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Zengame Technology Holding Ltd. (HK:2660)
:2660
Hong Kong Market

Zengame Technology Holding Ltd. (2660) AI Stock Analysis

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HK

Zengame Technology Holding Ltd.

(2660)

Rating:73Outperform
Price Target:
HK$3.00
▲(14.07%Upside)
Zengame Technology Holding Ltd. is supported by its robust valuation metrics and strong financial stability. However, caution is advised due to recent revenue declines and overbought technical indicators, suggesting a potential need for correction.

Zengame Technology Holding Ltd. (2660) vs. iShares MSCI Hong Kong ETF (EWH)

Zengame Technology Holding Ltd. Business Overview & Revenue Model

Company DescriptionZengame Technology Holding Limited develops and operates mobile games in the People's Republic of China. The company offers card and board games, as well as other casual mobile games. It also provides technical services. As of December 31, 2021, it had a portfolio of 53 self-developed and 10 third party games, including 19 card games, 28 board games, and 26 other games. The company was founded in 2010 and is headquartered in Shenzhen, the People's Republic of China.
How the Company Makes MoneyZengame Technology Holding Ltd. generates revenue primarily through in-game purchases and advertising. The company designs its games to include various monetization strategies such as virtual goods, upgrades, and premium features that users can purchase within the app. Additionally, Zengame collaborates with advertising networks to integrate ads into their games, earning revenue based on user interactions and ad views. Partnerships with other technology and gaming companies also contribute to its financial performance, enabling the expansion of its game distribution and audience reach.

Zengame Technology Holding Ltd. Financial Statement Overview

Summary
Zengame Technology Holding Ltd. shows strong profitability and financial stability with impressive margins and low leverage. However, recent revenue contraction and missing cash flow data may pose uncertainties regarding future growth and liquidity management.
Income Statement
78
Positive
The company's gross profit margin and net profit margin have consistently improved, demonstrating strong profitability. However, recent revenue has declined compared to the previous year, indicating a potential concern for growth.
Balance Sheet
85
Very Positive
The company maintains a robust equity position with a high equity ratio, and its debt-to-equity ratio is very low, indicating excellent financial stability. This low leverage minimizes financial risk.
Cash Flow
60
Neutral
The company has maintained positive free cash flow over the years, but the absence of recent operating cash flow data makes it challenging to assess current cash flow health. Historical data suggests a strong capacity to generate cash relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.66B2.06B1.77B1.47B742.51M
Gross Profit918.63M1.23B1.14B905.38M364.56M
EBITDA545.38M897.26M773.65M607.22M243.17M
Net Income430.68M725.88M680.78M500.34M220.97M
Balance Sheet
Total Assets2.88B2.64B2.05B1.49B856.13M
Cash, Cash Equivalents and Short-Term Investments2.19B1.94B1.29B1.15B719.52M
Total Debt24.49M5.10M21.53M18.47M4.73M
Total Liabilities316.85M320.52M284.90M262.62M59.53M
Stockholders Equity2.56B2.32B1.77B1.23B796.61M
Cash Flow
Free Cash Flow473.36M709.00M726.05M500.28M252.75M
Operating Cash Flow490.03M720.85M732.35M507.06M257.83M
Investing Cash Flow-781.80M-164.37M-246.83M-77.01M-97.14M
Financing Cash Flow-232.65M-210.13M-143.85M-68.63M-31.37M

Zengame Technology Holding Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.63
Price Trends
50DMA
2.16
Positive
100DMA
2.14
Positive
200DMA
2.34
Positive
Market Momentum
MACD
0.12
Negative
RSI
77.33
Negative
STOCH
85.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2660, the sentiment is Positive. The current price of 2.63 is above the 20-day moving average (MA) of 2.26, above the 50-day MA of 2.16, and above the 200-day MA of 2.34, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 77.33 is Negative, neither overbought nor oversold. The STOCH value of 85.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2660.

Zengame Technology Holding Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$2.72B5.6817.68%5.70%-21.05%-42.14%
61
Neutral
$41.24B-0.79-14.21%3.80%2.39%-73.52%
51
Neutral
HK$2.13B38.452.87%-31.60%
51
Neutral
HK$1.40B-12.95%23.51%11.90%
50
Neutral
HK$2.12B-4.15%7.55%64.78%
49
Neutral
HK$1.42B-43.81%-27.68%-11792.65%
44
Neutral
HK$1.46B18.03-3.75%8.77%-23.76%-116.47%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2660
Zengame Technology Holding Ltd.
2.63
<0.01
0.38%
HK:9990
Archosaur Games Inc.
1.75
0.38
27.74%
HK:0302
CMGE Technology Group Limited
0.48
-0.41
-46.07%
HK:3798
Homeland Interactive Technology Ltd.
1.14
-0.18
-13.64%
HK:6633
Qingci Games, Inc.
3.08
0.10
3.36%
HK:6820
FriendTimes Inc.
0.97
0.17
21.25%

Zengame Technology Holding Ltd. Corporate Events

Zengame Technology Completes Redemption of Wealth Management Products
Jun 16, 2025

Zengame Technology Holding Ltd. announced the redemption of its investment in Morning Gold No. 7007, a non-principal guaranteed wealth management product issued by China Merchants Bank. The redemption, part of the company’s routine treasury operations, amounted to approximately RMB 204.2 million and resulted in a gain of RMB 0.9 million. This move aligns with the company’s strategy to optimize cash and bank balances, and the proceeds will be used for general working capital and short-term investments. The transaction is classified as a disclosable transaction under Hong Kong’s listing rules, requiring reporting and announcement but exempt from shareholder approval.

Zengame Technology Approves Key Resolutions at AGM
Jun 5, 2025

Zengame Technology Holding Ltd. held its Annual General Meeting on June 5, 2025, where all proposed resolutions were passed. Key resolutions included the approval of the financial statements for 2024, declaration of a final dividend, re-election of directors, re-appointment of auditors, and granting of mandates for share repurchase and issuance. These decisions reinforce the company’s governance and operational strategies, potentially impacting its market position and shareholder value.

Zengame Technology Establishes Nomination Committee to Enhance Governance
Jun 5, 2025

Zengame Technology Holding Limited has established a Nomination Committee to ensure compliance with the Listing Rules of The Stock Exchange of Hong Kong Limited. The committee is composed of at least three members, primarily independent non-executive directors, and is responsible for overseeing the nomination process within the company. This move is expected to enhance corporate governance by ensuring a structured and transparent nomination process for board members, potentially impacting the company’s operational efficiency and stakeholder confidence.

Zengame Technology Announces Nomination Committee Changes
Jun 5, 2025

Zengame Technology Holding Ltd. announced changes in its Nomination Committee, appointing Ms. Xiong Mi and Mr. Jin Shuhui as new members effective from June 5, 2025. These appointments are part of the company’s efforts to comply with the amended corporate governance code, ensuring a diverse and independent committee structure, which may enhance its governance and appeal to stakeholders.

Zengame Technology Announces Board Composition and Roles
Jun 5, 2025

Zengame Technology Holding Ltd. has announced the composition of its board of directors and their respective roles within the company. This announcement outlines the members of the executive and independent non-executive directors, as well as the membership of the three board committees: Audit, Nomination, and Remuneration. This update is crucial for stakeholders as it provides insight into the governance structure and leadership roles within the company, which can impact its strategic direction and operational decisions.

Zengame Technology Engages in Discloseable Wealth Management Transactions
May 20, 2025

Zengame Technology Holding Ltd. has announced that it has engaged in multiple transactions involving the subscription and redemption of wealth management products through various financial institutions. These transactions, totaling 62 subscriptions and 12 redemptions, are considered discloseable under Chapter 14 of the Listing Rules due to their aggregated percentage ratios exceeding 5% but remaining below 25%. This activity requires the company to adhere to specific reporting and announcement obligations, reflecting its strategic financial management and compliance with regulatory standards.

Zengame Technology Adopts Electronic Communication for Shareholders
Apr 28, 2025

Zengame Technology Holding Limited has announced a shift to electronic dissemination of corporate communications to its shareholders, effective December 31, 2023. This move is aimed at enhancing efficiency and accessibility, as shareholders are encouraged to provide functional email addresses for receiving communications electronically. The company will continue to provide printed versions upon request, ensuring compliance with the listing rules and maintaining flexibility for stakeholders.

Zengame Technology Announces AGM and Key Resolutions for 2025
Apr 28, 2025

Zengame Technology Holding Ltd. has announced its upcoming Annual General Meeting scheduled for June 5, 2025, in Shenzhen, China. Key agenda items include the approval of the 2024 financial statements, a final dividend declaration, director re-elections, auditor re-appointment, and resolutions regarding share repurchase and issuance mandates. These decisions are poised to impact the company’s financial strategy 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: Jul 03, 2025