Orange Tour Cultural Holding Limited (8627) AI Stock Analysis

• Market Cap: HK$108.80M
• Dividend Yield: N/A
• Average Volume (3M): 891.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -55.47%
• EPS Growth: -205.41%
• Country: HK
• Employees: 44
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 648,000
• 30 Day Avg. Volume: 891,733
• PEG Ratio: 0.28
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 2.10
• P/FCF Ratio: -12.38
• 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: 49 Neutral
• Price Target: HK$0.14 ▲(170.00% Upside)

The score is held back primarily by deteriorating financial performance (sharp revenue decline, losses, and negative free cash flow), despite a solid low-leverage balance sheet. Technicals are supportive due to strong price momentum above key averages, but extremely overbought readings add near-term risk. Valuation is weak because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Strong balance sheet

A very high equity ratio and minimal leverage materially reduce solvency and refinancing risk over the medium term. This balance-sheet strength gives management durable financial flexibility to fund restructuring, absorb further revenue shocks, or pursue opportunistic investments without near-term liquidity stress.

Healthy gross margin

A 57% gross margin indicates persistent underlying unit economics and pricing power in services. Even with top-line pressure, a resilient gross margin supports margin recovery if SG&A is restructured, helping the company preserve cash and rebuild operating profitability over a multi‑quarter horizon.

Low market sensitivity

A low beta suggests the business is less correlated with market swings, reducing earnings volatility and downside risk across economic cycles. This defensive profile makes operating cash flows and strategic planning more predictable, aiding steady execution of medium‑term turnaround plans.

Negative Factors

Sharp revenue contraction

A steep, sustained revenue decline materially undermines scale economics and client relationships. Over several quarters this erosion increases unit costs, weakens competitive position, and lengthens the path to profitable growth, forcing deeper operational adjustments or revenue diversification.

Negative profitability metrics

Consistent negative operating and net margins indicate the company cannot currently convert gross profit into sustainable earnings. Persistent losses will deplete retained capital, limit reinvestment, and could necessitate cost cuts or strategic pivots to restore long‑term profitability.

Negative free cash flow and poor cash conversion

Negative free cash flow and weak cash conversion threaten liquidity despite low leverage. Over months this restricts investment capacity, raises financing needs, and increases the risk of dilutive capital raises or asset sales if operating performance does not improve.

Orange Tour Cultural Holding Limited Business Overview & Revenue Model

Company Description

Orange Tour Cultural Holding Limited (8627) is a diversified cultural and tourism holding company based in Hong Kong. The company operates primarily in the cultural and entertainment sectors, focusing on providing high-quality travel experiences, cultural performances, and related services. Its core offerings include tour operations, event management, and cultural exchange programs aimed at promoting local heritage and tourism.

How the Company Makes Money

Orange Tour Cultural Holding Limited generates revenue through multiple channels. The primary revenue stream comes from its tour operations, where the company organizes and sells travel packages to both domestic and international tourists. Additionally, the company earns income from event management services, which involve organizing cultural events, concerts, and festivals that attract participants and sponsorship deals. Partnerships with local governments, cultural institutions, and tourism boards also contribute significantly to its earnings by providing funding and promotional support for events and initiatives. Furthermore, the company may explore merchandise sales related to its cultural offerings, adding another layer to its revenue model.

Orange Tour Cultural Holding Limited Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues and profitability. Despite a strong equity position and low leverage, negative cash flow and profitability metrics indicate operational difficulties.

Income Statement

The company has experienced a significant decline in revenue from 2023 to 2024, with a negative revenue growth rate of -36.4%. The gross profit margin decreased to 57.0% in 2024 from 57.9% in 2023. The net profit margin turned negative at -5.0% in 2024, indicating a loss. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 76.3% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.06, suggesting minimal leverage. However, the return on equity is negative at -1.1%, highlighting profitability issues.

Cash Flow

The free cash flow has turned negative in 2024, indicating cash flow challenges. The operating cash flow to net income ratio is negative, suggesting inefficiencies in converting income to cash. The free cash flow to net income ratio is also negative, further emphasizing cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.32M	19.65M	30.90M	20.54M	30.18M	22.06M
Gross Profit	4.48M	11.20M	13.66M	12.56M	17.78M	12.59M
EBITDA	-2.92M	-97.00K	4.03M	-2.87M	937.00K	-888.00K
Net Income	-2.88M	-983.00K	1.89M	-3.71M	-768.00K	-1.81M
Balance Sheet
Total Assets	112.27M	112.96M	105.63M	102.13M	105.00M	103.82M
Cash, Cash Equivalents and Short-Term Investments	101.16M	103.13M	100.20M	96.35M	92.87M	78.49M
Total Debt	7.07M	5.12M	0.00	119.00K	0.00	0.00
Total Liabilities	27.08M	26.73M	18.18M	16.38M	15.09M	13.19M
Stockholders Equity	85.19M	86.23M	87.45M	85.75M	89.91M	90.63M
Cash Flow
Free Cash Flow	-1.51M	-3.34M	465.00K	605.00K	14.10M	11.32M
Operating Cash Flow	-1.48M	-3.31M	1.24M	641.00K	14.40M	12.23M
Investing Cash Flow	87.00K	136.00K	-368.00K	234.00K	35.02M	-5.75M
Financing Cash Flow	2.76M	6.79M	2.29M	2.58M	0.00	-120.00K

Orange Tour Cultural Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8627, the sentiment is Positive. The current price of 0.05 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.07, and below the 200-day MA of 0.06, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 89.91 is Negative, neither overbought nor oversold. The STOCH value of 89.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8627.

Orange Tour Cultural Holding Limited 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%
0745	53 Neutral	HK$164.06M	20.83	31.70%	―	56.81%	―
8627	49 Neutral	HK$108.80M	-35.90	-3.32%	―	-55.47%	-205.41%
0072	46 Neutral	HK$95.04M	-5.16	-9.13%	―	-3.94%	40.24%
0550	40 Underperform	HK$56.03M	-3.53	-30.83%	―	31.88%	53.04%
8401	40 Underperform	HK$65.73M	-11.98	-17.66%	―	236.80%	80.53%