YH Entertainment Group (2306) AI Stock Analysis

• Market Cap: HK$1.92B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 1.50
• Revenue Growth: 12.59%
• EPS Growth: 11.61%
• Country: HK
• Employees: 207
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): 0.07
• Shares Outstanding: 871,881,000
• 10 Day Avg. Volume: 933,000
• 30 Day Avg. Volume: 1,171,360
• PEG Ratio: -0.08
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 6.08
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$2.50 ▲(2.46% Upside)

The overall stock score reflects a balanced view of YH Entertainment Group's current financial recovery and technical indicators. The company's profitability improvements are offset by cash flow concerns and a high valuation. Technical indicators suggest a neutral market sentiment, with no significant corporate events or earnings call data to influence the score further.

YH Entertainment Group Business Overview & Revenue Model

Company Description

YH Entertainment Group (2306) is a diversified entertainment company based in [location]. The company operates across multiple sectors, including film production, television broadcasting, and digital media. It focuses on creating high-quality content that engages audiences globally, with core products and services encompassing feature films, television series, and streaming content, as well as talent management and event production.

How the Company Makes Money

YH Entertainment Group generates revenue through several key streams. Primarily, the company earns income from the production and distribution of films and television shows, both in domestic and international markets. This includes box office sales, licensing deals, and syndication rights. Additionally, YH Entertainment capitalizes on digital platforms by offering streaming services and subscription-based content access. Revenue is also bolstered through partnerships with streaming giants and television networks, where the company licenses its content. Furthermore, YH Entertainment benefits from merchandising related to its popular franchises and live event productions, which draw in significant audiences and sponsorships, contributing to its overall earnings.

YH Entertainment Group Financial Statement Overview

Summary

YH Entertainment Group shows a recovery in profitability with improved net income and gross profit margin. However, modest revenue growth and cash flow issues, with zero operating and free cash flow, highlight areas needing improvement.

Income Statement

YH Entertainment Group has displayed a recovery in its profitability with improving net income from a significant loss in 2023 to a profit in 2024. The gross profit margin improved from 23.16% in 2023 to 27.56% in 2024, indicating better cost management. However, the revenue growth remains modest at 1.17%, and the EBIT margin of 7.15% suggests room for operational efficiency improvements.

Balance Sheet

The company's balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.12, highlighting low financial leverage. The equity ratio stands at 68.04%, reflecting a solid equity buffer. However, the return on equity is affected by the prior year's losses, needing further improvement in profitability to fully capitalize on the strong equity base.

Cash Flow

YH Entertainment Group's cash flow metrics show a concerning trend with zero operating cash flow and free cash flow reported for 2024, indicating potential issues in cash generation from operations. The previous year showed positive free cash flow, suggesting a need for analysis of current cash use and operational adjustments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	831.49M	764.54M	755.68M	980.25M	1.29B	922.04M
Gross Profit	231.13M	210.78M	175.03M	363.09M	601.96M	492.98M
EBITDA	38.43M	11.00M	-85.41M	1.81B	517.41M	409.45M
Net Income	74.25M	46.94M	-140.84M	1.72B	336.68M	291.37M
Balance Sheet
Total Assets	1.92B	2.05B	2.04B	1.32B	1.68B	1.18B
Cash, Cash Equivalents and Short-Term Investments	975.10M	1.07B	1.12B	906.21M	994.64M	866.64M
Total Debt	64.93M	163.99M	279.62M	74.37M	74.53M	82.82M
Total Liabilities	498.96M	654.56M	721.78M	1.44B	1.36B	1.19B
Stockholders Equity	1.42B	1.39B	1.32B	-121.13M	312.52M	-19.57M
Cash Flow
Free Cash Flow	134.36M	82.36M	98.72M	-4.68M	495.54M	422.00M
Operating Cash Flow	143.04M	170.05M	107.91M	-261.00K	507.90M	425.55M
Investing Cash Flow	-366.21M	-256.03M	-645.91M	48.34M	-258.70M	-161.18M
Financing Cash Flow	-108.82M	-126.33M	596.59M	-83.89M	-353.25M	-230.36M

YH Entertainment Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2306, the sentiment is Neutral. The current price of 2.44 is above the 20-day moving average (MA) of 2.41, above the 50-day MA of 2.40, and above the 200-day MA of 1.76, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 14.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2306.

YH Entertainment Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2306	60 Neutral	HK$1.92B	23.74	5.26%	―	12.59%	11.61%
0391	48 Neutral	HK$633.84M	-11.15	-20.32%	―	-6.36%	-166.67%
1097	46 Neutral	$742.00M	-1.44	―	―	-4.39%	20.40%
0547	44 Neutral	HK$2.63B	―	-49.75%	―	32.49%	13.58%
1159	43 Neutral	HK$326.27M	1.75	―	―	-57.01%	―
1003	43 Neutral	HK$1.06B	―	―	―	―	―

YH Entertainment Group Corporate Events

YH Entertainment Group Reports Strong Interim Results and Expands IP Operations

YH Entertainment Group reported a strong financial performance for the first half of 2025, with a 19.3% increase in revenue and a significant rise in profit margins. The company continued to expand its artist management and music IP production businesses, successfully holding concerts and releasing popular digital singles and albums. Despite market challenges, YH Entertainment leveraged its expertise to diversify its IP operations, exploring new growth opportunities and advancing virtual artist development.

The most recent analyst rating on (HK:2306) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on YH Entertainment Group stock, see the HK:2306 Stock Forecast page.

YH Entertainment Group Schedules Board Meeting for Interim Results

YH Entertainment Group has announced a board meeting scheduled for August 25, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, which could impact the company’s financial strategy and shareholder returns.

YH Entertainment Group Projects Significant Profit Growth for H1 2025

YH Entertainment Group has announced a positive profit alert, expecting a significant increase in net profit for the first half of 2025 compared to the same period in 2024. The anticipated profit growth, ranging from RMB50 million to RMB70 million, is attributed to reduced equity-settled share-based payments and increased revenue from its artist management business. This announcement underscores the company’s strengthened financial performance and market positioning, although final figures are yet to be audited.