China Digital Video Ltd. (8280) AI Stock Analysis

• Market Cap: HK$42.66M
• Dividend Yield: N/A
• Average Volume (3M): 212.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -46.31%
• EPS Growth: 87.99%
• Country: HK
• Employees: 261
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 630,332,030
• 10 Day Avg. Volume: 121,000
• 30 Day Avg. Volume: 212,266
• PEG Ratio: 0.02
• Price to Book (P/B): -0.91
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 0.60
• 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: 43 Neutral
• Price Target: HK$0.07 ▼(-7.14% Downside)

The overall stock score of 43 reflects significant financial challenges, including declining revenues and persistent losses, which are the most impactful factors. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Cash Flow Improvement

Improvement in operating cash flow indicates better cash management and operational efficiency, which can support business sustainability.

Software Licensing Revenue

Licensing revenue provides a steady income stream and leverages the company's technological expertise, enhancing long-term growth potential.

Industry Demand

Increasing demand for video content and technology advancements support long-term growth opportunities in the digital video sector.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market competitiveness and customer retention, impacting long-term financial health.

High Debt Levels

High debt levels can strain financial resources and limit strategic flexibility, posing risks to long-term viability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and hinder the company's ability to achieve sustainable profitability.

China Digital Video Ltd. Business Overview & Revenue Model

Company Description

China Digital Video Holdings Limited, an investment holding company, engages in the research, development, and sale of video-related and broadcasting equipment and software to television broadcasters, media operators, and other digital video content providers in the People's Republic of China. The company offers graphics creation, video capture and editing, and visual effects and video compositing products; and convergent media, news workflow, studio, program production, entertainment, sports and events, media management, digital broadcast automation, multi-functional platform, media operation, and professional application solutions. It also provides cloud platform, post-production, visual art integration, show field production, games broadcast television and games information system, media assets cataloguing, and sports events data sharing system services. The company was formerly known as China Digital Video Limited. China Digital Video Holdings Limited was founded in 1990 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Digital Video Ltd. generates revenue through multiple streams, primarily from the sale of its proprietary video technology solutions and services. The company earns income by licensing its software to telecommunications companies and media providers, which utilize its advanced video processing and streaming capabilities. Additionally, the company engages in partnerships with major content distributors and broadcasters, providing them with essential tools to optimize their video delivery systems. Revenue is further bolstered by the provision of maintenance services and technical support for its products, ensuring ongoing customer engagement and satisfaction. The growing demand for high-quality video content and advancements in digital broadcasting technologies also contribute to the company's earnings potential.

China Digital Video Ltd. Financial Statement Overview

Summary

China Digital Video Ltd. faces significant financial challenges, with declining revenues, persistent losses, and a heavily leveraged balance sheet. While there are some improvements in cash flow, the overall financial health remains weak, with high risks due to negative equity and operational inefficiencies.

Income Statement

The company has been experiencing declining revenues with a negative revenue growth rate of -7.79% in the latest period. Gross profit margins have slightly improved over the years but remain low at 21.27%. Net profit margins are significantly negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in achieving profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity and a high debt-to-equity ratio of -4.89, indicating financial instability. Return on equity is positive due to negative equity, but this is misleading as it reflects significant losses. The equity ratio is negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows some improvement with positive operating cash flow in the latest period. However, free cash flow growth is negative, and the operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is close to 1, suggesting that cash flow is not significantly worse than reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.95M	134.58M	145.95M	260.33M	249.66M	312.04M
Gross Profit	9.19M	28.62M	23.02M	55.02M	45.64M	53.81M
EBITDA	-20.12M	-31.95M	-50.80M	-79.48M	-13.21M	19.76M
Net Income	-12.50M	-28.00M	-147.40M	-111.01M	-148.26M	-69.09M
Balance Sheet
Total Assets	408.43M	413.73M	522.50M	547.34M	652.95M	848.17M
Cash, Cash Equivalents and Short-Term Investments	156.66M	170.66M	151.07M	199.00M	31.19M	125.59M
Total Debt	129.49M	191.38M	197.17M	165.27M	140.01M	232.59M
Total Liabilities	486.64M	449.72M	529.24M	405.14M	413.99M	501.92M
Stockholders Equity	-80.02M	-39.11M	-12.41M	135.25M	234.06M	343.14M
Cash Flow
Free Cash Flow	72.18M	59.99M	-112.12M	-3.53M	-17.19M	21.30M
Operating Cash Flow	72.46M	60.21M	-109.34M	-1.02M	23.74M	31.96M
Investing Cash Flow	12.71M	18.64M	-39.21M	176.66M	-35.80M	116.84M
Financing Cash Flow	-101.37M	-88.89M	114.46M	-13.14M	-82.33M	-46.94M

China Digital Video Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8280, the sentiment is Negative. The current price of 0.07 is above the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.08, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.62 is Neutral, neither overbought nor oversold. The STOCH value of 32.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8280.

China Digital Video Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
1740	47 Neutral	HK$95.45M	-0.94	-77.19%	―	-77.93%	11.26%
1616	45 Neutral	HK$129.09M	-3.08	―	―	-29.79%	-146.84%
8280	43 Neutral	HK$42.66M	-2.31	―	―	-46.31%	87.99%
8172	42 Neutral	HK$79.97M	-3.64	-27.50%	―	-86.40%	53.43%
1566	41 Neutral	HK$60.28M	-0.66	―	―	―	―
9958	39 Underperform	HK$58.68M	-1.28	―	―	-87.05%	72.21%