Creative China Holdings Ltd. (8368) AI Stock Analysis

• Market Cap: HK$190.67M
• Dividend Yield: N/A
• Average Volume (3M): 2.49M
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.43
• Revenue Growth: -27.68%
• EPS Growth: -77.19%
• Country: HK
• Employees: 35
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 577,797,700
• 10 Day Avg. Volume: 705,000
• 30 Day Avg. Volume: 2,485,546
• PEG Ratio: -0.25
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 2.51
• P/FCF Ratio: -9.25
• 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: 58 Neutral
• Price Target: HK$0.34 ▲(55.91% Upside)

The score is driven primarily by mixed financial performance—strong balance sheet and profitability are offset by weak cash flow and declining revenue. Technicals remain a headwind given the price sits below key longer-term moving averages with negative MACD, while valuation is moderate with a reasonable P/E.

Positive Factors

High gross and net margins

Sustained gross and net margins indicate the business can convert sales into profit efficiently, supporting internal reinvestment and resilience versus cost inflation. Durable margins provide a buffer while management addresses revenue weakness over the next several months.

Low leverage and strong equity base

A high equity ratio and minimal leverage give the company financial flexibility to fund operations, absorb shocks, or pursue strategic moves without heavy interest burdens. This structural balance-sheet strength reduces insolvency risk over a multi-month horizon.

Positive return on equity

ROE near 8% shows the company is generating returns on shareholders' capital, reflecting efficient use of equity in operations. This persistent profitability metric supports sustainable shareholder value creation if core revenue trends stabilize.

Negative Factors

Material revenue decline

Declining top-line reduces operating scale and pressures fixed-cost absorption, making margins harder to sustain and limiting cash available for investment. Unless revenue trends reverse, growth prospects and competitive positioning may deteriorate over several months.

No operating or free cash flow in 2024

Absence of operating/free cash flow forces reliance on financing for liquidity and investment, increasing vulnerability to funding constraints. Persistently weak cash generation undermines ability to sustain operations, pay down liabilities, or invest in growth strategies.

Declining cash reserves and rising debt need monitoring

Eroding cash and any uptick in debt erode the cushion from low leverage and limit strategic optionality. If revenue and cash flow remain weak, balance-sheet deterioration could force trade-offs between servicing debt, capex, and shareholder returns in the medium term.

Creative China Holdings Ltd. Business Overview & Revenue Model

Company Description

Creative China Holdings Limited, an investment holding company, primarily provides film and television program original script creation, adaptation, production and licensing, and related services in the People's Republic of China. The company operates through Program Production; Concert and Event Organisation; Mobile Live Broadcasting and E-commerce; and Artist Management segments. It also offers concert and event organization services, such as music concerts, prize presentation ceremony, automobile shows, university alumni, and other performance events. In addition, the company provides an electronic platform for entertainment contents consumption and e-commerce services, such as an online store; and online program production and advertising, and related services. Further, it offers agency services for the artists for arranging various performance activities. The company was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Creative China Holdings Ltd. generates revenue through multiple streams, including film and television production, where it earns income from box office sales, licensing fees, and distribution rights. The company also engages in event management, providing services for cultural and entertainment events, which contribute to its earnings through ticket sales, sponsorships, and service fees. Additionally, Creative China Holdings may establish partnerships with other media companies and brands to co-produce content or events, further enhancing its revenue potential. The growing interest in cultural and creative industries in Asia, along with strategic collaborations, positions the company to benefit from increased consumer spending on entertainment and cultural experiences.

Creative China Holdings Ltd. Financial Statement Overview

Summary

Mixed fundamentals: solid balance sheet strength (high equity ratio and low leverage) and still-positive profitability, but weakened by an 18.2% revenue decline in 2024 and particularly weak cash flow (no reported operating/free cash flow), raising liquidity and sustainability concerns.

Income Statement

Creative China Holdings Ltd. shows resilience with a consistent revenue base, although revenue declined in 2024 by 18.2% from the previous year. The company maintains healthy profitability metrics with a gross profit margin of 31.64% and a net profit margin of 16.11% for 2024. However, the decline in revenue and profit margins from 2023 indicates potential challenges in maintaining growth.

Balance Sheet

The company has a strong equity base with an equity ratio of 74.87% as of 2024, indicating solid financial stability. The debt-to-equity ratio is low at 0.11, suggesting manageable leverage. Return on Equity (ROE) is robust at 7.92%, highlighting effective use of equity to generate profits. However, the decline in cash reserves and increasing debt levels in 2024 need monitoring.

Cash Flow

Cash flow management appears challenging, with no reported operating or free cash flow in 2024. The absence of free cash flow growth and the previous reliance on financing activities to manage cash needs highlight liquidity concerns. Improving operational cash generation will be crucial for long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	134.55M	151.14M	184.80M	152.69M	59.31M	45.66M
Gross Profit	40.34M	47.85M	74.06M	72.65M	42.12M	39.56M
EBITDA	18.38M	25.60M	48.56M	63.74M	28.34M	27.74M
Net Income	17.25M	24.35M	43.85M	49.08M	23.56M	20.00M
Balance Sheet
Total Assets	410.66M	410.86M	363.50M	340.73M	244.49M	223.07M
Cash, Cash Equivalents and Short-Term Investments	11.36M	11.84M	25.66M	24.04M	6.13M	11.38M
Total Debt	28.65M	34.40M	18.37M	70.53M	26.42M	25.04M
Total Liabilities	109.76M	103.84M	102.24M	163.02M	148.98M	155.68M
Stockholders Equity	300.89M	307.66M	261.77M	176.22M	95.66M	67.49M
Cash Flow
Free Cash Flow	2.99M	-41.01M	5.58M	-19.05M	-13.47M	-23.57M
Operating Cash Flow	3.95M	-40.60M	5.60M	-18.54M	-9.43M	-23.53M
Investing Cash Flow	-6.68M	-392.00K	16.00K	7.00K	968.00K	1.97M
Financing Cash Flow	-3.81M	26.89M	-4.24M	35.84M	3.55M	21.72M

Creative China Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8368, the sentiment is Positive. The current price of 0.22 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.36, and below the 200-day MA of 0.59, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8368.

Creative China Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2230	66 Neutral	HK$450.60M	8.07	8.69%	6.04%	25.88%	0.69%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
8368	58 Neutral	HK$190.67M	10.15	5.92%	―	-27.68%	-77.19%
1046	51 Neutral	HK$353.59M	-5.60	-23.06%	―	29.39%	-107.44%
0391	48 Neutral	HK$592.37M	-16.13	-14.60%	―	-44.93%	30.34%
1159	48 Neutral	HK$336.20M	1.81	―	―	-57.01%	―
2125	47 Neutral	HK$293.01M	-7.06	-2.12%	―	-41.22%	54.66%