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

• Market Cap: HK$1.04B
• Dividend Yield: N/A
• Average Volume (3M): 64.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 4.83%
• EPS Growth: 60.57%
• Country: HK
• Employees: 35
• Sector: Financial
• Sector Strength: 70
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 129,600,000
• 10 Day Avg. Volume: 37,000
• 30 Day Avg. Volume: 64,732
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -9.42
• 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: 50 Neutral
• Price Target: HK$7.50 ▲(22.95% Upside)

The score is held back primarily by weak financial performance (ongoing losses, high leverage, and unstable/negative free cash flow). Technicals provide partial support due to strong momentum above key moving averages, but overbought signals raise near-term downside risk. Valuation is constrained by unprofitability and the lack of a stated dividend yield.

Positive Factors

Diversified revenue streams

Multiple monetization channels (subscriptions, advertising, creator partnerships) provide structural revenue diversification. Over the medium term this reduces reliance on a single income source, supports recurring revenue potential, and enhances resilience versus single-product media peers as the digital market evolves.

Improving gross margin and operating cash generation

An improving gross margin combined with positive operating cash flow versus net income indicates better cost control and some operational cash conversion. Structurally, this supports the company’s ability to fund content and platform investments without immediate reliance on external financing if trends persist.

Digital-first content strategy

A clear digital media and technology focus aligns with long-term secular growth in online video and streaming. This business model is scalable, benefits from platform effects and lower incremental distribution costs, and positions the company to capture expanding digital ad and subscription markets.

Negative Factors

Persistent unprofitability

Ongoing negative EBIT and net losses undermine long-term self-sufficiency, forcing reliance on financing or dilution to sustain operations. Persistent unprofitability also constrains reinvestment in content and product development, weakening competitive position if not reversed.

High leverage and declining equity

Significant leverage and falling equity reduce financial flexibility and increase insolvency risk during stress. Higher debt burdens raise interest and refinancing risks, limiting the company's ability to invest in content or technology and making it more vulnerable to sector downturns.

Volatile, negative free cash flow

Negative and volatile free cash flow erodes liquidity and forces dependence on external capital to fund operations and content spending. Over months, this can lead to dilution, higher financing costs, or curtailed investment, all of which impede scalable growth in a content-driven business.

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 generates revenue through multiple key streams, including subscription fees from its online video streaming services, advertising revenue from digital platforms, and partnerships with content creators for production and distribution. The company monetizes its content by offering premium subscriptions that provide exclusive access to certain programs or series. Additionally, it earns significant income from advertising partnerships, where brands pay to promote their products within the company's digital content. Strategic collaborations with other media entities and advertisers further enhance its revenue potential, allowing China 33 Media Group to leverage its audience reach and content library.

China 33 Media Group Ltd. Financial Statement Overview

Summary

The company faces significant challenges across its financial statements, with persistent losses, a leveraged balance sheet, and volatile cash flows. Minor improvements in gross margins and operational cash generation are overshadowed by the need for substantial strategic shifts to enhance profitability and financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	35.20M	35.45M	34.61M	71.05M	97.94M	95.22M
Gross Profit	23.21M	23.50M	15.79M	14.20M	12.69M	6.83M
EBITDA	-37.11M	-33.02M	-52.37M	-28.93M	-52.81M	-117.53M
Net Income	-29.20M	-23.09M	-55.69M	-57.47M	-113.15M	-123.67M
Balance Sheet
Total Assets	463.35M	361.60M	273.41M	364.88M	343.93M	410.06M
Cash, Cash Equivalents and Short-Term Investments	50.85M	42.84M	32.37M	15.67M	32.16M	33.91M
Total Debt	2.89M	19.22M	13.79M	12.55M	11.21M	10.92M
Total Liabilities	462.64M	331.23M	239.01M	280.85M	217.85M	173.26M
Stockholders Equity	2.25M	32.84M	35.88M	85.48M	127.48M	237.95M
Cash Flow
Free Cash Flow	43.45M	-1.33M	9.33M	-13.76M	47.28M	29.90M
Operating Cash Flow	46.03M	1.25M	9.93M	-13.76M	47.98M	31.49M
Investing Cash Flow	14.08M	4.54M	5.87M	4.55M	-51.83M	-47.76M
Financing Cash Flow	-16.57M	-341.00K	-2.12M	-884.00K	-2.10M	17.03M

China 33 Media Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 6.1 is above the 20-day moving average (MA) of 5.72, above the 50-day MA of 5.53, and above the 200-day MA of 3.73, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 90.04 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, 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 *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8087	50 Neutral	HK$1.04B	-14.23	-192.29%	―	4.83%	60.57%
1740	47 Neutral	HK$95.45M	-0.98	-77.19%	―	-77.93%	11.26%
1616	45 Neutral	HK$129.09M	-3.08	―	―	-29.79%	-146.84%
1566	41 Neutral	HK$60.28M	-0.66	―	―	―	―
9958	39 Underperform	HK$58.68M	-1.05	―	―	-87.05%	72.21%
1326	39 Underperform	HK$70.08M	-0.21	―	―	60.31%	-73.59%