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

• Market Cap: HK$746.50M
• Dividend Yield: N/A
• Average Volume (3M): 64.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 4.83%
• EPS Growth: 60.57%
• Country: HK
• Employees: 35
• Sector: Financial
• Sector Strength: 70
• Industry: Entertainment
• EPS (TTM): -0.11
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$6.00 ▲(10.09% Upside)

The overall stock score is primarily impacted by poor financial performance, characterized by persistent losses and a leveraged balance sheet. While technical analysis shows some positive momentum, the overbought RSI suggests caution. The valuation is unattractive due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Despite challenges, the company shows potential for revenue growth, indicating some market demand and opportunities for expansion.

Gross Margin Improvement

Improved gross margins suggest better cost management, which can enhance profitability and support long-term financial health.

Operational Cash Generation

Positive operational cash flow indicates some ability to generate cash from core activities, which is crucial for sustaining operations.

Negative Factors

High Leverage

High leverage increases financial risk and can limit the company's ability to invest in growth opportunities, impacting long-term stability.

Negative Profit Margins

Persistent negative profit margins highlight ongoing profitability challenges, which can undermine financial sustainability and investor confidence.

Volatile Cash Flows

Volatile cash flows pose liquidity risks, affecting the company's ability to meet obligations and invest in growth, threatening long-term viability.

China 33 Media Group Ltd. Business Overview & Revenue Model

Company Description

China 33 Media Group Ltd. (8087) is a media and entertainment company based in China that focuses on the development, production, and distribution of various media content. The company operates primarily in the digital media sector, providing services such as online video streaming, content production, and advertising solutions. With a keen focus on leveraging technology to enhance user engagement, China 33 Media Group aims to cater to the growing demand for digital content across multiple platforms.

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

China 33 Media Group Ltd. faces significant challenges across its financial statements, with persistent losses, a leveraged balance sheet, and volatile cash flows. While there are minor improvements in gross margins and operational cash generation, the company needs 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: 5.45
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 5.45 is above the 20-day moving average (MA) of 5.33, below the 50-day MA of 5.70, and above the 200-day MA of 2.93, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 54.16 is Neutral, neither overbought nor oversold. The STOCH value of 81.72 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	48 Neutral	HK$746.50M	-10.24	-192.29%	―	4.83%	60.57%
1740	47 Neutral	HK$94.41M	―	-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	―	―	―	―
1326	39 Underperform	HK$70.08M	―	―	―	60.31%	-73.59%
9958	39 Underperform	HK$46.80M	―	―	―	-87.05%	72.21%