China 33 Media Group Ltd. (8087) AI Stock Analysis

• Market Cap: HK$746.50M
• Dividend Yield: N/A
• Average Volume (3M): 583.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.86
• Revenue Growth: 0.20%
• EPS Growth: 57.51%
• Country: HK
• Employees: 35
• Sector: Communication Services
• Sector Strength: 75
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 129,600,000
• 10 Day Avg. Volume: 491,656
• 30 Day Avg. Volume: 583,685
• PEG Ratio: -0.39
• Price to Book (P/B): 4.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -251.92
• 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$1.00
• Price Target Upside: -82.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: HK$6.00 ▲(4.90%Upside)

The overall stock score is primarily impacted by the company's weak financial performance, marked by persistent losses and financial instability. While technical analysis indicates strong market momentum, this is overshadowed by the significant financial challenges and unattractive valuation metrics.

China 33 Media Group Ltd. Business Overview & Revenue Model

Company Description

China 33 Media Group Limited, an investment holding company, provides advertising services in Hong Kong, the People's Republic of China, and internationally. It operates through Printed Media Advertising, Outdoor and Digital Advertising, Film and Entertainment Investment, and Prepaid Card segments. The Printed Media Advertising segment sells advertising spaces in magazines distributed in train services in the People's Republic of China. The Outdoor and Digital Advertising segment sells advertising spaces on the billboards and LEDs installed at various railway stations, and conducts promotion campaigns in train stations, as well as provides online advertising through mobile applications and websites etc. The Film and Entertainment Investment segment engages in the investment for profit sharing on box office of movies and concerts; and distribution of film rights and television dramas. The Prepaid Card segment offers prepaid card services. The company also provides consulting and management services. China 33 Media Group Limited was incorporated in 2010 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China 33 Media Group Ltd. generates revenue through a diverse range of advertising services. One of its key revenue streams is the sale of advertising space across different media platforms, including in-flight magazines, airport billboards, and digital media channels. The company collaborates with airlines and airports to provide advertisers with access to a captive audience, thus enabling brands to reach travelers effectively. Additionally, the company may engage in partnerships with other media firms or service providers to expand its content distribution network and enhance its service offerings. Factors contributing to its earnings include strategic partnerships with airlines and airports, as well as the ability to offer comprehensive advertising packages that cater to the specific needs of its clients.

China 33 Media Group Ltd. Financial Statement Overview

Summary

The company's financial performance is poor, with ongoing challenges in profitability, negative net profit margins, a leveraged balance sheet, and unstable cash flows. Minor improvements in gross margins and operational cash generation are not enough to offset these weaknesses.

Income Statement

The Income Statement reflects continuous challenges with profitability. Despite a slight increase in revenue from 2023 to 2024, the company has been struggling with negative EBIT and net income. Gross profit margin improved in 2024, indicating some cost management improvements, but overall net profit margins remain significantly negative, highlighting persistent losses. Revenue growth has been inconsistent, further impacting financial stability.

Balance Sheet

The Balance Sheet shows a concerning financial structure with a low equity ratio and a high debt-to-equity ratio, reflecting significant leverage. The company's stockholders' equity has been declining, suggesting prolonged financial stress. Despite maintaining a reasonable cash position, the high liabilities relative to assets indicate ongoing risk.

Cash Flow

Cash Flow analysis reveals fluctuations in free cash flow, with negative free cash flow in 2024 indicating potential liquidity issues. Operating cash flow relative to net income is positive, suggesting some operational cash generation capability, but overall cash flow stability is weak, posing risks to long-term sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.45M	34.61M	71.05M	97.94M	95.22M
Gross Profit	23.50M	15.79M	14.20M	12.69M	6.83M
EBITDA	-33.02M	-52.37M	-17.06M	-53.83M	-117.53M
Net Income	-23.09M	-55.69M	-94.62M	-170.79M	-123.67M
Balance Sheet
Total Assets	361.60M	273.41M	364.88M	343.93M	410.06M
Cash, Cash Equivalents and Short-Term Investments	42.84M	32.37M	15.67M	32.16M	33.91M
Total Debt	19.22M	13.79M	12.55M	11.21M	10.92M
Total Liabilities	331.23M	239.01M	280.85M	217.85M	173.26M
Stockholders Equity	32.84M	35.88M	85.48M	127.48M	237.95M
Cash Flow
Free Cash Flow	-1.33M	9.33M	-13.76M	47.28M	29.90M
Operating Cash Flow	1.25M	9.93M	-13.76M	47.98M	31.49M
Investing Cash Flow	4.54M	5.87M	4.55M	-51.83M	-47.76M
Financing Cash Flow	-341.00K	-2.12M	-884.00K	-2.10M	17.03M

China 33 Media Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8087, the sentiment is Positive. The current price of 5.72 is above the 20-day moving average (MA) of 4.24, above the 50-day MA of 2.23, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of 1.15 indicates Negative momentum. The RSI at 73.55 is Negative, neither overbought nor oversold. The STOCH value of 77.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8087.

China 33 Media Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$42.98B	-1.93	-13.49%	4.03%	2.81%	-64.88%
8087	59 Neutral	HK$746.50M	―	-67.25%	―	0.20%	57.51%
1616	43 Neutral	HK$64.55M	―	-21.00%	―	-29.79%	-146.84%
1566	41 Neutral	HK$60.28M	―		―	11.17%	89.08%
1326	39 Underperform	HK$111.61M	―		―	60.31%	-73.59%
1740	39 Underperform	HK$62.25M	―	-76.84%	―	-91.55%	1.34%
9958	38 Underperform	HK$140.40M	―	-372.16%	―	-87.05%	72.21%