Zengame Technology Holding Ltd. (2660) AI Stock Analysis

• Market Cap: HK$2.48B
• Dividend Yield: 13.83%
• Average Volume (3M): 610.00K
• Price to Earnings (P/E): 7.5
• 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: 1,034,975,200
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$3.00 ▲(16.73% 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

Low Leverage / Strong Equity

A very low debt-to-equity ratio and high equity ratio provide durable financial flexibility: the company can fund game development, marketing, or M&A without relying on costly external borrowing. This reduces insolvency risk and supports multi-year strategic investments.

Improving Profit Margins

Consistently improving gross and net margins indicate structural operational efficiency and strong monetization of its games. Sustained margin expansion supports reinvestment in content, shareholder returns, and resilience to competitive pricing pressure over the medium term.

Historical Free Cash Flow Generation

A track record of positive free cash flow implies the business converts earnings into real cash, enabling steady investment in new titles, dividend payouts, or buybacks. Reliable cash generation is a durable indicator of operational health in mobile gaming.

Negative Factors

Material Revenue Contraction

A ~28% revenue decline is a structural red flag for a content-driven games company; it suggests user engagement, monetization, or catalogue freshness issues. Prolonged top-line weakness constrains reinvestment, weakens network effects, and risks margin sustainability.

Steep EPS Decline

A roughly 52% EPS decline signals meaningful pressure on profitability per share despite margin improvements historically. If persistent, it can limit capital allocation options, undermine dividend sustainability, and indicate that cost or revenue issues are impacting shareholder returns.

Incomplete Recent Cash Flow Disclosure

Missing up-to-date operating cash flow figures hampers assessment of current liquidity and cash conversion trends. For a business reliant on recurring user spend, lack of transparency increases uncertainty about short-to-medium term ability to fund development, dividends, or respond to downturns.

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: Negative
• Last Price: 2.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 2.57 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 2.47, and above the 200-day MA of 2.28, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 34.30 is Neutral, neither overbought nor oversold. The STOCH value of 3.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$2.48B	7.46	12.02%	13.83%	-27.66%	-51.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6820	57 Neutral	HK$1.33B	17.63	5.50%	―	30.71%	―
3798	56 Neutral	HK$1.76B	-25.45	-3.33%	7.30%	-23.42%	-191.82%
6633	56 Neutral	HK$1.98B	24.18	4.10%	―	-41.86%	―
9990	45 Neutral	HK$1.34B	-7.13	-7.69%	―	41.00%	23.75%
0302	39 Underperform	HK$1.14B	-0.38	-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.

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.