Kuke Music Holding (KUKE) AI Stock Analysis

• Market Cap: $8.56M
• Dividend Yield: N/A
• Average Volume (3M): 18.11K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.24
• Revenue Growth: -36.94%
• EPS Growth: 15.41%
• Country: US
• Employees: 108
• Sector: Communication Services
• Sector Strength: 90
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 27,526,184
• 10 Day Avg. Volume: 34,547
• 30 Day Avg. Volume: 18,110
• 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: $1.50
• Price Target Upside: -12.79% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: $1.50 ▼(-12.79% Downside)

Kuke Music Holding's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profitability. Technical analysis further supports a bearish outlook, with the stock being oversold. Valuation metrics are poor, with a negative P/E ratio and no dividend yield, indicating significant risks for investors.

Kuke Music Holding Business Overview & Revenue Model

Company Description

Kuke Music Holding Limited (KUKE) is a prominent player in China's classical music industry, offering a comprehensive range of services and products that include music licensing, subscription services, and live classical music performances. The company operates in the digital music services sector and is known for its extensive library of classical music content, including audio and video recordings. KUKE caters primarily to educational institutions, music professionals, and enthusiasts, providing access to a rich repository of classical music assets.

How the Company Makes Money

Kuke Music Holding makes money primarily through its digital music licensing and subscription services. The company licenses its extensive collection of classical music to a variety of clients, including educational institutions, media companies, and online streaming platforms, generating significant revenue through licensing fees. Additionally, KUKE offers subscription services to individuals and organizations looking for unlimited access to its classical music library. The company also earns revenue through organizing and promoting live classical music events and performances. Strategic partnerships with educational and cultural organizations further enhance its revenue streams by expanding its reach and customer base.

Kuke Music Holding Financial Statement Overview

Summary

Kuke Music Holding is facing substantial financial challenges, including declining revenues, negative profitability, and increasing reliance on debt. Negative cash flows further exacerbate liquidity concerns, indicating significant instability in the company's financial health.

Income Statement

Kuke Music Holding has experienced a significant decline in revenue from 2021 to 2024, with a negative revenue growth rate over the years. The gross profit margin has decreased substantially, indicating worsening cost management or pricing pressures. Additionally, the company has consistently reported negative EBIT and net income, leading to negative profit margins. These factors suggest financial challenges in generating profitability.

Balance Sheet

The balance sheet reveals a concerning debt-to-equity ratio, with increasing total debt and declining stockholders' equity from 2021 to 2024. The equity ratio has also decreased, indicating a higher reliance on debt financing, which poses a risk to financial stability. However, the company maintains a reasonable amount of total assets, providing some potential for recovery.

Cash Flow

Kuke Music Holding's cash flow analysis shows a negative free cash flow, driven by substantial capital expenditures and negative operating cash flows. The free cash flow to net income ratio is poor, reflecting challenges in converting earnings into cash. This negative cash flow trend suggests liquidity issues and potential difficulties in sustaining operations without additional financing.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.92M	106.94M	115.11M	301.98M	162.88M
Gross Profit	26.82M	50.59M	17.31M	172.83M	118.60M
EBITDA	-48.13M	-48.96M	-862.32M	-27.54M	10.62M
Net Income	-64.94M	-65.29M	-896.91M	-56.06M	-15.21M
Balance Sheet
Total Assets	261.30M	248.50M	246.74M	1.12B	877.35M
Cash, Cash Equivalents and Short-Term Investments	2.57M	8.31M	5.42M	59.05M	25.72M
Total Debt	70.62M	86.32M	77.82M	50.82M	77.49M
Total Liabilities	223.50M	224.95M	185.95M	170.10M	216.18M
Stockholders Equity	38.10M	21.74M	58.46M	938.74M	656.10M
Cash Flow
Free Cash Flow	-46.49M	-20.77M	-26.64M	6.75M	15.44M
Operating Cash Flow	-18.82M	-20.77M	-26.48M	64.69M	26.29M
Investing Cash Flow	-55.46M	-176.00K	-38.48M	-291.20M	-121.34M
Financing Cash Flow	69.27M	23.09M	11.34M	259.84M	97.76M

Kuke Music Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KUKE, the sentiment is Negative. The current price of 1.72 is below the 20-day moving average (MA) of 2.32, below the 50-day MA of 2.73, and below the 200-day MA of 3.54, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 20.28 is Positive, neither overbought nor oversold. The STOCH value of 20.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KUKE.

Kuke Music Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSVR	66 Neutral	$506.77M	68.25	2.09%	―	9.65%	38433.33%
Sector *	60 Neutral	$44.01B	1.91	-11.93%	4.00%	2.46%	-39.70%
DLPN	44 Neutral	$14.07M	―	-101.62%	―	4.84%	-9.71%
HOFV	44 Neutral	$5.79M	―	-72.74%	―	-17.54%	24.84%
ANGH	41 Neutral	$22.00M	―	-270.84%	―	88.72%	-85.54%
KUKE	39 Underperform	$8.56M	―	-218.47%	―	-36.94%	15.41%