Bingo Group Holdings Limited (8220) AI Stock Analysis

• Market Cap: HK$400.68M
• Dividend Yield: N/A
• Average Volume (3M): 177.27K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.37
• Revenue Growth: 422.32%
• EPS Growth: -15.81%
• Country: HK
• Employees: 37
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.12
• Shares Outstanding: 103,802,400
• 10 Day Avg. Volume: 223,895
• 30 Day Avg. Volume: 177,266
• PEG Ratio: -0.23
• Price to Book (P/B): -13.02
• Price to Sales (P/S): 31.01
• P/FCF Ratio: 13.55
• 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: 50 Neutral
• Price Target: HK$4.50 ▲(10.29% Upside)

Bingo Group Holdings Limited's overall stock score is primarily impacted by its poor financial performance, characterized by high leverage and negative profitability. While technical indicators are positive, suggesting potential short-term price strength, the negative valuation metrics and financial risks weigh heavily on the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for the company's services and potential for market expansion, supporting long-term business sustainability.

Cash Flow Improvements

Improving cash flow suggests better operational efficiency and the ability to support business operations and investments, enhancing financial resilience.

Operational Cash Generation

Positive operational cash generation indicates the company's core business can generate cash, crucial for funding growth and managing debt.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Negative Equity

Negative equity indicates financial instability, which can hinder the company's ability to secure financing and support long-term growth.

Profitability Challenges

Ongoing profitability challenges suggest operational inefficiencies, which could impede sustainable growth and long-term viability.

Bingo Group Holdings Limited Business Overview & Revenue Model

Company Description

Bingo Group Holdings Limited, an investment holding company, engages in the cinema investment and management business in the People's Republic of China and Hong Kong. The company operates through two segments, Cinema Investment and Management; and Filmed Entertainment, New Media Exploitations and Licensing Businesses. It engages in movie production; licensing and derivatives; crossover marketing; the provision of interactive content; artist development; last miles engagement; and cartoon and movie production activities. The company is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

Bingo Group Holdings Limited generates revenue through multiple streams, primarily from the operation of electronic gaming machines and gaming software solutions. The company earns money by leasing gaming equipment to casinos and gaming operators, which pay a percentage of the revenue generated from these machines. Additionally, the company may receive income from sales of gaming-related technology and software, as well as maintenance services for its products. Significant partnerships with casinos and gaming establishments enhance its market presence and contribute to steady revenue generation. The company's ability to adapt to evolving market trends and regulatory changes also plays a crucial role in sustaining its earnings.

Bingo Group Holdings Limited Financial Statement Overview

Summary

Bingo Group Holdings Limited shows strong revenue growth but faces significant profitability and financial stability challenges. High leverage and negative equity increase financial risk, while cash flow improvements provide some positive outlook. Overall, the company needs to address operational inefficiencies and financial structure to improve its financial health.

Income Statement

Bingo Group Holdings Limited shows a significant revenue growth rate of 73.4% in the latest year, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative net profit margins (-177.0%) and EBIT margins (-160.7%). The consistent negative margins suggest ongoing operational challenges and inefficiencies.

Balance Sheet

The balance sheet reveals high leverage with a negative debt-to-equity ratio, indicating more debt than equity, which poses a financial risk. The negative stockholders' equity and high return on equity (74.3%) are concerning, as they result from negative equity rather than operational efficiency. The equity ratio is also negative, reflecting financial instability.

Cash Flow

The cash flow statement shows improvement in free cash flow, with a growth rate of -22.2%, indicating a reduction in negative cash flow. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is nearly 1, indicating that cash flow is closely tied to net income, which is negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.11M	12.11M	7.85M	5.52M	8.49M	6.86M
Gross Profit	6.17M	6.17M	4.32M	3.22M	4.85M	3.87M
EBITDA	-19.48M	-19.44M	-9.27M	-6.47M	-10.93M	-19.97M
Net Income	-21.45M	-21.45M	-12.78M	-9.03M	-13.78M	-21.49M
Balance Sheet
Total Assets	53.39M	53.39M	14.88M	24.16M	35.41M	43.95M
Cash, Cash Equivalents and Short-Term Investments	40.23M	40.23M	13.59M	22.99M	11.82M	15.30M
Total Debt	18.70M	18.70M	17.35M	14.97M	18.70M	23.05M
Total Liabilities	85.11M	85.11M	28.80M	26.28M	30.76M	35.13M
Stockholders Equity	-28.86M	-28.86M	-12.27M	-2.48M	5.80M	9.40M
Cash Flow
Free Cash Flow	27.72M	27.72M	-8.21M	-2.70M	-8.53M	-13.01M
Operating Cash Flow	27.72M	27.72M	-8.20M	-2.57M	-8.52M	-13.01M
Investing Cash Flow	1.00K	1.00K	213.00K	14.78M	3.41M	1.45M
Financing Cash Flow	-952.00K	-952.00K	-1.34M	-766.00K	1.31M	-11.94M

Bingo Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8220, the sentiment is Negative. The current price of 4.08 is below the 20-day moving average (MA) of 4.17, above the 50-day MA of 4.05, and above the 200-day MA of 3.86, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 26.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8220.

Bingo Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8368	61 Neutral	HK$317.79M	16.92	5.92%	―	-27.68%	-77.19%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1046	51 Neutral	HK$389.85M	―	-23.06%	―	29.39%	-107.44%
8220	50 Neutral	HK$400.68M	-18.47	―	―	422.32%	-15.81%
0391	48 Neutral	HK$633.84M	-11.15	-14.60%	―	-44.93%	30.34%
8172	45 Neutral	HK$79.97M	―	-27.50%	―	-86.40%	53.43%
1159	43 Neutral	HK$326.27M	1.75	―	―	-57.01%	―