This report is an updated version of the report published on 16 September 2025 at 2:00 PM AEST.

Ai-Media Technologies Limited (ASX: AIM)

AIM is a global provider of live and recorded captioning, transcription, and translation services. The company specialises in delivering highly accurate, secure, and cost-effective captioning solutions to top broadcasters, enterprises, and government agencies through its AI-driven LEXI automatic captioning technology. 

Recommendation Rationale – SELL at AUD 0.745 

• Financial Highlights: The company’s revenue from ordinary activities down by 2.1% YoY to AUD 86mn in FY25 vs 66.24mn in FY24. This decrease was driven by a 25% drop in low-margin legacy services revenue. EBITDA decreased by 19.5% YoY to AUD 3.31mn in FY25 vs AUD 4.11mn in FY24. 
• Surpassed Resistance Level: AIM’s share price has surpassed the R2 level recommended on 20 August 2025, with the 14-day RSI at 74.36 in overbought territory, raising the likelihood of a near-term pullback from profit-taking and risk of short-term consolidation or downside retracement.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/EBITDA, Price/Cash Flow, Price/Earnings) are higher than Industry median of the Technology sector.
• Market Risk: Operating in a highly competitive environment with constant technological innovation, Ai-Media could face pricing pressures or product displacement if competitors introduce superior solutions. The company invests in R&D and maintains skilled product development teams to stay ahead.

AIM’s Daily Price Chart

Valuation Methodology: EV/Sales Multiple Approach (FY June'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the YoY increase in gross profit in FY25, strategic global expansion, reduced overhead cost in FY25, etc. For valuation, few peers including, Mader Group Ltd (ASX: MAD), Smart Parking Ltd (ASX: SPZ), AMA Group Ltd (ASX: AMA), and other have been considered.

Considering that the stock has surpassed it R2 level, macroeconomic uncertainty, share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 0.745, at 1:10 PM AEST, as of 16 September 2025.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.