Joy Spreader Group Inc. (6988) AI Stock Analysis

• Market Cap: HK$273.81M
• Dividend Yield: N/A
• Average Volume (3M): 493.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -99.64%
• EPS Growth: 15.42%
• Country: HK
• Employees: 70
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.04
• Shares Outstanding: 2,371,927,200
• 10 Day Avg. Volume: 624,200
• 30 Day Avg. Volume: 493,398
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 2.28
• P/FCF Ratio: -4.72
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.12 ▼(-2.50% Downside)

The overall stock score is primarily impacted by significant financial performance challenges, including declining revenues and profitability issues. Technical analysis also indicates bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield.

Positive Factors

Business Model

The company's diversified revenue streams, including subscription fees and performance-based advertising, provide a stable income base and potential for growth as digital marketing demand increases.

Partnerships

Strategic partnerships enhance Joy Spreader's service offerings and market reach, positioning the company to capitalize on the growing importance of social media in marketing strategies.

Leverage

Low leverage provides financial flexibility and reduces risk, allowing Joy Spreader to navigate challenging market conditions and invest in growth opportunities without significant debt burden.

Negative Factors

Revenue Decline

The severe revenue decline indicates challenges in market demand or competitive positioning, threatening the company's ability to sustain operations and invest in future growth.

Profitability Issues

Persistent profitability issues suggest inefficiencies in cost management and pricing strategy, which could hinder long-term financial health and shareholder value.

Cash Flow Weakness

Negative cash flow limits Joy Spreader's ability to fund operations and growth initiatives internally, potentially leading to increased reliance on external financing and associated risks.

Joy Spreader Group Inc. Business Overview & Revenue Model

Company Description

Joy Spreader Group Inc. (6988) is a diversified technology company focused on the digital marketing and advertising sectors. The company specializes in providing innovative solutions that enhance online visibility and engagement for businesses across various industries. Its core products include data-driven marketing platforms, social media advertising services, and performance analytics tools designed to optimize marketing strategies and improve ROI for clients.

How the Company Makes Money

Joy Spreader Group Inc. generates revenue primarily through its digital marketing services, including subscription fees for its marketing platforms, performance-based advertising revenues, and consulting fees for analytics and strategy optimization. Key revenue streams include monthly subscriptions from businesses utilizing its software solutions, a commission-based model for successful advertising campaigns, and contracts with large enterprises for customized marketing strategies. Additionally, partnerships with major social media platforms and advertising networks help the company expand its reach and enhance service offerings, contributing significantly to its earnings.

Joy Spreader Group Inc. Financial Statement Overview

Summary

Joy Spreader Group Inc. faces significant financial challenges, with declining revenues and profitability issues. The balance sheet shows low leverage, but negative return on equity and cash flow difficulties highlight the need for strategic improvements.

Income Statement

Joy Spreader Group Inc. has experienced significant revenue decline with a TTM revenue growth rate of -82.33%. The company is struggling with profitability, as indicated by negative net profit margins and EBIT margins over the periods. The gross profit margin has also deteriorated, indicating challenges in maintaining cost efficiency.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, suggesting conservative leverage. However, the return on equity is negative, reflecting poor profitability and potential risks in generating returns for shareholders. The equity ratio is relatively stable, indicating a decent level of financial stability.

Cash Flow

Cash flow performance is weak, with negative operating cash flow and free cash flow. The free cash flow to net income ratio is positive, indicating some ability to generate cash relative to net losses. However, the overall cash flow situation poses a risk to financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.98M	113.31M	5.08B	3.72B	1.40B	923.92M
Gross Profit	1.12M	-3.29M	446.41M	436.96M	451.85M	301.56M
EBITDA	-786.75M	-1.05B	-751.72M	-300.31M	262.88M	144.11M
Net Income	-798.84M	-1.07B	-784.17M	-339.12M	244.64M	138.68M
Balance Sheet
Total Assets	648.26M	822.23M	1.87B	2.80B	2.46B	2.28B
Cash, Cash Equivalents and Short-Term Investments	210.30M	230.40M	327.96M	576.00M	648.27M	1.21B
Total Debt	11.75M	22.17M	41.36M	43.08M	17.18M	21.04M
Total Liabilities	304.13M	403.07M	292.69M	384.04M	142.05M	121.69M
Stockholders Equity	432.97M	502.64M	1.60B	2.41B	2.32B	2.16B
Cash Flow
Free Cash Flow	-37.78M	-54.81M	-256.66M	-561.39M	-382.38M	-425.30M
Operating Cash Flow	-25.62M	-54.54M	-237.76M	-526.29M	-342.25M	-411.08M
Investing Cash Flow	-5.40M	-10.46M	41.03M	-91.95M	-78.86M	-20.54M
Financing Cash Flow	-26.67M	-18.46M	-18.06M	587.17M	-168.74M	1.50B

Joy Spreader Group Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6988, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, below the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.04 is Neutral, neither overbought nor oversold. The STOCH value of 68.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6988.

Joy Spreader Group Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1860	58 Neutral	HK$24.19B	-117.06	-11.77%	―	43.92%	-196.81%
1948	57 Neutral	HK$2.41B	18.86	8.02%	0.99%	40.20%	26.39%
1762	53 Neutral	HK$1.23B	473.33	0.45%	―	35.73%	-88.89%
1490	51 Neutral	HK$218.22M	-55.00	-0.67%	―	2.85%	-118.89%
6988	41 Neutral	HK$273.81M	-0.32	-96.45%	―	-99.64%	15.42%

Joy Spreader Group Inc. Corporate Events

Joy Spreader Group Inc. Faces Board Changes and Compliance Challenges

Joy Spreader Group Inc. announced the resignation of Mr. Tang Wei as an independent non-executive director and chairman of the Audit Committee, effective November 28, 2025, due to his other business commitments. This resignation results in non-compliance with certain Hong Kong Stock Exchange listing rules, as the company now has only two independent non-executive directors and two members on the Audit Committee. The company is actively seeking suitable candidates to fill these roles to ensure compliance. Additionally, the company has changed its registered office address to a new location in the Cayman Islands.

Joy Spreader Group Inc. Announces Board Composition and Roles

Joy Spreader Group Inc. has announced the composition of its board of directors and their respective roles within the company. This update on the board’s structure is significant as it outlines the leadership and governance framework, which is crucial for stakeholders to understand the company’s strategic direction and operational oversight.

Joy Spreader Group Inc. Announces EGM for Auditor Appointment

Joy Spreader Group Inc. has announced an extraordinary general meeting scheduled for December 10, 2025, to appoint HLB Hodgson Impey Cheng Limited as the company’s new auditor. This decision reflects the company’s ongoing efforts to ensure robust financial oversight and transparency, which could enhance stakeholder confidence and potentially strengthen its market position.

Joy Spreader Group Inc. Announces Change of Auditor to Enhance Cost-Effectiveness

Joy Spreader Group Inc. announced a change in its auditor, with Deloitte Touche Tohmatsu resigning and HLB Hodgson Impey Cheng Limited proposed as the new auditor. This change aims to control audit fee expenses and enhance the overall cost-effectiveness of the company, with no expected material impact on the preparation of the consolidated financial statements.