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

• Market Cap: HK$1.42B
• Dividend Yield: N/A
• Average Volume (3M): 554.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 10.61%
• EPS Growth: -1448.48%
• Country: HK
• Employees: 311
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.01
• Shares Outstanding: 1,500,000,000
• 10 Day Avg. Volume: 765,000
• 30 Day Avg. Volume: 554,400
• PEG Ratio: 0.10
• Price to Book (P/B): 3.57
• Price to Sales (P/S): 5.25
• P/FCF Ratio: -94.01
• 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: 56 Neutral
• Price Target: HK$0.94 ▲(14.27% Upside)

The score is held back primarily by weak financial performance (loss-making operations and negative free cash flow), partially offset by strong technical trend/momentum. Valuation is also a drag because the company is currently unprofitable (negative P/E) and no dividend yield data is available.

Positive Factors

Revenue Growth

The company has shown a revenue growth rate of over 10%, indicating a positive trend in market expansion and product adoption, which is crucial for long-term sustainability in the competitive tech industry.

Business Model

The freemium model allows for broad user acquisition with potential for monetization through in-game purchases, providing a scalable revenue stream that can adapt to market demands.

Partnerships

Strategic partnerships enhance service offerings and market reach, fostering innovation and potentially leading to new revenue streams, strengthening the company's competitive position.

Negative Factors

Profitability Challenges

The negative net profit margin and declining gross profit margin highlight ongoing profitability challenges, which may affect the company's ability to reinvest in growth and innovation.

Cash Flow Volatility

Volatile cash flow generation limits financial flexibility and could hinder the company's ability to fund operations and strategic initiatives, posing a risk to long-term stability.

Operational Inefficiencies

Negative EBIT and EBITDA margins indicate operational inefficiencies, which can erode competitive advantage and reduce the company's ability to sustain growth in the long term.

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

Company Description

Rego Interactive Co., Ltd provides marketing services in the People's Republic of China. It operates in two segments, Marketing and Promotion Services, and Information Technology (IT) Solutions Services. The Marketing and Promotion Services segment offers promotion and advertising services, where the company assist enterprise advertisers in acquiring and/or reactivating users through various services, including traditional marketing and promotion services; advertisement placement services; and advertisement distribution services. This segment also provides virtual goods sourcing and delivery services, where it sources virtual goods, such as top-up coupons of telecommunication services, digital vouchers, and gift cards for enterprises and delivers the virtual goods to user acquisition, engagement, and/or retention purposes. The IT Solutions Services segment offers mobile game, and software development and maintenance services; and solutions on lottery-related software systems and equipment. The company also sells lottery tickets through its offline shops. Its customers primarily include enterprise advertisers and advertising agents using its traditional marketing and promotion services; enterprise advertisers and advertising agents engaging for advertisement placement services; media publishers as advertising agents using its advertisement distribution services; enterprises and virtual goods procurement agents procuring virtual goods; and mobile game operators, as well as welfare lottery centers and lottery sales points using its IT solutions services. The company was founded in 2009 and is headquartered in Hangzhou, China.

How the Company Makes Money

Rego Interactive generates revenue primarily through the sale of its software and digital solutions to businesses across different industries. Key revenue streams include licensing fees from proprietary software, subscription fees for cloud-based services, and project-based income from custom development projects. Additionally, the company may have partnerships with other technology firms, enabling it to offer integrated solutions and enhance its service offerings, contributing to its overall earnings. The focus on recurring revenue models, such as Software as a Service (SaaS), also provides a stable income stream as clients subscribe to ongoing services and support.

Rego Interactive Co., Ltd. Financial Statement Overview

Summary

Rego Interactive Co., Ltd. faces significant financial challenges, particularly in terms of profitability and cash flow generation. The income statement and cash flow metrics highlight operational inefficiencies and cash management issues, although the balance sheet remains relatively stable.

Income Statement

Rego Interactive Co., Ltd. has experienced a volatile revenue trajectory, with a recent decline in revenue and profitability. The gross profit margin has decreased significantly, and the company reported a negative net profit margin in the latest year, indicating challenges in maintaining profitability. The EBIT and EBITDA margins have also turned negative, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a relatively stable equity position with a debt-to-equity ratio that remains manageable. However, the decline in stockholders' equity and total assets over the years raises concerns about asset management and financial stability. The equity ratio remains healthy, indicating a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals inconsistent free cash flow generation, with recent periods showing negative free cash flow. The operating cash flow to net income ratio has improved but remains volatile. The company's ability to convert net income into cash flow is a concern, impacting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	264.21M	244.65M	191.06M	256.59M	219.55M	113.04M
Gross Profit	45.88M	65.81M	101.67M	133.46M	110.21M	75.87M
EBITDA	-51.60M	-27.39M	24.22M	84.77M	69.04M	50.20M
Net Income	-61.06M	-37.96M	12.56M	68.50M	49.98M	45.78M
Balance Sheet
Total Assets	599.59M	531.95M	637.38M	399.70M	235.06M	154.31M
Cash, Cash Equivalents and Short-Term Investments	103.67M	138.99M	186.48M	186.85M	61.48M	32.06M
Total Debt	114.32M	94.05M	156.35M	38.35M	21.10M	10.38M
Total Liabilities	263.16M	173.16M	244.73M	102.24M	129.16M	51.66M
Stockholders Equity	338.43M	359.62M	392.66M	297.46M	105.90M	102.65M
Cash Flow
Free Cash Flow	47.57M	-13.65M	-80.46M	-9.51M	24.28M	7.20M
Operating Cash Flow	74.17M	14.33M	-77.74M	-7.18M	26.59M	15.96M
Investing Cash Flow	17.63M	5.86M	-100.82M	-2.33M	-7.22M	-21.52M
Financing Cash Flow	-71.71M	-67.68M	178.19M	134.88M	10.05M	-4.72M

Rego Interactive Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2422, the sentiment is Positive. The current price of 0.82 is above the 20-day moving average (MA) of 0.74, above the 50-day MA of 0.67, and above the 200-day MA of 0.49, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 60.64 is Neutral, neither overbought nor oversold. The STOCH value of 48.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
9919	71 Outperform	HK$789.43M	8.65	26.71%	8.86%	-9.72%	-13.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2422	56 Neutral	HK$1.42B	-21.35	-16.52%	―	10.61%	-1448.48%
1917	47 Neutral	HK$261.98M	-17.68	-31.88%	―	-5.03%	-35.29%
0205	47 Neutral	HK$1.15B	-73.39	-6.02%	―	-4.13%	76.38%
1753	45 Neutral	HK$248.75M	-4.83	-3.55%	―	-5.89%	-330.91%
1993	39 Underperform	HK$231.91M	-5.29	―	―	-38.24%	-31.99%

Rego Interactive Co., Ltd. Corporate Events

Rego Interactive Refines Share Placing Terms and Earmarks Proceeds for Marketing Expansion and Debt Repayment

Rego Interactive has signed a supplemental agreement with its placing agent to amend the long stop date for completing its previously announced share placing, bringing it forward to 26 January 2026. The company detailed that 20% of the placing’s net proceeds will be directed to expanding its private domain traffic marketing services—mainly funding traffic acquisition, user operation resources, and related staff costs—while the remaining 80% will be used as general working capital, with the bulk earmarked for repaying outstanding bank and other interest-bearing borrowings, and the rest covering rental, utilities, and general administrative expenses, a deployment aimed at strengthening service capacity, supporting more projects for enterprise clients, and improving the Group’s financial flexibility.

The most recent analyst rating on (HK:2422) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Rego Interactive Co., Ltd. stock, see the HK:2422 Stock Forecast page.

Rego Interactive Reshapes Company Secretarial Team to Bolster Hong Kong Compliance

Rego Interactive Co., Ltd. has announced that joint company secretary and authorized representative Ms. Chan Sau Ling will resign from these roles with effect from 31 December 2025, though she will continue to act as the company’s Hong Kong process agent and has indicated no disagreement with the board or the company. The firm will rely on existing joint company secretary Ms. Yang Chao, who has been confirmed by the Stock Exchange as independently qualified under listing rules, and has appointed Tricor Services Limited manager Mr. Yau Tsz Lun as an additional joint company secretary, authorized representative and process agent in Hong Kong, aiming to strengthen its corporate governance and ensure timely compliance amid a heavier regulatory workload and evolving listing requirements.

The most recent analyst rating on (HK:2422) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Rego Interactive Co., Ltd. stock, see the HK:2422 Stock Forecast page.

Rego Interactive Plans Share Placing of Up to 10.67% of Issued Capital

Rego Interactive Co., Ltd. has entered into a conditional placing agreement with Winbull Securities International (Hong Kong) Limited to issue up to 160 million new shares under its existing general mandate at HK$0.435 per share, representing about 10.67% of its current issued share capital and 9.64% of the enlarged share base. The private placement, to be conducted on a best-effort basis to at least six independent investors, is subject to customary conditions and Stock Exchange approval for listing of the new shares, and is expected to provide additional capital while modestly diluting existing shareholders and broadening the company’s investor base without any single placee becoming a substantial shareholder.

The most recent analyst rating on (HK:2422) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Rego Interactive Co., Ltd. stock, see the HK:2422 Stock Forecast page.

Rego Interactive to Sell 75% Stake in Subsidiary for RMB11.3 Million

Rego Interactive has agreed to dispose of a 75% equity interest in one of its subsidiaries (the Target Company) to two independent third-party buyers for a total consideration of RMB11.3 million, leaving the group with a remaining 25% indirect stake. Following completion, the Target Company will cease to be a subsidiary, and the deal, classified as a discloseable transaction under Hong Kong listing rules, signals a portfolio adjustment that may streamline Rego’s operations and capital allocation without fully exiting the business.

The most recent analyst rating on (HK:2422) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Rego Interactive Co., Ltd. stock, see the HK:2422 Stock Forecast page.

Rego Interactive Redirects Rights Issue Proceeds to Working Capital

Rego Interactive Co., Ltd. announced a change in the use of proceeds from its recent rights issue, which initially aimed to fund an acquisition, expand its goods delivery business, and support general working capital. The company has decided to reallocate the remaining proceeds of approximately HK$47.8 million entirely to general working capital due to the acquisition project not proceeding as planned. This strategic shift reflects a reassessment of the company’s operational priorities and financial strategy, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:2422) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Rego Interactive Co., Ltd. stock, see the HK:2422 Stock Forecast page.