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Rego Interactive Co., Ltd. (HK:2422)
:2422
Hong Kong Market
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Rego Interactive Co., Ltd. (2422) AI Stock Analysis

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HK:2422

Rego Interactive Co., Ltd.

(2422)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$0.50
▼(-18.03% Downside)
The overall stock score is primarily influenced by the company's financial performance challenges and valuation concerns. While technical analysis shows strong momentum, the overbought indicators and lack of earnings call data or corporate events limit the potential upside.

Rego Interactive Co., Ltd. (2422) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionRego 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 MoneyRego Interactive Co., Ltd. generates revenue primarily through the sale and distribution of its mobile games and applications. The company employs a freemium model for many of its games, where the basic version is free to play, while in-game purchases and premium features provide additional revenue streams. Additionally, Rego Interactive earns income from digital marketing services by offering targeted advertising solutions and interactive marketing campaigns for corporate clients. Partnerships with other technology firms and content creators further augment their revenue by expanding their service offerings and market reach.

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
45
Neutral
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
60
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue264.21M244.65M191.06M256.59M219.55M113.04M
Gross Profit45.88M65.81M101.67M133.46M110.21M75.87M
EBITDA-51.60M-27.39M24.22M84.77M69.04M50.20M
Net Income-61.06M-37.96M12.56M68.50M49.98M45.78M
Balance Sheet
Total Assets599.59M531.95M637.38M399.70M235.06M154.31M
Cash, Cash Equivalents and Short-Term Investments103.67M138.99M186.48M186.85M61.48M32.06M
Total Debt114.32M94.05M156.35M38.35M21.10M10.38M
Total Liabilities263.16M173.16M244.73M102.24M129.16M51.66M
Stockholders Equity338.43M359.62M392.66M297.46M105.90M102.65M
Cash Flow
Free Cash Flow47.57M-13.65M-80.46M-9.51M24.28M7.20M
Operating Cash Flow74.17M14.33M-77.74M-7.18M26.59M15.96M
Investing Cash Flow17.63M5.86M-100.82M-2.33M-7.22M-21.52M
Financing Cash Flow-71.71M-67.68M178.19M134.88M10.05M-4.72M

Rego Interactive Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.61
Price Trends
50DMA
0.44
Positive
100DMA
0.43
Positive
200DMA
0.46
Positive
Market Momentum
MACD
0.04
Negative
RSI
69.87
Neutral
STOCH
80.00
Negative
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 0.61 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.44, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 69.87 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$722.40M7.9126.71%9.39%-9.72%-13.36%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
54
Neutral
HK$960.00M130.30-16.52%10.61%-1448.48%
46
Neutral
HK$262.74M-3.55%-5.89%-330.91%
44
Neutral
HK$363.40M-38.24%-31.99%
44
Neutral
HK$320.22M-6.02%-4.13%76.38%
43
Neutral
HK$135.59M-31.88%-5.03%-35.29%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2422
Rego Interactive Co., Ltd.
0.65
0.04
6.56%
HK:9919
Activation Group Holdings Ltd.
0.98
0.07
7.69%
HK:1753
Duiba Group Ltd.
0.26
-0.02
-7.14%
HK:1917
Doumob
0.06
0.00
0.00%
HK:1993
Asiaray Media Group Ltd.
0.70
-0.20
-22.22%
HK:0205
SEEC Media Group Limited
0.28
0.09
47.37%

Rego Interactive Co., Ltd. Corporate Events

Rego Interactive Reports Interim Financial Results Amid Shifting Advertising Landscape
Aug 29, 2025

Rego Interactive Co., Ltd. announced its unaudited interim financial results for the first half of 2025, revealing a 16.8% increase in revenue but a significant decline in gross profit and a net loss compared to the previous year. The company attributes these results to a downturn in consumer market sentiment in China, leading to reduced marketing budgets, and the rapid evolution of digital advertising driven by AI and automation. Despite these challenges, Rego Interactive aims to capitalize on its expertise and new product offerings to navigate the shifting advertising landscape.

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 Issues Profit Warning Amid Economic Challenges
Aug 22, 2025

Rego Interactive Co., Ltd. has issued a profit warning, anticipating a significant net loss of at least RMB17.3 million for the first half of 2025, a stark contrast to the net profit recorded in the same period of 2024. This downturn is attributed to reduced marketing budgets in China and a cautious approach in customer selection amid a challenging global economic climate. The company plans to focus on its core business areas, improve operational efficiency, and seek new opportunities in digitalization solutions to navigate the economic uncertainties.

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 Updates on 2023 Share Award Scheme
Aug 15, 2025

Rego Interactive Co., Ltd has issued a supplemental announcement regarding its 2024 Annual Report, specifically addressing the 2023 Share Award Scheme. The scheme, which allows employees, officers, and directors to participate, is funded by existing shares, with 14,864,000 shares available for grant. However, no awards under this scheme have been granted or agreed upon during the financial year ending December 31, 2024, or the six months ending June 30, 2025. This supplemental information does not alter other details in the 2024 Annual Report.

Rego Interactive Expands with Strategic Acquisition in Lottery Marketing Sector
Jul 21, 2025

Rego Interactive Co., Ltd announced a supplemental disclosure regarding its acquisition of a 95% equity interest in a target company that provides lottery marketing support services in China. The acquisition, valued at RMB18,300,000, was based on a comprehensive valuation using the market approach, reflecting the target company’s financial performance and growth prospects. This strategic move is expected to enhance Rego Interactive’s market positioning in the charitable fundraising sector, aligning with regulatory compliance and operational standards in China.

Rego Interactive Co., Ltd Announces Acquisition of Target Company Shares
Jun 30, 2025

Rego Interactive Co., Ltd has announced a discloseable transaction involving the acquisition of all existing issued shares of a target company for RMB18,300,000. This acquisition, conducted through a wholly-owned subsidiary, is subject to notification and announcement requirements under the Hong Kong Listing Rules, as it exceeds certain percentage ratios. The transaction is expected to enhance Rego Interactive’s market positioning by integrating the target company’s resources and expertise.

Rego Interactive Co., Ltd. Announces Unanimous Approval of AGM Resolutions
Jun 26, 2025

Rego Interactive Co., Ltd. successfully held its Annual General Meeting on June 26, 2025, where all proposed resolutions were unanimously approved by shareholders. The resolutions included the re-election of several executive directors, the re-appointment of BDO Limited as the company’s auditor, and granting the board mandates to manage share allotments and repurchases, indicating strong shareholder support and strategic positioning for future growth.

Rego Interactive’s Shareholders Pledge Shares for Subsidiary Guarantee
Jun 26, 2025

Rego Interactive Co., Ltd. announced that its controlling shareholders, Vicen Investments Limited, Tanshin Investments Limited, and Sprus Investments Limited, have pledged a significant number of shares with Hangzhou Xingsheng Equity Investment Co., Ltd. as security for a guarantee amounting to RMB18,500,000 for its subsidiary, Hangzhou Rego Network Company Limited. The pledged shares, which collectively account for a small percentage of the company’s total shares, remain under the ownership and control of the shareholders, ensuring no transfer of ownership or voting rights during the pledge period.

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: Oct 23, 2025