iDreamSky Technology Holdings Limited (1119) AI Stock Analysis

• Market Cap: €1.97B
• Dividend Yield: N/A
• Average Volume (3M): 15.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• 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: 1,828,189,100
• 10 Day Avg. Volume: 7,445,722
• 30 Day Avg. Volume: 15,666,526
• 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: €1.01
• Price Target Upside: -7.77% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$1.00 ▼(-9.09% Downside)

The overall stock score of 46 reflects significant financial challenges, including declining revenues and negative profit margins. Technical indicators suggest a neutral to bearish trend, while valuation metrics are unfavorable due to negative earnings. The absence of earnings call insights and corporate events leaves the financial and technical analysis as the primary factors influencing the score.

iDreamSky Technology Holdings Limited Business Overview & Revenue Model

Company Description

iDreamSky Technology Holdings Limited, an investment holding company, operates as a digital entertainment platform in the game publishing market in the People's Republic of China. It operates in two segments, Game and Information Services and Experiential Retail Business. The company primarily publishes third party licensed and self-developed games to the game players through various mobile application stores and software websites, as well as through other game publishers; and provides in-game information services. It also engages in the provision of mobile games development and game co-operation services, including on-going updates of new contents and maintenance services, as well as provides information services, such as advertising services. In addition, the company principally offers game console experience and retails; sells game and cultural IP-themed trendy products; and develops internet and software technology and services. Further, it offers financing, culture, sports, entertainment, and internet information services. The company was founded in 2009 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

iDreamSky Technology Holdings Limited generates revenue primarily through two key streams: game publishing and in-game purchases. As a leading mobile game publisher, the company licenses games from international developers, localizes them for the Chinese audience, and distributes them through various channels including app stores and pre-installed applications on smart devices. Revenue is earned from these games via in-game purchases, where users buy virtual goods or currency to enhance their gaming experience. Additionally, iDreamSky earns a portion of its revenue from advertising within its games, leveraging its large user base to attract advertisers. The company's strategic partnerships with major game developers and technology companies further bolster its revenue potential by ensuring a steady supply of appealing gaming content.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.51B	1.92B	2.73B	2.64B	3.21B
Gross Profit	426.79M	673.46M	421.20M	1.10B	1.34B
EBITDA	-148.15M	-209.47M	-2.13B	251.24M	-225.67M
Net Income	-528.83M	-556.35M	-2.49B	-157.48M	-441.57M
Balance Sheet
Total Assets	3.59B	3.71B	4.32B	6.61B	6.75B
Cash, Cash Equivalents and Short-Term Investments	224.11M	263.57M	216.38M	788.76M	841.44M
Total Debt	1.35B	1.23B	1.62B	1.83B	2.15B
Total Liabilities	2.13B	1.96B	2.53B	2.40B	3.04B
Stockholders Equity	1.37B	1.65B	1.62B	3.94B	3.45B
Cash Flow
Free Cash Flow	-119.31M	123.10M	62.83M	113.63M	368.77M
Operating Cash Flow	151.68M	252.96M	93.92M	153.77M	384.74M
Investing Cash Flow	-362.18M	-137.93M	-321.69M	-274.75M	-1.07B
Financing Cash Flow	217.06M	-18.11M	-406.16M	118.98M	911.90M

iDreamSky Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1119, the sentiment is Positive. The current price of 1.1 is below the 20-day moving average (MA) of 1.11, above the 50-day MA of 1.09, and below the 200-day MA of 1.28, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 50.80 is Neutral, neither overbought nor oversold. The STOCH value of 36.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform	2.52B	7.59	16.81%	14.34%	-27.66%	-51.96%
6633	53 Neutral	2.45B	28.64	2.82%	―	-41.86%	0.00%
3798	52 Neutral	1.35B	-18.55	-3.94%	9.52%	-23.42%	-191.82%
9990	49 Neutral	1.81B	-9.55	-13.64%	―	41.00%	23.75%
0302	49 Neutral	1.44B	-0.50	-53.94%	―	-36.80%	-666.80%
1119	46 Neutral	€1.97B	―	-27.26%	―	-17.65%	48.05%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

iDreamSky Technology Holdings Limited Corporate Events

iDreamSky Grants 900,000 Share Options to Employees

iDreamSky Technology Holdings Limited has announced the grant of 900,000 share options to two non-director employees under its 2023 New Share Option Scheme. This move is part of the company’s strategy to incentivize employees based on their performance, which is assessed annually. The share options have a 10-year exercise period and a vesting period of up to two years. This initiative reflects the company’s focus on aligning employee performance with its business goals, potentially enhancing overall operational efficiency and stakeholder value.

The most recent analyst rating on (HK:1119) stock is a Hold 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 Reports Strong Interim Results with Strategic Game Releases

iDreamSky Technology Holdings Limited announced its interim results for the first half of 2025, reporting a revenue of RMB 685,798,000 and a profit of RMB 32,952,000, marking a significant turnaround from the previous year’s losses. The company attributes its growth to the sustained success of its game publishing business, particularly with titles like ‘Subway Surfers,’ ‘Gardenscapes,’ ‘Homescapes,’ and ‘War Robots,’ which have shown strong user engagement and revenue growth through content updates and strategic collaborations.

The most recent analyst rating on (HK:1119) stock is a Hold 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 Technology Schedules Board Meeting to Review Interim Results

iDreamSky Technology Holdings Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of 2025 and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

iDreamSky Completes New Share Issuance to Offset Royalty Fees

iDreamSky Technology Holdings Limited has completed the issuance of 38,085,937 new shares under a general mandate, with each share priced at HKD1.024. The proceeds, amounting to approximately HKD39 million, will be used to offset royalty fees payable by Shenzhen iDreamSky. This issuance represents a slight dilution of existing shares, with the new shares accounting for about 2.11% of the company’s enlarged share capital. The transaction reflects strategic financial management by the company, potentially impacting its market positioning by strengthening its financial structure without immediate cash outflows.

iDreamSky Cancels 500,000 Share Options Amid Management Adjustments

iDreamSky Technology Holdings Limited announced the cancellation of 500,000 share options granted under its 2023 New Share Option Scheme due to adjustments in management arrangements. The cancellation is not expected to significantly impact the company’s financial position or daily operations, and there remain over 5 million shares available for future grants under the scheme.

iDreamSky Announces Share Issuance to Offset Royalty Fees

iDreamSky Technology Holdings Limited has announced a Capitalization Agreement with Shenzhen iDreamSky and an independent subscriber to issue 38,085,937 new shares at HKD1.024 per share. This move aims to offset royalty fees owed by Shenzhen iDreamSky to the subscriber, representing approximately 2.16% of the company’s existing share capital. The issuance of these shares does not require further shareholder approval as it falls under the General Mandate approved at the 2024 AGM. The agreement is contingent upon certain conditions being met, and stakeholders are advised to exercise caution.

iDreamSky Grants Share Options to Boost Employee Performance

iDreamSky Technology Holdings Limited has announced the grant of 500,000 share options to a non-director employee under the 2023 New Share Option Scheme. This move aims to incentivize performance, with options vesting over two years and subject to performance targets. The grant reflects the company’s strategy to align employee performance with its business objectives, potentially enhancing its operational efficiency and market competitiveness.

iDreamSky Technology Reports Positive Profit Turnaround for First Half of 2025

iDreamSky Technology Holdings Limited has announced a positive profit alert for the first half of 2025, expecting a net profit ranging from RMB20 million to RMB50 million, a significant turnaround from a net loss of RMB109 million in the same period last year. This improvement is attributed to the successful launch of new and self-developed products, enhancing the company’s profit margin and stabilizing its operating cash flow.