Lajin Entertainment Network Group Limited (8172) AI Stock Analysis

• Market Cap: HK$126.27M
• Dividend Yield: N/A
• Average Volume (3M): 197.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -86.40%
• EPS Growth: 53.43%
• Country: HK
• Employees: 48
• Sector: Communication Services
• Sector Strength: 96
• Industry: Entertainment
• EPS (TTM): >-0.01
• Shares Outstanding: 420,913,120
• 10 Day Avg. Volume: 233,407
• 30 Day Avg. Volume: 197,021
• PEG Ratio: 2.59
• Price to Book (P/B): 21.27
• Price to Sales (P/S): 394.70
• P/FCF Ratio: -103.34
• 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

• Rating: 45 Neutral
• Price Target: ―

Lajin Entertainment Network Group Limited scores low due to significant financial challenges, including declining revenues, negative margins, and cash flow issues. Technical analysis indicates some short-term positive momentum, but the overall trend remains weak. Valuation metrics are unattractive with a negative P/E ratio and no dividend yield, further impacting the stock's appeal.

Positive Factors

Debt-Free Balance Sheet

Having no debt enhances financial flexibility and reduces risk, allowing the company to navigate financial challenges without the burden of interest payments.

Diverse Revenue Streams

Multiple revenue streams from diverse sectors like film, TV, and streaming provide resilience against sector-specific downturns and support long-term growth.

Artist Management Income

Artist management provides a steady income stream, leveraging talent representation to generate consistent revenue, supporting overall financial stability.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in market demand or competitive positioning, impacting long-term growth prospects and financial health.

Negative Cash Flow

Negative cash flow indicates the company is not generating enough cash to sustain operations, posing risks to financial stability and future investments.

Negative Profit Margins

Ongoing negative profit margins highlight operational inefficiencies and profitability challenges, threatening long-term viability and shareholder value.

Lajin Entertainment Network Group Limited Business Overview & Revenue Model

Company Description

Lajin Entertainment Network Group Limited, an investment holding company, provides movies, TV program, and Internet contents services in Mainland China and Hong Kong. The company operates through three segments: Artiste Management; Movies, TV Programmes and Internet Contents; and New Media E-Commerce. It is also involved in the investment, production, and distribution of movies and TV programs; investment in Internet contents; and promotion and demonstration through live video on the website, as well as digital technology business. In addition, the company engages in the business of cultural and entertainment media contents, as well as sourcing and production of media contents. The company was formerly known as China Star Cultural Media Group Limited and changed its name to Lajin Entertainment Network Group Limited in August 2015. Lajin Entertainment Network Group Limited was incorporated in 2001 and is headquartered in Admiralty, Hong Kong.

How the Company Makes Money

Lajin Entertainment Network Group Limited generates revenue through multiple streams within the entertainment industry. The company earns money from the production and distribution of films and television programs, including box office sales, licensing deals, and distribution agreements. Additionally, it manages artists, deriving income from talent representation and related services. Furthermore, Lajin operates an online streaming platform, which generates revenue through subscription fees, advertising, and content licensing. Significant partnerships with content creators and distributors enhance its ability to monetize intellectual property and expand market reach, contributing to its earnings.

Lajin Entertainment Network Group Limited Financial Statement Overview

Summary

Lajin Entertainment Network Group Limited faces significant financial challenges, with declining revenue, negative margins, and cash flow issues. The company has no debt, which is positive, but the persistent negative earnings and cash flows raise concerns about sustainability and growth potential.

Income Statement

Lajin Entertainment Network Group Limited has shown significant volatility in its income statement metrics. The company has experienced declining revenue over recent years, with a sharp drop in 2024. Gross profit margin and net profit margins remain negative, reflecting ongoing profitability challenges. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and a lack of profitability.

Balance Sheet

The balance sheet of Lajin Entertainment Network Group Limited reflects a relatively stable equity position, but with declining total assets over the years. The company has zero debt, which is a positive indicator of financial prudence, but declining stockholders' equity suggests potential value erosion. The equity ratio remains stable, indicating adequate equity financing, but the declining trend in assets and equity is concerning.

Cash Flow

Cash flow analysis shows persistent negative free cash flow, indicating that the company is not generating sufficient cash from operations to cover its investments. The operating cash flow to net income ratio is negative, highlighting challenges in converting income into cash. The lack of free cash flow growth further emphasizes financial strain.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.33M	28.91M	10.53M	68.34M	20.66M
Gross Profit	503.00K	9.05M	-18.75M	-41.50M	-4.71M
EBITDA	-26.65M	-36.47M	-92.67M	-128.47M	-117.44M
Net Income	-31.28M	-42.22M	-102.69M	-140.13M	-131.23M
Balance Sheet
Total Assets	136.26M	184.75M	224.51M	344.86M	473.17M
Cash, Cash Equivalents and Short-Term Investments	7.63M	26.34M	31.94M	50.68M	87.04M
Total Debt	0.00	0.00	0.00	821.00K	2.31M
Total Liabilities	58.99M	66.32M	70.43M	70.17M	68.40M
Stockholders Equity	98.95M	134.19M	161.85M	285.95M	407.30M
Cash Flow
Free Cash Flow	-20.37M	-7.80M	-19.69M	-47.98M	-42.27M
Operating Cash Flow	-20.35M	-7.73M	-18.54M	-44.33M	-41.19M
Investing Cash Flow	-19.00K	4.55M	1.46M	1.57M	-1.47M
Financing Cash Flow	0.00	0.00	-781.00K	-1.54M	-1.50M

Lajin Entertainment Network Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8172, the sentiment is Positive. The current price of 0.34 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.27, and below the 200-day MA of 0.34, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 80.33 is Negative, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8172.

Lajin Entertainment Network Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$47.27B	4.55	-11.27%	4.14%	1.88%	-40.90%
8087	59 Neutral	HK$701.14M	―	-192.29%	―	4.83%	60.57%
0953	51 Neutral	HK$425.88M	300.00	0.29%	―	206.38%	―
1132	46 Neutral	HK$257.57M	―	24.24%	―	-7.90%	93.34%
0491	46 Neutral	HK$122.11M	―		―	-7.95%	-89.82%
8172	45 Neutral	HK$126.27M	―	-27.50%	―	-86.40%	53.43%
1326	39 Underperform	HK$109.02M	―		―	60.31%	-73.59%