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Forgame Holdings Ltd. (HK:0484)
:0484
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Forgame Holdings Ltd. (0484) AI Stock Analysis

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HK:0484

Forgame Holdings Ltd.

(Frankfurt:0484)

Rating:52Neutral
Price Target:
HK$1.00
▲(11.11%Upside)
The overall stock score indicates a challenging financial position for HK:0484, with declining revenues and significant losses impacting the financial performance score. Technical indicators suggest some positive momentum, but valuation remains weak due to negative earnings and no dividend yield. Strategic improvements are necessary to enhance financial stability and investor confidence.

Forgame Holdings Ltd. (0484) vs. iShares MSCI Hong Kong ETF (EWH)

Forgame Holdings Ltd. Business Overview & Revenue Model

Company DescriptionForgame 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 MoneyForgame Holdings Ltd. generates revenue primarily through the sale of virtual goods and in-game purchases within its web and mobile games. The company capitalizes on the freemium model, where its games are free to play but offer optional purchases that enhance the gaming experience, such as virtual currency, special items, or premium features. Additionally, Forgame may earn revenue through partnerships with other companies for game distribution, licensing agreements, and advertising within its gaming platforms. These streams allow the company to monetize its user base effectively while expanding its market presence in the competitive gaming industry.

Forgame Holdings Ltd. Financial Statement Overview

Summary
Forgame Holdings Ltd. is facing financial challenges, with declining revenues and consistent losses. Despite a strong cash position, the company has operational inefficiencies and shrinking profitability, making its overall financial health concerning.
Income Statement
35
Negative
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
50
Neutral
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
40
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue82.58M60.17M114.12M142.14M60.44M
Gross Profit7.60M9.04M5.77M13.60M19.84M
EBITDA-31.91M12.91M1.80M-18.03M-28.11M
Net Income-59.31M-17.62M-20.11M31.58M-51.28M
Balance Sheet
Total Assets529.36M655.76M724.02M713.39M678.17M
Cash, Cash Equivalents and Short-Term Investments310.58M334.40M326.91M372.27M500.24M
Total Debt2.91M3.69M7.59M8.90M3.55M
Total Liabilities44.95M65.49M80.81M76.74M66.20M
Stockholders Equity483.62M590.27M643.21M636.66M613.05M
Cash Flow
Free Cash Flow-25.27M-20.87M-29.52M-166.80M68.52M
Operating Cash Flow-24.71M-20.25M-29.40M-129.89M71.39M
Investing Cash Flow1.68M-4.13M-130.35M115.96M6.80M
Financing Cash Flow-2.80M-6.05M-1.71M2.90M-7.57M

Forgame Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.90
Price Trends
50DMA
0.76
Positive
100DMA
0.75
Positive
200DMA
0.75
Positive
Market Momentum
MACD
0.04
Negative
RSI
72.11
Negative
STOCH
87.50
Negative
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 0.9 is above the 20-day moving average (MA) of 0.80, above the 50-day MA of 0.76, and above the 200-day MA of 0.75, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 72.11 is Negative, neither overbought nor oversold. The STOCH value of 87.50 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$34.55B5.25-11.40%1.91%5.47%-20.39%
52
Neutral
€151.52M-10.95%35.28%-236.70%
€21.72M
45
Neutral
HK$257.62M-12.06%4.62%-60.86%
44
Neutral
HK$19.76M-9.03%-65.72%96.84%
43
Neutral
HK$92.83M-12.08%-8.88%44.44%
29
Underperform
HK$170.08M-30.59%395.82%73.06%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0484
Forgame Holdings Ltd.
0.88
0.11
14.29%
DE:13O
Ourgame International Holdings Ltd
0.02
0.00
0.00%
HK:2022
Digital Hollywood Interactive Limited
0.05
>-0.01
-16.67%
HK:6933
Sino-Entertainment Technology Holdings Limited
0.41
0.23
127.78%
HK:8267
Linekong Interactive Group Co., Ltd.
0.70
0.30
75.00%
HK:8282
Gameone Holdings Ltd.
0.65
0.11
20.37%

Forgame Holdings Ltd. Corporate Events

Forgame Holdings Ltd. Updates Nomination Committee Terms
Jul 14, 2025

Forgame Holdings Ltd. has announced the terms of reference for its Nomination Committee, effective from July 14, 2025. This committee, established by the board in 2013, plays a crucial role in overseeing the nomination of directors and senior management, which is vital for the company’s governance and strategic direction.

Forgame Holdings Reports Successful AGM with Strong Shareholder Support
May 20, 2025

Forgame Holdings Limited, a company incorporated in the Cayman Islands, announced the successful passing of all proposed resolutions at its Annual General Meeting held on May 20, 2025. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates for share issuance and buyback. The results reflect strong shareholder support, with all resolutions receiving over 99% approval. This outcome underscores the company’s stable governance and shareholder confidence, potentially enhancing its market position.

Forgame Holdings Completes Successful Share Placement
Apr 30, 2025

Forgame Holdings Ltd. has successfully completed the placement of 25 million new shares, raising approximately HK$14.90 million in net proceeds. The funds will be used to upgrade their facilities for Smart Cloud AI operations and for general working capital, impacting the company’s shareholding structure and enhancing its operational capabilities.

Forgame Holdings Announces Annual General Meeting and Key Resolutions
Apr 28, 2025

Forgame Holdings Limited has announced its upcoming annual general meeting, set to take place on May 20, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s financial statements for the year ended December 31, 2024, the re-election of certain directors, and the re-appointment of the independent auditor. Additionally, the meeting will consider resolutions to authorize the board to allot and issue new shares, which could impact the company’s capital structure and shareholder value.

Forgame Holdings Ltd. Expands Business with New Share Placement
Apr 24, 2025

Forgame Holdings Ltd. announced a supplemental plan to place new shares under a general mandate, aiming to raise approximately HK$14.90 million in net proceeds. The funds will be used to upgrade production facilities and for general working capital. The company is expanding its business scope by establishing a new fund management business through its subsidiary, Foga Investment Limited, which recently obtained licenses for advising on securities and asset management. The move is intended to broaden the shareholder base, comply with regulatory capital requirements, and ensure the growth of its original business is not hindered.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025