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HK Equities · Finance research note

HKEX 1046 - Universe Entertainment and Culture Group Co. Ltd.

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Evidence and analysis

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2. Company Fundamentals

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 76.25%
Risk / Std Dev (Ann.)* 83.83%
1-Year Price Return* 24.24%

Latest Market Data (as of 2026-08-14, Hong Kong time):

Metric Value
Last Price HK$0.44
52-Week Range HK$0.27 – HK$0.6
Observation Count 245 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year price series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in HK$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2024 FY2023
Revenue Reported revenue HK$365.26M HK$198.44M
Net income Reported net income HK$-30.44M HK$-92.76M
Total assets Year-end reported balance HK$737.41M HK$951.57M
Shareholders’ equity Year-end reported balance HK$306.82M HK$338.71M
Net margin Net income ÷ revenue -8.33% -46.74%
Asset turnover Revenue ÷ total assets 0.4953x 0.2085x
Equity multiplier Total assets ÷ shareholders’ equity 2.4034x 2.8094x
ROE Net margin × asset turnover × equity multiplier -9.92% -27.39%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: Missing verified DCF inputs: revenue, EBIT. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price HK$0.50
Market capitalisation HK$453.32M
Revenue NM
EBIT NM
Reported free cash flow HK$62.08M
FCF yield 13.69%
Net debt / EBITDA NM

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 16:44:01.868869 UTC; latest reported fiscal period: 2025-06-30 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set Asia Pacific ex Japan
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-20 to 2026-06-30
Aligned daily observations 210
Minimum observation requirement 120
Currency conversion for HK listings HKD adjusted close divided by daily USD/HKD close before simple daily return calculation

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha 73.01% 91.77%
Adjusted R² -0.00 -0.00
Annualised residual volatility 85.36% 84.88%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.35 (0.73) 0.29 (0.55)
Size (SMB) -1.01 (-1.41) -1.37 (-1.53)
Value (HML) -0.34 (-0.51) -0.73 (-0.98)
Profitability (RMW) NM -1.44 (-1.51)
Investment (CMA) NM -0.33 (-0.30)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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