Activation Group Holdings Ltd. (9919) AI Stock Analysis

• Market Cap: HK$752.19M
• Dividend Yield: 9.03%
• Average Volume (3M): 318.32K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.33
• Revenue Growth: -9.72%
• EPS Growth: -13.36%
• Country: HK
• Employees: 221
• Sector: Communication Services
• Sector Strength: 96
• Industry: Advertising Agencies
• EPS (TTM): 0.05
• Shares Outstanding: 744,742,000
• 10 Day Avg. Volume: 207,572
• 30 Day Avg. Volume: 318,320
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$1.00
• Price Target Upside: -2.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: HK$1.00 ▼(-2.91% Downside)

The stock's score is primarily driven by its strong valuation metrics and a solid balance sheet. However, potential risks from declining revenue and cash flow, coupled with technical indicators suggesting an overbought condition, temper the overall outlook.

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 primarily through its comprehensive suite of marketing services tailored for luxury and automotive brands. Key revenue streams include experiential marketing services, which involve organizing and managing events, exhibitions, and other brand engagement activities. The company also earns from digital marketing services, leveraging social media and digital platforms to enhance brand visibility and interaction. Public relations services, including media relations and strategic communications, contribute to its earnings. Additionally, Activation Group has partnerships with renowned global brands, which not only expand its clientele but also enhance its reputation in the industry, driving further business opportunities.

Activation Group Holdings Ltd. Financial Statement Overview

Summary

Activation Group Holdings Ltd. has a strong balance sheet with low debt and high equity ratio, but financial performance is impacted by a 12.34% revenue decline and zero free cash flow in 2024. The company needs to improve cash flow and revenue trends for better financial health.

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
EBITDA	125.65M	170.39M	42.03M	137.21M	29.66M
Net Income	79.24M	107.99M	23.63M	92.49M	23.42M
Balance Sheet
Total Assets	745.91M	795.40M	711.25M	716.24M	588.60M
Cash, Cash Equivalents and Short-Term Investments	379.19M	307.08M	300.27M	408.67M	305.48M
Total Debt	7.80M	6.58M	9.60M	8.74M	13.74M
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	167.65M	113.71M	57.82M	171.11M	-29.96M
Operating Cash Flow	169.61M	115.12M	61.00M	175.36M	-29.06M
Investing Cash Flow	-278.00K	-504.00K	-38.71M	347.00K	10.55M
Financing Cash Flow	-97.71M	-103.97M	-127.44M	-68.91M	199.73M

Activation Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.03
• 50DMA: Positive
• 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:9919, the sentiment is Positive. The current price of 1.03 is above the 20-day moving average (MA) of 1.01, above the 50-day MA of 0.95, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 60.71 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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	69 Neutral	HK$752.19M	8.24	26.71%	9.03%	-9.72%	-13.36%
Sector *	60 Neutral	$46.29B	4.07	-13.11%	4.12%	1.85%	-42.71%
1490	54 Neutral	HK$235.54M	78.52	-0.67%	―	2.85%	-118.89%
1993	45 Neutral	HK$306.02M	―		―	-38.24%	-31.99%
2131	―	HK$362.02M	1,516.67	-0.05%	―	―	―
2422	46 Neutral	HK$615.00M	130.30	-16.52%	―	10.61%	-1890.91%
8500	41 Neutral	HK$142.56M	―	-96.94%	―	-55.50%	84.93%

Activation Group Holdings Ltd. Corporate Events

Activation Group Holdings to Review Interim Results and Dividend

Activation Group Holdings Limited has announced that its Board of Directors will hold a meeting on August 25, 2025, to consider and approve the interim results for the six months ending June 30, 2025. The meeting will also discuss the potential payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Activation Group Holdings Ltd. Successfully Passes All AGM Resolutions

Activation Group Holdings Limited announced that all resolutions proposed at their Annual General Meeting held on May 15, 2025, were approved by shareholders. The resolutions included the approval of financial statements, declaration of dividends, re-election of directors, re-appointment of auditors, and granting of mandates related to share repurchase and issuance. This successful AGM outcome reflects strong shareholder support and positions the company to continue its strategic initiatives, potentially impacting its operational capabilities and market presence positively.