Vobile Group (3738) AI Stock Analysis

• Market Cap: HK$12.84B
• Dividend Yield: N/A
• Average Volume (3M): 43.43M
• Price to Earnings (P/E): 58.6
• Beta (1Y): 1.69
• 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: 2,497,853,800
• 10 Day Avg. Volume: 27,602,636
• 30 Day Avg. Volume: 43,434,773
• 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$8.00
• Price Target Upside: 58.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: HK$5.50 ▲(8.70% Upside)

The overall stock score is influenced primarily by financial performance and technical analysis. While revenue growth and profitability are strong, cash flow issues and high valuation present significant risks. Technical indicators suggest a bearish trend with potential for a rebound.

Vobile Group Business Overview & Revenue Model

Company Description

Vobile Group Limited, an investment holding company, provides software as a service in the United States, Japan, Mainland China, and internationally. The company offers online video content protection and monetization services for content owners to protect their content from unauthorized use, measure the viewership of their content, and monetize their content. It provides content protection, measurement, and management and monetization platforms, as well as pay per transaction platforms. The company serves film studios, TV networks, record labels, DTC service providers, subscription video-on-demand content aggregators, sports leagues, toys and games companies, and other content owners. Vobile Group Limited was founded in 2005 and is headquartered in Santa Clara, California.

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 gross profit margin of 43.79% and a positive net profit margin of 5.94%. 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	278.30M	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: Positive
• Last Price: 5.06
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 5.06 is below the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.58, and above the 200-day MA of 4.15, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 46.54 is Neutral, neither overbought nor oversold. The STOCH value of 63.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3738.

Vobile Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9878	―	HK$7.45B	24.14	3.62%	―	-28.46%	-13.25%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0863	―	HK$13.07B	415.40	4.01%	―	115.40%	―
3738	―	HK$12.84B	58.64	8.42%	―	22.86%	5105.88%
0909	―	HK$5.98B	-89.66	-1.31%	3.05%	-17.48%	83.80%

Vobile Group Corporate Events

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.

The most recent analyst rating on (HK:3738) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Vobile Group stock, see the HK:3738 Stock Forecast page.

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.

The most recent analyst rating on (HK:3738) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Vobile Group stock, see the HK:3738 Stock Forecast page.

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.

The most recent analyst rating on (HK:3738) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Vobile Group stock, see the HK:3738 Stock Forecast page.

Vobile Group Reports Strong Growth in H1 2025

Vobile Group Limited, a company incorporated in the Cayman Islands, operates in the digital content protection and transaction services sector, offering solutions for content rights identification and monetization. In its recent earnings report for the first half of 2025, Vobile Group reported a significant increase in revenue and profit. The company’s revenue rose by 23.4% year-on-year to HK$1.46 billion, with a notable increase in both subscription and value-added services. The gross profit also saw a rise of 27.5%, reaching HK$643 million, while the profit for the period more than doubled to HK$101 million. The company attributed this growth to its strategic focus on enhancing AI capabilities and expanding its service offerings. Vobile’s strategic initiatives include the development of platforms like Vobile MAX and DreamMaker, aimed at integrating AI capabilities with content monetization. These platforms are designed to support the evolving creator economy by providing tools for rights identification and content distribution. Looking ahead, Vobile Group aims to capitalize on the growth opportunities in the digital content sector, driven by advancements in AI and the increasing demand for content protection and monetization services.

Vobile Group Reports Robust H1 2025 Financial Results Amid AI Expansion

Vobile Group Limited reported strong financial performance for the first half of 2025, with a 23.4% year-over-year revenue increase to HK$1.5 billion. The company’s strategic focus on AI-related capabilities and the creator economy’s growth has led to significant profit improvements and positions it well for future growth.

The most recent analyst rating on (HK:3738) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Vobile Group stock, see the HK:3738 Stock Forecast page.

Vobile Group Schedules Board Meeting to Review Interim Results

Vobile Group Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the potential payment of an interim dividend, reflecting the company’s ongoing financial strategies and stakeholder engagement.

The most recent analyst rating on (HK:3738) stock is a Buy with a HK$5.40 price target. To see the full list of analyst forecasts on Vobile Group stock, see the HK:3738 Stock Forecast page.