Huayi Tencent Entertainment Co., Ltd. (0419) AI Stock Analysis

• Market Cap: HK$543.41M
• Dividend Yield: N/A
• Average Volume (3M): 6.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: -24.22%
• EPS Growth: -66.67%
• Country: HK
• Employees: 221
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Leisure
• EPS (TTM): -0.01
• Shares Outstanding: 13,585,339,000
• 10 Day Avg. Volume: 9,107,937
• 30 Day Avg. Volume: 6,640,370
• PEG Ratio: 0.05
• Price to Book (P/B): 5.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.64
• 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: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Huayi Tencent Entertainment Co., Ltd. has significant financial challenges, with declining revenues and rising debt levels being the most impactful factors. The technical analysis indicates a bearish trend with weak momentum, further lowering the stock's attractiveness. The negative P/E ratio and absence of a dividend yield underscore valuation concerns, contributing to a lower overall score.

Huayi Tencent Entertainment Co., Ltd. Business Overview & Revenue Model

Company Description

Huayi Tencent Entertainment Co., Ltd. (0419) is a prominent company operating at the intersection of entertainment and technology. Based in Hong Kong, the company is primarily engaged in the production and distribution of films, television programs, and related media content. It leverages its strategic partnership with Tencent, one of the largest technology companies in the world, to enhance its digital media presence and expand its reach in the entertainment industry. Huayi Tencent Entertainment focuses on delivering high-quality content across various platforms, aiming to captivate audiences in China and beyond.

How the Company Makes Money

Huayi Tencent Entertainment Co., Ltd. generates revenue through multiple streams primarily centered around its core competencies in entertainment production and distribution. The company earns money by producing films and television shows, which are then distributed through traditional channels such as theaters and television networks, as well as digital platforms enabled by its partnership with Tencent. This partnership allows the company to tap into Tencent's vast digital ecosystem, including online streaming services, social media, and gaming platforms, thereby expanding its audience reach and monetization capabilities. Additionally, Huayi Tencent Entertainment may engage in licensing agreements, merchandise sales, and collaborations with other content creators and distributors to further capitalize on its media properties. These diverse revenue streams are bolstered by strategic alliances and a focus on high-quality, engaging content that appeals to broad demographics.

Huayi Tencent Entertainment Co., Ltd. Financial Statement Overview

Summary

Huayi Tencent Entertainment Co., Ltd. faces significant financial challenges, with declining revenues, persistent losses, and rising debt levels. While the company's gross profit margin is stable, operational and liquidity issues persist, affecting overall financial health. Improvements in cash flow management and profitability are essential for future stability.

Income Statement

The company's income statement shows a declining revenue trend with significant net losses over the years. The gross profit margin is relatively stable, but the net profit margin remains negative, indicating profitability issues. Revenue has decreased annually, highlighting a challenging business environment.

Balance Sheet

The balance sheet reflects high leverage, with a debt-to-equity ratio that has increased over time. Stockholders' equity has decreased, indicating financial instability. Despite this, the equity ratio is still reasonable, suggesting some level of asset financing through equity.

Cash Flow

The cash flow statement indicates negative free cash flow and operating cash flow, pointing to liquidity and operational challenges. Free cash flow has not shown growth, and the cash flow ratios suggest inefficiencies in converting income into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.02B	1.34B	1.69B	325.72M	106.06M
	Gross Profit
358.86M	413.43M	391.14M	42.35M	42.36M
	EBIT
-83.14M	-111.05M	-301.88M	-148.64M	-36.73M
	EBITDA
-144.44M	-83.75M	-221.68M	28.77M	-19.70M
	Net Income Common Stockholders
-163.49M	-97.09M	-269.98M	-110.40M	-56.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.07M	32.09M	41.40M	149.98M	113.84M
	Total Assets
387.12M	526.29M	589.19M	911.20M	880.77M
	Total Debt
199.22M	87.66M	57.37M	52.19M	67.75M
	Net Debt
164.77M	60.62M	15.97M	-96.36M	-46.09M
	Total Liabilities
363.43M	303.50M	239.26M	252.30M	104.18M
	Stockholders Equity
103.31M	290.19M	388.20M	655.35M	776.59M
Cash Flow		Free Cash Flow
-74.72M	-74.53M	-99.66M	70.11M	-109.97M
	Operating Cash Flow
-74.52M	-51.70M	-85.93M	81.34M	-108.59M
	Investing Cash Flow
3.77M	-20.71M	-13.17M	-38.18M	-18.65M
	Financing Cash Flow
76.78M	61.00M	-10.44M	-39.60M	-47.73M

Huayi Tencent Entertainment Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0419, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.05, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.68 is Neutral, neither overbought nor oversold. The STOCH value of -7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0419.

Huayi Tencent Entertainment Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0700	78 Outperform	$4.52T	21.25	21.25%	0.93%	8.88%	54.27%
1044	73 Outperform	$25.04B	9.86	11.12%	6.96%	-6.53%	-18.43%
1928	66 Neutral	HK$130.14B	15.96	203.51%	1.74%	6.04%	50.60%
2382	65 Neutral	$65.21B	22.19	11.45%	0.37%	18.80%	142.93%
Sector *	62 Neutral	$6.90B	11.12	2.92%	3.89%	2.68%	-25.06%
2319	53 Neutral	$68.55B	606.92	0.21%	3.05%	-11.90%	-97.93%
0419	45 Neutral	HK$543.41M	―	-83.09%	―	-24.22%	-66.67%

Huayi Tencent Entertainment Co., Ltd. Corporate Events

Huayi Tencent Entertainment Announces 2025 AGM and Key Resolutions

Huayi Tencent Entertainment Co., Ltd., a company incorporated in the Cayman Islands, has announced its upcoming annual general meeting scheduled for June 26, 2025, in Hong Kong. The agenda includes reviewing the directors’ report, audited financial statements, and auditor’s report for the year ended December 31, 2024. Key resolutions include the re-election of directors, re-appointment of auditors, and granting a general mandate to the directors to issue additional shares, which could impact the company’s capital structure and shareholder value.

Hony Media Group Acquires Full Ownership of Meerkat Health, Streamlining Operations

Hony Media Group has announced the acquisition of a 40% shareholding in Meerkat Health Holdings Limited, leading to the termination of its VIE contractual arrangements. This strategic move allows the company to fully own the Meerkat Group, thereby simplifying its corporate structure and enhancing its operational efficiency in the healthcare consumption business. The transactions are classified as discloseable and connected under Hong Kong’s Listing Rules, ensuring transparency and compliance with regulatory requirements.

Hony Media Group Reports Increased Losses in 2024 Financial Results

Hony Media Group reported its annual financial results for the year ending December 31, 2024, showing a decline in revenue and an increased net loss compared to 2023. The company experienced a significant loss from continuing operations, with revenue dropping from HK$1,344,031,000 in 2023 to HK$1,018,462,000 in 2024, and a net loss of HK$177,190,000, indicating operational challenges and potential impacts on stakeholders.

Hony Media Group Adjusts Bond Proceeds Use and Issues Profit Warning

Hony Media Group announced a change in the use of proceeds from its convertible bonds, reallocating HK$14,712,000 from interest payments to general working capital to enhance financial flexibility. Additionally, the company issued a profit warning, expecting a significant loss of approximately HK$177 million for 2024, mainly due to impairment provisions and increased finance costs, despite improvements in its Meerkat Health operation.

Hony Media Group Delays Board Meeting for Finalizing 2024 Results

Hony Media Group, listed on the Hong Kong Stock Exchange, has announced a postponement of its board meeting initially scheduled for March 27, 2025, to March 31, 2025. The delay is due to the need for additional time to finalize the company’s 2024 annual results, which will include considerations for the announcement of final results and potential dividend payments.

Hony Media Group Schedules Board Meeting for Financial Results and Dividend Decision

Hony Media Group has announced a board meeting scheduled for March 27, 2025, to approve the final results for the year ending December 31, 2024, and to consider the payment of a final dividend. This meeting is significant as it will determine the company’s financial disclosures and potential shareholder returns, impacting its market position and investor relations.