NetDragon Websoft Holdings Limited (HK:0777)
:0777
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NetDragon Websoft Holdings
(0777)
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Rating:48Neutral
Price Target:
HK$7.00
Action:Reiterated
Date:03/28/26
The score is held back primarily by weakening financial performance (declining revenue, sharply lower net income, and a steep drop in operating/free cash flow) and a technically weak price trend (below key moving averages with negative MACD). A very high dividend yield provides partial offset, but the elevated P/E keeps valuation only moderately supportive.
Positive Factors
High Gross Margin
A sustained ~70% gross margin is a durable structural advantage: it provides pricing power and a large buffer to absorb SG&A and R&D spend, enabling continued product development and platform investment across games and EdTech even if top-line growth is uneven.
Negative Factors
Declining Revenue & Profits
A sustained drop in scale erodes fixed-cost absorption and commercial leverage: shrinking revenues and materially lower net income reduce resources for content creation, marketing, and platform growth, increasing the difficulty of reversing market share loss over months to quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin
A sustained ~70% gross margin is a durable structural advantage: it provides pricing power and a large buffer to absorb SG&A and R&D spend, enabling continued product development and platform investment across games and EdTech even if top-line growth is uneven.
Read all positive factors
NetDragon Websoft Holdings (0777) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.86B
Dividend Yield8.76%
Average Volume (3M)1.66M
Price to Earnings (P/E)22.0
Beta (1Y)1.01
Revenue Growth-26.02%
EPS Growth-51.13%
CountryHK
Employees4,593
SectorConsumer Goods
Sector StrengthN/A
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.29
Shares Outstanding531,262,500
10 Day Avg. Volume1,373,497
30 Day Avg. Volume1,655,106
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)0.92
Price to Sales (P/S)1.11
P/FCF Ratio17.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$12.00Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.69
Revenue Forecast (FY)HK$4.31B
NetDragon Websoft Holdings Business Overview & Revenue Model
Company Description
NetDragon Websoft Holdings Limited functions as an investment umbrella, with its core business centered on the development and operation of online and mobile games across a global footprint, including China, the United States, and the United Kingd...
How the Company Makes Money
NetDragon primarily generates revenue from two major segments: (1) Online games and related internet businesses, and (2) Education technology. In its games segment, the company makes money by developing and operating games and monetizing player ac...
NetDragon Websoft Holdings Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.47B | 6.05B | 7.10B | 7.87B | 7.04B |
| Gross Profit | 3.15B | 3.94B | 4.40B | 4.32B | 4.52B |
| EBITDA | 740.00M | 1.01B | 1.32B | 1.55B | 1.79B |
| Net Income | 151.00M | 311.00M | 550.00M | 834.00M | 1.06B |
Balance Sheet | |||||
| Total Assets | 9.94B | 10.43B | 10.38B | 11.03B | 10.88B |
| Cash, Cash Equivalents and Short-Term Investments | 4.07B | 2.90B | 2.61B | 3.99B | 4.35B |
| Total Debt | 2.85B | 2.55B | 1.77B | 2.19B | 1.65B |
| Total Liabilities | 4.55B | 4.57B | 4.21B | 4.43B | 3.81B |
| Stockholders Equity | 5.44B | 5.83B | 5.89B | 6.90B | 7.32B |
Cash Flow | |||||
| Free Cash Flow | 281.52M | 886.00M | 493.00M | 901.00M | 883.00M |
| Operating Cash Flow | 422.77M | 1.05B | 1.11B | 1.07B | 1.03B |
| Investing Cash Flow | -1.11B | -875.00M | -915.00M | -106.00M | -839.00M |
| Financing Cash Flow | -248.40M | 130.00M | -1.70B | -1.02B | -544.00M |
NetDragon Websoft Holdings Technical Analysis
―
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0777, the sentiment is undefined. The current price of undefined is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for HK:0777.
NetDragon Websoft Holdings Peers Comparison
UnderperformOutperform
Sector (57)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $3.13B | 9.23 | -34.32% | 3.14% | -25.56% | -353.61% |
* Consumer Goods Sector Average
Performance Comparison
NetDragon Websoft Holdings Corporate Events
NetDragon Websoft Secures Strong AGM Backing as Non-Executive Director Retires
Jun 1, 2026
NetDragon Websoft Holdings announced that non-executive director Lin Dongliang has retired from the board effective 1 June 2026 due to personal work arrangements, with the company stressing there is no disagreement and extending formal thanks for ...
NetDragon Websoft Details Board and Committee Structure
Jun 1, 2026
NetDragon Websoft Holdings Limited has announced the current composition of its board of directors, detailing the roles of its executive and independent non-executive members. The disclosure also clarifies the membership and leadership of its thre...
NetDragon flags 2025 annual report filing by U.S. subsidiary Mynd.ai
Jun 1, 2026
NetDragon Websoft Holdings has announced that its non-wholly owned subsidiary Mynd.ai, Inc., which is listed on the NYSE American in the United States, has filed its annual report on Form 20-F for the year ended 31 December 2025 with the U.S. Secu...
NetDragon Sets 2026 AGM to Approve 2025 Results, Dividend and Share Mandate
Apr 28, 2026
NetDragon Websoft Holdings has called its annual general meeting for 1 June 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025, consider a proposed final dividend, reappoint Deloi...
NetDragon Chairman Plans to Boost Stake, Signaling Confidence in Long-Term Prospects
Mar 30, 2026
NetDragon Websoft Holdings Limited announced that its chairman and controlling shareholder, Dr. Liu Dejian, plans to increase his stake in the company through open-market share purchases over the 12 months starting 30 March 2026. The move, driven ...
NetDragon Deepens AI Transformation While Boosting Shareholder Payouts
Mar 26, 2026
NetDragon reported continued progress on its ‘AI Now’ transformation in 2025, using artificial intelligence to streamline operations and enhance products across education, gaming and strategic AI investments. Operating expenses fell 22...
NetDragon Websoft Declares HKD 0.5 Final Dividend for 2025
Mar 26, 2026
NetDragon Websoft Holdings Limited has declared a final ordinary cash dividend of HKD 0.5 per share for the financial year ended 31 December 2025, reinforcing its shareholder-return policy and signaling confidence in its financial performance. The...
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.