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Digital Domain Holdings (0547) AI Stock Analysis

HK:0547

Digital Domain Holdings

(HKEX:0547)

Select Model
Rating:39.8Underperform
Price Target:HKD 0.18â–¼(-4.32% Downside)
Action:reiterated
Date:09/06/26

The low overall score is driven primarily by severe financial distress, including persistent large losses, high leverage, and weak debt coverage from operating cash flow. Weak technicals, with the price below all major moving averages and negative momentum signals, add further downside risk. Valuation metrics, dominated by a negative P/E and no visible yield, do not offer a compelling offset to these fundamental and technical concerns.

Positive Factors
Improved Cash GenerationThe return to positive operating and free cash flow in 2025 is a meaningful improvement in internal funding capacity. If sustained, stronger cash conversion could help support operations and investment while reducing reliance on external financing despite reported accounting losses.
Negative Factors
Persistent UnprofitabilityPersistent large losses show that the current revenue base and cost structure are not yet producing sustainable profitability. Deeply negative margins leave limited room to absorb project execution pressures or weaker demand, and continued losses can constrain investment and financial resilience.

Digital Domain Holdings (0547) vs. iShares MSCI Hong Kong ETF (EWH)

-60%-40%-20%0%20%40%HK:0547-40.63%EWH+8.05%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 1.49B
Dividend Yield
―
Average Volume (3M)
956.88K
Price to Earnings (P/E)
-5.7
Beta (1Y)
0.47
Revenue Growth
-2.84%
EPS Growth
6.29%
Country
Hong Kong
Employees
864
Sector
Communication Services
Sector Strength
60
Industry
Entertainment

Digital Domain Holdings Business Overview & Revenue Model

Company Description

Digital Domain Holdings Limited, an investment holding company established in 1992 and headquartered in Central, Hong Kong (having changed its name from Sun Innovation Holdings Limited in December 2013), operates extensively within the global media e...

How the Company Makes Money

The company primarily makes money by delivering project-based digital content services to clients. Revenue is generated from (1) VFX and post-production services for film and episodic/television productions, where the company is paid under production...

Digital Domain Holdings Financial Statement Overview

Summary

Fundamentals are very weak, with sustained net losses, deeply negative margins, high debt at roughly twice equity, shrinking shareholder equity, and only recently positive but still fragile cash flows.

Income Statement

28Negative

Balance Sheet

24Negative

Cash Flow

32Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue755.40M777.25M625.83M736.50M958.65M864.21M
Gross Profit93.29M129.34M127.44M120.19M216.86M123.97M
EBITDA-87.19M-85.25M-190.60M-303.58M-87.59M-628.69M
Net Income-261.82M-257.35M-300.27M-394.57M-206.32M-722.00M
Balance Sheet
Total Assets762.25M1.15B1.07B1.25B1.03B1.20B
Cash, Cash Equivalents and Short-Term Investments117.58M445.04M401.43M464.71M153.55M247.75M
Total Debt392.34M537.12M442.42M447.69M442.43M367.32M
Total Liabilities701.76M967.46M644.30M746.59M736.68M689.31M
Stockholders Equity156.17M268.62M502.92M671.47M375.76M585.87M
Cash Flow
Free Cash Flow-77.72M59.44M-281.24M-169.97M-93.81M-121.54M
Operating Cash Flow-71.99M94.14M-238.42M-130.55M-54.43M-83.03M
Investing Cash Flow-23.94M-83.04M-186.26M-80.36M-45.34M-257.37M
Financing Cash Flow35.59M-9.88M114.25M639.14M12.34M445.40M

Digital Domain Holdings Technical Analysis

Technical Analysis SentimentNegative
Last Price0.18

Price Trends

50DMA0.20Negative
100DMA0.22Negative
200DMA0.26Negative

Market Momentum

MACD-0.01Positive
RSI46.75Neutral
STOCH41.98Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0547, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.20, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 46.75 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0547.

Digital Domain Holdings Peers Comparison

Overall Rating

UnderperformOutperform
Sector (60)

Financial Indicators

HK:0547 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2230HK:223065NeutralHKD 369.73M6.588.62%7.66%-0.96%6.59%
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
HK:1132HK:113257NeutralHKD 156.78M-1.16-10.79%―-17.38%-360.00%
HK:0391HK:039156NeutralHKD 1.47B-34.93-19.16%―-10.26%27.08%
HK:0326HK:032648NeutralHKD 17.97B-48.33-24.66%―-69.21%-18.77%
HK:1003HK:100346NeutralHKD 1.07B-2.02-54.38%―――
HK:0547HK:054740UnderperformHKD 1.49B-5.70-123.27%―-2.84%6.29%

* Communication Services Sector Average

Performance Comparison

0%100%200%300%HK:0547HK:0326HK:0391HK:1132HK:1003HK:2230Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:0547 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:0547Digital Domain Holdings0.19-0.14-43.33%
HK:0326China Star Entertainment 7.405.42273.74%
HK:0391Mei Ah Entertainment Group Limited0.250.14131.78%
HK:1132Orange Sky Golden Harvest Entertainment (Holdings) Limited0.06-0.02-22.22%
HK:1003Huanxi Media Group Ltd.0.24-0.05-16.21%
HK:2230Medialink Group Ltd.0.19-0.05-19.67%

Digital Domain Holdings Corporate Events

Digital Domain Updates Board and Committee Structure

Sep 16, 2026

Digital Domain Holdings Limited has updated investors on the composition of its board of directors, led by Chairman and Chief Executive Officer Wong Cheung Lok. The board includes three executive directors, one non-executive director and four indepen...

Digital Domain Announces Non-Executive Director Resignation

Sep 15, 2026

Digital Domain Holdings Limited has announced changes to its board, with non-executive director Sudheer Suresh Reddy stepping down effective 16 September 2026 due to other work commitments requiring greater dedication. The company emphasized that Red...

Digital Domain Holdings Widens Interim Loss as Margins and Fair Value Hit Earnings

Aug 27, 2026

Digital Domain Holdings reported interim unaudited results for the six months ended 30 June 2026, showing revenue of HK$394.6 million, down from HK$416.5 million a year earlier. Gross profit fell to HK$52.8 million from HK$88.9 million, reflecting hi...

Digital Domain Sets August Board Meeting to Approve Interim Results and Consider Dividend

Aug 17, 2026

Digital Domain Holdings has scheduled a board meeting for 27 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the declaration of an interim dividend, signaling potential capital...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 06, 2026