NetDragon Websoft Holdings (0777) AI Stock Analysis

• Market Cap: HK$6.02B
• Dividend Yield: 8.76%
• Average Volume (3M): 2.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -23.86%
• EPS Growth: -113.19%
• Country: HK
• Employees: 4,593
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 531,262,500
• 10 Day Avg. Volume: 1,777,591
• 30 Day Avg. Volume: 2,495,290
• PEG Ratio: -0.38
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.84
• P/FCF Ratio: 5.75
• 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: HK$18.31
• Price Target Upside: ― Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 6.99
• Revenue Forecast (FY): HK$38.38B

No summary available

NetDragon Websoft Holdings Business Overview & Revenue Model

Company Description

NetDragon Websoft Holdings (0777) is a leading Chinese internet technology company that specializes in online gaming and educational technology. Established in 1999, the company operates in multiple sectors, primarily focusing on the development and publishing of mobile and PC games, as well as the provision of innovative educational solutions that leverage digital technologies. Its core products include popular multiplayer online games and a suite of educational software and platforms aimed at enhancing learning experiences.

How the Company Makes Money

NetDragon generates revenue primarily through its gaming segment, which includes the sale of virtual goods, subscription fees, and in-game purchases from its popular titles. The company also monetizes its educational technology solutions by offering software licenses, subscription services, and tailored educational content to institutions and individual users. Significant partnerships with educational institutions and technology providers enhance its reach and impact in the educational sector, further solidifying its revenue streams. Additionally, strategic investments in emerging technologies and content development contribute to its overall earnings.

NetDragon Websoft Holdings Financial Statement Overview

Summary

NetDragon Websoft Holdings shows a mixed financial performance. The company maintains strong profit margins and cash flow generation, but the declining revenue trend poses a risk to future growth. The balance sheet is stable with a manageable debt level, though the return on equity is relatively low.

Income Statement

NetDragon Websoft Holdings has shown a decline in revenue over the past year, with a revenue growth rate of -10.03%. Despite this, the company maintains a healthy gross profit margin of 65.19% and a net profit margin of 5.14%. The EBIT and EBITDA margins are also solid at 12.27% and 16.77%, respectively. However, the declining revenue trend is a concern for future profitability.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.44, indicating a manageable level of debt. The return on equity stands at 5.34%, which is relatively low, suggesting limited efficiency in generating profits from shareholders' equity. The equity ratio is strong, indicating a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

NetDragon Websoft Holdings has demonstrated strong free cash flow growth of 28.59%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.24, and the free cash flow to net income ratio is 0.84, both suggesting efficient cash flow management. The positive cash flow trends are a strong point for the company's financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.13B	6.05B	7.10B	7.87B	7.04B	6.14B
Gross Profit	3.40B	3.94B	4.40B	4.32B	4.52B	4.17B
EBITDA	740.00M	1.01B	1.32B	1.55B	1.79B	1.57B
Net Income	-59.00M	311.00M	550.00M	834.00M	1.06B	953.50M
Balance Sheet
Total Assets	10.22B	10.43B	10.38B	11.03B	10.88B	9.99B
Cash, Cash Equivalents and Short-Term Investments	2.42B	2.90B	2.61B	3.99B	4.35B	4.15B
Total Debt	2.77B	2.55B	1.77B	2.19B	1.65B	1.51B
Total Liabilities	4.64B	4.57B	4.21B	4.43B	3.81B	3.34B
Stockholders Equity	5.62B	5.83B	5.89B	6.90B	7.32B	6.81B
Cash Flow
Free Cash Flow	575.00M	886.00M	493.00M	901.00M	883.00M	1.07B
Operating Cash Flow	730.00M	1.05B	1.11B	1.07B	1.03B	1.33B
Investing Cash Flow	-1.52B	-875.00M	-915.00M	-106.00M	-839.00M	-631.96M
Financing Cash Flow	182.00M	130.00M	-1.70B	-1.02B	-544.00M	1.32B

NetDragon Websoft Holdings Technical Analysis

• Last Price: ―

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%

NetDragon Websoft Holdings Corporate Events

NetDragon Appoints Dr. Lo as Independent Non-Executive Director

NetDragon Websoft Holdings Limited announced the appointment of Dr. Lo Wing Yan, William as an independent non-executive director. Dr. Lo previously served as an independent non-executive director at South Shore Holdings Limited, which faced financial difficulties leading to its winding-up. This appointment is part of NetDragon’s strategic efforts to strengthen its board with experienced professionals, potentially enhancing its governance and strategic decision-making capabilities.

NetDragon Websoft Appoints Dr. Lo Wing Yan as Independent Director

NetDragon Websoft Holdings Limited has announced the appointment of Dr. Lo Wing Yan, William as an independent non-executive director, effective from August 29, 2025. Dr. Lo will also serve as the chairman of the Remuneration Committee and a member of both the Audit and Nomination Committees. This strategic appointment is expected to enhance the company’s governance and strategic oversight, given Dr. Lo’s extensive experience in the TMT, retail, finance, and education sectors. His involvement is anticipated to strengthen NetDragon’s industry positioning and provide valuable insights for future growth.

NetDragon Websoft Announces Board Composition and Roles

NetDragon Websoft Holdings Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which could impact the company’s strategic direction and governance, potentially influencing stakeholder confidence and market perception.

NetDragon Websoft Reports Stable Operations and Strategic AI Advancements in H1 2025

NetDragon Websoft Holdings Limited reported stable operations in the first half of 2025, despite facing temporary challenges. The company experienced a slight decline in gaming revenue but maintained strong performance through strategic investments and cost efficiency measures, resulting in a 15.6% reduction in operating expenses. The company’s commitment to AI integration is evident in its dual-focus strategy of ‘AI+Gaming’ and ‘AI+Education’, with significant advancements in both sectors. In gaming, the AI Content Factory enhanced operational efficiency and content collaboration, while in education, the company expanded its AI-driven projects and partnerships globally. The announcement highlights the company’s confidence in long-term growth and its plans to enhance shareholder returns through dividends and share repurchases.

NetDragon Announces Interim Dividend for 2025

NetDragon Websoft Holdings Limited has announced an interim dividend of HKD 0.5 per share for the six months ending June 30, 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and may enhance its attractiveness to investors, potentially impacting its market positioning positively.

NetDragon’s Mynd.ai Releases H1 2025 Financial Results

NetDragon Websoft Holdings Limited announced the unaudited financial results for its subsidiary, Mynd.ai, Inc., for the six months ending June 30, 2025. Mynd.ai, listed on the NYSE American, has filed these results with the SEC, highlighting the company’s ongoing commitment to transparency and regulatory compliance. Stakeholders are advised to exercise caution when dealing with the company’s securities, reflecting the potential risks associated with investment in the tech sector.

NetDragon Websoft Holdings Announces Upcoming Board Meeting

NetDragon Websoft Holdings Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the company’s unaudited consolidated financial results for the first half of 2025. The board will also consider the declaration of dividends and other business matters, potentially impacting the company’s financial strategy and shareholder returns.