AV Promotions Holdings Limited (8419) AI Stock Analysis

• Market Cap: HK$31.20M
• Dividend Yield: N/A
• Average Volume (3M): 4.83K
• Price to Earnings (P/E): 17.0
• Beta (1Y): 0.93
• Revenue Growth: -6.40%
• EPS Growth: N/A
• Country: HK
• Employees: 135
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): <0.01
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 10,000
• 30 Day Avg. Volume: 4,833
• PEG Ratio: -0.10
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 1.57
• 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: 52 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall score is driven primarily by financial performance and technical analysis. The company's improvements in cash flow and leverage management are positive, but the decline in revenue and potential overbought technical indicators are concerns. Valuation is reasonable but lacks dividend appeal.

AV Promotions Holdings Limited Business Overview & Revenue Model

Company Description

AV Promotions Holdings Limited (8419) is a dynamic company primarily engaged in the marketing and promotion of various consumer products and services. Operating within the promotional and advertising sectors, the company specializes in creating innovative marketing campaigns and strategies that enhance brand visibility and consumer engagement. Its core offerings include event management, digital marketing solutions, and promotional merchandise, catering to both local and international clients across diverse industries.

How the Company Makes Money

AV Promotions Holdings Limited generates revenue through multiple channels, including service fees from event management and promotion, commissions on sales generated through marketing campaigns, and income from the sale of promotional merchandise. The company leverages strategic partnerships with brands and businesses, enhancing its service offerings and expanding its client base. Key revenue streams include bespoke marketing solutions tailored to client needs, digital advertising services, and hosting events that attract sponsorships and ticket sales. Additionally, the company may benefit from long-term contracts with clients for ongoing promotional services, providing a stable income source.

AV Promotions Holdings Limited Financial Statement Overview

Summary

AV Promotions Holdings Limited shows improvements in profitability and cash generation, particularly with cash flow strength and better leverage management. However, the decline in revenue and the need for further profitability enhancement are concerns.

Income Statement

The income statement reveals mixed performance. Gross profit margin increased from 15.63% in 2023 to 23.38% in 2024, indicating an improvement in cost management. However, revenue showed a decline of 9.58% from 2023 to 2024, and net profit margin remained low at 1.40% for 2024 despite recovering from a negative margin in 2023. EBIT margin turned positive at 3.80% in 2024, showing operational improvement. The company needs to stabilize revenue and further enhance profitability.

Balance Sheet

The balance sheet is moderately stable. The debt-to-equity ratio improved slightly from 1.87 in 2023 to 1.13 in 2024, indicating better leverage management. However, the equity ratio decreased from 24.23% in 2023 to 31.67% in 2024, reflecting a reduced proportion of equity-financed assets. Return on equity improved significantly, moving from negative to a positive 3.02% as net income turned positive. The company should continue to focus on strengthening its equity position.

Cash Flow

Cash flow analysis shows positive trends. Free cash flow grew significantly by 123.33% from 2023 to 2024, driven by improved operating cash flow. The operating cash flow to net income ratio improved to 19.29, showing strong cash generation relative to net income. The company is effectively generating cash, although it should continue to manage capital expenditures wisely.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.63M	125.89M	139.24M	94.37M	166.59M	123.26M
Gross Profit	28.77M	29.43M	21.77M	-17.62M	25.93M	39.28M
EBITDA	25.07M	29.84M	25.82M	-32.01M	13.17M	33.42M
Net Income	1.84M	1.76M	-12.37M	-53.53M	-9.72M	7.15M
Balance Sheet
Total Assets	186.27M	184.30M	240.88M	246.16M	303.46M	297.66M
Cash, Cash Equivalents and Short-Term Investments	5.28M	48.46M	7.34M	12.85M	19.41M	17.23M
Total Debt	62.84M	65.91M	109.35M	99.19M	106.63M	95.94M
Total Liabilities	124.11M	125.94M	182.53M	174.89M	174.33M	163.61M
Stockholders Equity	62.16M	58.37M	58.35M	71.26M	129.13M	134.05M
Cash Flow
Free Cash Flow	-11.08M	13.00M	5.82M	4.59M	-2.30M	-11.17M
Operating Cash Flow	11.64M	34.00M	14.63M	40.85M	20.38M	-2.38M
Investing Cash Flow	-24.22M	6.40M	-5.84M	-35.29M	-23.04M	143.00K
Financing Cash Flow	-24.43M	-40.62M	-14.28M	-11.91M	4.58M	-18.82M

AV Promotions Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8419, the sentiment is Neutral. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, 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 14.85 is Positive, neither overbought nor oversold. The STOCH value of 72.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8419.

AV Promotions Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1975	63 Neutral	HK$184.80M	―	-20.83%	9.09%	-26.30%	-617.37%
1841	53 Neutral	HK$88.00M	―	-1.47%	―	-21.77%	-118.60%
8419	52 Neutral	HK$31.20M	16.96	3.05%	―	-6.40%	―
8416	51 Neutral	HK$36.24M	-6.37	-6.35%	23.26%	-16.78%	-233.66%
8448	41 Neutral	HK$49.90M	80.65	8.15%	―	134.32%	―
1360	31 Underperform	―	―	―	―	1056.24%	-5.37%