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YH Entertainment Group (HK:2306)
:2306
Hong Kong Market
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YH Entertainment Group (2306) AI Stock Analysis

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HK:2306

YH Entertainment Group

(2306)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
HK$2.00
▼(-18.03% Downside)
Action:Reiterated
Date:08/04/26
The score is supported primarily by the company’s conservative balance sheet and return to revenue growth and profitability, which reduce financial risk. Offsetting this, operating results and cash-flow quality have been volatile (including margin compression and declining free cash flow), while technical signals are neutral and the valuation (P/E ~21.6) does not appear compelling enough to outweigh execution consistency risks.
Positive Factors
Conservative Balance Sheet
Very low leverage and a sizable equity base materially reduce solvency risk and provide capacity to absorb shocks or fund strategic initiatives. Over a 2–6 month horizon this balance-sheet strength supports operational flexibility, lowers refinancing risk, and underpins credit and investment optionality.
Negative Factors
Earnings Volatility / Past Loss
History of a significant loss and swings in shareholder returns point to execution and demand cyclicality in the entertainment business. Persistent volatility complicates forecasting and weakens confidence in steady earnings power unless management demonstrates consistent margin and revenue discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and a sizable equity base materially reduce solvency risk and provide capacity to absorb shocks or fund strategic initiatives. Over a 2–6 month horizon this balance-sheet strength supports operational flexibility, lowers refinancing risk, and underpins credit and investment optionality.
Read all positive factors

YH Entertainment Group (2306) vs. iShares MSCI Hong Kong ETF (EWH)

YH Entertainment Group Business Overview & Revenue Model

Company Description
YH Entertainment Group, an investment holding company, operates as an artist management company in Mainland China and Korea. The company offers whole lifecycle of artist management, including artist training, operation, and promotion. Its artist m...
How the Company Makes Money
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YH Entertainment Group Financial Statement Overview

Summary
Balance sheet strength is a key positive (very low and improving leverage; debt-to-equity ~0.04 and sizable equity base). Operations have returned to growth and profitability (2025 revenue growth ~6.3% and positive net income), but profitability and margins have been volatile (loss in 2023; gross margin compressed in 2025), and free cash flow—while still positive—has been declining recently with mixed cash-conversion signals.
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue906.97M764.54M755.68M980.25M1.29B
Gross Profit273.93M210.78M222.47M404.78M641.74M
EBITDA118.69M50.05M26.03M212.99M469.88M
Net Income64.17M46.94M-140.84M1.72B336.68M
Balance Sheet
Total Assets2.00B2.05B2.04B1.32B1.68B
Cash, Cash Equivalents and Short-Term Investments1.01B1.07B1.12B906.21M994.64M
Total Debt61.98M163.99M279.62M74.37M74.53M
Total Liabilities575.07M654.56M721.78M1.44B1.36B
Stockholders Equity1.41B1.39B1.32B-121.13M312.52M
Cash Flow
Free Cash Flow108.50M82.36M98.72M-4.68M495.54M
Operating Cash Flow112.60M170.05M107.91M-261.00K507.90M
Investing Cash Flow-49.38M-256.03M-645.91M48.34M-258.70M
Financing Cash Flow-153.05M-126.33M596.59M-83.89M-353.25M

YH Entertainment Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.44
Price Trends
50DMA
1.97
Negative
100DMA
1.96
Negative
200DMA
2.11
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.63
Neutral
STOCH
53.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2306, the sentiment is Negative. The current price of 2.44 is above the 20-day moving average (MA) of 1.96, above the 50-day MA of 1.97, and above the 200-day MA of 2.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 53.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2306.

YH Entertainment Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
HK$383.21M6.958.62%7.33%-0.96%6.59%
63
Neutral
HK$1.69B25.683.69%25.86%-23.74%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
49
Neutral
HK$1.90B-44.37-19.16%-10.26%27.08%
47
Neutral
HK$885.59M-1.66-54.38%
43
Neutral
HK$14.33B-37.36-24.66%30.56%-69.21%-18.77%
42
Neutral
HK$896.15M-16.45-39.91%1.15%-41.34%75.32%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2306
YH Entertainment Group
1.89
-0.70
-26.94%
HK:0326
China Star Entertainment
5.80
3.41
142.68%
HK:0391
Mei Ah Entertainment Group Limited
0.32
0.22
246.15%
HK:1003
Huanxi Media Group Ltd.
0.19
-0.13
-40.31%
HK:2230
Medialink Group Ltd.
0.20
-0.06
-24.33%
HK:0419
Huayi Tencent Entertainment Co., Ltd.
0.49
-0.15
-23.44%

YH Entertainment Group Corporate Events

YH Entertainment Group Switches Investment Manager for Subscribed Fund
Jun 26, 2026
YH Entertainment Group has updated shareholders on a previously announced fund subscription, confirming that the fund, which has yet to commence operations, will change its investment manager. The general partner Star Light Blessing Limited, ultim...
YH Entertainment Wins Full Shareholder Backing at 2026 AGM
Jun 18, 2026
YH Entertainment Group secured shareholder approval for all resolutions at its 2026 annual general meeting held on June 18, with voting conducted by poll and overseen by Computershare Hong Kong Investor Services. Shareholders endorsed the 2025 aud...
YH Entertainment Clarifies Terms of Connected Pop Toy and Artist Promotion Deals
Jun 5, 2026
YH Entertainment Group has detailed the pricing mechanisms for its continuing connected transactions with Shenzhen Yiqi involving WAKUKU-branded pop toys, covering economic benefit sharing, sales discounts, consignment and online marketing fees, a...
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: Aug 04, 2026