Activation Group Holdings Ltd. (9919) AI Stock Analysis

• Market Cap: HK$737.29M
• Dividend Yield: 9.39%
• Average Volume (3M): 211.31K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.37
• Revenue Growth: -9.72%
• EPS Growth: -13.36%
• Country: HK
• Employees: 221
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.05
• Shares Outstanding: 744,742,000
• 10 Day Avg. Volume: 315,151
• 30 Day Avg. Volume: 211,309
• PEG Ratio: -0.29
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 3.63
• 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

• Rating: 71 Outperform
• Price Target: HK$1.00 ▲(4.17% Upside)

Activation Group Holdings Ltd. scores well due to its strong valuation metrics, particularly the attractive P/E ratio and high dividend yield. However, the overall score is moderated by technical indicators suggesting potential bearish momentum and financial performance challenges, particularly in revenue and cash flow.

Activation Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Activation Group Holdings Ltd. (9919) is a diversified company primarily engaged in the fields of technology and digital marketing. The company operates through various sectors, including advertising, data analytics, and software development, providing innovative solutions designed to enhance customer engagement and optimize business operations. Its core products and services encompass digital marketing strategies, mobile application development, and data-driven insights that empower businesses to reach their target audiences more effectively.

How the Company Makes Money

Activation Group Holdings Ltd. generates revenue through multiple streams, primarily from service fees associated with its digital marketing and advertising solutions. The company charges clients for campaign management, data analytics services, and software licensing. Additionally, it benefits from partnerships with technology firms, which enable it to integrate advanced tools and platforms into its offerings, enhancing value for customers. Performance-based contracts also play a significant role in its revenue model, allowing the company to earn commissions based on the success of its marketing initiatives. These diverse revenue sources, combined with a focus on expanding its client base across various industries, contribute to the company's overall earnings.

Activation Group Holdings Ltd. Financial Statement Overview

Summary

The company demonstrates strong profitability and a solid balance sheet with a low debt-to-equity ratio. However, a decline in revenue and cash flow presents challenges that need addressing to ensure long-term financial stability.

Income Statement

Activation Group Holdings Ltd. has shown strong profitability with a healthy gross profit margin of around 30% in recent years. However, revenue has decreased from 2023 to 2024 by approximately 12.34%, impacting overall financial results. The net profit margin decreased from 11.17% in 2023 to 9.35% in 2024 while maintaining a stable EBIT margin. The company needs to focus on reversing the declining revenue trend to improve future performance.

Balance Sheet

The company maintains a strong balance sheet with an impressively low debt-to-equity ratio of 0.02 and a high equity ratio of around 45.76% as of 2024, indicating financial stability and low leverage risk. The return on equity has slightly decreased from 31.79% in 2023 to 23.21% in 2024, which remains robust, though there is room for improvement to enhance shareholder returns.

Cash Flow

Cash flow analysis reveals challenges, as free cash flow dropped to zero in 2024. In previous years, the company demonstrated strong free cash flow growth, but the current lack of free cash flow signals potential issues in cash generation. The absence of operating cash flow in 2024 is concerning and requires attention to ensure long-term financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	843.05M	847.75M	967.23M	694.81M	904.06M	458.00M
Gross Profit	255.94M	254.27M	298.22M	202.24M	267.28M	131.65M
EBITDA	118.08M	125.65M	170.39M	42.03M	137.21M	29.66M
Net Income	84.41M	79.24M	107.99M	23.63M	92.49M	23.42M
Balance Sheet
Total Assets	602.73M	745.91M	795.40M	711.25M	716.24M	588.60M
Cash, Cash Equivalents and Short-Term Investments	288.69M	379.19M	307.08M	300.27M	408.67M	305.48M
Total Debt	9.54M	7.80M	6.58M	9.60M	8.74M	13.74M
Total Liabilities	261.49M	384.76M	435.43M	357.66M	286.83M	215.76M
Stockholders Equity	324.77M	341.36M	339.77M	336.31M	406.31M	359.93M
Cash Flow
Free Cash Flow	108.32M	167.65M	113.71M	57.82M	171.11M	-29.96M
Operating Cash Flow	109.18M	169.61M	115.12M	61.00M	175.36M	-29.06M
Investing Cash Flow	-189.00K	-278.00K	-504.00K	-38.71M	347.00K	10.55M
Financing Cash Flow	-26.41M	-97.71M	-103.97M	-127.44M	-68.91M	199.73M

Activation Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9919, the sentiment is Neutral. The current price of 0.96 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.01, and above the 200-day MA of 0.86, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9919.

Activation Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9919	71 Outperform	HK$737.29M	8.08	26.71%	9.39%	-9.72%	-13.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2422	54 Neutral	HK$960.00M	130.30	-16.52%	―	10.61%	-1448.48%
1490	49 Neutral	HK$218.22M	78.52	-0.67%	―	2.85%	-118.89%
1993	44 Neutral	HK$363.40M	―	―	―	-38.24%	-31.99%
8500	38 Underperform	HK$112.32M	―	-96.94%	―	-55.50%	84.93%

Activation Group Holdings Ltd. Corporate Events

Activation Group Holdings Reports Resilient Interim Results Amid Market Challenges

Activation Group Holdings Limited announced its interim results for the first half of 2025, reporting a slight revenue decline of 1.5% to RMB311.7 million due to weakened consumer confidence and global market demand. Despite these challenges, the company achieved a 16.2% increase in net profit to RMB35.1 million, driven by strategic cost optimization and operational adjustments. The company declared an interim dividend of HK2.3 cents per share, reflecting its commitment to shareholder returns. The Group remains cautiously optimistic about future growth, leveraging its strong foundation and proactive strategies to navigate market challenges.

The most recent analyst rating on (HK:9919) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Activation Group Holdings Ltd. stock, see the HK:9919 Stock Forecast page.

Activation Group Holdings Announces Interim Dividend for 2025

Activation Group Holdings Limited has announced an interim cash dividend of HKD 0.023 per share for the six months ending June 30, 2025. The dividend will be paid on September 19, 2025, with an ex-dividend date of September 4, 2025, and a record date of September 11, 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders.

The most recent analyst rating on (HK:9919) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Activation Group Holdings Ltd. stock, see the HK:9919 Stock Forecast page.

Activation Group Holdings Limited Forms Nomination Committee

Activation Group Holdings Limited has established a Nomination Committee as part of its Board of Directors, which was formed following a resolution passed in December 2019. The committee is composed of at least three members, primarily independent non-executive directors, with a requirement for gender diversity among its members. The establishment of this committee aims to enhance corporate governance by ensuring diverse and independent oversight in the nomination process for board members.

The most recent analyst rating on (HK:9919) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Activation Group Holdings Ltd. stock, see the HK:9919 Stock Forecast page.

Activation Group Holdings Ltd. Enhances Governance with Audit Committee

Activation Group Holdings Ltd. has outlined the terms of reference for its Audit Committee, which was established following a board resolution in December 2019. The committee is composed of non-executive directors, with a majority being independent, and is tasked with ensuring compliance with the listing rules of the Hong Kong Stock Exchange. This move is expected to enhance the company’s governance framework, potentially strengthening stakeholder confidence and aligning with industry best practices.

The most recent analyst rating on (HK:9919) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Activation Group Holdings Ltd. stock, see the HK:9919 Stock Forecast page.