Activation Group Holdings Ltd. (9919) AI Stock Analysis

• Market Cap: HK$595.79M
• Dividend Yield: 10%
• Average Volume (3M): 874.39K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.27
• Revenue Growth: -13.49%
• EPS Growth: -26.88%
• Country: HK
• Employees: 221
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): 0.12
• Shares Outstanding: 744,742,000
• 10 Day Avg. Volume: 1,952,073
• 30 Day Avg. Volume: 874,387
• PEG Ratio: -0.35
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.89
• 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: 67 Neutral
• Price Target: ―

Activation Group Holdings Ltd. has a strong balance sheet and attractive valuation. However, challenges such as declining revenue, zero free cash flow, and weak technical indicators weigh down the overall score. The company's ability to reverse revenue declines and improve cash flow management will be crucial in maintaining financial health.

Activation Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Activation Group Holdings Limited, an investment holding company, primarily provides integrated marketing solutions in Mainland China, Hong Kong, and Singapore. It operates through three segments: Experiential Marketing Services, Digital and Communication Services, and IP Development. The company offers integrated marketing solutions, including experiential marketing, digital and brand communication, and public relations services. It also provides digital and communication, public relation, and application development services; and manages and operates sport events. The company was founded in 2013 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Activation Group Holdings Ltd. generates revenue through a diverse range of services that cater to luxury and premium brands. The company's primary revenue streams include experiential marketing, where they design and execute bespoke events and experiences to engage consumers, and digital and communication services, which involve creating and managing digital marketing campaigns, including social media and online advertising. Additionally, the company provides public relations services to enhance brand reputation and visibility. Key partnerships with international luxury brands contribute significantly to their earnings, as these collaborations often involve high-budget, high-profile marketing campaigns.

Activation Group Holdings Ltd. Financial Statement Overview

Summary

Activation Group Holdings Ltd. has a strong balance sheet with low leverage and a high equity ratio, but faces challenges with declining revenue and cash flow generation. The income statement shows a decrease in net profit margin and revenue, while cash flow issues are highlighted by zero free cash flow in 2024.

Income Statement

Activation Group Holdings Ltd. has shown strong profitability with a healthy gross profit margin of around 30% in recent years. However, revenue has decreased from 2023 to 2024 by approximately 12.34%, impacting overall financial results. The net profit margin decreased from 11.17% in 2023 to 9.35% in 2024 while maintaining a stable EBIT margin. The company needs to focus on reversing the declining revenue trend to improve future performance.

Balance Sheet

The company maintains a strong balance sheet with an impressively low debt-to-equity ratio of 0.02 and a high equity ratio of around 45.76% as of 2024, indicating financial stability and low leverage risk. The return on equity has slightly decreased from 31.79% in 2023 to 23.21% in 2024, which remains robust, though there is room for improvement to enhance shareholder returns.

Cash Flow

Cash flow analysis reveals challenges, as free cash flow dropped to zero in 2024. In previous years, the company demonstrated strong free cash flow growth, but the current lack of free cash flow signals potential issues in cash generation. The absence of operating cash flow in 2024 is concerning and requires attention to ensure long-term financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
847.75M	967.23M	694.81M	904.06M	458.00M
	Gross Profit
254.27M	298.22M	202.24M	267.28M	131.65M
	EBIT
117.92M	153.09M	39.97M	136.40M	28.84M
	EBITDA
125.65M	170.39M	42.03M	137.21M	29.66M
	Net Income Common Stockholders
79.24M	107.99M	23.63M	92.49M	23.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
379.19M	307.08M	300.27M	408.67M	305.48M
	Total Assets
745.91M	795.40M	711.25M	716.24M	588.60M
	Total Debt
7.80M	6.58M	9.60M	8.74M	13.74M
	Net Debt
-371.39M	-300.50M	-290.67M	-397.08M	-289.19M
	Total Liabilities
384.76M	435.43M	357.66M	286.83M	215.76M
	Stockholders Equity
341.36M	339.77M	336.31M	406.31M	359.93M
Cash Flow		Free Cash Flow
0.00	113.71M	57.82M	171.11M	-29.96M
	Operating Cash Flow
0.00	115.12M	61.00M	175.36M	-29.06M
	Investing Cash Flow
0.00	-504.00K	-38.71M	347.00K	10.55M
	Financing Cash Flow
0.00	-103.97M	-127.44M	-68.91M	199.73M

Activation Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9919, the sentiment is Positive. The current price of 0.81 is above the 20-day moving average (MA) of 0.81, above the 50-day MA of 0.79, and below the 200-day MA of 0.83, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9919.

Activation Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9919	67 Neutral	HK$595.79M	6.78	23.31%	10.00%	-13.49%	-26.88%
Sector *	61 Neutral	$14.33B	5.90	-3.82%	8.01%	2.79%	-33.24%
1490	45 Neutral	HK$202.05M	64.81	0.50%	―	-4.08%	-93.81%
1993	45 Neutral	HK$329.93M	―		―	-34.67%	-99.72%
2131		HK$362.02M	1,516.67	-0.05%	―	―	―
2422	51 Neutral	HK$622.50M	130.30	-10.11%	―	26.37%	-334.75%
8500		HK$241.92M	―	-180.95%	―	―	―

Activation Group Holdings Ltd. Corporate Events

Activation Group Holdings Ltd. Announces 2025 AGM and Key Resolutions

Activation Group Holdings Ltd. has announced its upcoming annual general meeting scheduled for May 15, 2025, in Shanghai. Key agenda items include the approval of financial statements, the declaration of final and special dividends, re-election of executive directors, and the re-appointment of Ernst & Young as auditors. The meeting will also consider granting mandates to the directors for share repurchase and issuance, potentially impacting the company’s financial strategy and shareholder value.

Activation Group Reports 2024 Financial Results Amid Market Challenges

Activation Group Holdings Limited announced its annual results for the year ended December 31, 2024, reporting a revenue of approximately RMB847.8 million, a 12.3% decrease from the previous year. Despite the challenging economic environment and a slowdown in China’s luxury goods market, the company has maintained its position as a leader in the industry by executing high-profile events for luxury brands like CHANEL and MONCLER. The company’s net profit for 2024 was RMB87.4 million, a 26.2% decrease from 2023, reflecting the broader economic challenges and shifts in marketing strategies towards more targeted engagement with high-net-worth customers.

Activation Group Holdings Announces Final Dividend for 2024

Activation Group Holdings Limited has announced a final cash dividend of HKD 0.037 per share for the financial year ending December 31, 2024. The dividend will be paid on June 18, 2025, following shareholder approval on May 15, 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders.

Activation Group Holdings Ltd. Schedules Board Meeting for Annual Results

Activation Group Holdings Ltd. has announced that a board meeting will be held on March 12, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024. The meeting will also discuss the potential recommendation of a final dividend payment. This announcement could impact the company’s financial positioning and stakeholder interests, as it involves key decisions on financial performance and dividend distribution.