AV Promotions Holdings Limited (8419) AI Stock Analysis

• Market Cap: HK$25.20M
• Dividend Yield: N/A
• Average Volume (3M): 8.83K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.82
• Revenue Growth: -9.59%
• EPS Growth: N/A
• Country: HK
• Employees: 135
• Sector: Industrials
• Sector Strength: 84
• Industry: Specialty Business Services
• EPS (TTM): <0.01
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 13,000
• 30 Day Avg. Volume: 8,833
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.76
• 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: 50 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

AV Promotions Holdings Limited scores a 50 due to mixed financial performance with improvements in profitability and cash flow overshadowed by a revenue decline and high leverage. Technical analysis indicates a bearish trend with oversold conditions, while valuation appears fair but lacks attractiveness due to performance issues.

AV Promotions Holdings Limited Business Overview & Revenue Model

Company Description

AV Promotions Holdings Limited (8419) is a Hong Kong-based company that specializes in the provision of integrated audiovisual (AV) solutions. The company operates in sectors such as event management, commercial installations, and digital advertising, offering a range of services from AV equipment rental, installation, and maintenance to the development and execution of multimedia projects. AV Promotions Holdings Limited is committed to delivering cutting-edge AV experiences through its comprehensive service offerings.

How the Company Makes Money

AV Promotions Holdings Limited generates revenue primarily through the provision of AV equipment rental and related services. The company's key revenue streams include the leasing of AV equipment for events and commercial installations, fees from installation and maintenance services, and income from project management and execution of multimedia solutions for clients. Significant partnerships with event organizers, corporate clients, and advertisers contribute to its earnings by ensuring a steady demand for its AV solutions across various sectors. Additionally, the company may engage in strategic collaborations to enhance its service capabilities and market reach.

AV Promotions Holdings Limited Financial Statement Overview

Summary

AV Promotions Holdings Limited demonstrates improvements in profitability and cash generation, but faces challenges with revenue decline and leverage. Strengthening revenue streams and maintaining positive cash flows while managing debt will be key to sustaining financial health.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
125.89M	139.24M	94.37M	166.59M	123.26M
	Gross Profit
29.43M	21.77M	-17.62M	25.93M	39.28M
	EBIT
4.79M	-8.78M	-53.05M	-5.47M	14.27M
	EBITDA
29.84M	25.82M	-32.01M	13.17M	33.42M
	Net Income Common Stockholders
1.76M	-12.37M	-53.53M	-9.72M	7.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.46M	7.34M	12.85M	19.41M	17.23M
	Total Assets
184.30M	240.88M	246.16M	303.46M	297.66M
	Total Debt
65.91M	109.35M	99.19M	106.63M	95.94M
	Net Debt
53.44M	102.01M	86.34M	87.22M	78.70M
	Total Liabilities
125.94M	182.53M	174.89M	174.33M	163.61M
	Stockholders Equity
58.37M	58.35M	71.26M	129.13M	134.05M
Cash Flow		Free Cash Flow
13.00M	5.82M	4.59M	-2.30M	-11.17M
	Operating Cash Flow
34.00M	14.63M	40.85M	20.38M	-2.38M
	Investing Cash Flow
-20.96M	-5.84M	-35.29M	-23.04M	143.00K
	Financing Cash Flow
-32.56M	-14.28M	-11.91M	4.58M	-18.82M

AV Promotions Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8419, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 11.46 is Positive, neither overbought nor oversold. The STOCH value of 18.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8400	60 Neutral	HK$41.00M	10.79	20.64%	―	70.92%	―
Sector *	57 Neutral	$1.32B	4.07	-2.93%	11.10%	3.37%	-51.35%
8419	50 Neutral	HK$25.20M	14.32	3.02%	―	-9.59%	―
8450	48 Neutral	HK$114.00M	―	-23.68%	―	-30.12%	-208.11%
8456	39 Underperform	HK$9.12M	―	-81.85%	―	-24.83%	-6.70%
8420	31 Underperform	HK$21.31M	―	-138.27%	―	829.89%	-855.56%