7Road Holdings Limited (HK:0797)
:0797
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7Road Holdings Limited
(0797)
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Rating:56Neutral
Price Target:
HK$0.59
▲(17.40% Upside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by improved profitability and a very low-debt balance sheet, offset by the key risk of negative 2025 operating/free cash flow despite positive earnings. Weak technical momentum and a relatively high P/E further temper the overall outlook.
Positive Factors
High gross and operating margins
Very high gross margin and strong operating margin in 2025 indicate durable product-level profitability and pricing power. These margins provide structural capacity to fund R&D, marketing and scale operating leverage, supporting sustainable profitability if revenue trends persist.
Negative Factors
Weak cash-flow conversion
Negative operating and free cash flow despite reported earnings suggests weak cash conversion and working-capital or investment timing issues. Persistent cash deficits impair ability to self-fund growth, dividends or debt service and raise execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and operating margins
Very high gross margin and strong operating margin in 2025 indicate durable product-level profitability and pricing power. These margins provide structural capacity to fund R&D, marketing and scale operating leverage, supporting sustainable profitability if revenue trends persist.
Read all positive factors
7Road Holdings Limited (0797) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.65B
Dividend YieldN/A
Average Volume (3M)475.67K
Price to Earnings (P/E)31.4
Beta (1Y)-1.14
Revenue Growth69.97%
EPS GrowthN/A
CountryHK
Employees247
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)0.01
Shares Outstanding2,753,200,000
10 Day Avg. Volume1,192,400
30 Day Avg. Volume475,666
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)0.66
Price to Sales (P/S)2.17
P/FCF Ratio-5.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
7Road Holdings Limited Business Overview & Revenue Model
Company Description
7Road Holdings Limited, an investment holding company, develops and distributes web and mobile games in the People's Republic of China and internationally. The company engages in the research, development, operation, and licensing of web games, su...
7Road Holdings Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
84
Very Positive
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 507.80M | 306.40M | 627.73M | 540.63M | 420.54M |
| Gross Profit | 359.47M | 212.28M | 383.10M | 261.20M | 224.47M |
| EBITDA | 134.93M | 51.46M | 74.13M | 69.82M | 218.44M |
| Net Income | 36.06M | -73.45M | -146.46M | 282.50M | 94.24M |
Balance Sheet | |||||
| Total Assets | 1.91B | 1.80B | 2.27B | 2.65B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 330.01M | 93.63M | 67.82M | 200.37M | 152.18M |
| Total Debt | 11.35M | 23.46M | 367.93M | 408.40M | 89.39M |
| Total Liabilities | 193.88M | 125.01M | 519.99M | 745.29M | 387.12M |
| Stockholders Equity | 1.71B | 1.68B | 1.75B | 1.90B | 1.61B |
Cash Flow | |||||
| Free Cash Flow | -209.91M | 47.34M | 240.23M | 63.25M | -244.41M |
| Operating Cash Flow | -204.73M | 56.77M | 245.40M | 196.01M | 175.13M |
| Investing Cash Flow | 479.77M | 33.52M | -219.80M | -338.33M | -369.79M |
| Financing Cash Flow | -20.87M | -76.97M | -82.50M | 135.45M | -74.71M |
7Road Holdings Limited Technical Analysis
Negative
0.50
Price Trends
0.67
Negative
0.64
Negative
0.63
Negative
Market Momentum
-0.03
Positive
38.87
Neutral
38.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0797, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.67, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.87 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0797.
7Road Holdings Limited Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$2.68B | 3.52 | 13.33% | 13.83% | -6.66% | -19.70% | |
62 Neutral | HK$1.50B | 26.42 | 3.09% | 7.30% | -2.73% | ― | |
61 Neutral | HK$1.01B | 4.33 | 7.59% | ― | 7.36% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | HK$1.78B | 9.51 | 6.38% | ― | -27.41% | 138.08% | |
56 Neutral | HK$1.65B | 31.42 | 2.16% | ― | 69.97% | ― | |
43 Neutral | HK$779.59M | -0.33 | -50.58% | ― | -28.02% | 34.04% |
* Communication Services Sector Average
HK:0797
7Road Holdings Limited
0.55
0.21
61.76%
HK:2660
Zengame Technology Holding Ltd.
2.58
0.66
34.38%
HK:0302
CMGE Technology Group Limited
0.25
-0.11
-31.94%
HK:3798
Homeland Interactive Technology Ltd.
1.20
0.04
3.45%
HK:6633
Qingci Games, Inc.
2.54
-0.24
-8.63%
HK:6820
FriendTimes Inc.
0.45
-0.13
-22.81%
7Road Holdings Limited Corporate Events
7Road Calls 2026 AGM to Approve Accounts, Board Mandates and Share Issue Authority
Apr 24, 2026
7Road Holdings Limited has called its annual general meeting for 26 May 2026 in Shenzhen, where shareholders will review and adopt the audited consolidated financial statements for the year ended 31 December 2025, along with the related directors&...
7Road Proposes Governance Changes to Support Paperless Regime and Flexible Meetings
Apr 16, 2026
7Road Holdings Limited has proposed amendments to its existing second amended and restated memorandum and articles of association to align with the latest regulatory requirements. The changes are designed to support the expanded paperless listing ...
7Road Swings to Profit on 70% Revenue Surge Amid Global Games Market Growth
Mar 30, 2026
7Road Holdings Limited, a Chinese game developer and operator with global reach, develops, operates and publishes online and mobile games, leveraging growth in both mobile and PC segments within a global gaming market projected to expand from 3.6 ...
7Road Sets March 2026 Board Meeting to Approve 2025 Results and Consider Dividend
Mar 16, 2026
7Road Holdings Limited has scheduled a board meeting for 30 March 2026 to review and approve the annual results for the year ended 31 December 2025 for the company and its subsidiaries. The board will also consider the declaration and payment of a...
7Road Signals Profit Turnaround on Strong Online Game Revenue
Mar 13, 2026
7Road Holdings Limited, a Cayman Islands-incorporated online gaming company listed in Hong Kong, focuses on developing and operating online games, with revenue closely tied to the performance and popularity of its game portfolio. The group’s...
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.