Kuke Music Holding (KUKE) AI Stock Analysis

• Market Cap: $20.30M
• Dividend Yield: N/A
• Average Volume (3M): 15.31K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.53
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 108
• Sector: Communication Services
• Sector Strength: 83
• Industry: Entertainment
• EPS (TTM): -2.81
• Shares Outstanding: 19,496,185
• 10 Day Avg. Volume: 10,673
• 30 Day Avg. Volume: 15,311
• PEG Ratio: -0.83
• Price to Book (P/B): 1.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

The overall score for Kuke Music Holding is mainly driven by its challenging financial performance, marked by consistent net losses and liquidity problems. Technical analysis indicates uncertainty in stock momentum, while valuation metrics are weak due to negative earnings and lack of dividends. These factors collectively contribute to a low overall score, highlighting significant risks.

Kuke Music Holding Business Overview & Revenue Model

Company Description

Kuke Music Holding Limited, through its subsidiaries, provides classical music licensing, subscription, and education services in China. It operates through two segments, Subscription, Licensing and Smart Music Learning Business; and Music Events and Performances Business. The Subscription, Licensing and Smart Education Business segment distributes commercial copyrights and offers music education solutions. The Music Events Business segment is involved in the provision of music festival events and music performance services; and sale of musical instruments. The company licenses its music content primarily to online music entertainment platforms and digital music service providers, as well as film and TV production companies, airlines, and smart hardware companies. As of December 31, 2021, it had 802 institutional subscribers, including 477 universities and music conservatories, as well as 325 public libraries. Kuke Music Holding Limited was founded in 2002 and is headquartered in Beijing, China.

How the Company Makes Money

Kuke Music Holding generates revenue through multiple streams, primarily focusing on licensing, subscription services, and educational products. The licensing business involves providing rights to use classical music content to various enterprises, including media companies and educational institutions, which require access to a vast library of music for their projects and activities. The subscription service targets individuals and organizations, offering them access to KUKE's extensive collection of classical music for a recurring fee. Additionally, KUKE offers educational services and products, such as music-related courses and materials, catering to schools and individual learners. Strategic partnerships with educational institutions and media companies enhance KUKE's distribution network and contribute significantly to its revenue.

Kuke Music Holding Financial Statement Overview

Summary

Kuke Music Holding faces significant financial challenges, with decreasing revenues and consistent net losses impacting its profitability. The balance sheet shows increased leverage, raising concerns about financial stability. Additionally, negative cash flows highlight liquidity constraints, requiring strategic financial management to improve performance.

Income Statement

Kuke Music Holding has experienced declining revenue over the recent years, with a significant drop from 301.98 million in 2021 to 106.94 million in 2023. The net profit margin has been negative, indicating losses, and the gross profit margin has decreased considerably from 2019 to 2023. Despite a high gross profit margin in 2020, the company has faced challenges in maintaining profitability, with consistently negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet reveals a declining equity position, from 938.74 million in 2021 to 21.74 million in 2023, reflecting financial stress. The company's debt-to-equity ratio has increased, indicating higher leverage and potential financial risk. However, the equity ratio remains relatively stable, suggesting some asset strength.

Cash Flow

Kuke Music Holding has experienced negative operating cash flows in recent years, with a deterioration in free cash flow growth rate. The operating cash flow to net income ratio is unfavorable due to negative net income and operating cash flow. The company has been unable to generate positive free cash flow consistently, indicating liquidity challenges.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
130.23M	106.94M	115.11M	301.98M	162.88M	146.05M
	Gross Profit
71.15M	50.59M	17.31M	172.83M	118.60M	113.71M
	EBIT
-24.99M	-58.78M	-82.83M	-34.81M	21.65M	68.85M
	EBITDA
-1.06M	-48.96M	-862.32M	-27.54M	10.62M	75.74M
	Net Income Common Stockholders
-39.93M	-65.29M	-896.91M	-56.06M	-15.21M	56.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.31M	8.31M	5.42M	59.05M	25.72M	23.01M
	Total Assets
0.00	248.50M	246.74M	1.12B	877.35M	503.63M
	Total Debt
0.00	86.32M	77.82M	50.82M	77.49M	69.71M
	Net Debt
0.00	78.75M	72.39M	-8.23M	51.77M	46.70M
	Total Liabilities
-23.56M	224.95M	185.95M	170.10M	216.18M	221.06M
	Stockholders Equity
23.56M	21.74M	58.46M	938.74M	656.10M	278.70M
Cash Flow		Free Cash Flow
0.00	-20.77M	-26.64M	6.75M	15.44M	3.92M
	Operating Cash Flow
0.00	-20.77M	-26.48M	64.69M	26.29M	17.39M
	Investing Cash Flow
0.00	-176.00K	-38.48M	-291.20M	-121.34M	-37.31M
	Financing Cash Flow
0.00	23.09M	11.34M	259.84M	97.76M	11.80M

Kuke Music Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KUKE, the sentiment is Negative. The current price of 4.08 is below the 20-day moving average (MA) of 4.23, above the 50-day MA of 3.41, and below the 200-day MA of 5.66, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 27.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KUKE.

Kuke Music Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSVR	63 Neutral	$482.72M	63.74	2.22%	―	11.32%	3803.23%
Sector *	60 Neutral	$14.09B	6.90	-3.35%	3.68%	2.44%	-36.27%
DLPN	46 Neutral	$12.30M	―	-98.74%	―	0.31%	27.47%
HOFV	45 Neutral	$5.69M	―	-65.28%	―	-20.80%	19.16%
ANGH	43 Neutral	$37.65M	―	-270.84%	―	88.72%	-85.53%
KUKE	41 Neutral	$20.30M	―	-218.47%	―	―	―