Inke Ltd. (3700) AI Stock Analysis

• Market Cap: HK$1.96B
• Dividend Yield: 4.08%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.52
• Revenue Growth: -17.47%
• EPS Growth: -7.94%
• Country: HK
• Employees: 1,416
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.14
• Shares Outstanding: 1,937,442,000
• 10 Day Avg. Volume: 966,900
• 30 Day Avg. Volume: 1,185,797
• PEG Ratio: -0.41
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 85.79
• 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): 1.77
• Revenue Forecast (FY): HK$60.93B

• Rating: 66 Neutral
• Price Target: HK$1.00 ▲(0.00% Upside)

Inke Ltd.'s overall stock score is driven by its solid financial performance and attractive valuation. However, the technical indicators suggest bearish momentum, which poses a risk to short-term price stability. The low P/E ratio and high dividend yield provide a strong valuation case, but investors should be cautious of the current negative technical signals.

Positive Factors

Strong Equity Structure

A strong equity structure with low leverage provides financial stability and reduces risk, allowing the company to invest in growth opportunities without excessive debt burden.

Consistent Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability and potential for future expansion.

Positive Free Cash Flow

Positive free cash flow demonstrates the company's capability to fund operations and growth initiatives internally, reducing reliance on external financing.

Negative Factors

Declining EBIT Margins

Declining EBIT margins may indicate rising costs or inefficiencies, which could pressure profitability and require strategic adjustments to maintain competitiveness.

Fluctuating Cash Flow Efficiency

Volatile cash flow efficiency can affect the company's ability to manage operations smoothly and invest in growth, potentially impacting financial stability.

Revenue Decline

A decline in revenue growth suggests challenges in maintaining market share or demand, which could affect long-term business prospects and strategic planning.

Inke Ltd. Business Overview & Revenue Model

Company Description

Inke Ltd. (3700) is a technology company specializing in mobile internet services and entertainment solutions, primarily operating in the social media and live streaming sectors. The company provides a platform that allows users to create, share, and monetize content through interactive features, catering mainly to a young demographic. Inke Ltd. also focuses on enhancing user experience through advanced technologies and innovative applications, positioning itself as a key player in the rapidly evolving digital landscape.

How the Company Makes Money

Inke Ltd. generates revenue primarily through a combination of advertising, in-app purchases, and premium subscriptions. The company monetizes its platform by offering targeted advertising solutions to brands seeking to reach its user base, leveraging user data and engagement metrics to maximize ad effectiveness. In-app purchases allow users to buy virtual goods and gifts that enhance their experience on the platform, while premium subscription services provide users with exclusive content and features, creating an additional revenue stream. Furthermore, partnerships with content creators and brands facilitate sponsored content opportunities, which contribute to the company's earnings. Additionally, the growing trend of live streaming and user-generated content creates further monetization avenues as the platform expands its reach and user engagement.

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. 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.00B	6.85B	6.84B	6.32B	9.18B	4.95B
Gross Profit	2.96B	3.34B	2.83B	2.55B	3.31B	1.20B
EBITDA	173.20M	288.47M	578.14M	546.76M	551.42M	63.99M
Net Income	303.98M	180.31M	386.53M	-166.10M	415.38M	193.91M
Balance Sheet
Total Assets	5.42B	5.57B	5.15B	4.66B	5.24B	4.67B
Cash, Cash Equivalents and Short-Term Investments	3.13B	2.96B	3.29B	2.89B	2.89B	2.88B
Total Debt	25.45M	29.72M	26.20M	39.93M	182.82M	159.23M
Total Liabilities	706.35M	1.13B	863.87M	808.17M	1.31B	1.13B
Stockholders Equity	4.64B	4.40B	4.27B	3.85B	3.93B	3.51B
Cash Flow
Free Cash Flow	269.69M	46.71M	346.51M	214.07M	536.69M	146.55M
Operating Cash Flow	278.60M	371.89M	406.96M	229.85M	559.08M	153.36M
Investing Cash Flow	-507.42M	-437.64M	354.28M	-513.97M	129.97M	777.62M
Financing Cash Flow	-93.86M	-102.21M	-27.10M	-69.40M	-52.34M	-159.74M

Inke Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 1 is below the 20-day moving average (MA) of 1.03, below the 50-day MA of 1.02, and below the 200-day MA of 1.26, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.27 is Neutral, neither overbought nor oversold. The STOCH value of 64.90 is Neutral, 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
3700	66 Neutral	HK$1.96B	6.21	6.95%	4.08%	-17.47%	-7.94%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
9898	60 Neutral	HK$20.49B	6.22	12.49%	8.13%	-1.40%	22.37%
2390	53 Neutral	HK$2.35B	21.72	2.39%	―	-23.80%	―
0772	52 Neutral	HK$36.08B	250.14	0.67%	―	-10.26%	-85.75%
1980	52 Neutral	HK$758.93M	-15.98	-2.08%	4.48%	15.66%	47.36%
1896	49 Neutral	HK$8.12B	99.01	0.82%	4.71%	-7.61%	-90.51%