Rego Interactive Co., Ltd. (2422) AI Stock Analysis

• Market Cap: HK$592.50M
• Dividend Yield: N/A
• Average Volume (3M): 279.33K
• Price to Earnings (P/E): 130.3
• Beta (1Y): 0.23
• Revenue Growth: 26.37%
• EPS Growth: -334.75%
• Country: HK
• Employees: 311
• Sector: Communication Services
• Sector Strength: 84
• Industry: Advertising Agencies
• EPS (TTM): -0.03
• Shares Outstanding: 1,500,000,000
• 10 Day Avg. Volume: 270,000
• 30 Day Avg. Volume: 279,333
• PEG Ratio: 0.75
• Price to Book (P/B): 5.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -183.88
• 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

• Rating: 51 Neutral
• Price Target: ―

The overall stock score of 51 reflects the company's solid revenue growth amidst challenges in profitability and liquidity. While the balance sheet is relatively stable, the negative cash flow and earnings pose risks. Technical analysis suggests a neutral short-term outlook, and the lack of valuation appeal due to a negative P/E ratio further impacts the score.

Rego Interactive Co., Ltd. Business Overview & Revenue Model

Company Description

Rego Interactive Co., Ltd. (2422) is a company operating within the digital entertainment and technology sectors. It specializes in the development and distribution of interactive entertainment content, including mobile games and digital applications, catering to a global audience. The company leverages cutting-edge technology to enhance user experiences and engages in continuous innovation to adapt to rapidly evolving market trends.

How the Company Makes Money

Rego Interactive Co., Ltd. generates revenue primarily through the development and sale of mobile games and digital applications. The company employs a freemium model for its games, offering free-to-play content while monetizing through in-app purchases, advertisements, and premium subscriptions. Additionally, Rego Interactive collaborates with other technology firms and advertisers to create tailored marketing campaigns within its platforms, further diversifying its income streams. Strategic partnerships with global distributors and app stores also play a significant role in expanding its market reach and enhancing revenue potential.

Rego Interactive Co., Ltd. Financial Statement Overview

Summary

Rego Interactive Co., Ltd. is experiencing revenue growth but faces profitability and cash flow challenges. The balance sheet is stable, but attention to improving profitability and cash flow is crucial to support future growth and financial stability.

Income Statement

The company shows a significant revenue growth from the previous year, indicating positive business momentum. However, the negative net income and EBIT margins suggest struggles with profitability, which could be due to cost management issues or increased expenses.

Balance Sheet

The balance sheet is relatively stable with a healthy equity position. The debt-to-equity ratio is moderate, but the decline in stockholders' equity indicates potential financial risk if leveraged excessively.

Cash Flow

Cash flows indicate instability with negative operating cash flow and zero free cash flow, highlighting liquidity concerns. The company must improve cash management to bolster financial health.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
244.65M	191.06M	256.59M	219.55M	113.04M
	Gross Profit
65.81M	101.67M	133.46M	110.21M	75.87M
	EBIT
-32.10M	19.52M	90.55M	60.97M	49.59M
	EBITDA
-27.39M	24.22M	95.23M	66.03M	52.61M
	Net Income Common Stockholders
-37.96M	12.56M	68.50M	49.98M	45.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
138.99M	186.48M	186.85M	61.48M	32.06M
	Total Assets
531.95M	637.38M	399.70M	235.06M	154.31M
	Total Debt
94.05M	156.35M	38.35M	21.10M	10.38M
	Net Debt
-44.95M	-30.13M	-148.50M	-40.38M	-21.68M
	Total Liabilities
173.16M	244.73M	102.24M	129.16M	51.66M
	Stockholders Equity
359.62M	392.66M	297.46M	105.90M	102.65M
Cash Flow		Free Cash Flow
0.00	-80.46M	-9.51M	24.28M	7.20M
	Operating Cash Flow
0.00	-77.74M	-7.18M	26.59M	15.96M
	Investing Cash Flow
0.00	-100.82M	-2.33M	-7.22M	-21.52M
	Financing Cash Flow
0.00	178.19M	134.88M	10.05M	-4.72M

Rego Interactive Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2422, the sentiment is Neutral. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, below the 50-day MA of 0.41, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2422.

Rego Interactive Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.55B	5.92	-3.82%	8.36%	2.79%	-33.24%
8087	52 Neutral	HK$95.04M	―	-67.25%	―	0.20%	57.51%
2422	51 Neutral	HK$592.50M	130.30	-10.11%	―	26.37%	-334.75%
8065	43 Neutral	HK$40.50M	―	-11.55%	―	5.02%	53.83%
8203	40 Underperform	HK$153.85M	18.27		―	272.07%	―
8057	25 Underperform	HK$99.08M	―		―	-16.06%	-24.64%

Rego Interactive Co., Ltd. Corporate Events

Rego Interactive Announces 2025 AGM and Key Resolutions

Rego Interactive Co., Ltd. has announced its upcoming annual general meeting scheduled for June 26, 2025, in Hangzhou, PRC. Key agenda items include the adoption of financial statements for 2024, re-election of executive directors, and authorization for the board to manage director remuneration and appoint auditors. Additionally, the company seeks shareholder approval to issue new shares, potentially impacting its capital structure and market operations.

Rego Interactive Reports 2024 Financial Results Amid Market Challenges

Rego Interactive Co., Ltd. reported its annual financial results for 2024, revealing a 28% increase in revenue to RMB 244,646,000, but a significant decline in profitability with a net loss of RMB 37,960,000. The downturn in consumer market sentiment in China and reduced marketing budgets impacted the company’s financial performance. Despite challenges, the company aims to capitalize on the growing demand for new products and technology in the advertising sector. The Chinese lottery market, where Rego Interactive is involved, saw a 7.6% increase in sales, indicating potential opportunities for growth.

Rego Interactive Issues Profit Warning Amid Challenging Market Conditions

Rego Interactive Co., Ltd. has issued a profit warning, anticipating a net loss of not less than RMB29.2 million for the year ended December 31, 2024, a significant decline from the previous year’s profit. This downturn is attributed to subdued consumer market sentiment in China, reduced marketing budgets, and increased expenses. The company plans to focus on its core business areas and adapt its strategies to navigate the challenging economic climate, aiming for steady progress and exploring new opportunities in digitalization solutions.

Rego Interactive Schedules Board Meeting for Year-End Results

Rego Interactive Co., Ltd., a company incorporated in the Cayman Islands, has announced that its board of directors will hold a meeting on March 31, 2025. The purpose of the meeting is to consider and approve the company’s final results for the year ending December 31, 2024, and to discuss the recommendation of a final dividend, if any, along with other business matters.