Activation Group Holdings Limited Fundamental Analysis (HKSE: 9919.HK)
Activation Group Holdings Limited Fundamental Analysis (HKSE: 9919.HK)
Activation Group Holdings Limited (HKSE: 9919.HK) shows moderate financial fundamentals with a PE ratio of 6.98, profit margin of 9.81%, and ROE of 20.02%. The company generates $0.7B in annual revenue with weak year-over-year growth of -16.56%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 9919.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent9919.HK demonstrates superior asset utilization.
Valuation Score
Excellent9919.HK trades at attractive valuation levels.
Growth Score
Weak9919.HK faces weak or negative growth trends.
Financial Health Score
Excellent9919.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate9919.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 9919.HK Expensive or Cheap?
P/E Ratio
9919.HK trades at 6.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 9919.HK's PEG of -0.43 indicates potential undervaluation.
Price to Book
The market values Activation Group Holdings Limited at 1.44 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.75 times EBITDA. This signals the market has high growth expectations.
How Well Does 9919.HK Make Money?
Net Profit Margin
For every $100 in sales, Activation Group Holdings Limited keeps $9.81 as profit after all expenses.
Operating Margin
Core operations generate 10.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.02 in profit for every $100 of shareholder equity.
ROA
Activation Group Holdings Limited generates $10.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Activation Group Holdings Limited generates limited operating cash flow of $28.42M, signaling weaker underlying cash strength.
Free Cash Flow
Activation Group Holdings Limited produces free cash flow of $28.29M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
9919.HK converts 6.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.44
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.03
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How 9919.HK Stacks Against Its Sector Peers
| Metric | 9919.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.98 | 18.98 | Better (Cheaper) |
| ROE | 20.02% | 611.00% | Weak |
| Net Margin | 9.81% | 914.00% | Weak |
| Debt/Equity | 0.02 | -0.43 (disorted) | Distorted |
| Current Ratio | 2.03 | 1.89 | Strong Liquidity |
| ROA | 10.92% | 269.00% | Weak |
9919.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Activation Group Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.57%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
235.23%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
75.67%
Industry Style: Growth, Technology, Streaming
High Growth