Forgame Holdings Ltd. (0484) AI Stock Analysis

• Market Cap: HK$119.53M
• Dividend Yield: N/A
• Average Volume (3M): 42.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 35.28%
• EPS Growth: -236.70%
• Country: HK
• Employees: 46
• Sector: Technology
• Sector Strength: 86
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.46
• Shares Outstanding: 171,725,080
• 10 Day Avg. Volume: 17,310
• 30 Day Avg. Volume: 42,030
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.25
• 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

• Rating: 44 Neutral
• Price Target: HK$0.50 ▼(-29.58%Downside)

The overall stock score of 44 for Forgame Holdings Ltd. reflects significant financial challenges, with declining revenues and consistent losses being the most significant factors. The technical analysis provides mixed signals, adding uncertainty to the stock's outlook. A negative P/E ratio and lack of dividend yield further depress the valuation score, making the stock less attractive to investors. Strategic improvements are necessary to enhance financial performance and stabilize the business.

Forgame Holdings Ltd. Business Overview & Revenue Model

Company Description

Forgame Holdings Ltd. (0484) is a company primarily engaged in the development, operation, and distribution of web and mobile games. The company focuses on creating engaging and interactive gaming experiences for a global audience, leveraging its expertise in game design and technology. Forgame Holdings Ltd. operates in the digital entertainment sector, offering a diverse portfolio of games that cater to various user preferences and demographics.

How the Company Makes Money

Forgame Holdings Ltd. generates revenue through several streams, primarily through the sale of virtual items and in-game purchases within its web and mobile games. The company implements a free-to-play model where users can access games at no cost but are encouraged to make purchases for enhancements, additional features, or virtual goods to improve their gaming experience. In addition, Forgame collaborates with various distribution platforms and partners to broaden its reach and increase its user base, which, in turn, contributes to higher in-game sales. The company may also engage in licensing deals and partnerships that provide additional financial inflows through shared revenues or royalty payments.

Forgame Holdings Ltd. Financial Statement Overview

Summary

Forgame Holdings Ltd. is experiencing 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, indicating a need for strategic interventions.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	82.58M	60.17M	114.12M	142.14M	60.44M
Gross Profit	7.60M	9.04M	5.77M	13.60M	19.84M
EBITDA	-31.91M	12.91M	1.80M	-18.03M	-28.11M
Net Income	-59.31M	-17.62M	-20.11M	31.58M	-51.28M
Balance Sheet
Total Assets	529.36M	655.76M	724.02M	713.39M	678.17M
Cash, Cash Equivalents and Short-Term Investments	310.58M	334.40M	326.91M	372.27M	500.24M
Total Debt	2.91M	3.69M	7.59M	8.90M	3.55M
Total Liabilities	44.95M	65.49M	80.81M	76.74M	66.20M
Stockholders Equity	483.62M	590.27M	643.21M	636.66M	613.05M
Cash Flow
Free Cash Flow	0.00	-20.87M	-29.52M	-166.80M	68.52M
Operating Cash Flow	0.00	-20.25M	-29.40M	-129.89M	71.39M
Investing Cash Flow	0.00	-4.13M	-130.35M	115.96M	6.80M
Financing Cash Flow	0.00	-6.05M	-1.71M	2.90M	-7.57M

Forgame Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0484, the sentiment is Negative. The current price of 0.71 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.72, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.40 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	56 Neutral	$3.16B	4.94	-5.68%	5.75%	8.05%	-41.83%
8267	45 Neutral	HK$143.51M	―	-12.06%	―	4.62%	-60.86%
0484	44 Neutral	HK$119.53M	―	-10.95%	―	35.28%	-236.70%
8282	44 Neutral	HK$21.28M	―	-9.03%	―	-65.72%	96.84%
2022	43 Neutral	HK$92.83M	―	-12.08%	―	-8.88%	44.44%
6933	29 Underperform	HK$102.88M	―	-30.59%	―	395.82%	73.06%

Forgame Holdings Ltd. Corporate Events

Forgame Holdings Reports Successful AGM with Strong Shareholder Support

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

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

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

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.

Forgame Holdings Announces Share Placement to Raise HK$15.25 Million

Forgame Holdings Ltd. has announced a placement of new shares under a general mandate, aiming to raise approximately HK$15.25 million in gross proceeds. The funds will be used to upgrade production facilities and for general working capital, potentially enhancing the company’s operational capabilities and financial stability.

Forgame Holdings Announces New Hong Kong Business Location

Forgame Holdings Limited has announced a change in its principal place of business in Hong Kong, effective from April 1, 2025. This relocation may impact the company’s operational logistics but maintains its existing communication channels, indicating a strategic move to potentially enhance its business operations and market presence.