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Changyou Alliance Group Ltd. (HK:1039)
:1039
Hong Kong Market

Changyou Alliance (1039) AI Stock Analysis

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HK

Changyou Alliance

(1039)

Rating:41Neutral
Price Target:
HK$0.00
▼(-100.00%Downside)
The overall score reflects significant financial weaknesses, including persistent losses, high leverage, and negative cash flow. Technical indicators also suggest bearish momentum, while the negative P/E ratio points to poor valuation. The lack of dividend yield further reduces the stock's attractiveness.

Changyou Alliance (1039) vs. iShares MSCI Hong Kong ETF (EWH)

Changyou Alliance Business Overview & Revenue Model

Company DescriptionChangyou Alliance (1039) is a company that operates within the information technology and digital media sectors. It focuses on providing online advertising services and marketing solutions tailored for businesses seeking to enhance their digital presence. The company leverages advanced technological platforms to deliver targeted advertising and data analytics services to its clients.
How the Company Makes MoneyChangyou Alliance makes money primarily through its online advertising services. The company generates revenue by offering businesses the ability to reach specific audiences through digital ad placements on various platforms. It employs a model where advertisers pay for services based on metrics such as impressions, clicks, or conversions. The company also benefits from partnerships with digital media platforms and other technology providers, enabling it to expand its reach and enhance its service offerings. Additionally, Changyou Alliance may offer premium marketing solutions and consultancy services, contributing to its income streams.

Changyou Alliance Financial Statement Overview

Summary
Changyou Alliance is experiencing significant financial challenges, with declining revenues, negative profit margins, high debt levels, and no positive cash flow, reflecting a precarious financial position.
Income Statement
35
Negative
Changyou Alliance has been experiencing declining revenues over recent years, with a significant drop from 2020 to 2021 and a further decrease in 2024. The gross profit margin has remained low, and the company has consistently reported negative net profit margins, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational difficulties. Despite a slight improvement in gross profit in 2024, the overall income statement reflects a struggling financial performance.
Balance Sheet
45
Neutral
The balance sheet shows a concerning debt profile, with total debt exceeding stockholders' equity, leading to a high debt-to-equity ratio. The equity ratio has been decreasing, indicating a weakening equity position relative to total assets. ROE is negative due to consistent net losses. However, the company has managed to maintain a reasonable level of cash and short-term investments, although this has declined over recent years. Overall, the balance sheet stability is a concern, with high leverage and declining equity.
Cash Flow
30
Negative
Cash flow analysis reveals significant challenges, with negative operating cash flow in previous years and zero free cash flow in the latest year. The free cash flow growth rate is concerning, as there has been no generation of positive free cash flow in 2024. The operating cash flow to net income ratio is not calculable due to zero operating cash flow, indicating cash flow management issues. Overall, the cash flow situation suggests the company is struggling to generate sufficient cash from operations.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue180.71M226.75M215.04M114.21M268.84M
Gross Profit39.27M39.27M28.27M12.67M1.04M
EBITDA-1.95M-5.33M-17.55M-93.97M-71.28M
Net Income-19.52M-37.56M-34.73M-49.47M-1.65M
Balance Sheet
Total Assets138.82M149.55M154.41M191.01M289.94M
Cash, Cash Equivalents and Short-Term Investments8.43M25.71M33.63M51.34M153.96M
Total Debt165.75M168.76M145.69M115.92M93.99M
Total Liabilities293.19M302.87M270.21M253.23M227.68M
Stockholders Equity232.70M234.69M271.55M311.12M361.07M
Cash Flow
Free Cash Flow-18.76M6.65M-7.15M-103.90M-105.36M
Operating Cash Flow-18.39M6.91M-7.01M-103.39M-104.25M
Investing Cash Flow-552.00K-157.00K-527.00K-530.00K30.40M
Financing Cash Flow1.72M-14.40M-11.09M3.82M94.67M

Changyou Alliance Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.04
Price Trends
50DMA
0.05
Negative
100DMA
0.05
Negative
200DMA
0.07
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
45.17
Neutral
STOCH
44.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1039, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.05, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 44.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1039.

Changyou Alliance Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
HK$148.96M29.564.12%78.19%-17.13%-51.35%
61
Neutral
HK$140.00M77.780.60%5.43%-30.83%-89.29%
55
Neutral
HK$4.03B-0.5610.69%5.37%-6.34%-55.88%
55
Neutral
HK$220.32M39.77-3.26%14.00%-239.86%
47
Neutral
€119.54M-11.30%-0.14%-106.85%
41
Neutral
HK$64.14M-1969.58%-17.33%5.35%
41
Neutral
HK$76.06M-8.36%-22.35%48.91%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1039
Changyou Alliance
0.04
-0.10
-71.43%
HK:8473
Mi Ming Mart Holdings Limited
0.13
0.05
62.50%
HK:2122
Kidsland International Holdings Limited
0.06
0.02
50.00%
HK:1759
Sino Gas Holdings Group Limited
1.02
0.37
56.92%
HK:1545
Design Capital Limited
0.07
0.00
0.00%
HK:0814
Beijing Jingkelong Co. Ltd. Class H
0.30
-0.11
-26.83%

Changyou Alliance Corporate Events

Changyou International Group Enhances Governance with New Nomination Committee
Jun 24, 2025

Changyou International Group Limited has established a nomination committee composed primarily of independent non-executive directors, with a focus on maintaining gender diversity. The committee is tasked with reviewing the board’s structure, identifying qualified board candidates, assessing director independence, and supporting board performance evaluations. This initiative aims to enhance corporate governance and align board composition with the company’s strategic objectives, potentially impacting stakeholder confidence and the company’s market positioning.

Changyou International Group Announces Changes to Nomination Committee
Jun 24, 2025

Changyou International Group Limited, a company incorporated in the Cayman Islands, has announced changes to its Nomination Committee in response to the amended Corporate Governance Code and Listing Rules of the Hong Kong Stock Exchange. Effective from June 24, 2025, Mr. Cheng Jerome will step down as chairman of the Nomination Committee but will remain as chairman of the Board and an executive director. Mr. Wong Chi Keung will take over as chairman of the Nomination Committee, and Ms. Liu Jingyan will join as a member, resulting in a committee comprising Mr. Wong Chi Keung, Mr. Chan Chi Keung, Alan, and Ms. Liu Jingyan.

Changyou International Group Announces Board Composition and Committee Roles
Jun 24, 2025

Changyou International Group Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the organization. The board comprises executive, non-executive, and independent non-executive directors, with Mr. Cheng Jerome serving as Chairman. The board has established three committees: Audit, Nomination, and Remuneration, with specific directors assigned to each committee. This announcement highlights the company’s governance structure, which is crucial for stakeholders to understand the leadership and oversight mechanisms in place.

Changyou International Delays Circular Dispatch for Facility Agreements
Jun 20, 2025

Changyou International Group Limited, listed on the Hong Kong Stock Exchange, has announced a delay in the dispatch of its circular related to the Fourth Supplemental 2019 Facility Agreement and the Second Supplemental 2021 Facility Agreement. The circular, which includes important information and recommendations for shareholders, was initially expected to be sent out by June 20, 2025, but will now be postponed to on or before July 18, 2025, to allow more time for preparation and finalization of the contents.

Changyou International Updates Financial Agreements with PCL
May 30, 2025

Changyou International Group Limited, a company incorporated in the Cayman Islands, has announced updates to its financial agreements with PCL, an indirect non-wholly owned subsidiary. The company has entered into the Fourth Supplemental 2019 Facility Agreement and the Second Supplemental 2021 Facility Agreement, which involve conditional variations to the terms of their respective revolving loan facilities. These agreements are part of the company’s ongoing financial strategy and involve continuing connected transactions under Hong Kong’s Listing Rules.

Changyou International Group Announces Unanimous Approval of AGM Resolutions
May 30, 2025

Changyou International Group Limited, a company incorporated in the Cayman Islands, announced that all proposed ordinary resolutions were passed at its Annual General Meeting held on 30 May 2025. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates related to share issuance and repurchase. The unanimous approval of these resolutions by shareholders indicates strong support for the company’s current management and strategic direction.

Changyou International Group Announces AGM and Key Resolutions
Apr 28, 2025

Changyou International Group Limited has announced its upcoming Annual General Meeting (AGM) to be held on May 30, 2025, in Hong Kong. The meeting will address several key resolutions, including the adoption of the company’s financial statements for the year ended December 31, 2024, re-election of directors, and re-appointment of auditors. Additionally, the board seeks approval to allot and issue additional shares, with a cap of 20% of the company’s current shares, highlighting a strategic move to potentially expand its capital base.

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.Date of analysis: Jun 26, 2025