Fire Rock Holdings Ltd (1909) AI Stock Analysis

• Market Cap: HK$437.76M
• Dividend Yield: N/A
• Average Volume (3M): 233.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 12.84%
• EPS Growth: -113.72%
• Country: HK
• Employees: 151
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.09
• Shares Outstanding: 288,000,000
• 10 Day Avg. Volume: 231,630
• 30 Day Avg. Volume: 233,640
• PEG Ratio: 0.28
• Price to Book (P/B): 4.45
• Price to Sales (P/S): 3.55
• P/FCF Ratio: 87.58
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$1.50 ▼(-1.32% Downside)

The overall stock score of 41 reflects significant challenges in financial performance and valuation. While technical analysis indicates potential for a rebound due to oversold conditions, the negative P/E ratio and historical financial volatility weigh heavily on the score. The absence of earnings call insights and corporate events further limits positive influences on the score.

Positive Factors

Revenue Diversification

Fire Rock Holdings' diverse revenue streams from oil, gas, renewables, and real estate reduce dependency on a single sector, enhancing resilience against market fluctuations.

Partnership Strategy

Strategic partnerships with established firms enhance operational efficiency and profitability, providing a competitive edge and supporting long-term growth.

Cash Flow Improvement

Improved cash management and positive free cash flow indicate better financial health, enabling reinvestment and debt reduction, supporting future stability.

Negative Factors

Profitability Challenges

Ongoing net losses and weak profit margins indicate profitability issues, which could hinder reinvestment and growth unless addressed.

Revenue Volatility

Historical revenue volatility and recent declines pose risks to financial stability, requiring strategic adjustments to sustain growth.

Leverage Concerns

High leverage can limit financial flexibility and increase risk, necessitating careful management to ensure long-term solvency and stability.

Fire Rock Holdings Ltd Business Overview & Revenue Model

Company Description

Fire 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 Money

Fire Rock Holdings Ltd generates revenue through multiple streams, primarily from its investments in oil and gas operations, which include exploration, drilling, and production activities. The company partners with established firms to share resources and expertise, thereby enhancing its operational efficiency and profitability. Additionally, revenue is derived from its renewable energy projects, where it provides services or products related to solar and wind energy generation. Real estate investments contribute to revenue through rental income and property appreciation. The company also explores strategic partnerships and joint ventures that allow it to expand its market reach and diversify its income sources, thus strengthening its overall financial performance.

Fire Rock Holdings Ltd Financial Statement Overview

Summary

Fire Rock Holdings Ltd faces challenges in maintaining stable financial performance. Despite recent improvements in cash flow and equity, historical volatility in revenue, profitability, and leverage impacts the score. The company needs to focus on sustaining revenue growth and profitability for long-term stability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	195.97M	140.59M	134.93M	115.06M	1.04B	586.10M
Gross Profit	154.52M	109.66M	107.54M	76.59M	867.08M	534.95M
EBITDA	-1.47M	22.24M	592.19M	64.66M	-1.02B	484.61M
Net Income	804.07M	-17.07M	559.91M	30.20M	-1.21B	386.18M
Balance Sheet
Total Assets	160.87M	134.68M	160.87M	189.71M	397.29M	906.71M
Cash, Cash Equivalents and Short-Term Investments	85.49M	53.64M	85.49M	119.54M	347.75M	731.12M
Total Debt	1.22M	1.99M	1.22M	585.92M	620.00M	9.36M
Total Liabilities	20.55M	20.68M	20.55M	610.97M	852.93M	89.98M
Stockholders Equity	131.07M	112.30M	131.07M	-430.01M	-461.39M	815.05M
Cash Flow
Free Cash Flow	-47.71M	5.70M	-38.63M	-2.70M	523.86M	478.95M
Operating Cash Flow	-34.41M	6.16M	-23.72M	2.59M	550.61M	517.10M
Investing Cash Flow	6.69M	-9.24M	4.52M	-19.61M	-741.98M	54.53M
Financing Cash Flow	-23.68M	-27.61M	-16.32M	-212.01M	-178.83M	-32.38M

Fire Rock Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1909, the sentiment is Negative. The current price of 1.52 is below the 20-day moving average (MA) of 1.63, below the 50-day MA of 1.78, and below the 200-day MA of 1.82, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1909.

Fire Rock Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6860	60 Neutral	HK$340.29M	11.10	3.47%	―	-25.66%	-23.36%
1961	46 Neutral	HK$216.62M	-3.34	-34.36%	―	-43.62%	22.41%
1022	46 Neutral	HK$997.18M	64.77	2.72%	―	183.41%	39.68%
0484	44 Neutral	HK$148.15M	-1.52	-15.08%	―	65.41%	-313.74%
1909	41 Neutral	HK$437.76M	-7.47	-36.46%	―	12.84%	-113.72%
6899	41 Neutral	HK$226.50M	―	―	―	―	―

Fire Rock Holdings Ltd Corporate Events

Fire Rock Holdings Secures Shareholder Approval for Key Financial Resolutions

Fire Rock Holdings Ltd recently held an Extraordinary General Meeting (EGM) where key resolutions regarding a Rights Issue, Placing Agreement, Underwriting Agreement, and a Whitewash Waiver were passed. The meeting saw participation from shareholders holding approximately 8% of the company’s issued shares, with significant abstentions from those involved in the transactions. The resolutions were approved by a substantial majority, indicating strong shareholder support for the company’s strategic financial maneuvers.

Fire Rock Holdings Secures Shareholder Approval for Key Financial Resolutions

Fire Rock Holdings Ltd recently held an Extraordinary General Meeting (EGM) where shareholders voted on key resolutions including a Rights Issue, Placing Agreement, Underwriting Agreement, and a Whitewash Waiver. The meeting saw significant participation, with independent shareholders holding 113,660,000 shares eligible to vote. The resolutions were overwhelmingly approved, with over 99% of votes in favor, indicating strong shareholder support for the company’s strategic financial maneuvers. This approval is likely to impact the company’s capital structure and market positioning positively.

Fire Rock Holdings Announces Rights Issue to Raise Capital

Fire Rock Holdings Ltd has announced an extraordinary general meeting to discuss a Rights Issue, which involves the allotment and issuance of up to 96,000,000 shares at a subscription price of HK$1.58 per share. This move aims to raise capital by offering existing shareholders the opportunity to purchase additional shares, with certain exclusions for shareholders outside Hong Kong due to legal and regulatory constraints. The company has also entered into agreements with SBI China Capital Financial Services Limited and Sulfulon International Limited to manage the placement and underwriting of these shares, which could impact the company’s financial strategy and shareholder value.

Fire Rock Holdings Ltd Updates Share Option Scheme Details

Fire Rock Holdings Ltd has announced supplemental information regarding their Share Option Scheme as part of their 2024 Annual Report. The company has clarified that no share options have been granted under the scheme, and as of the report date, 192,000,000 shares, representing 5% of the issued share capital, remain available for issue. This announcement does not alter any other information in the annual report, ensuring stakeholders that the company’s financial disclosures remain consistent.

Fire Rock Holdings Ltd Announces Proposed Rights Issue

Fire Rock Holdings Ltd has announced a proposed rights issue, offering one rights share for every two shares held at a subscription price of HK$1.58 per share. The company aims to raise up to HK$151.68 million before expenses, with net proceeds estimated at HK$150.88 million. The rights issue will proceed on a non-fully underwritten basis, and Mr. Zhang, a significant shareholder, has committed to not selling his shares and to fully subscribing to his rights entitlement.