Michong Metaverse (China) Holdings Group Limited (8645) AI Stock Analysis

• Market Cap: HK$431.21M
• Dividend Yield: N/A
• Average Volume (3M): 165.80K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.25
• Revenue Growth: 4.11%
• EPS Growth: -169.50%
• Country: HK
• Employees: 69
• Sector: Communication Services
• Sector Strength: 87
• Industry: Telecommunications Services
• EPS (TTM): -0.01
• Shares Outstanding: 756,504,000
• 10 Day Avg. Volume: 352,200
• 30 Day Avg. Volume: 165,800
• PEG Ratio: N/A
• Price to Book (P/B): 5.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -92.44
• 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: HK$0.50
• Price Target Upside: -12.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$0.50 ▼(-12.28%Downside)

The overall score reflects significant financial challenges, with declining revenue and profitability, negative cash flow, and a negative P/E ratio. Technical analysis provides some positive insights with upward price trends, but financial and valuation concerns weigh heavily on the stock's attractiveness.

Michong Metaverse (China) Holdings Group Limited Business Overview & Revenue Model

Company Description

Michong Metaverse (China) Holdings Group Limited (8645) is a diversified company operating primarily in the technology and digital media sectors. The company focuses on the development and operation of metaverse-related platforms and digital services, aiming to create immersive virtual experiences for users. Its core offerings include virtual reality environments, augmented reality applications, and digital content creation tools that cater to both consumers and businesses.

How the Company Makes Money

Michong Metaverse (China) Holdings Group Limited generates revenue through multiple streams primarily centered around its metaverse and digital media platforms. Key revenue sources include subscription fees from users accessing premium virtual reality experiences and augmented reality applications. The company also earns money through the sale of virtual goods and in-app purchases within its metaverse environments. Additionally, Michong Metaverse engages in partnerships with other technology firms and content creators to expand its digital ecosystem, earning a share of revenue from collaborative projects and licensing deals. Advertising within its digital platforms provides another income stream, as brands seek to reach audiences within immersive and interactive environments.

Michong Metaverse (China) Holdings Group Limited Financial Statement Overview

Summary

Michong Metaverse (China) Holdings Group Limited faces financial challenges with declining revenues and profitability, negative margins, and cash flow issues. While the balance sheet shows low debt levels, the negative cash flow poses a liquidity risk.

Income Statement

The company's income statement shows a declining trend in revenue and profitability. Revenue has decreased significantly from 2023 to 2024, and the company is currently experiencing negative net and EBIT margins, indicating challenges in cost management and operational efficiency. The gross profit margin has also decreased, suggesting pressure on profitability. The negative revenue growth rate further underscores these challenges.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio is relatively low, indicating manageable leverage. However, the company has a declining equity ratio, suggesting reduced financial stability. Return on equity is negative, reflecting recent losses, but the overall debt levels remain low compared to equity, which is a positive aspect.

Cash Flow

The cash flow statement highlights significant cash flow challenges. Free cash flow is negative, and although there has been some improvement in operating cash flow, it is insufficient to cover capital expenditures. The free cash flow to net income ratio is unfavorable. This indicates potential liquidity issues and a need for better cash flow management.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	115.86M	107.40M	131.74M	165.37M	115.47M	110.46M
Gross Profit	44.78M	24.40M	68.85M	59.33M	35.64M	38.53M
EBITDA	-7.03M	-10.64M	39.83M	-26.28M	19.75M	15.46M
Net Income	-8.48M	-28.86M	20.15M	-55.97M	―	―
Balance Sheet
Total Assets	117.63M	133.31M	120.25M	234.54M	202.62M	210.10M
Cash, Cash Equivalents and Short-Term Investments	9.03M	31.50M	22.00M	75.22M	58.87M	60.42M
Total Debt	9.49M	7.93M	9.54M	15.24M	―	―
Total Liabilities	53.37M	62.92M	45.98M	149.31M	51.21M	48.09M
Stockholders Equity	63.89M	69.97M	73.92M	84.86M	150.78M	162.19M
Cash Flow
Free Cash Flow	-22.32M	-4.58M	-20.41M	16.35M	―	-28.93M
Operating Cash Flow	-8.78M	1.46M	-10.91M	47.73M	11.32M	10.99M
Investing Cash Flow	-15.07M	-13.38M	-13.05M	-31.10M	―	-41.63M
Financing Cash Flow	-2.40M	22.68M	-2.36M	―	―	66.20M

Michong Metaverse (China) Holdings Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8645, the sentiment is Positive. The current price of 0.57 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.58, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8645.

Michong Metaverse (China) Holdings Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0315	81 Outperform	HK$5.08B	10.57	9.25%	12.58%	-0.35%	86.29%
1045	73 Outperform	HK$1.86B	9.05	3.37%	6.50%	-5.91%	-13.64%
1723	71 Outperform	HK$1.92B	924.44	1.55%	2.47%	-9.79%	-48.00%
Sector *	55 Neutral	HK$63.77B	-1.76	-3.61%	6.50%	-4.24%	-17.51%
8337	51 Neutral	HK$31.83M	―	-24.49%	―	-8.72%	19.74%
8645	50 Neutral	HK$431.21M	―	-39.20%	―	4.11%	-169.50%