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YH Entertainment Group (2306) Fair Value & Analysis

Communication Services · HK · Market cap HK$1.6B

YE YH Entertainment Group 2306 · HK
PriceHK$1.98
Fair ValueHK$2.00
Upside+1.0%
Quality67/100
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Weak Growth
Thin margins · 7.1% net margin
Low debt · generates free cash flow
Ranks above peers (10/13)
Narrow moat 37/100
Evidence: High Range HK$1.50 – HK$2.50 Share as image

Fair value as of: Aug 13, 2026

From 22 valuation models · updated 3 days ago

Share price +2.1% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from HK$1.50 (bear) to HK$2.50 (bull), base HK$2.00. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 67/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (4 years)

HK$7.93 HK$0.4950 Fair Value HK$2.00 Jan 2023 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

43‑month range HK$0.4950 – HK$7.93 · fair‑value band HK$1.50 – HK$2.50 · the HK$1.98 price screens below the HK$2.00 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

YH Entertainment Group (2306) currently trades at HK$1.98, while our model-based Fair Value estimate is HK$2.00, implying the stock looks roughly 1.0% fairly valued today. The Quality Score stands at 67/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, YH Entertainment Group generated revenue of HK$907M at a net margin of 7.1%. Revenue grew 18.1% year over year. It earns a return on equity of 5.1%. The balance sheet holds a net cash position of HK$705M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$1.50 (bear case) to HK$2.50 (bull case); at HK$1.98, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 36% below its 52-week high and 31% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -43% fair-value upside, at 1%, 2306 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$2.09 HK$2.39 HK$2.83 80
Residual Income HK$1.22 HK$1.19 HK$1.03 76
Rev-Margin DCF HK$1.91 HK$2.32 HK$2.81 74
All 22 models by family
DCF Models
FCF DCF HK$2.06 HK$2.38 HK$2.88 38
Owner Earnings HK$1.99 HK$2.29 HK$2.76 31
5Y Revenue Exit HK$1.91 HK$2.30 HK$2.83 39
5Y EBITDA Exit HK$2.10 HK$2.62 HK$3.28 41
5Y P/E Exit HK$2.05 HK$2.54 HK$3.09 38
10Y Revenue Exit HK$1.94 HK$2.27 HK$2.64 36
10Y EBITDA Exit HK$2.07 HK$2.47 HK$2.92 37
10Y P/E Exit HK$2.05 HK$2.42 HK$2.81 35
Earnings-Based
Graham-Dodd HK$0.5300 HK$0.9700 HK$1.20 54
EPV HK$1.52 HK$1.60 HK$1.67 59
Multiples
P/E Multiple HK$1.29 HK$1.72 HK$2.15 63
P/S Multiple HK$1.00 HK$1.33 HK$1.66 58
P/B Multiple HK$1.00 HK$1.33 HK$1.66 55
EV/EBIT HK$2.17 HK$2.58 HK$2.99 53
EV/EBITDA HK$2.32 HK$2.78 HK$3.25 54
EV/Revenue HK$1.87 HK$2.27 HK$2.67 43
Asset-Based
NCAV (Graham) HK$0.8600 HK$1.15 HK$1.71 50
Growth DCF
Growth DCF HK$2.09 HK$2.39 HK$2.83 80
Rev-Margin DCF HK$1.91 HK$2.32 HK$2.81 74
Economic Profit
Residual Income HK$1.22 HK$1.19 HK$1.03 76
ROIC Compounder HK$1.52 HK$1.60 HK$1.67 72
Growth Earnings
Growth-Adj P/E HK$0.9100 HK$1.30 HK$1.69 68

Widest divergence: DCF Models (HK$2.38) versus Earnings-Based (HK$0.9700). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$907M
Revenue growth (YoY) +18.1%
Net margin 7.1%
Return on equity 5.1%
Free cash flow HK$109M FY2025
P/E ratio 21.7 as of Jul 2, 2026
More key figures
Operating margin 5.1%
EPS (TTM) HK$0.0700
EPS growth (YoY) -61.2%
Net cash HK$705M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 68 · Market factors (momentum, volatility) 21

Profitability 30
Margins and returns on capital today
Quality Growth 81
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 6
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 28
Distance to the 52-week high (market factor)
Net Issuance 64
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

YH Entertainment Group, an investment holding company, operates as an artist management company in Mainland China and Korea. It provides whole lifecycle of artist management, including artist training, operation, and promotion.

Full company description

YH Entertainment Group, an investment holding company, operates as an artist management company in Mainland China and Korea. It provides whole lifecycle of artist management, including artist training, operation, and promotion. The company's artist management services include participating in various commercial activities, such as endorsement deals, business promotion events, and commercial performances; and providing entertainment content services, including performing in movies, drama series, and variety programs. It also engages in the music intellectual property (IP) production and operation activities, which comprise licensing its music IPs to music streaming platforms and other music service providers, as well as selling digital and physical copies of its music IPs; and provision of pan-entertainment business, such as commercial development of virtual artists, variety program format licensing, and sale of artist-related merchandise. The company serves domestic and international brands; content producers; media platforms; and music service providers that license music IPs. YH Entertainment Group was founded in 2009 and is headquartered in Beijing, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

YH Entertainment Group reported revenue of HK$907M in FY2025 versus HK$1.3B in FY2021, a compound −8.4%/yr. Reported net income was HK$64.2M in FY2025, compounding −33.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$907M
Latest YoY
+18.6%
Avg. growth/yr (3Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.6%
Avg. growth/yr (5Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.3%
Avg. growth/yr (6Y) ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.2%
Revenue −8.4%/yr
FY21 HK$1.3B
FY22 HK$980M
FY23 HK$756M
FY24 HK$765M
FY25 HK$907M
Net income −33.9%/yr
FY21 HK$337M
FY22 HK$1.7B
FY23 −HK$141M
FY24 HK$46.9M
FY25 HK$64.2M

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Cite: Fair Value Calculator (2026). "YH Entertainment Group Fair Value". https://www.fairvalue-calculator.com/stock/2306

Peer Group

Entertainment · 266 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside +1% · Above median
Return on equity (TTM) 5% · Above median
Return on assets 2% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth 18% · Above median

Valuation Multiples vs Entertainment median · lower = cheaper

P/E (TTM) 21.7× · Pricier than median
P/B 1.14× · Pricier than median
P/S (TTM) 1.76× · Pricier than median
P/FCF 1.9× · Cheaper than median
EV/EBITDA 7.0× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 35 · sector 6
FUTURE 91 · sector 10
PAST 20 · sector 0
HEALTH 100 · sector 97
DIVIDEND 0 · sector 44

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Entertainment stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Netflix, Inc ZNFL C$6.08 C$2.66 -56%
The Walt Disney Company DIS $103.18 $80.62 -22%
Warner Bros. Discovery, Inc WBD $27.65 $9.03 -67%
Live Nation Entertainment, Inc LYV $185.33 $59.97 -68%
Empresas Cablevisión, S.A. CABLECPO 55.00 MXN 59.14 MXN +8%
PT MNC Digital Entertainment Tbk, MSIN 370.00 IDR 212.14 IDR -43%
Prime Focus Limited PFOCUS ₹268.00 ₹63.45 -76%
JYP Entertainment Corporation 035900 46,000 KRW 82,382 KRW +79%
SM Entertainment Co 041510 75,500 KRW 208,415 KRW +176%
PVR INOX Limited PVRINOX ₹1,176 ₹467.91 -60%

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Frequently asked questions

Is YH Entertainment Group (2306) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$2.00 versus a price of HK$1.98, about +1% (fairly valued).
What is the fair value of 2306?
Our model-based fair value for YH Entertainment Group is HK$2.00 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$1.98.
What is the quality score of 2306?
YH Entertainment Group has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of YH Entertainment Group (2306)?
YH Entertainment Group reported trailing-twelve-month revenue of about HK$907M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2306?
The net profit margin of YH Entertainment Group is about 7.1%, meaning it keeps roughly 7.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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