Kuke Music Holding (KUKE) AI Stock Analysis

• Market Cap: $9.80M
• Dividend Yield: N/A
• Average Volume (3M): 26.02K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.42
• Revenue Growth: -36.94%
• EPS Growth: 15.41%
• Country: US
• Employees: 108
• Sector: Communication Services
• Sector Strength: 96
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 27,526,184
• 10 Day Avg. Volume: 22,934
• 30 Day Avg. Volume: 26,024
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $2.00
• Price Target Upside: 1.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $2.00 ▲(1.52% Upside)

Kuke Music Holding's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative cash flows. Technical analysis indicates bearish trends, while valuation metrics highlight ongoing losses. These factors collectively suggest significant risks and challenges for the company.

Kuke Music Holding Business Overview & Revenue Model

Company Description

Kuke Music Holding Limited, through its subsidiaries, provides classical music licensing, subscription, and education services in China. It operates through two segments, Subscription, Licensing and Smart Music Learning Business; and Music Events and Performances Business. The Subscription, Licensing and Smart Education Business segment distributes commercial copyrights and offers music education solutions. The Music Events Business segment is involved in the provision of music festival events and music performance services; and sale of musical instruments. The company licenses its music content primarily to online music entertainment platforms and digital music service providers, as well as film and TV production companies, airlines, and smart hardware companies. As of December 31, 2021, it had 802 institutional subscribers, including 477 universities and music conservatories, as well as 325 public libraries. Kuke Music Holding Limited was founded in 2002 and is headquartered in Beijing, China.

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 significant financial challenges, including declining revenues, negative profitability, and increasing reliance on debt. Negative cash flows exacerbate liquidity concerns, indicating 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: Neutral
• Last Price: 1.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KUKE, the sentiment is Neutral. The current price of 1.97 is above the 20-day moving average (MA) of 1.77, below the 50-day MA of 2.36, and below the 200-day MA of 3.27, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 59.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KUKE.

Kuke Music Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$46.28B	4.13	-13.12%	4.13%	1.85%	-42.71%
DLPN	49 Neutral	$14.44M	―	-101.62%	―	4.84%	-9.71%
KUKE	41 Neutral	$9.80M	―	-218.47%	―	-36.94%	15.41%
ZNB	―	$743.63K	―	-202.34%	―	―	―
RSVR	68 Neutral	$514.64M	68.86	2.09%	―	9.65%	38433.33%
ANGH	41 Neutral	$20.86M	―	-270.84%	―	88.72%	-85.54%
HOFV	39 Underperform	$5.59M	―	-72.74%	―	-17.54%	24.84%