Inke Ltd. (3700) AI Stock Analysis

• Market Cap: HK$2.39B
• Dividend Yield: 3.12%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.62
• Revenue Growth: -1.66%
• EPS Growth: -55.94%
• Country: HK
• Employees: 1,416
• Sector: Communication Services
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): 0.03
• Shares Outstanding: 1,937,442,000
• 10 Day Avg. Volume: 1,573,926
• 30 Day Avg. Volume: 1,783,625
• PEG Ratio: -0.25
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.78
• 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: 68 Neutral
• Price Target: HK$1.50 ▲(13.64%Upside)

Inke Ltd. displays solid financial fundamentals with consistent revenue growth and a strong equity position. However, challenges in operational efficiency and cash flow consistency are notable concerns. The technical analysis indicates mixed signals with short-term bullishness but longer-term caution. Valuation metrics suggest the stock is reasonably priced with an attractive dividend yield, providing some support for the stock's appeal.

Inke Ltd. Business Overview & Revenue Model

Company Description

Inke Ltd. (3700) is a prominent technology company primarily engaged in the live streaming and social media sectors. The company operates a popular live streaming platform that allows users to broadcast and watch live content, interact with streamers, and engage with other users through social networking features. It leverages advanced technology to provide an interactive and engaging user experience, catering to a diverse audience across various demographics.

How the Company Makes Money

Inke Ltd. generates revenue through a multi-faceted business model centered around its live streaming platform. The primary revenue streams include user payments and virtual gifting, where users purchase virtual currency to send gifts to streamers during live broadcasts. Additionally, the company earns from advertising, by partnering with brands to display ads on its platform. Inke Ltd. also collaborates with content creators and influencers to enhance user engagement and drive monetization. Furthermore, the company explores strategic partnerships and acquisitions to expand its reach and diversify its revenue sources, contributing to its financial growth.

Inke Ltd. Financial Statement Overview

Summary

Inke Ltd. demonstrates a solid financial position with consistent revenue growth and strong equity structure. While margins and cash flow ratios show some areas of concern, such as declining EBIT margins and fluctuating cash flow efficiency, the company's strong asset base and low debt levels provide a cushion for addressing these issues.

Income Statement

Inke Ltd. has shown consistent revenue growth from 2019 to 2024, with a compound annual growth rate reflecting a positive trajectory. The gross profit margin is strong, indicating good cost control relative to revenue. However, there is a decline in EBIT and net profit margins from 2023 to 2024, suggesting potential issues in operational efficiency or increased expenses.

Balance Sheet

The company maintains a strong equity position, as evidenced by a solid debt-to-equity ratio indicating low leverage and reduced financial risk. The equity ratio is healthy, reflecting a stable financial foundation with a significant portion of assets funded by equity rather than debt. However, the return on equity has fluctuated, indicating inconsistent efficiency in generating profits from equity.

Cash Flow

Free cash flow has been positive, showing the company's ability to generate cash after capital expenditures. However, the free cash flow growth rate and operating cash flow to net income ratio have been erratic, indicating potential volatility in cash generation and operational cash efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.85B	6.84B	6.32B	9.18B	4.95B
Gross Profit	3.34B	2.83B	2.55B	3.31B	1.20B
EBITDA	288.47M	578.14M	524.30M	551.42M	63.99M
Net Income	180.31M	386.53M	-166.10M	415.38M	193.91M
Balance Sheet
Total Assets	5.57B	5.15B	4.66B	5.24B	4.67B
Cash, Cash Equivalents and Short-Term Investments	2.96B	3.29B	2.89B	2.89B	2.88B
Total Debt	29.72M	26.20M	39.93M	182.82M	159.23M
Total Liabilities	1.13B	863.87M	808.17M	1.31B	1.13B
Stockholders Equity	4.40B	4.27B	3.85B	3.93B	3.51B
Cash Flow
Free Cash Flow	46.71M	346.51M	214.07M	536.69M	146.55M
Operating Cash Flow	371.89M	406.96M	229.85M	559.08M	153.36M
Investing Cash Flow	-437.64M	354.28M	-513.97M	129.97M	777.62M
Financing Cash Flow	-102.21M	-27.10M	-69.40M	-52.34M	-159.74M

Inke Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3700, the sentiment is Positive. The current price of 1.32 is above the 20-day moving average (MA) of 1.20, above the 50-day MA of 1.31, and below the 200-day MA of 1.50, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 85.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3700.

Inke Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9898	72 Outperform	HK$18.30B	7.10	10.79%	8.59%	0.43%	21.65%
3700	68 Neutral	HK$2.39B	12.58	4.11%	3.12%	-1.66%	-55.94%
0772	66 Neutral	$29.71B	27.55	-1.14%	―	13.74%	-125.64%
2390	58 Neutral	HK$3.06B	―	-0.40%	―	-19.99%	98.97%
1896	57 Neutral	HK$8.20B	41.37	2.01%	4.49%	-15.71%	-80.38%
Sector *	54 Neutral	HK$64.26B	-2.16	-3.61%	7.14%	-4.24%	-17.51%
1980	51 Neutral	$728.55M	34.90	0.88%	2.98%	-85.34%	―

Inke Ltd. Corporate Events

Inkeverse Group Limited Announces Successful AGM Resolutions

Inkeverse Group Limited, a company incorporated in the Cayman Islands, announced the successful passing of all proposed resolutions during its Annual General Meeting held on June 26, 2025. The resolutions included the re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. The approval of these resolutions reflects shareholder confidence and supports the company’s strategic direction.

Inkeverse Group Updates Nomination Committee Terms

Inkeverse Group Limited has updated the terms of reference for its Nomination Committee, which is responsible for overseeing the appointment and composition of the company’s Board of Directors. The amendments, effective from June 26, 2025, include stipulations regarding the composition of the committee, requiring a majority of independent non-executive directors and at least one member of a different gender, reflecting a commitment to diversity and compliance with regulatory standards.

Inkeverse Group Limited Announces Key Resolutions for Upcoming AGM

Inkeverse Group Limited, a company incorporated in the Cayman Islands, has announced its upcoming Annual General Meeting (AGM) scheduled for June 26, 2025, in Beijing. The AGM will address several key resolutions, including the re-election of directors, the re-appointment of PricewaterhouseCoopers as the company’s auditor, and the authorization for the board to manage share allotments and related financial instruments. These resolutions are pivotal for the company’s governance and operational strategy, potentially impacting its market positioning and shareholder value.