Inke Ltd. (3700) AI Stock Analysis

• Market Cap: €2.36B
• Dividend Yield: 3.45%
• Average Volume (3M): 4.79M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.67
• Revenue Growth: -1.66%
• EPS Growth: -55.48%
• Country: HK
• Employees: 1,416
• Sector: Communication Services
• Sector Strength: 88
• Industry: Internet Content & Information
• EPS (TTM): 0.03
• Shares Outstanding: 1,937,442,000
• 10 Day Avg. Volume: 1,612,600
• 30 Day Avg. Volume: 4,793,917
• PEG Ratio: -0.29
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.93
• 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: ―

Inke Ltd.'s overall stock score is driven by its strong financial foundation with consistent revenue growth and a healthy equity position. However, operational efficiency concerns and mixed technical signals pose risks. The valuation remains fair, supported by a moderate P/E ratio and a decent dividend yield, making it an attractive option for income investors despite some caution due to bearish market momentum.

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 a strong equity structure. However, declining EBIT margins and fluctuating cash flow efficiency are areas of concern, despite a strong asset base and low debt levels.

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
	EBIT
220.29M	424.16M	512.48M	517.91M	20.53M
	EBITDA
288.47M	578.14M	524.30M	551.42M	63.99M
	Net Income Common Stockholders
180.31M	386.53M	-166.10M	415.38M	193.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.96B	3.29B	2.89B	2.89B	2.88B
	Total Assets
5.57B	5.15B	4.66B	5.24B	4.67B
	Total Debt
29.72M	26.20M	39.93M	182.82M	159.23M
	Net Debt
-2.17B	-2.34B	-1.59B	-1.81B	-1.20B
	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
0.00	346.51M	214.07M	536.69M	146.55M
	Operating Cash Flow
0.00	406.96M	229.85M	559.08M	153.36M
	Investing Cash Flow
0.00	354.28M	-513.97M	129.97M	777.62M
	Financing Cash Flow
0.00	-27.10M	-69.40M	-52.34M	-159.74M

Inke Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3700, the sentiment is Negative. The current price of 1.3 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.43, and below the 200-day MA of 1.46, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 38.00 is Neutral, neither overbought nor oversold. The STOCH value of 23.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3700.

Inke Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1910	70 Outperform	$19.14B	8.32	20.15%	7.04%	-4.83%	-27.83%
3700	67 Neutral	€2.36B	12.39	4.11%	3.45%	-1.66%	-55.48%
2400	63 Neutral	HK$19.50B	21.74	38.63%	―	44.92%	―
1980	62 Neutral	HK$848.16M	40.63	0.88%	3.90%	-85.34%	―
Sector *	61 Neutral	$14.60B	5.95	-4.32%	3.69%	2.76%	-30.49%
1000	51 Neutral	€144.04M	―	-0.32%	―	2.71%	86.82%
1503	49 Neutral	€1.34B	―	-5.63%	10.29%	3.93%	-5.97%

Inke Ltd. Corporate Events

Inkeverse Group Limited Reports Annual Results with Revenue Growth Amid Profit Decline

Inkeverse Group Limited announced its annual results for the year ended December 31, 2024, reporting a slight increase in revenue to RMB 6.85 billion. Despite a decrease in operating profit by 48.1% and a reduction in profit for the year by 45.9%, the company saw a significant rise in intangible assets, primarily due to cryptocurrencies. The average monthly active users decreased by 8.6%, but the average monthly revenue per user increased by 9.6%, indicating a shift in user engagement strategies.

Inkeverse Group Announces Board and Committee Changes

Inkeverse Group Limited has announced significant changes to its board of directors and committee compositions, effective March 28, 2025. Mr. Liu Xiaosong has resigned as a non-executive director to focus on personal affairs, while Mr. Chen Yong and Ms. Zheng Congnan have been appointed to the Remuneration and Audit Committees, respectively. These changes are expected to impact the company’s governance structure and potentially influence its strategic direction.

Inkeverse Group Limited Announces Board Composition and Leadership Roles

Inkeverse Group Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and the roles within its board committees. The board comprises executive directors and independent non-executive directors, with Mr. FENG Yousheng serving as the Chairman and CEO. The announcement highlights the leadership structure, which includes the Audit, Remuneration, and Nomination Committees, each chaired by different board members. This update is significant as it outlines the governance framework and leadership roles that may influence the company’s strategic direction and operational decisions.

Inkeverse Group Limited Announces Upcoming Board Meeting for Annual Results

Inkeverse Group Limited, a company incorporated in the Cayman Islands, has announced that its board of directors will hold a meeting on March 28, 2025. The purpose of this meeting is to approve the annual results for the year ended December 31, 2024, and to consider the recommendation of a final dividend payment. This announcement indicates an important step in the company’s financial reporting process, which could have implications for shareholders and stakeholders depending on the outcomes of the board’s decisions.

Inkeverse Group Issues Profit Warning Amid Investment Revaluation

Inkeverse Group Limited has issued a profit warning for the fiscal year ending December 31, 2024, indicating a slight increase in revenue to approximately RMB6.84 billion to RMB6.87 billion, but a significant decline in profit to not more than RMB240 million compared to the previous year. The decline is attributed to a non-cash loss of approximately RMB90 million to RMB130 million from the revaluation of its investment business, which is expected to streamline operations and focus resources on new development strategies. Despite stable principal business and cash flow, the company faces challenges from intense competition in the internet industry, impacting profit margins.