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Universe Entertainment and Culture Group Company Limited (1046) AI Stock Analysis
Universe Entertainment and Culture Group Company Limited
(HKEX:1046)
The overall score is constrained mainly by weak profitability and a demanding valuation: despite strong revenue recovery and a conservative, low‑debt balance sheet, the company remains structurally loss‑making with pressured margins and negative returns on equity, keeping financial strength only moderate. Valuation risk is elevated, as a very high P/E multiple and no dividend imply that the market already prices in a substantial improvement that has yet to be demonstrated in the financials. These weaknesses are partly offset by a constructive technical setup, with the share price trading above key moving averages and indicating positive trend dynamics, but the lack of momentum oscillators prevents a stronger technical conviction. Taken together, the stock reflects a relatively safe capital structure and improving price trend, but with significant execution and valuation risks that cap the score in the low‑50s.
Universe Entertainment and Culture Group Company Limited (1046) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 1.31B
- Dividend Yield
- ―
- Average Volume (3M)
- 18.66M
- Price to Earnings (P/E)
- -119.8
- Beta (1Y)
- 0.46
- Revenue Growth
- -74.59%
- EPS Growth
- 82.64%
- Country
- Hong Kong
- Employees
- 102
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Entertainment
Universe Entertainment and Culture Group Company Limited Business Overview & Revenue Model
Company Description
Universe Entertainment and Culture Group Company Limited, an investment holding company, engages in the video and film distribution and exhibition, and film rights and television series licensing and sub-licensing businesses. It operates through Vide...
How the Company Makes Money
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Universe Entertainment and Culture Group Company Limited Financial Statement Overview
Summary
Financial performance is mixed and only moderate overall: revenue has rebounded strongly from the 2022 slump, but the company remains structurally loss‑making with net losses for five consecutive years, materially compressed gross margins, thin or negative operating margins, and consistently negative returns on equity. The balance sheet is a relative strength with very low leverage and solid equity providing safety, but declining total assets and poor profitability drag on quality. Cash flow is currently positive and free cash flow has turned positive again, yet cash generation is volatile over time and supported by non‑cash adjustments in a loss‑making business, limiting the strength of the cash profile.
Income Statement
32NegativeBalance Sheet
68PositiveCash Flow
41Neutral| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 120.10M | 120.10M | 472.59M | 365.26M | 198.44M | 127.64M |
| Gross Profit | 40.23M | 40.21M | 68.09M | 62.97M | 29.23M | 22.55M |
| EBITDA | 20.19M | 20.19M | 332.10M | 218.55M | 32.13M | -41.20M |
| Net Income | -10.94M | -10.94M | -63.19M | -30.44M | -92.76M | -76.55M |
Balance Sheet | ||||||
| Total Assets | 410.27M | 410.27M | 435.70M | 737.41M | 951.57M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 209.28M | 209.28M | 140.50M | 133.67M | 82.20M | 219.38M |
| Total Debt | 3.51M | 3.51M | 7.10M | 11.14M | 10.42M | 13.26M |
| Total Liabilities | 182.67M | 182.67M | 197.95M | 435.02M | 617.41M | 645.76M |
| Stockholders Equity | 230.58M | 230.58M | 241.30M | 306.82M | 338.71M | 431.63M |
Cash Flow | ||||||
| Free Cash Flow | -19.54M | 0 | 32.31M | 86.63M | -111.52M | -165.54M |
| Operating Cash Flow | -19.38M | 0 | 32.91M | 87.73M | 19.05M | 272.85M |
| Investing Cash Flow | -4.43M | 0 | -22.14M | -27.38M | -141.17M | -427.08M |
| Financing Cash Flow | -3.48M | 0 | -7.84M | -8.88M | -8.88M | -9.85M |
Universe Entertainment and Culture Group Company Limited Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1046, the sentiment is Positive. The current price of 1.45 is above the 20-day moving average (MA) of 1.44, above the 50-day MA of 1.16, and above the 200-day MA of 0.56, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 71.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1046.
Universe Entertainment and Culture Group Company Limited Peers Comparison
Overall Rating
- HK:104651.75Neutral
HK:113248Neutral
HK:100346Neutral
HK:039144.3Neutral
HK:095342Neutral
HK:808238.7Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| HK:1046 | 52Neutral | HKD 1.31B | -119.83 | -4.73% | ― | -74.59% | 82.64% |
| HK:1132 | 48Neutral | HKD 156.78M | -1.16 | -10.79% | ― | -17.38% | -360.00% |
| HK:1003 | 46Neutral | HKD 1.07B | -2.02 | -54.38% | ― | ― | ― |
| HK:0391 | 44Neutral | HKD 1.47B | -34.93 | -19.16% | ― | -10.26% | 27.08% |
| HK:0953 | 42Neutral | HKD 168.93M | -4.67 | -7.85% | ― | -53.42% | -2490.00% |
| HK:8082 | 39Underperform | HKD 45.44M | -1.01 | 139.56% | ― | -41.09% | 29.17% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1046 | Universe Entertainment and Culture Group Company Limited | 1.45 | 0.97 | 202.08% | |
| HK:0391 | Mei Ah Entertainment Group Limited | 0.25 | 0.15 | 145.54% | |
| HK:8082 | Sun Entertainment Group Limited | 0.02 | -0.10 | -84.82% | |
| HK:1132 | Orange Sky Golden Harvest Entertainment (Holdings) Limited | 0.06 | -0.01 | -18.84% | |
| HK:0953 | Shaw Brothers Holdings Limited | 0.12 | -0.23 | -66.00% | |
| HK:1003 | Huanxi Media Group Ltd. | 0.24 | -0.07 | -21.61% |
Universe Entertainment and Culture Group Company Limited Corporate Events
Universe Entertainment Updates Bermuda Registered Office and Registrar Address
Universe Entertainment and Culture Group Company Limited has announced that its registered office, principal share registrar and transfer office in Bermuda will relocate to Richmond House, 12 Par-la-Ville Road, Hamilton HM 08, effective 3 August 2026...
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: Jul 28, 2026