Zengame Technology Holding Ltd. (2660) AI Stock Analysis

• Market Cap: HK$2.40B
• Dividend Yield: 15.22%
• 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: 1,034,323,200
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$2.50 ▲(8.70% 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.

Positive Factors

Financial Stability

Zengame's low leverage and strong equity position provide a solid foundation for long-term financial stability, reducing financial risk and enhancing resilience against market fluctuations.

Profitability

Consistent improvement in profit margins indicates effective cost management and pricing strategies, supporting sustainable profitability and competitive positioning in the market.

Cash Generation

A strong cash generation ability supports ongoing operations and strategic investments, ensuring liquidity and financial flexibility for future growth opportunities.

Negative Factors

Revenue Decline

A decline in revenue may signal challenges in market demand or competitive pressures, potentially impacting long-term growth prospects and market share.

Cash Flow Uncertainty

Lack of recent cash flow data introduces uncertainty in liquidity management, which could affect the company's ability to fund operations and invest in growth initiatives.

Revenue Growth Trend

A significant negative revenue growth trend raises concerns about the company's ability to maintain its market position and adapt to changing industry dynamics.

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 through multiple streams, primarily from in-app purchases and advertising within its mobile games. The company employs a freemium model, offering free-to-play games that encourage users to make optional purchases for enhancements, virtual goods, or premium content. Additionally, Zengame partners with advertisers to display ads within its games, earning revenue from ad impressions and clicks. Strategic collaborations with other gaming companies and distribution platforms further enhance its market reach and profitability, while ongoing investment in game development ensures a steady pipeline of new content to attract and retain users.

Zengame Technology Holding Ltd. Financial Statement Overview

Summary

Zengame Technology Holding Ltd. demonstrates strong profitability and financial stability with impressive margins and low leverage. However, recent revenue contraction and missing cash flow data introduce 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: Neutral
• Last Price: 2.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 2.3 is below the 20-day moving average (MA) of 2.33, below the 50-day MA of 2.33, and above the 200-day MA of 2.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 30.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	72 Outperform	HK$2.40B	7.21	12.02%	15.22%	-27.66%	-51.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3798	56 Neutral	HK$1.90B	-26.91	-3.33%	7.04%	-23.42%	-191.82%
6633	56 Neutral	HK$2.07B	25.27	4.10%	―	-41.86%	―
6820	51 Neutral	HK$1.16B	16.11	5.50%	―	30.71%	―
9990	45 Neutral	HK$1.37B	-7.52	-7.69%	―	41.00%	23.75%
0302	39 Underperform	HK$1.15B	-0.41	-57.29%	―	-36.80%	-666.80%

Zengame Technology Holding Ltd. Corporate Events

Zengame Technology Announces Key Leadership Changes

Zengame Technology Holding Ltd. has announced a change in its company secretary and other key positions, effective December 1, 2025. Ms. Chan Pui Ching will replace Ms. Chan Ching Nga as the company secretary, agent for service of process and notices in Hong Kong, and authorized representative. Ms. Chan Pui Ching brings over 17 years of experience in corporate secretarial services and is well-versed in compliance matters related to offshore companies. The board expressed gratitude to Ms. Chan Ching Nga for her contributions and welcomed Ms. Chan Pui Ching to her new role.

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.