Luk Hing Entertainment Group Holdings Limited (8052) AI Stock Analysis

• Market Cap: HK$31.25M
• Dividend Yield: N/A
• Average Volume (3M): 91.17K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.30
• Revenue Growth: 22.45%
• EPS Growth: -94.85%
• Country: HK
• Employees: 87
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): N/A
• Shares Outstanding: 548,256,000
• 10 Day Avg. Volume: 74,000
• 30 Day Avg. Volume: 91,166
• PEG Ratio: 0.02
• Price to Book (P/B): -1.25
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 1.23
• 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: 53 Neutral
• Price Target: HK$0.06 ▼(-3.33% Downside)

The overall stock score reflects financial challenges with negative profitability and equity, despite revenue growth and improved cash flow. Technical indicators show positive momentum, but valuation concerns due to a high P/E ratio and lack of dividend yield weigh on the score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates the company's expanding market reach and successful content distribution, which supports long-term business sustainability.

Cash Flow Improvement

Improved cash flow from operations suggests better cash management and operational efficiency, enhancing the company's ability to fund growth and manage debt.

Strong Gross Profit Margin

A strong gross profit margin indicates effective cost management and pricing power, providing a buffer against operational inefficiencies and supporting profitability.

Negative Factors

Negative Net Income

Negative net income reflects operational challenges and inefficiencies, which can hinder long-term profitability and limit reinvestment capabilities.

Negative Equity

Negative equity suggests potential solvency issues and financial risk, which can limit the company's ability to secure financing and invest in growth.

Reliance on Debt

High reliance on debt financing increases financial risk and interest obligations, potentially impacting cash flow and limiting strategic flexibility.

Luk Hing Entertainment Group Holdings Limited Business Overview & Revenue Model

Company Description

Luk Hing Entertainment Group Holdings Limited (8052) is a Hong Kong-based entertainment company primarily engaged in the production and distribution of films and television programs. The company operates within the broader media and entertainment sector, focusing on creating content that appeals to diverse audiences. In addition to its core film and television activities, Luk Hing also explores opportunities in digital media and entertainment-related services, enhancing its portfolio and market reach.

How the Company Makes Money

Luk Hing Entertainment Group generates revenue through multiple streams primarily centered around its film and television production and distribution activities. The company earns money by producing original content, which is then sold to broadcasters and streaming platforms both domestically and internationally. Additionally, revenue is generated through licensing agreements, where Luk Hing licenses its content for various media formats. The company may also engage in co-productions with other studios, sharing costs and profits, and leveraging partnerships to enhance distribution capabilities. Merchandise sales related to its productions and potential advertising revenue from media platforms further contribute to its overall earnings.

Luk Hing Entertainment Group Holdings Limited Financial Statement Overview

Summary

The company shows strong revenue growth and improved cash flow management. However, negative net income, significant operating losses, and negative equity indicate financial instability and potential solvency issues.

Income Statement

The company has shown a positive revenue growth rate from 2023 to 2024, with revenue increasing from HKD 95.75 million to HKD 123.29 million, indicating a growth rate of approximately 28.8%. However, profitability metrics are concerning, with negative net income for the latest period. The gross profit margin is strong at 70.3%, but the net profit margin is negative due to significant operating losses. The negative EBIT and EBITDA margins suggest challenges in operational efficiency.

Balance Sheet

The balance sheet reflects financial instability with negative stockholders' equity of HKD -16.27 million, indicating potential solvency issues. The debt-to-equity ratio is not applicable due to negative equity, and the equity ratio is also negative, highlighting reliance on debt financing. These factors suggest financial risk and potential difficulty in meeting long-term obligations.

Cash Flow

Cash flow from operations improved significantly to HKD 16.76 million in 2024 from a negative position in 2023, indicating a positive turnaround in cash generation. The free cash flow is robust at HKD 16.46 million, suggesting improved cash management. However, the free cash flow to net income ratio is skewed due to negative net income, which limits an accurate assessment of cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	151.59M	123.29M	95.75M	58.59M	160.41M	158.37M
Gross Profit	101.90M	86.69M	61.49M	31.31M	106.64M	101.60M
EBITDA	-3.93M	3.05M	33.20M	-17.34M	-40.11M	11.11M
Net Income	-2.47M	-9.37M	14.90M	-32.09M	-72.00M	-31.76M
Balance Sheet
Total Assets	16.12M	25.55M	22.95M	41.60M	111.48M	225.42M
Cash, Cash Equivalents and Short-Term Investments	750.00K	3.97M	846.00K	626.00K	2.03M	11.85M
Total Debt	18.25M	24.15M	23.92M	42.71M	85.36M	135.01M
Total Liabilities	48.81M	58.08M	44.99M	149.32M	172.15M	221.21M
Stockholders Equity	-8.80M	-16.27M	-7.58M	-71.60M	-38.77M	16.46M
Cash Flow
Free Cash Flow	13.85M	16.46M	-6.08M	-1.18M	5.28M	6.37M
Operating Cash Flow	14.15M	16.76M	-4.96M	-42.00K	9.18M	21.36M
Investing Cash Flow	6.88M	6.71M	-1.22M	-2.50M	-5.97M	-22.88M
Financing Cash Flow	-20.77M	-20.35M	4.04M	1.18M	-10.73M	-11.91M

Luk Hing Entertainment Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8052, the sentiment is Positive. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8052.

Luk Hing Entertainment Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1655	67 Neutral	HK$135.00M	―	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8400	60 Neutral	HK$38.00M	8.64	24.70%	―	28.47%	-4.35%
8052	53 Neutral	HK$31.25M	38.00	―	―	22.45%	-94.85%
8308	49 Neutral	HK$113.88M	―	-34.01%	―	-0.31%	34.83%
0070	47 Neutral	€116.33M	―	-10.06%	―	1.24%	-96.15%
0959	20 Underperform	HK$92.34M	-2.02	―	―	―	63.51%