Kuke Music Holding (KUKE) AI Stock Analysis

• Market Cap: $3.33M
• Dividend Yield: N/A
• Average Volume (3M): 709.96K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.33
• Revenue Growth: -36.94%
• EPS Growth: 15.41%
• Country: US
• Employees: 108
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 27,526,184
• 10 Day Avg. Volume: 320,513
• 30 Day Avg. Volume: 709,959
• PEG Ratio: 0.07
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 1.83
• P/FCF Ratio: -2.71
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: $1.50 ▲(7.91% Upside)

Kuke Music Holding's overall stock score is primarily impacted by its poor financial performance and valuation. The company is experiencing significant financial instability, with declining revenues, negative profitability, and liquidity concerns. The technical analysis indicates bearish momentum, further contributing to the low score. Without earnings call data or notable corporate events, these factors dominate the evaluation.

Kuke Music Holding Business Overview & Revenue Model

Company Description

Kuke Music Holding Limited (KUKE) is a leading music technology and content provider based in China, specializing in the distribution and licensing of music and audio content. The company operates primarily in the digital music sector, focusing on providing a comprehensive range of music services that include streaming, licensing, and distribution. KUKE partners with various music labels and artists to offer a diverse catalog of music across different genres, catering to both individual consumers and businesses.

How the Company Makes Money

Kuke Music generates revenue through a combination of subscription services, music licensing, and partnerships. Its primary revenue stream comes from subscription fees paid by users for access to its music streaming platform, where consumers can listen to a vast library of songs. Additionally, KUKE earns money by licensing its music catalog to third-party platforms and businesses, such as film and television productions, advertising agencies, and gaming companies, for which they pay licensing fees. The company also benefits from strategic partnerships with major music labels and tech companies, enhancing its content offerings and extending its market reach, which contributes to its overall earnings.

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	295.90M	162.88M
Gross Profit	26.82M	50.59M	17.31M	172.83M	118.60M
EBITDA	-48.13M	-48.96M	-862.32M	-25.59M	10.62M
Net Income	-64.94M	-65.29M	-896.91M	-59.57M	-16.42M
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: 1.39
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.39 is above the 20-day moving average (MA) of 0.72, above the 50-day MA of 1.29, and below the 200-day MA of 2.85, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 67.04 is Neutral, neither overbought nor oversold. The STOCH value of 95.05 is Negative, 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
WMG	63 Neutral	$15.51B	52.64	54.66%	2.41%	1.36%	-45.79%
RSVR	61 Neutral	$485.79M	65.00	2.64%	―	11.17%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
DLPN	50 Neutral	$18.89M	-0.69	-101.62%	―	4.84%	-9.71%
RDI	46 Neutral	$47.15M	―	―	―	7.59%	61.22%
ANGH	41 Neutral	$18.72M	-0.25	―	―	88.72%	-85.54%
KUKE	39 Underperform	$3.33M	―	―	―	-36.94%	15.41%

Kuke Music Holding Corporate Events

Kuke Music Updates Class B Share Ownership Details

On September 22, 2025, Kuke Music Holding Limited disclosed updated beneficial ownership information for its Class B ordinary shares. Lung Yu owns all 2,366,801 Class B shares, with 499,000 held directly and 1,867,801 indirectly through Supertonic Limited. This update highlights the concentrated voting power within the company, as Class B shares carry 1,000 votes each, potentially impacting decision-making and control dynamics.

Kuke Music Acquires Controlling Stake in Naxos Music Group

On September 25, 2025, Kuke Music Holding Limited announced its acquisition of a controlling interest in Naxos Music Group, marking a significant expansion in its global classical music ecosystem. The transaction, valued at approximately $106.35 million, was completed through share issuance, enhancing Kuke’s strategic position by integrating Naxos’s extensive music catalog and distribution network with its existing platforms. This acquisition is expected to create synergies between Kuke’s music education services and Naxos’s global reach, strengthening Kuke’s industry positioning.

Kuke Music Enhances Voting Power of Class B Shares in Recent Meeting

On September 12, 2025, Kuke Music Holding Limited held an extraordinary general meeting and a class meeting of Class B shareholders in Beijing, China. During these meetings, several resolutions were adopted, including a significant amendment to the voting rights of Class B Ordinary Shares, increasing their voting power from 50 to 1,000 votes per share. Additionally, the company removed Yu Chen from the board of directors and amended its articles of association to allow resolutions to be passed by written consent. These changes are likely to impact the company’s governance structure and shareholder dynamics.

Kuke Music Announces Leadership Changes in September 2025

On September 7, 2025, Kuke Music Holding Limited announced significant changes in its leadership. The board accepted the resignation of Mr. He Yu as CEO and Chairman, appointing Mr. Peixian Tan as his successor. Mr. Tan has been with the company since 2005 and brings extensive experience in management roles. Additionally, Mr. Hui Gao was appointed as an executive director, bringing his expertise in digital publishing and international business expansion. These changes are expected to influence the company’s strategic direction and enhance its market position.

Kuke Music Appoints Zhiyong Wang as Independent Director

On September 1, 2025, Kuke Music Holding Limited appointed Mr. Zhiyong Wang as an independent director. Mr. Wang, a senior partner at BDO China Shu Lun Pan CPAs, brings extensive experience in finance, taxation, and consulting to the company. His appointment is expected to enhance the company’s governance and strategic oversight, potentially impacting its operational effectiveness and industry positioning positively.

Kuke Music Announces Extraordinary General Meeting for Governance Changes

On August 25, 2025, Kuke Music Holding Limited announced it will hold an extraordinary general meeting (EGM) and a Class B meeting on September 12, 2025, in Beijing. The EGM will address several key proposals, including amending voting rights for Class B shares, removing a director, and adopting new articles of association. These changes could significantly impact the company’s governance structure and shareholder dynamics.

Kuke Music Restores NYSE Compliance and Expands into AI and Automotive Sectors

Kuke Music Holding Limited announced on August 5, 2025, that it has regained compliance with the New York Stock Exchange’s quantitative continued listing standards as of June 30, 2025. This achievement marks the end of a 9-month compliance plan, and the company will undergo a 12-month monitoring period to ensure continued adherence to the NYSE’s standards. Additionally, Kuke is expanding its operations by forming content partnerships with automotive manufacturers for in-car entertainment systems and exploring opportunities in the artificial intelligence sector, which could enhance its market position and stakeholder value.