Changyou Alliance (1039) AI Stock Analysis

• Market Cap: HK$90.55M
• Dividend Yield: N/A
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.02
• Revenue Growth: -8.73%
• EPS Growth: 38.65%
• Country: HK
• Employees: 60
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 1,810,953,200
• 10 Day Avg. Volume: 1,869,200
• 30 Day Avg. Volume: 2,007,900
• PEG Ratio: 0.11
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.56
• P/FCF Ratio: -5.35
• 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: 46 Neutral
• Price Target: HK$0.04 ▼(-5.00% Downside)

The overall stock score for Changyou Alliance is primarily impacted by its weak financial performance, characterized by declining revenues, persistent losses, and negative cash flows. Technical analysis shows a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio and no dividend yield. These factors collectively suggest significant challenges ahead for the company.

Positive Factors

Strong Product Portfolio

Changyou Alliance's diverse and strong product portfolio in online gaming positions it well to capture a broad audience, supporting long-term revenue potential through popular and engaging gaming experiences.

Revenue Streams

Multiple revenue streams, including in-game purchases and subscriptions, provide a stable income base and potential for growth, enhancing financial resilience against market fluctuations.

Partnerships and Collaborations

Strategic partnerships enhance Changyou Alliance's market reach and product offerings, fostering innovation and competitive advantage in the gaming industry.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which could impact long-term growth and financial stability if not addressed.

Negative Cash Flows

Negative cash flows highlight liquidity challenges, limiting the company's ability to invest in growth opportunities and manage operational expenses effectively.

Increased Leverage

Rising leverage poses financial risks, potentially increasing interest obligations and reducing financial flexibility, which could strain resources during economic downturns.

Changyou Alliance Business Overview & Revenue Model

Company Description

Changyou Alliance (1039) is a prominent player in the technology and entertainment sectors, primarily focusing on online gaming and interactive entertainment. The company develops and publishes a variety of online games, including MMORPGs (Massively Multiplayer Online Role-Playing Games), and offers related services that enhance user engagement and experience. Changyou Alliance aims to leverage innovative technologies to provide immersive gaming experiences and expand its market presence both domestically and internationally.

How the Company Makes Money

Changyou Alliance generates revenue through multiple streams, including in-game purchases, subscription fees, and advertising within its gaming platforms. The company monetizes its gaming titles by offering players the option to buy virtual goods or enhancements, which are crucial for unlocking advanced features and improving gameplay. Additionally, Changyou Alliance often partners with other gaming developers or platforms to co-develop games or share technology, which can provide additional revenue through licensing or profit-sharing agreements. Furthermore, the company may also earn income from merchandise sales and brand partnerships, as well as through sponsorships and promotional events that attract a wider audience to its gaming titles.

Changyou Alliance Financial Statement Overview

Summary

Changyou Alliance faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. The balance sheet shows increased leverage, raising concerns about financial stability. The company needs to address operational inefficiencies and improve cash generation to enhance its financial health.

Income Statement

Changyou Alliance has experienced declining revenues over the past year, with a significant drop from 2023 to 2024. The gross profit margin remains low, indicating challenges in cost management. The company has consistently reported negative net income, reflecting ongoing operational inefficiencies. EBIT and EBITDA margins are also negative, highlighting profitability issues.

Balance Sheet

The company's debt-to-equity ratio has increased, suggesting rising leverage and potential financial risk. However, the equity ratio remains relatively stable, indicating a solid asset base. Return on equity is negative due to persistent net losses, which is a concern for investors.

Cash Flow

Changyou Alliance's cash flow situation is concerning, with negative operating and free cash flows in the latest year. The operating cash flow to net income ratio is unfavorable, indicating poor cash generation relative to reported losses. Free cash flow growth is negative, reflecting challenges in maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	168.65M	180.71M	226.75M	215.04M	114.21M	268.84M
Gross Profit	40.52M	39.27M	39.27M	28.27M	12.67M	1.04M
EBITDA	4.71M	-1.95M	-5.33M	-17.55M	-93.97M	-71.28M
Net Income	-16.78M	-19.52M	-37.56M	-34.73M	-49.47M	-1.65M
Balance Sheet
Total Assets	145.35M	138.82M	149.55M	154.41M	191.01M	289.94M
Cash, Cash Equivalents and Short-Term Investments	26.75M	8.43M	25.71M	33.63M	51.34M	153.96M
Total Debt	165.56M	165.75M	168.76M	145.69M	115.92M	193.99M
Total Liabilities	304.25M	293.19M	302.87M	270.21M	253.23M	227.68M
Stockholders Equity	227.30M	232.70M	234.69M	271.55M	311.12M	361.07M
Cash Flow
Free Cash Flow	11.64M	-18.76M	6.65M	-7.15M	-103.90M	-105.36M
Operating Cash Flow	11.83M	-18.39M	6.91M	-7.01M	-103.39M	-104.25M
Investing Cash Flow	-393.00K	-552.00K	-157.00K	-527.00K	-530.00K	30.40M
Financing Cash Flow	2.17M	1.72M	-14.40M	-11.09M	3.82M	94.67M

Changyou Alliance Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1039, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 97.68 is Negative, neither overbought nor oversold. The STOCH value of 45.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1039.

Changyou Alliance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8473	63 Neutral	HK$134.40M	52.17	2.17%	51.67%	-11.32%	-74.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1039	46 Neutral	HK$90.55M	-5.00	-7.18%	―	-8.73%	38.65%
1545	46 Neutral	HK$234.00M	-14.64	-4.46%	3.58%	-27.20%	-195.83%
2122	45 Neutral	HK$315.19M	-1.21	―	―	-15.54%	16.04%
1759	44 Neutral	HK$237.60M	-18.37	-3.11%	―	50.72%	-434.09%
0814	44 Neutral	HK$125.73M	-0.65	-14.00%	―	-8.18%	-49.53%

Changyou Alliance Corporate Events

Changyou International Reports Improved Operational Efficiency Amid Revenue Decline

Changyou International Group Limited announced its interim financial results for the six months ending June 30, 2025, reporting a revenue decrease of approximately 11.8% to RMB90.4 million compared to the previous year. Despite a reduction in gross merchandise value by 13.3%, the company improved its gross profit to RMB19.6 million and reduced its loss to RMB3.8 million, indicating a positive trend in operational efficiency. The board decided not to recommend any interim dividend, reflecting a cautious approach amidst the financial challenges.

Changyou International Group Approves Key Resolutions at EGM

Changyou International Group Limited, a company incorporated in the Cayman Islands, held an Extraordinary General Meeting (EGM) on August 20, 2025, where the proposed ordinary resolutions were passed by independent shareholders. The resolutions included the approval of a conditional supplemental facility agreement related to an unsecured revolving loan facility with a principal amount not exceeding HK$100 million. The approval of these resolutions is expected to impact the company’s financial operations and provide flexibility in its financing arrangements.

Changyou International Updates on 2020 Share Option Scheme

Changyou International Group Limited has issued a supplemental announcement regarding its 2020 Share Option Scheme, stating that the number of options available for grant remained unchanged at 181,095,327 as of both January 1, 2024, and December 31, 2024. This update does not affect any other information in the company’s annual report for the year ended December 31, 2024, and all other details remain unchanged.

Changyou International Group Announces Upcoming Board Meeting

Changyou International Group Limited has announced a board meeting scheduled for August 28, 2025, in Hong Kong. The meeting will focus on approving the interim results for the first half of 2025 and considering the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.