Infinities Technology International (Cayman) Holding Limited (1961) AI Stock Analysis

• Market Cap: HK$198.26M
• Dividend Yield: N/A
• Average Volume (3M): 167.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: -43.62%
• EPS Growth: 22.41%
• Country: HK
• Employees: 115
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.05
• Shares Outstanding: 734,301,150
• 10 Day Avg. Volume: 140,000
• 30 Day Avg. Volume: 167,266
• PEG Ratio: 0.33
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -5.98
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(85.19% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and persistent losses. While technical analysis shows some positive momentum, the high RSI suggests caution. Valuation metrics are weak due to negative earnings and lack of dividends, further weighing down the score.

Positive Factors

Manageable Leverage

A low debt-to-equity ratio indicates that the company has a manageable level of debt, which can provide financial flexibility and reduce risk in uncertain economic conditions.

Strategic Partnerships

Strategic partnerships can enhance market reach and innovation, leading to new revenue streams and competitive advantages in the technology sector.

Recurring Revenue Streams

Recurring revenue from maintenance and support contracts ensures a steady cash flow, which can provide financial stability and support long-term growth initiatives.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which can impact long-term profitability and growth prospects.

Persistent Losses

Operating at a net loss with negative margins suggests inefficiencies and challenges in achieving profitability, which can hinder investment in growth and innovation.

Negative Cash Flows

Negative cash flows from operations indicate difficulties in generating cash from core activities, which can strain liquidity and limit strategic investments.

Infinities Technology International (Cayman) Holding Limited Business Overview & Revenue Model

Company Description

Infinities Technology International (Cayman) Holding Limited, an investment holding company, operates as a digital entertainment content provider in the People's Republic of China. The company develops and operates mobile games, primarily casual mobile games, as well as multi-player and boutique mobile games. It also distributes digital media content, such as e-magazines, comics, and music. The company was formerly known as Jiu Zun Digital Interactive Entertainment Group Holdings Limited and changed its name to Infinities Technology International (Cayman) Holding Limited in July 2022. Infinities Technology International (Cayman) Holding Limited was founded in 2011 and is headquartered in Guangzhou, the People's Republic of China.

How the Company Makes Money

The company generates revenue primarily through its subsidiaries that specialize in software development, telecommunications services, and digital transformation solutions. Key revenue streams include software licensing fees, service contracts for telecommunications infrastructure, and consulting services in technology implementation. Infinities Technology International also engages in strategic partnerships with other tech firms to co-develop products, which enhances its market reach and generates additional income through revenue-sharing agreements. Furthermore, the company benefits from recurring revenues through maintenance and support contracts, ensuring a steady cash flow.

Infinities Technology International (Cayman) Holding Limited Financial Statement Overview

Summary

Infinities Technology International is facing financial challenges with declining revenues, persistent losses, and negative cash flows. While leverage is manageable, the company needs to focus on improving profitability and cash flow generation to enhance its financial health.

Income Statement

The company has experienced a declining revenue trend, with a negative revenue growth rate from 2023 to 2024. Gross profit margin has decreased, and the company is operating at a net loss, evidenced by negative EBIT and EBITDA margins. The persistent losses indicate challenges in achieving profitability.

Balance Sheet

The debt-to-equity ratio is relatively low, suggesting manageable leverage. However, the return on equity is negative due to net losses, indicating inefficiencies in generating returns from equity. The equity ratio is stable, reflecting a decent proportion of equity financing.

Cash Flow

The company is experiencing negative operating and free cash flows, indicating cash outflows from core operations. The free cash flow to net income ratio is negative, highlighting cash flow challenges. The company may need to address operational inefficiencies to improve cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.58M	258.48M	263.88M	103.91M	114.91M	170.18M
Gross Profit	14.52M	32.68M	38.20M	16.05M	14.39M	55.64M
EBITDA	-61.32M	-50.83M	-49.76M	-71.76M	-80.31M	6.32M
Net Income	-60.07M	-51.02M	-53.32M	-84.44M	-85.06M	-1.32M
Balance Sheet
Total Assets	320.49M	550.62M	228.16M	115.68M	173.92M	255.17M
Cash, Cash Equivalents and Short-Term Investments	1.47M	3.86M	37.21M	20.71M	25.27M	60.83M
Total Debt	23.64M	10.92M	8.45M	17.24M	1.20M	0.00
Total Liabilities	178.17M	371.37M	111.69M	61.33M	35.41M	28.91M
Stockholders Equity	123.34M	157.94M	111.16M	48.58M	129.21M	215.19M
Cash Flow
Free Cash Flow	-10.06M	-55.20M	-83.01M	-20.36M	-26.21M	-58.59M
Operating Cash Flow	-10.05M	-55.20M	-75.81M	-20.09M	-25.68M	-57.93M
Investing Cash Flow	191.00K	4.08M	-7.19M	11.13M	-7.33M	-40.48M
Financing Cash Flow	0.00	15.24M	96.86M	15.57M	-364.00K	100.00M

Infinities Technology International (Cayman) Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.27
• 50DMA: Negative
• 100DMA: Negative
• 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:1961, the sentiment is Negative. The current price of 0.27 is below the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.29, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 31.71 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1961.

Infinities Technology International (Cayman) Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6860	66 Neutral	HK$379.34M	12.44	3.47%	―	-25.66%	-23.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6933	53 Neutral	HK$295.32M	-10.16	-28.25%	―	-3.02%	72.76%
1961	46 Neutral	HK$198.26M	-3.06	-34.36%	―	-43.62%	22.41%
1022	46 Neutral	HK$1.14B	73.86	2.72%	―	183.41%	39.68%
1909	41 Neutral	HK$373.94M	-7.32	-36.46%	―	12.84%	-113.72%
6899	41 Neutral	HK$268.64M	-2.34	―	―	―	―

Infinities Technology International (Cayman) Holding Limited Corporate Events

Infinities Technology Clarifies Terms of Share Option Scheme in 2024 Annual Report

Infinities Technology International (Cayman) Holding Limited has issued a supplemental announcement to its 2024 annual report to clarify details of its share option scheme in line with Hong Kong listing requirements. The company specified that share options, when granted, will vest according to periods determined by the board and stated in the offer notice, and that no consideration is payable upon application for or acceptance of such options. The additional disclosure does not alter any other information in the 2024 annual report, and the company confirmed that no share options were granted between its listing date and the date of the 2024 annual report, indicating no immediate dilution for existing shareholders and reaffirming compliance with corporate governance rules.

The most recent analyst rating on (HK:1961) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Infinities Technology International (Cayman) Holding Limited stock, see the HK:1961 Stock Forecast page.

Infinities Technology Strengthens Financial Structure for Growth

Infinities Technology International has announced measures to strengthen its financial structure and long-term operations in light of current market conditions. The company’s board approved financial initiatives, including securing credit facilities ranging from RMB3 million to RMB15 million for its subsidiary, Guangzhou Jiu Zun Interactive Entertainment, backed by another subsidiary, Chengdu Zhile Interactive Technology Company Limited. These steps aim to optimize working capital, expand financing options, and bolster the company’s financial stability for sustainable growth.

The most recent analyst rating on (HK:1961) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Infinities Technology International (Cayman) Holding Limited stock, see the HK:1961 Stock Forecast page.