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

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HK:1909

Fire Rock Holdings Ltd

(1909)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$2.00
▲(3.63% Upside)
The overall stock score is primarily influenced by the company's financial performance challenges and valuation concerns. While technical analysis indicates strong bullish momentum, the overbought signals and negative P/E ratio highlight significant risks. Improvements in financial stability and profitability are crucial for enhancing the stock's attractiveness.

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 primarily through the development and distribution of online games. The company employs a freemium model, where games are free to play but offer in-game purchases and premium features that enhance the gaming experience. Additionally, the company earns money through advertising partnerships, where ad placements within their games generate income. Fire Rock Holdings also engages in licensing agreements, allowing other companies to distribute its games, further expanding its revenue streams. Collaborations with strategic partners in the gaming and technology sectors help enhance its product offerings and market reach.

Fire Rock Holdings Ltd Financial Statement Overview

Summary
The company's financial performance is challenged by weak profitability and revenue growth. Despite improved cash flow and equity in recent years, historical volatility in revenue and leverage continues to impact stability and overall financial health.
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
Neutral
Last Price1.93
Price Trends
50DMA
1.83
Positive
100DMA
1.85
Positive
200DMA
2.08
Negative
Market Momentum
MACD
0.07
Negative
RSI
55.09
Neutral
STOCH
34.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1909, the sentiment is Neutral. The current price of 1.93 is above the 20-day moving average (MA) of 1.81, above the 50-day MA of 1.83, and below the 200-day MA of 2.08, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 34.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1909.

Fire Rock Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
377.48M12.384.00%-25.66%-23.36%
56
Neutral
1.17B76.14-9.45%183.41%39.68%
54
Neutral
HK$370.56M-36.46%12.84%-113.65%
43
Neutral
146.46M-1.51-12.26%65.41%-313.74%
41
Neutral
183.58M-2.83-32.30%-43.62%22.41%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1909
Fire Rock Holdings Ltd
1.93
-0.57
-22.80%
DE:FH0
Forgame Holdings Ltd.
0.09
0.02
28.57%
DE:13O
Ourgame International Holdings Ltd
0.02
0.00
0.00%
HK:1022
Feiyu Technology International Company Ltd.
0.67
0.50
294.12%
HK:1961
Infinities Technology International (Cayman) Holding Limited
0.25
-0.30
-54.55%
HK:6860
FingerTango, Inc.
0.20
0.13
185.71%

Fire Rock Holdings Ltd Corporate Events

Fire Rock Holdings Announces Board Resignation and Committee Changes
Sep 5, 2025

Fire Rock Holdings Ltd has announced the resignation of Mr. Lok Tze Bong from his role as an independent non-executive director and from his positions on the audit, remuneration, and nomination committees, effective September 5, 2025. This change in the board’s composition follows Mr. Lok’s decision to focus on personal work commitments. The company expressed gratitude for Mr. Lok’s contributions during his tenure, and his departure is not associated with any disagreements or issues requiring shareholder attention.

The most recent analyst rating on (HK:1909) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Fire Rock Holdings Ltd stock, see the HK:1909 Stock Forecast page.

Fire Rock Holdings Ltd Announces Board and Committee Roles
Sep 5, 2025

Fire Rock Holdings Ltd has announced the composition of its board of directors and the roles within its established committees. The board consists of both executive and independent non-executive directors, with specific members assigned to the audit, remuneration, and nomination committees. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic decision-making and stakeholder confidence.

The most recent analyst rating on (HK:1909) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Fire Rock Holdings Ltd stock, see the HK:1909 Stock Forecast page.

Fire Rock Holdings Ltd Reports Revenue Growth Amidst Increased Losses
Aug 15, 2025

Fire Rock Holdings Ltd reported a 15.7% increase in revenue for the first half of 2025, reaching approximately HKD72.9 million. Despite the revenue growth, the company faced a loss of approximately HKD6.7 million due to increased administrative expenses and an impairment loss on intangible assets, leading the Board to not recommend an interim dividend.

Fire Rock Holdings Appoints New Independent Non-Executive Director
Aug 1, 2025

Fire Rock Holdings Limited has announced the appointment of Ms. Chiang Wing Yan as an independent non-executive director effective from August 1, 2025. Ms. Chiang brings over 14 years of experience in audit, accounting, and financial reporting to the board, having held various managerial roles in notable companies. Her appointment is expected to enhance the board’s expertise in financial oversight, potentially strengthening the company’s governance and strategic decision-making.

Fire Rock Holdings Ltd Announces Board Composition and Committee Roles
Aug 1, 2025

Fire Rock Holdings Ltd has announced the composition of its board of directors and the roles of each member. The board consists of both executive and independent non-executive directors, with Mr. Zhou Zhiwei serving as the Chief Executive Officer. The company has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned as chairmen or members of these committees. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and operational oversight.

Fire Rock Holdings Schedules Board Meeting for Interim Results
Aug 1, 2025

Fire Rock Holdings Limited has announced that its board of directors will convene on August 15, 2025, to approve the interim results for the first half of 2025 and discuss potential dividend payments. This meeting could impact the company’s financial strategy and shareholder returns, reflecting its ongoing commitment to transparency and stakeholder engagement.

Fire Rock Holdings Ltd Issues Profit Warning Amid Rising Costs
Jul 31, 2025

Fire Rock Holdings Ltd has issued a profit warning, expecting a loss of approximately HK$18.2 million for the first half of 2025, compared to a profit of HK$6.8 million in the same period of 2024. The decline in financial performance is attributed to increased amortization of intangible assets for a newly launched mobile game, impairment provisions due to uncertainties in existing games, and rising staff costs.

Fire Rock Holdings Terminates Placing Agreement for New Shares
Jul 11, 2025

Fire Rock Holdings Ltd announced the lapse and termination of its Placing Agreement for issuing new shares under a general mandate. The agreement lapsed due to unmet conditions and failed negotiations for an extension. The company stated that this termination will not adversely affect its business operations or financial position, and it may consider future fundraising exercises.

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.

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: Sep 12, 2025