iDreamSky Technology Holdings Limited (1119) AI Stock Analysis

• Market Cap: HK$1.28B
• Dividend Yield: N/A
• Average Volume (3M): 5.68M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -17.65%
• EPS Growth: 48.05%
• Country: HK
• Employees: 852
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.02
• Shares Outstanding: 2,064,405,800
• 10 Day Avg. Volume: 6,049,526
• 30 Day Avg. Volume: 5,682,548
• PEG Ratio: 0.51
• Price to Book (P/B): 3.00
• Price to Sales (P/S): 2.72
• P/FCF Ratio: -34.54
• 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): 2.18
• Revenue Forecast (FY): HK$32.86B

• Rating: 39 Underperform
• Price Target: HK$0.50 ▼(-59.68% Downside)

The overall stock score of 39 reflects significant financial challenges and a bearish technical outlook. The company's declining revenues, negative profit margins, and cash flow constraints are major concerns. Additionally, the technical indicators suggest a bearish trend, with the stock being oversold. The poor valuation, highlighted by a negative P/E ratio and lack of dividend yield, further impacts the score negatively.

Positive Factors

Business Model Strength

The free-to-play model with in-game purchases provides a scalable revenue stream, catering to a large user base and enhancing user engagement.

Partnerships

Strategic partnerships with international developers expand content offerings and market reach, bolstering competitive positioning in the gaming sector.

Market Position

A strong portfolio of popular games enhances brand recognition and user loyalty, supporting long-term market presence and revenue potential.

Negative Factors

Revenue Decline

A declining revenue trend indicates challenges in market demand or competitive pressures, potentially impacting long-term financial health.

Negative Profit Margins

Negative profit margins suggest operational inefficiencies and the need for cost management, affecting profitability and investor confidence.

Cash Flow Constraints

Lack of free cash flow limits investment in growth opportunities and may necessitate external financing, impacting financial flexibility.

iDreamSky Technology Holdings Limited Business Overview & Revenue Model

Company Description

iDreamSky Technology Holdings Limited (1119) is a prominent mobile game publisher and developer based in China. The company operates primarily in the mobile gaming sector, focusing on the development, publishing, and distribution of interactive entertainment content. iDreamSky is known for its strong portfolio of popular mobile games, leveraging its expertise in game design and user engagement to cater to a diverse audience. The company's business model emphasizes collaboration with both domestic and international game developers to bring innovative gaming experiences to the Chinese market.

How the Company Makes Money

iDreamSky generates revenue primarily through the monetization of its mobile games, which includes in-app purchases, advertisements, and game licensing fees. The company employs a free-to-play model, allowing users to download and play games for free while offering optional in-game purchases for virtual goods and enhancements. Additionally, iDreamSky earns revenue through partnerships with international game developers, acting as a publisher for their games in China and sharing revenue from user transactions. The company also benefits from advertising revenue by integrating ads within its games, thus creating multiple streams of income that contribute to its overall financial performance.

iDreamSky Technology Holdings Limited Financial Statement Overview

Summary

iDreamSky Technology Holdings Limited is facing significant financial challenges, marked by declining revenues, negative profit margins, and cash flow constraints. The company needs to address its operational inefficiencies and improve its profitability to maintain financial stability. High leverage and negative returns further highlight the urgency for strategic financial restructuring and growth initiatives.

Income Statement

The company has been experiencing declining revenue and deteriorating margins over the past years. The gross profit margin is decreasing, with the latest year showing a significant drop in total revenue and gross profit. The net profit margin is negative, indicating ongoing losses. Revenue growth has been negative, showing a declining trajectory. Both EBIT and EBITDA margins are negative, pointing to operational inefficiencies.

Balance Sheet

The balance sheet indicates a moderate level of financial stability. The debt-to-equity ratio is manageable, but high levels of debt pose a potential risk. The return on equity (ROE) is negative due to continuous losses, which is a concern for investors. The equity ratio is relatively stable, showing that equity still constitutes a substantial portion of the company's assets.

Cash Flow

The cash flow situation is concerning, as the company has reported zero free cash flow and operating cash flow in the latest year, highlighting cash flow constraints. Historical free cash flow has been volatile, and the operating cash flow to net income ratio is unfavorable due to ongoing losses. There is a need for improvement in cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.51B	1.92B	2.59B	2.64B	3.21B
Gross Profit	424.49M	426.79M	673.46M	400.46M	1.10B	1.34B
EBITDA	-24.26M	-148.15M	-209.47M	-2.13B	251.24M	-225.67M
Net Income	-406.27M	-528.83M	-556.35M	-2.49B	-157.48M	-441.57M
Balance Sheet
Total Assets	3.51B	3.59B	3.71B	4.32B	6.61B	6.75B
Cash, Cash Equivalents and Short-Term Investments	120.38M	224.11M	263.57M	216.38M	788.76M	841.44M
Total Debt	1.27B	1.35B	1.23B	1.62B	1.83B	2.15B
Total Liabilities	1.98B	2.13B	1.96B	2.53B	2.40B	3.04B
Stockholders Equity	1.44B	1.37B	1.65B	1.62B	3.94B	3.45B
Cash Flow
Free Cash Flow	174.02M	-119.31M	123.10M	62.83M	113.63M	368.77M
Operating Cash Flow	175.73M	151.68M	252.96M	93.92M	153.77M	384.74M
Investing Cash Flow	-269.76M	-362.18M	-137.93M	-321.69M	-274.75M	-1.07B
Financing Cash Flow	-73.08M	217.06M	-18.11M	-406.16M	118.98M	911.90M

iDreamSky Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.24
• 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:1119, the sentiment is Neutral. The current price of 1.24 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.65, and above the 200-day MA of 0.88, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 58.99 is Neutral, neither overbought nor oversold. The STOCH value of 87.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1119.

iDreamSky Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2660	72 Outperform	HK$2.69B	8.08	12.02%	13.83%	-27.66%	-51.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3798	56 Neutral	HK$1.78B	-25.27	-3.33%	7.30%	-23.42%	-191.82%
6633	56 Neutral	HK$2.19B	26.71	4.10%	―	-41.86%	―
9990	45 Neutral	HK$1.35B	-7.44	-7.69%	―	41.00%	23.75%
1119	39 Underperform	HK$1.28B	-2.46	-27.26%	―	-17.65%	48.05%
0302	39 Underperform	HK$1.26B	-0.44	-57.29%	―	-36.80%	-666.80%

iDreamSky Technology Holdings Limited Corporate Events

iDreamSky Grants 10.9 Million Share Options to Employees

iDreamSky Technology Holdings Limited has announced the grant of 10,948,500 share options to 69 non-director employees under its 2023 New Share Option Scheme. This initiative, effective from November 7, 2025, is designed to incentivize employees with performance-based vesting conditions, potentially impacting employee motivation and company performance positively.

The most recent analyst rating on (HK:1119) stock is a Sell with a HK$1.00 price target. To see the full list of analyst forecasts on iDreamSky Technology Holdings Limited stock, see the HK:1119 Stock Forecast page.

iDreamSky Completes New Share Issuance to Boost Business Development

iDreamSky Technology Holdings Limited has completed the issuance of new shares under a general mandate, with a total of 236,216,583 Subscription Shares issued at HKD1.098 per share. This issuance, involving strategic shareholders and management, aims to provide financial support for the company’s business development and enhance its market positioning, resulting in a change in the company’s shareholding structure.

The most recent analyst rating on (HK:1119) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on iDreamSky Technology Holdings Limited stock, see the HK:1119 Stock Forecast page.