7Road Holdings Limited (0797) AI Stock Analysis

• Market Cap: HK$2.03B
• Dividend Yield: N/A
• Average Volume (3M): 475.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.82
• Revenue Growth: 6.33%
• EPS Growth: 87.05%
• Country: HK
• Employees: 247
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.01
• Shares Outstanding: 2,753,200,000
• 10 Day Avg. Volume: 1,192,400
• 30 Day Avg. Volume: 475,666
• PEG Ratio: 0.74
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 8.69
• P/FCF Ratio: 56.23
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: HK$0.50 ▼(-32.43% Downside)

7Road Holdings Limited's overall stock score reflects significant financial challenges, with declining revenues and profitability being the most impactful factors. Technical analysis provides some positive signals, but valuation concerns due to negative earnings weigh heavily. The absence of earnings call data and corporate events limits additional insights.

7Road Holdings Limited Business Overview & Revenue Model

Company Description

7Road Holdings Limited (0797) is a prominent player in the online gaming industry, specializing in the development and publishing of games. The company operates primarily in the mobile and PC gaming sectors, focusing on creating engaging and immersive gaming experiences. With a portfolio that includes various genres, 7Road Holdings is dedicated to leveraging innovative technology and creative storytelling to attract a diverse audience of gamers globally.

How the Company Makes Money

7Road Holdings Limited generates revenue primarily through in-game purchases, subscription fees, and advertising. The company monetizes its games by offering players the option to buy virtual goods, enhancements, and other premium content, which enhances their gaming experience. Additionally, 7Road may earn revenue from advertising partnerships by integrating ads into its games, providing a source of income without directly charging players. Strategic collaborations with other gaming companies or platforms can also lead to additional revenue streams through licensing agreements and joint ventures, further bolstering its financial performance.

7Road Holdings Limited Financial Statement Overview

Summary

7Road Holdings Limited is facing financial difficulties with declining revenues and profitability. Despite a strong balance sheet with low leverage, consistent net losses and declining cash flows suggest operational inefficiencies or adverse market conditions. The company needs to stabilize revenue streams and enhance operational efficiency to improve financial health.

Income Statement

7Road Holdings Limited has faced significant challenges with declining revenues, dropping from HKD 627.7 million in 2023 to HKD 306.4 million in 2024. The gross profit margin remains solid at 69.3% for 2024, but the company posted negative net and EBIT margins at -23.97% and -19.72%, respectively, indicating operational struggles and insufficient revenue to cover expenses. Revenue growth has been negative, marking a steep decline of 51.2% from the previous year, pointing to potential market challenges or competitive pressures.

Balance Sheet

The company maintains a robust equity base with a strong equity ratio of 92.97%, reflecting a solid asset position relative to liabilities. The debt-to-equity ratio is low at 0.01, indicating minimal leverage, which reduces financial risk. However, the return on equity (ROE) is negative at -4.38%, due to ongoing net losses, which could impact investor confidence.

Cash Flow

Cash flow metrics reveal challenges, with no reported positive free cash flow in 2024, potentially impacting liquidity. The previous year's operating cash flow was strong at HKD 245 million, but the lack of recent cash flow data suggests a need for monitoring cash management closely. Operating cash flow to net income was positive in 2023, indicating effective cash generation relative to earnings, but the current lack of data poses uncertainty.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	343.39M	306.40M	627.73M	540.63M	420.54M	424.31M
Gross Profit	231.39M	212.28M	383.10M	261.20M	224.47M	313.48M
EBITDA	103.58M	51.46M	74.13M	69.82M	218.44M	191.84M
Net Income	-38.51M	-73.45M	-146.46M	282.50M	94.24M	81.31M
Balance Sheet
Total Assets	1.85B	1.80B	2.27B	2.65B	2.01B	2.11B
Cash, Cash Equivalents and Short-Term Investments	122.33M	93.63M	67.82M	200.37M	152.18M	417.85M
Total Debt	28.38M	23.46M	367.93M	408.40M	89.39M	64.88M
Total Liabilities	141.37M	125.01M	519.99M	745.29M	387.12M	602.45M
Stockholders Equity	1.70B	1.68B	1.75B	1.90B	1.61B	1.51B
Cash Flow
Free Cash Flow	0.00	47.34M	240.23M	63.25M	-244.41M	-40.56M
Operating Cash Flow	0.00	56.77M	245.40M	196.01M	175.13M	103.28M
Investing Cash Flow	0.00	33.52M	-219.80M	-338.33M	-369.79M	-63.06M
Financing Cash Flow	0.00	-76.97M	-82.50M	135.45M	-74.71M	295.72M

7Road Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.74
• 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:0797, the sentiment is Neutral. The current price of 0.74 is below the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.62, and above the 200-day MA of 0.58, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.75 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0797.

7Road Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2660	72 Outperform	HK$2.40B	7.21	12.02%	14.89%	-27.66%	-51.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3798	52 Neutral	HK$1.63B	-23.09	-3.33%	6.71%	-23.42%	-191.82%
6633	51 Neutral	HK$2.45B	32.35	4.10%	―	-41.86%	―
6820	51 Neutral	HK$1.16B	16.11	5.50%	―	30.71%	―
0797	50 Neutral	HK$2.03B	-51.72	-2.25%	―	6.33%	87.05%
0302	39 Underperform	HK$1.15B	-0.41	-57.29%	―	-36.80%	-666.80%

7Road Holdings Limited Corporate Events

7Road Holdings Clarifies Executive Compensation Details

7Road Holdings Limited has released a supplemental announcement regarding the emoluments of its directors and chief executive for the years ending 2019, 2020, and 2021. The announcement provides detailed information on the compensation of Mr. Peng Cheng, the former chief executive officer, and clarifies that this additional information does not alter the previously disclosed financial data in the annual reports. This transparency may impact stakeholders’ understanding of executive compensation within the company.

The most recent analyst rating on (HK:0797) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on 7Road Holdings Limited stock, see the HK:0797 Stock Forecast page.

7Road Holdings Limited Sees Revenue Surge Amid Gaming Market Growth

7Road Holdings Limited reported a significant financial turnaround for the first half of 2025, with a 26.5% increase in revenue to RMB176.4 million and a profit of RMB26.1 million, compared to a loss in the same period in 2024. This improvement aligns with the overall growth in China’s gaming market, which saw record sales and player numbers, driven by successful new game launches and the strong performance of mobile and esports games.

The most recent analyst rating on (HK:0797) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on 7Road Holdings Limited stock, see the HK:0797 Stock Forecast page.

7Road Holdings Limited Forms Nomination Committee to Enhance Governance

7Road Holdings Limited has announced the establishment of a Nomination Committee as part of its Board of Directors. This committee will consist of at least three members, with a majority being independent non-executive directors, and aims to enhance the governance structure of the company. The formation of this committee is expected to strengthen the company’s board governance by ensuring diverse and independent oversight, potentially impacting its strategic decisions and stakeholder confidence positively.

The most recent analyst rating on (HK:0797) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on 7Road Holdings Limited stock, see the HK:0797 Stock Forecast page.

7Road Holdings Schedules Board Meeting to Review Interim Results

7Road Holdings Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of 2025. The meeting will also consider the declaration and payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

7Road Holdings Limited Discloses Details on Partnership Interest Disposal

7Road Holdings Limited announced a supplemental disclosure regarding the disposal of its partnership interests, revealing that the company holds a 1.97% equity interest in an investee company through its subsidiaries. The transaction involves a consideration of RMB394 million, reflecting the value of shares held by its subsidiaries, Hangzhou Haoli and Shanghai Chengying. This disposal is part of the company’s strategic financial maneuvers, potentially impacting its investment portfolio and shareholder value.