IGG (0799) AI Stock Analysis

• Market Cap: HK$4.53B
• Dividend Yield: 3.82%
• Average Volume (3M): 3.25M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.02
• Revenue Growth: 4.02%
• EPS Growth: -23.98%
• Country: HK
• Employees: 2,028
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.29
• Shares Outstanding: 1,175,580,600
• 10 Day Avg. Volume: 2,974,423
• 30 Day Avg. Volume: 3,253,828
• PEG Ratio: 0.01
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 4.71
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$4.00 ▲(5.26% Upside)

The overall stock score for IGG is driven primarily by its strong financial performance and attractive valuation. However, bearish technical indicators suggest caution in the short term. The lack of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a robust market position and effective product offerings, supporting long-term business sustainability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, reducing risk and providing flexibility for future investments.

Cash Flow Generation

Improved cash flow generation indicates efficient operations and liquidity, supporting sustainable growth and potential reinvestment opportunities.

Negative Factors

Net Profit Margin

A declining net profit margin suggests challenges in cost management or pricing power, potentially impacting long-term profitability.

EPS Growth

Negative EPS growth indicates declining profitability per share, which could affect investor confidence and limit capital raising ability.

Management Quality

Lack of earnings call data may suggest limited transparency or communication with investors, potentially impacting trust and strategic clarity.

IGG Business Overview & Revenue Model

Company Description

IGG Inc, an investment holding company, engages in the development and operation of mobile and online games in Asia, North America, Europe, and internationally. The company offers mobile, browser, PC, and client-based online games in 23 languages. It also licenses online games; and provides customer support and technical support services. IGG Inc was founded in 2006 and is headquartered in Singapore.

How the Company Makes Money

IGG generates revenue primarily through in-game purchases and microtransactions within its games. Players can buy virtual currency, items, and upgrades that enhance their gaming experience. Additionally, the company earns income from advertising by displaying ads within its games and partnering with other brands for promotional campaigns. IGG also monetizes through strategic partnerships with other gaming companies and platforms, leveraging collaborations to expand its market reach and user engagement. The combination of a large, active player base and effective marketing strategies contributes significantly to its earnings.

IGG Financial Statement Overview

Summary

IGG demonstrates strong financial performance with robust revenue growth, enhanced margins, and strong cash flow generation. The low debt levels and high equity ratio contribute to financial stability and reduced risk. However, the net profit margin is an area for improvement.

Income Statement

IGG has demonstrated strong revenue growth from 2023 to 2024, with a revenue increase of 8.94%. The gross profit margin for 2024 is robust at 80.37%, indicating effective cost management. However, the net profit margin stands at 10.12%, reflecting a decline from previous years. The EBIT and EBITDA margins improved significantly in 2024 to 11.68% and 13.67%, respectively, showing enhanced operational efficiency.

Balance Sheet

IGG maintains a solid balance sheet with a low debt-to-equity ratio of 0.03, suggesting minimal reliance on debt. The equity ratio is strong at 70.64%, indicating a healthy proportion of equity financing. The return on equity (ROE) for 2024 is 18.60%, showcasing effective use of shareholder funds to generate profits. Overall, the balance sheet reflects financial stability and low leverage risk.

Cash Flow

The company has achieved a significant improvement in free cash flow, turning from negative in 2023 to positive in 2024. The operating cash flow to net income ratio is 1.93, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.70, reflecting efficient conversion of profits into cash. The positive trajectory in cash flows suggests improved liquidity and financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.72B	5.74B	5.27B	4.59B	6.05B	5.46B
Gross Profit	4.71B	4.61B	3.92B	3.15B	4.20B	3.82B
EBITDA	716.55M	784.17M	212.09M	-356.31M	627.73M	2.40B
Net Income	573.15M	580.68M	73.05M	-503.59M	370.44M	2.10B
Balance Sheet
Total Assets	4.61B	4.42B	3.70B	3.64B	4.45B	4.88B
Cash, Cash Equivalents and Short-Term Investments	2.55B	2.27B	1.49B	1.59B	1.96B	2.17B
Total Debt	56.60M	83.91M	63.22M	63.00M	158.91M	88.98M
Total Liabilities	1.18B	1.29B	962.67M	924.27M	1.14B	1.02B
Stockholders Equity	3.42B	3.12B	2.73B	2.71B	3.31B	3.86B
Cash Flow
Free Cash Flow	753.87M	986.98M	-5.35M	-232.65M	389.52M	1.26B
Operating Cash Flow	854.66M	1.12B	128.58M	-98.24M	660.26M	1.29B
Investing Cash Flow	-65.56M	-122.92M	-96.23M	-152.03M	212.40M	-257.86M
Financing Cash Flow	-277.07M	-205.33M	-143.67M	-73.85M	-1.11B	-1.26B

IGG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0799, the sentiment is Positive. The current price of 3.8 is above the 20-day moving average (MA) of 3.79, below the 50-day MA of 3.83, and below the 200-day MA of 3.99, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0799.

IGG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2660	72 Outperform	HK$2.70B	8.12	12.02%	13.83%	-27.66%	-51.96%
0799	70 Outperform	HK$4.53B	7.89	17.91%	3.82%	4.02%	-23.98%
0434	68 Neutral	HK$2.73B	2.11	42.91%	3.01%	10.44%	345.95%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3798	56 Neutral	HK$1.81B	-25.27	-3.33%	7.30%	-23.42%	-191.82%
6820	51 Neutral	HK$1.01B	13.98	5.50%	―	30.71%	―
0302	39 Underperform	HK$1.24B	-0.44	-57.29%	―	-36.80%	-666.80%