7Road Holdings Limited (0797) AI Stock Analysis

• Market Cap: HK$1.84B
• Dividend Yield: N/A
• Average Volume (3M): 475.67K
• Price to Earnings (P/E): 14.1
• Beta (1Y): -1.05
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.71 ▲(42.80% Upside)
• Action: Reiterated Date: 01/23/26
• Date: Action: Reiterated 01/23/26

The score is held back primarily by weak financial performance—sharp revenue contraction, negative margins, and lack of positive free cash flow data—despite a very strong, low-leverage balance sheet. Technicals are supportive with price above key moving averages and positive MACD, but overbought signals (RSI/Stoch) temper the upside. Valuation remains a headwind due to negative earnings (negative P/E) and no dividend yield provided.

Positive Factors

Very strong balance sheet / low leverage

A very high equity ratio and negligible debt provide durable financial flexibility: the company can fund game development, marketing, or M&A without refinancing risk. This low-leverage profile reduces insolvency risk and buys time to execute a turnaround over the next several quarters.

Negative Factors

Steep revenue contraction

A >50% year-on-year revenue decline materially weakens operating leverage and erodes the monetizable user base. Sustained top-line shrinkage forces hard choices on product investment and marketing, increasing execution risk and hampering the company's ability to recover profitability over the medium term.

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...

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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...

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 e...

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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 e...

7Road Holdings Limited Financial Statement Overview

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: Positive
• Last Price: 0.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.5 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.67, and below the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 50.72 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$2.63B	6.70	11.78%	13.83%	-27.66%	-51.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6820	57 Neutral	HK$1.07B	9.45	7.59%	―	30.71%	―
3798	56 Neutral	HK$1.64B	8.45	-3.41%	7.30%	-23.42%	-191.82%
6633	56 Neutral	HK$1.93B	16.23	4.13%	―	-41.86%	―
0797	51 Neutral	HK$1.84B	14.07	-2.28%	―	6.33%	87.05%
0302	39 Underperform	HK$670.97M	-0.72	-70.09%	―	-36.80%	-666.80%