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Fire Rock Holdings Ltd (HK:1909)
:1909
Hong Kong Market

Fire Rock Holdings Ltd (1909) AI Stock Analysis

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HK

Fire Rock Holdings Ltd

(1909)

Rating:55Neutral
Price Target:
HK$2.50
▼(-1.19%Downside)
The overall score reflects significant financial performance challenges due to historical volatility in profitability and leverage. Technical indicators are strong, but potential overbought conditions pose a risk. Valuation is weak due to a lack of profitability and dividend yield.

Fire Rock Holdings Ltd (1909) vs. iShares MSCI Hong Kong ETF (EWH)

Fire Rock Holdings Ltd Business Overview & Revenue Model

Company DescriptionFire Rock Holdings Limited, an investment holding company, develops browser and mobile games in the People's Republic of China, North America, Europe, and the Asia Pacific. It operates through two segments: Game and Software Development, and Game Operation. The company offers games in various language versions, including English, Japanese, Thai, French, German, Portuguese, Vietnamese, Indonesian, Russian, and Chinese. It also licenses game products to other game operators with the right to operate, publish, and distribute specific games within an agreed period and designated territories; and operates mobiles games. The company was founded in 2011 and is headquartered in Shenzhen, the People's Republic of China.
How the Company Makes MoneyFire Rock Holdings Ltd generates revenue through multiple streams, primarily by developing and publishing online games. The company earns money from in-game purchases made by players, which may include virtual goods, enhancements, and additional features within their games. Additionally, Fire Rock Holdings may generate income from advertising within their gaming platforms and through partnerships or collaborations with other companies in the gaming industry. The company's revenue is also influenced by the popularity and engagement levels of its games, as higher player retention and active user numbers can lead to increased spending and advertising opportunities.

Fire Rock Holdings Ltd Financial Statement Overview

Summary
Fire Rock Holdings Ltd faces challenges in maintaining stable financial performance. Improvements in recent years with positive cash flow and stronger equity are noted, but the overall trend shows past volatility in revenue, profitability, and leverage. The company needs to focus on sustaining revenue growth and profitability for long-term stability.
Income Statement
30
Negative
The income statement reveals challenges in profitability and growth. The company shows a significant net loss in the latest year, indicating weak net profit margins. Gross profit margin is relatively strong, but the decline in revenue from previous years suggests negative revenue growth, impacting overall performance. EBIT and EBITDA margins are also not favorable, further highlighting profitability issues.
Balance Sheet
40
Negative
The balance sheet shows a relatively strong equity position with a high equity ratio, indicating financial stability. However, the negative stockholders' equity in previous years, paired with a high debt-to-equity ratio, suggests past leverage issues. Recent improvements are noted, but historical instability affects the score.
Cash Flow
45
Neutral
Cash flow analysis shows positive free cash flow in the latest year, indicating improved cash management. However, previous years had negative free cash flow and operating cash flow, revealing potential volatility in cash generation. The operating cash flow to net income ratio is inconsistent, highlighting fluctuations in cash flow performance.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue195.97M140.59M134.93M115.06M1.04B618.08M
Gross Profit154.52M109.66M107.54M76.59M867.08M569.56M
EBITDA-1.47M22.24M592.19M64.66M106.28M484.61M
Net Income804.07M-17.07M559.91M30.20M-1.21B386.18M
Balance Sheet
Total Assets160.87M134.68M160.87M189.71M397.29M906.71M
Cash, Cash Equivalents and Short-Term Investments85.49M53.64M85.49M119.54M347.75M731.12M
Total Debt1.22M1.99M1.22M585.92M620.00M9.36M
Total Liabilities20.55M20.68M20.55M610.97M852.93M89.98M
Stockholders Equity131.07M112.30M131.07M-430.01M-461.39M815.05M
Cash Flow
Free Cash Flow-47.71M5.70M-38.63M-2.70M523.86M478.95M
Operating Cash Flow-34.41M6.16M-23.72M2.59M550.61M517.10M
Investing Cash Flow6.69M-9.24M4.52M-19.61M-741.98M65.08M
Financing Cash Flow-23.68M-27.61M-16.32M-212.01M-178.83M

Fire Rock Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.53
Price Trends
50DMA
1.87
Positive
100DMA
1.99
Positive
200DMA
2.34
Positive
Market Momentum
MACD
0.10
Negative
RSI
70.34
Negative
STOCH
86.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1909, the sentiment is Positive. The current price of 2.53 is above the 20-day moving average (MA) of 1.92, above the 50-day MA of 1.87, and above the 200-day MA of 2.34, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 70.34 is Negative, neither overbought nor oversold. The STOCH value of 86.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1909.

Fire Rock Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$40.76B-1.15-12.05%3.90%2.03%-69.70%
55
Neutral
HK$418.56M-14.02%4.20%-103.05%
DEFH0
€14.51M-10.95%
DE13O
€21.71M
71
Outperform
HK$336.57M9.694.10%-7.48%416.22%
55
Neutral
HK$472.35M29.52-9.06%20.13%-181.85%
45
Neutral
HK$290.05M-38.09%-4.13%20.14%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1909
Fire Rock Holdings Ltd
2.38
-0.26
-9.85%
DE:FH0
Forgame Holdings Ltd.
0.08
>-0.01
-11.11%
DE:13O
Ourgame International Holdings Ltd
0.02
0.00
0.00%
HK:1022
Feiyu Technology International Company Ltd.
0.26
0.04
18.18%
HK:1961
Infinities Technology International (Cayman) Holding Limited
0.40
-0.30
-42.86%
HK:6860
FingerTango, Inc.
0.18
0.10
125.00%

Fire Rock Holdings Ltd Corporate Events

Fire Rock Holdings Ltd Expands Southeast Asian Market Presence with New Share Placement
Jul 8, 2025

Fire Rock Holdings Ltd announced a supplemental update on its plan to place up to 38.4 million new shares, with expected net proceeds of approximately HK$71.6 million. The funds will be allocated towards building a new development team in China, establishing a development base in Indonesia, acquiring new simulation games, and marketing existing and new games in Southeast Asia. This strategic move aims to strengthen the company’s operational capabilities and market positioning in the region.

Fire Rock Holdings Extends Deadline for Share Placement
Jul 2, 2025

Fire Rock Holdings Limited has announced an extension to the long stop date for the placing of up to 38,400,000 new shares under a general mandate. The company, after negotiations with the placing agent, has agreed to extend the deadline from July 2, 2025, to July 11, 2025, to allow more time for the placing agent to secure investors. This extension indicates a strategic move to ensure the successful completion of the share placement, which may impact the company’s market positioning and shareholder value.

Fire Rock Holdings Enhances Governance with New Nomination Committee
Jun 30, 2025

Fire Rock Holdings Limited has announced the establishment of a Nomination Committee as part of its Board of Directors’ governance structure. The committee, formed by a board resolution, will comprise at least three members, primarily independent non-executive directors, and will include at least one member of a different gender. This move is aimed at enhancing the company’s governance practices and ensuring a diverse and independent oversight in its board nominations, reflecting a commitment to improved corporate governance standards.

Fire Rock Holdings Ltd Announces Share Placement to Fund Expansion
Jun 24, 2025

Fire Rock Holdings Ltd has announced a placement of new shares under a general mandate. The company plans to issue up to 38,400,000 new shares at a price of HK$1.87 per share, representing a 20% increase in the existing issued share capital. The placement aims to raise approximately HK$71.6 million in net proceeds, which will be used to fund the company’s sustainable development in Southeast Asia and to strengthen its financial position.

Fire Rock Holdings Explores New Share Placement to Boost Gaming Ventures
Jun 18, 2025

Fire Rock Holdings Ltd announced preliminary discussions for a possible placing of new shares to support its business operations, including game development and investment in Southeast Asia. The company aims to issue up to 38,400,000 new shares to independent third parties under a general mandate, though no formal agreements have been made yet.

Fire Rock Holdings Expands into Indonesian Gaming Market
Jun 4, 2025

Fire Rock Holdings Limited has announced plans to expand its operations into Indonesia, marking it as the third Southeast Asian market following Singapore and Thailand. The company aims to establish a research and development team and publish games in Indonesia, with an investment of approximately HK$60 million over the next three years. This strategic move is expected to enhance the company’s presence in the region and generate income by mid-2026, leveraging its previous successes in other Southeast Asian markets.

Fire Rock Holdings Ltd Passes All Resolutions at AGM
May 30, 2025

Fire Rock Holdings Ltd, a company listed on the Hong Kong Stock Exchange, held its Annual General Meeting (AGM) on May 30, 2025, in Singapore. The meeting was attended by shareholders representing approximately 47.46% of the total issued shares. All resolutions proposed at the AGM, including the approval of financial statements, re-election of directors, and re-appointment of auditors, were passed with overwhelming support. The company also granted mandates to its directors to issue additional shares and repurchase shares, indicating strategic flexibility in its financial operations.

Fire Rock Holdings Ltd Announces 2025 AGM Agenda
Apr 24, 2025

Fire Rock Holdings Ltd has announced its upcoming Annual General Meeting (AGM) scheduled for May 30, 2025, in Singapore. Key agenda items include the approval of the 2024 financial statements, re-election of directors, re-appointment of the auditor, and granting the board authority to issue shares. These resolutions aim to ensure continued governance and operational flexibility, potentially impacting the company’s strategic initiatives and shareholder value.

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: Jul 10, 2025