, operational efficiency and cash flow management require attention, as indicated by moderate EBIT and EBITDA margins and negative free cash flow.

Income Statement

Vobile Group has demonstrated strong revenue growth of 10.21% in the latest year, with improving gross and net profit margins. The gross profit margin increased to 43.79%, and the net profit margin turned positive at 5.94%, indicating enhanced profitability. However, the EBIT and EBITDA margins remain moderate, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.49, reflecting moderate leverage. The return on equity improved to 6.80%, showing better utilization of equity. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing stability.

Cash Flow

Vobile Group faces challenges in cash flow management, with a negative free cash flow and a low operating cash flow to net income ratio of 0.40%. Despite a 23.18% growth in free cash flow, the negative free cash flow to net income ratio indicates potential liquidity issues that need addressing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.68B	2.40B	2.00B	1.44B	686.53M	340.29M
Gross Profit	1.19B	1.05B	850.16M	590.71M	348.77M	165.56M
EBITDA	457.64M	413.42M	275.14M	271.54M	28.75M	135.16M
Net Income	203.60M	142.73M	-7.82M	42.00M	-22.68M	81.19M
Balance Sheet
Total Assets	4.84B	3.92B	3.51B	3.26B	1.77B	1.15B
Cash, Cash Equivalents and Short-Term Investments	578.28M	220.29M	240.04M	226.50M	496.87M	262.36M
Total Debt	1.10B	1.02B	696.48M	1.13B	24.26M	260.99M
Total Liabilities	1.77B	1.62B	1.37B	1.59B	233.83M	364.67M
Stockholders Equity	2.87B	2.10B	1.95B	1.49B	1.54B	788.87M
Cash Flow
Free Cash Flow	-91.36M	-220.83M	-100.01M	-67.48M	-75.06M	22.24M
Operating Cash Flow	-75.90M	4.14M	110.07M	37.61M	-8.77M	33.53M
Investing Cash Flow	-468.99M	-254.61M	-213.86M	-1.03B	-164.66M	-11.29M
Financing Cash Flow	810.31M	257.60M	138.98M	713.55M	398.71M	200.07M

Vobile Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.21
• 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:3738, the sentiment is Negative. The current price of 4.21 is below the 20-day moving average (MA) of 4.55, below the 50-day MA of 4.81, and below the 200-day MA of 4.35, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 22.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3738.

Vobile Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0863	61 Neutral	HK$12.95B	411.62	4.01%	―	115.40%	―
9878	60 Neutral	HK$5.80B	18.81	3.62%	―	-28.46%	-13.25%
3738	56 Neutral	HK$10.43B	47.57	8.42%	―	22.86%	5105.88%
0909	43 Neutral	HK$5.77B	-86.59	-1.31%	3.23%	-17.48%	83.80%

Vobile Group Corporate Events

Vobile Group Reports Strong Revenue Growth in Q3 2025

Vobile Group Limited reported a significant increase in its unaudited operating data for the three months ending September 30, 2025, with a 27% rise in total revenue compared to the same period in 2024. The company’s monthly recurring revenue also saw a 28% increase, highlighting strong performance in the Chinese Mainland market. While these figures are preliminary and subject to change, they indicate a positive trend in Vobile’s financial health and market positioning.

Vobile Group Completes HK$1.6 Billion Convertible Bonds Issuance

Vobile Group Limited has successfully completed the issuance of HK$1.6 billion zero-coupon convertible bonds due in 2026, which were listed on the Vienna MTF. The net proceeds of approximately HK$1.566 billion will be allocated towards the development and investment in AIGC and RWA businesses, repayment of existing debts, and general working capital to support operational activities and expansion in Hong Kong and other regions.

Vobile Group Expands Digital Content Offerings with New Bond Issuance

Vobile Group Limited announced the issuance of HK$1.6 billion zero coupon convertible bonds due 2026, with plans to use the proceeds for general working capital and to expand its operations in Hong Kong and other regions. The company is enhancing its product line with Vobile MAX and DreamMaker, which integrate AI and blockchain technology to support content creation, protection, and monetization. These initiatives align with Hong Kong’s strategic goals of becoming a global hub for IP trading and digital asset innovation, potentially strengthening Vobile’s position in the digital content industry.

Vobile Group Announces HK$1.6 Billion Convertible Bonds Issuance

Vobile Group Limited has announced the proposed issuance of HK$1.6 billion zero coupon convertible bonds due 2026 under a general mandate. The bonds, convertible into shares at a premium price, aim to raise approximately HK$1,566 million net proceeds, which will be allocated towards AIGC and RWA business development, debt repayment, and general working capital. The bonds are set to be listed on the Vienna MTF, with new shares to be listed on the Hong Kong Stock Exchange, subject to conditions and approvals.