Zengame Technology Holding Ltd. (2660) AI Stock Analysis

• Market Cap: HK$2.20B
• Dividend Yield: 7.04%
• Average Volume (3M): 319.54K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.51
• Revenue Growth: -21.05%
• EPS Growth: -41.78%
• Country: HK
• Employees: 494
• Sector: Communication Services
• Sector Strength: 90
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.13
• Shares Outstanding: 1,033,568,200
• 10 Day Avg. Volume: 494,539
• 30 Day Avg. Volume: 319,538
• PEG Ratio: 0.06
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.03
• 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

• Rating: 67 Neutral
• Price Target: ―

Zengame Technology Holding Ltd. demonstrates strong financial stability and profitability, with a robust balance sheet and attractive valuation metrics. However, its recent revenue decline and weak technical indicators highlight potential risks. While the stock appears undervalued, these risks and lack of upward momentum temper 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-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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.66B	2.06B	1.77B	1.47B	742.51M
	Gross Profit
918.63M	1.23B	1.14B	905.38M	364.56M
	EBIT
543.19M	837.31M	744.73M	587.60M	225.60M
	EBITDA
545.38M	897.26M	773.65M	607.22M	243.17M
	Net Income Common Stockholders
430.68M	725.88M	680.78M	500.34M	220.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.19B	1.94B	1.29B	1.15B	719.52M
	Total Assets
2.88B	2.64B	2.05B	1.49B	856.13M
	Total Debt
24.49M	5.10M	21.53M	18.47M	4.73M
	Net Debt
-807.07M	-1.33B	-955.70M	-626.24M	-280.19M
	Total Liabilities
316.85M	320.52M	284.90M	262.62M	59.53M
	Stockholders Equity
2.56B	2.32B	1.77B	1.23B	796.61M
Cash Flow		Free Cash Flow
0.00	709.00M	726.05M	500.28M	252.75M
	Operating Cash Flow
0.00	720.85M	732.35M	507.06M	257.83M
	Investing Cash Flow
0.00	-164.37M	-246.83M	-77.01M	-97.14M
	Financing Cash Flow
0.00	-210.13M	-143.85M	-68.63M	-31.37M

Zengame Technology Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 2.18 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 2.10, and below the 200-day MA of 2.36, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of -24.56 is Positive, 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	67 Neutral	HK$2.20B	4.60	17.68%	7.04%	-21.05%	-41.78%
Sector *	61 Neutral	$14.79B	5.90	-3.99%	6.20%	2.67%	-30.30%
AGTEF		$303.27M	200.00	0.30%	―	―	―
TGRVF		$92.82M	26.24	0.88%	61.54%	―	―
2400	63 Neutral	HK$20.15B	22.47	38.63%	―	44.92%	―
2022	43 Neutral	HK$89.11M	―	-12.08%	―	-8.88%	44.44%

Zengame Technology Holding Ltd. Corporate Events

Zengame Technology Adopts Electronic Communication for Shareholders

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

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.

Zengame Technology Announces Final Dividend for 2024

Zengame Technology Holding Limited has announced a final ordinary cash dividend of HKD 0.15 per share for the financial year ending December 31, 2024. The dividend will be paid on July 9, 2025, following shareholder approval on June 5, 2025. The ex-dividend date is set for June 10, 2025, with a book closure period from June 12 to June 16, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment and market positioning.

Zengame Technology Reports 2024 Financial Decline Amid Market Adaptation Efforts

Zengame Technology Holding Ltd. reported a decline in financial performance for the year ended December 31, 2024, with revenue and profit both experiencing significant decreases compared to the previous year. Despite these challenges, the company is adapting to the evolving gaming market by focusing on innovation, regulatory compliance, and cultural integration in its games. The company’s flagship games continue to perform well, and new updates and features have been introduced to enhance player engagement. The company is also exploring new business areas and has received positive feedback from users, particularly for its casual game ‘Fishing Master.’

Zengame Technology Announces Upcoming Board Meeting

Zengame Technology Holding Ltd. has announced a board meeting scheduled for March 20, 2025. The meeting will address several key issues, including the approval of the audited consolidated financial statements for the year ending December 31, 2024, the consideration of a final dividend, and potentially closing the register of members.