Zengame Technology Holding Ltd. (2660) AI Stock Analysis

• Market Cap: HK$2.41B
• Dividend Yield: 14.96%
• Average Volume (3M): 610.00K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.47
• Revenue Growth: -27.66%
• EPS Growth: -51.96%
• Country: HK
• Employees: 494
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.20
• Shares Outstanding: 1,033,966,400
• 10 Day Avg. Volume: 637,150
• 30 Day Avg. Volume: 610,000
• PEG Ratio: -0.15
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 5.50
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$2.50 ▲(6.84% Upside)

Zengame Technology Holding Ltd. scores well due to its strong financial stability and attractive valuation, highlighted by a low P/E ratio and high dividend yield. However, the recent revenue decline and lack of strong technical momentum slightly dampen the overall score.

Zengame Technology Holding Ltd. Business Overview & Revenue Model

Company Description

Zengame 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 Money

Zengame Technology Holding Ltd. generates revenue primarily through in-app purchases and advertising within its mobile games. The company's games are free to download, capitalizing on a freemium model where players can purchase virtual goods or currency to enhance their gaming experience. Additionally, Zengame collaborates with various advertising networks and brands to integrate advertisements into its games, providing another significant revenue stream. Partnerships with app stores and distribution platforms also play a crucial role in maximizing the reach and monetization of their games, contributing to the company's overall earnings.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.43B	1.66B	2.06B	1.77B	1.47B	742.51M
Gross Profit	789.79M	918.63M	1.23B	1.14B	905.38M	364.56M
EBITDA	382.32M	545.38M	897.26M	773.65M	607.22M	243.17M
Net Income	303.60M	430.68M	725.88M	680.78M	500.34M	220.97M
Balance Sheet
Total Assets	2.94B	2.88B	2.64B	2.05B	1.49B	856.13M
Cash, Cash Equivalents and Short-Term Investments	2.30B	2.22B	1.92B	1.29B	1.15B	719.52M
Total Debt	20.56M	24.49M	5.10M	21.53M	18.47M	4.73M
Total Liabilities	344.84M	316.85M	320.52M	284.90M	262.62M	59.53M
Stockholders Equity	2.59B	2.56B	2.32B	1.77B	1.23B	796.61M
Cash Flow
Free Cash Flow	256.77M	473.36M	709.00M	726.05M	500.28M	252.75M
Operating Cash Flow	267.96M	490.03M	720.85M	732.35M	507.06M	257.83M
Investing Cash Flow	-593.37M	-781.80M	-164.37M	-246.83M	-77.01M	-97.14M
Financing Cash Flow	-249.25M	-232.65M	-210.13M	-143.85M	-68.63M	-31.37M

Zengame Technology Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.34
• 50DMA: Negative
• 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:2660, the sentiment is Positive. The current price of 2.34 is above the 20-day moving average (MA) of 2.31, below the 50-day MA of 2.35, and above the 200-day MA of 2.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 51.90 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2660	―	HK$2.41B	7.25	12.02%	14.96%	-27.66%	-51.96%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3798	―	HK$1.59B	18.03	-3.33%	5.62%	-23.42%	-191.82%
6820	―	HK$1.16B	16.11	5.50%	―	30.71%	―
9990	―	HK$1.61B	―	-7.69%	―	41.00%	23.75%
6633	―	HK$1.74B	21.23	4.10%	―	-41.86%	―
0302	―	HK$1.23B	-0.43	-57.29%	―	-36.80%	-666.80%

Zengame Technology Holding Ltd. Corporate Events

Zengame Technology Completes USD 26.5 Million Redemption of UBS Wealth Products

Zengame Technology Holding Ltd. announced the redemption of Money Market Fund products totaling approximately USD 26.5 million from UBS AG. This move, part of the company’s treasury operations, resulted in a gain of about USD 0.6 million, which will be used for general working capital and short-term investments. The redemptions, classified as disclosable transactions under Hong Kong’s Listing Rules, reflect the company’s strategy to optimize cash and bank balances, aligning with its wealth management policy.

The most recent analyst rating on (HK:2660) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Zengame Technology Holding Ltd. stock, see the HK:2660 Stock Forecast page.

Zengame Technology Reports Interim Results Amid Strategic Enhancements

Zengame Technology Holding Ltd. announced its interim results for the first half of 2025, reporting a decline in revenue and profit compared to the same period in 2024. Despite the financial downturn, the company is focusing on enhancing its core gaming offerings and integrating AI technologies to drive innovation and efficiency. The flagship game, Fingertip Sichuan Mahjong, remains popular, and new features have been introduced to integrate traditional Chinese culture, aiming to boost player retention and sustain operations.

The most recent analyst rating on (HK:2660) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Zengame Technology Holding Ltd. stock, see the HK:2660 Stock Forecast page.

Zengame Technology Announces Interim Dividend for 2025

Zengame Technology Holding Ltd. has announced an interim cash dividend of HKD 0.2 per share for the six months ending June 30, 2025. This announcement reflects the company’s ongoing profitability and commitment to returning value to shareholders, with the payment date set for October 8, 2025. The decision to distribute dividends may positively impact investor confidence and strengthen Zengame’s market position in the competitive technology sector.

The most recent analyst rating on (HK:2660) stock is a Buy with a HK$2.50 price target. To see the full list of analyst forecasts on Zengame Technology Holding Ltd. stock, see the HK:2660 Stock Forecast page.

Zengame Technology Enhances Compliance Measures for Wealth Management Transactions

Zengame Technology Holding Ltd. has announced supplemental information regarding its remedial measures for wealth management product transactions. The company has implemented several measures to enhance compliance and internal controls, including internal training, monitoring arrangements, and external consultations. These steps aim to strengthen oversight and ensure adherence to Chapter 14 of the Listing Rules, reflecting the company’s commitment to improving transparency and regulatory compliance.