Forgame Holdings Ltd. (0484) AI Stock Analysis

• Market Cap: HK$144.78M
• Dividend Yield: N/A
• Average Volume (3M): 90.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 65.41%
• EPS Growth: -313.74%
• Country: HK
• Employees: 46
• Sector: Technology
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.15
• Shares Outstanding: 171,725,080
• 10 Day Avg. Volume: 71,420
• 30 Day Avg. Volume: 90,323
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 1.32
• P/FCF Ratio: -4.31
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$1.00 ▲(16.28% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues and consistent losses. Technical analysis indicates bearish momentum, further weighing on the score. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, highlighting the stock's unattractiveness. The absence of earnings call insights and notable corporate events leaves the financial and technical factors as the primary influences on the score.

Positive Factors

Strong Cash Position

A strong cash position provides financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Revenue Growth

Significant revenue growth indicates potential market expansion and increased demand for the company's gaming products.

Low Debt Levels

Low debt levels reduce financial risk and interest obligations, enhancing the company's ability to manage its financial commitments.

Negative Factors

Declining Profitability

Decreasing profitability from core operations can hinder the company's ability to reinvest in its business and sustain long-term growth.

Consistent Losses

Ongoing losses indicate financial distress, limiting the company's ability to generate shareholder value and invest in future growth.

Operational Inefficiencies

Operational inefficiencies can lead to higher costs and reduced competitiveness, impacting the company's market position and profitability.

Forgame Holdings Ltd. Business Overview & Revenue Model

Company Description

Forgame Holdings Limited, an investment holding company, develops, operates, and publishes web and mobile games in the People's Republic of China and internationally. It operates in two segments, Game Business and Electronic Device and Semiconductor Business. It also trades in electronic devices and semiconductors. The company also provides information technology and software development services. Forgame Holdings Limited was founded in 2009 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Forgame Holdings Ltd. generates revenue primarily through in-app purchases and advertisements within its mobile games. Players can buy virtual goods, upgrades, and other game-enhancing features, providing a steady stream of income. Additionally, the company partners with advertising networks to display ads within its games, earning revenue each time a player views or interacts with these advertisements. Significant partnerships with other gaming companies and technology providers also contribute to its earnings by expanding its market reach and enhancing game development capabilities.

Forgame Holdings Ltd. Financial Statement Overview

Summary

Forgame Holdings Ltd. is experiencing financial challenges, with declining revenues and consistent losses reflected across its financial statements. Despite having a strong cash position and relatively low debt, the company faces operational inefficiencies and shrinking profitability. The overall financial health is concerning, and strategic interventions are necessary to improve performance and stabilize the business.

Income Statement

The company's income statement reflects declining revenue, with a notable decrease from 2021 to 2023. The gross profit margin has been decreasing, indicating shrinking profitability from core operations. The net profit margin is negative, highlighting ongoing losses. EBIT and EBITDA margins are also negative, showing operational challenges. Overall, the income statement indicates financial distress and declining performance.

Balance Sheet

The balance sheet shows a relatively strong equity position with a high equity ratio, suggesting financial stability. However, the debt-to-equity ratio is low, warranting caution due to potential leverage issues. The return on equity is negative, reflecting consistent losses. While the company maintains a strong cash position, the declining stockholders' equity is a concern.

Cash Flow

The cash flow statement shows sporadic free cash flow trends with fluctuations over the years. The operating cash flow to net income ratio is not encouraging, indicating inefficiencies in generating cash from operations. The free cash flow to net income ratio is not positive, pointing to challenges in cash generation. Overall, the cash flow position is weak and inconsistent.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	123.19M	82.58M	60.17M	114.12M	142.14M	53.56M
Gross Profit	9.59M	7.60M	24.09M	5.77M	13.60M	12.96M
EBITDA	-9.59M	-31.91M	12.91M	1.80M	-17.48M	-28.11M
Net Income	-76.50M	-59.31M	-17.62M	-20.11M	17.55M	-51.28M
Balance Sheet
Total Assets	506.03M	529.36M	655.76M	724.02M	713.39M	678.17M
Cash, Cash Equivalents and Short-Term Investments	326.00M	310.58M	334.40M	326.91M	372.27M	500.24M
Total Debt	2.71M	2.91M	3.69M	7.59M	8.90M	3.55M
Total Liabilities	34.96M	44.95M	65.49M	80.81M	76.74M	66.20M
Stockholders Equity	470.26M	483.62M	590.27M	643.21M	636.66M	613.05M
Cash Flow
Free Cash Flow	-35.11M	-25.27M	-20.87M	-29.52M	-166.80M	68.52M
Operating Cash Flow	-35.09M	-24.71M	-20.25M	-29.40M	-129.89M	71.39M
Investing Cash Flow	7.90M	1.68M	-4.13M	-130.35M	115.96M	6.80M
Financing Cash Flow	11.42M	-2.80M	-6.05M	-1.71M	2.90M	-7.57M

Forgame Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0484, the sentiment is Positive. The current price of 0.86 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.83, and above the 200-day MA of 0.80, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 62.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0484.

Forgame Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6933	53 Neutral	HK$295.32M	-10.16	-28.25%	―	-3.02%	72.76%
8267	46 Neutral	HK$134.86M	-23.25	-2.00%	―	20.90%	70.71%
0484	44 Neutral	HK$144.78M	-1.49	-15.08%	―	65.41%	-313.74%
8282	44 Neutral	HK$39.33M	-100.00	-1.54%	―	8.14%	99.25%
2022	42 Neutral	HK$98.40M	-6.31	-7.87%	―	-5.90%	60.75%
6899	41 Neutral	HK$268.64M	-2.34	―	―	―	―

Forgame Holdings Ltd. Corporate Events

Forgame Holdings Updates CEO Emoluments in Annual Reports

Forgame Holdings Limited has issued a supplemental announcement to provide additional details regarding the emoluments of its former CEO, Mr. Deng Ge, for the years 2021 to 2023. This update clarifies the financial compensation received by Mr. Deng during his tenure, including salaries, bonuses, and other benefits, while affirming that all other information in the annual reports remains unchanged.

The most recent analyst rating on (HK:0484) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Forgame Holdings Ltd. stock, see the HK:0484 Stock Forecast page.