Orange Tour Cultural Holding Limited (8627) AI Stock Analysis

• Market Cap: HK$63.20M
• Dividend Yield: N/A
• Average Volume (3M): 891.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• 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: 54 Neutral
• Price Target: HK$0.08 ▲(62.00% Upside)

The score is held back primarily by weak financial performance—sharp revenue decline, losses, and negative free cash flow—despite a strong, low-leverage balance sheet. Technicals provide moderate support with an improving trend and neutral momentum. Valuation remains constrained by negative earnings and no stated dividend yield.

Positive Factors

Strong balance sheet / low leverage

Very high equity ratio and near-zero leverage give the company durable financial flexibility. Over 2–6 months this reduces refinancing risk, preserves optionality for strategic investments or acquisitions, and cushions operating losses while management executes a recovery plan.

Healthy gross margin profile

A ~57% gross margin indicates the core service offering retains strong unit economics despite revenue pressure. This structural margin can support operating leverage as revenue recovers, enabling faster EBITDA recovery if SG&A is managed and client projects scale up.

Lean operating base (small headcount)

A small employee base implies a low fixed-cost structure and operational agility. This makes it easier to scale up or down, preserves cash burn, and allows management to reallocate resources quickly toward higher-margin services, aiding medium-term margin recovery.

Negative Factors

Sharp revenue decline

A steep, persistent revenue decline erodes scale and weakens competitive positioning. Over months this reduces bargaining power with clients, limits ability to leverage fixed costs, and increases the challenge of restoring profitable growth without clear new client wins or product changes.

Negative profitability and return on equity

Sustained negative margins and ROE signal the business is destroying shareholder capital. Without structural margin improvement or revenue stabilization, the company will struggle to generate returns on invested capital, limiting reinvestment and long-term competitiveness.

Negative free cash flow and weak cash conversion

Negative free cash flow and poor conversion of earnings to cash constrain liquidity and strategic flexibility. Over a multi-month horizon this increases reliance on balance sheet reserves or external funding, potentially delaying recovery initiatives and capital allocation.

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

Income statement and cash flow are weak: revenue fell sharply (-36.4% YoY) and profitability turned negative (net margin -5.0%, negative EBIT/EBITDA). Free cash flow turned negative in 2024, indicating cash strain. The balance sheet is a relative strength (equity ratio 76.3%, very low debt-to-equity 0.06), but negative ROE (-1.1%) underscores ongoing profitability issues.

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: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8627, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.08, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.24 is Neutral, neither overbought nor oversold. The STOCH value of 20.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
8627	54 Neutral	HK$63.20M	-18.97	-3.32%	―	-55.47%	-205.41%
0745	49 Neutral	HK$182.81M	23.21	31.70%	―	56.81%	―
0550	47 Neutral	HK$157.16M	-9.20	-30.83%	―	31.88%	53.04%
0072	46 Neutral	HK$96.77M	-5.05	-9.13%	―	-3.94%	40.24%
8401	40 Underperform	HK$60.31M	-10.99	-17.66%	―	236.80%	80.53%