YH Entertainment Group (2306) AI Stock Analysis

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YH Entertainment Group

(HKEX:2306)

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Rating:66Neutral

Price Target:HKD 2.00▲(9.89% Upside)

Action:downgraded

Date:11/07/26

The score is supported primarily by the solid balance sheet, low leverage, and recovery in revenue and operating cash flow. Technical weakness below all major moving averages, inconsistent profitability, weaker free cash flow, and a moderately demanding P/E limit the upside.

Positive Factors

Balance-sheet resilienceVery low and improving leverage gives YH Entertainment financial flexibility through uneven operating periods. A sizable equity base and reduced debt burden can support continued investment in artists and content while limiting interest-related pressure on future earnings.

Negative Factors

Volatile earnings and marginsLarge swings in profitability make the earnings base less predictable and complicate planning for artist investment and content projects. The 2023 loss also shows that the business can experience substantial downside when operating conditions or project economics weaken.

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

Market Cap: HKD 1.49B
Dividend Yield: ―
Average Volume (3M): 105.85K
Price to Earnings (P/E): 24.2
Beta (1Y): 0.63
Revenue Growth: 25.86%
EPS Growth: -23.74%
Country: Hong Kong
Employees: 231
Sector: Communication Services
Sector Strength: 60
Industry: Specialty Business Services

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 mana...

YH Entertainment Group Financial Statement Overview

Summary

Strong balance sheet and deleveraging support the score, while revenue recovery and positive operating cash flow are offset by inconsistent margins and declining free cash flow.

Income Statement

72Positive

Balance Sheet

85Very Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01B	906.97M	764.54M	755.68M	980.25M	1.29B
Gross Profit	286.02M	273.93M	210.78M	222.47M	404.78M	641.74M
EBITDA	108.33M	120.72M	56.43M	33.21M	218.40M	477.13M
Net Income	52.56M	64.17M	46.94M	-140.84M	1.72B	336.68M
Balance Sheet
Total Assets	2.14B	2.00B	2.05B	2.04B	1.32B	1.68B
Cash, Cash Equivalents and Short-Term Investments	1.07B	1.01B	1.07B	1.12B	906.21M	994.64M
Total Debt	56.43M	61.98M	163.99M	279.62M	74.37M	74.53M
Total Liabilities	673.73M	575.07M	654.56M	721.78M	1.44B	1.36B
Stockholders Equity	1.44B	1.41B	1.39B	1.32B	-121.13M	312.52M
Cash Flow
Free Cash Flow	257.42M	108.50M	82.36M	98.72M	-4.68M	495.54M
Operating Cash Flow	266.33M	112.60M	170.05M	107.91M	-261.00K	507.90M
Investing Cash Flow	-149.62M	-49.38M	-256.03M	-645.91M	48.34M	-258.70M
Financing Cash Flow	-155.45M	-153.05M	-126.33M	596.59M	-83.89M	-353.25M

YH Entertainment Group Technical Analysis

Technical Analysis SentimentNegative

Last Price1.82

Price Trends

50DMA1.88Negative

100DMA1.92Negative

200DMA2.01Negative

Market Momentum

MACD-0.01Negative

RSI45.35Neutral

STOCH52.38Neutral

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 1.82 is below the 20-day moving average (MA) of 1.85, below the 50-day MA of 1.88, and below the 200-day MA of 2.01, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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

HK:2306 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:2306	66Neutral	HKD 1.57B	24.17	3.69%	―	25.86%	-23.74%
HK:2230	65Neutral	HKD 358.17M	6.30	8.62%	7.99%	-0.96%	6.59%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
HK:0326	46Neutral	HKD 19.83B	-52.25	-24.66%	―	-69.21%	-18.77%
HK:1003	46Neutral	HKD 1.07B	-2.07	-54.38%	―	―	―
HK:0391	42Neutral	HKD 1.36B	-29.86	-19.16%	―	-10.26%	27.08%
HK:0419	40Underperform	HKD 694.08M	-13.12	-39.91%	―	-41.34%	78.52%

* Communication Services Sector Average

Performance Comparison

HK:2306 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:2306	YH Entertainment Group	1.82	-0.21	-10.34%
HK:0326	China Star Entertainment	8.00	6.12	325.53%
HK:0391	Mei Ah Entertainment Group Limited	0.21	0.11	105.83%
HK:1003	Huanxi Media Group Ltd.	0.25	-0.09	-25.67%
HK:2230	Medialink Group Ltd.	0.18	-0.05	-21.37%
HK:0419	Huayi Tencent Entertainment Co., Ltd.	0.40	-0.01	-3.66%

YH Entertainment Group Corporate Events

YH Entertainment to Fully Acquire Yuhua Tongxing and End Shenzhen Yiqi Ties

Sep 24, 2026

YH Entertainment Group’s wholly owned unit Tianjin Yihua has agreed to acquire the remaining 46.55% equity interest in its subsidiary Yuhua Tongxing from Shenzhen Yiqi for RMB4 million in cash, lifting its stake to 100% and turning Yuhua Tongxing int...

YH Entertainment Lifts Revenue but Faces Margin Pressure in First-Half 2026

Aug 26, 2026

YH Entertainment Group reported unaudited interim results for the six months to June 30, 2026, with revenue rising 23.6% year-on-year to RMB 511.9 million and gross profit up 10.9%, though margins narrowed and operating profit fell 10.6%. Profit for...

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: Nov 05, 2026

YH Entertainment Group AI Stock Analysis