Homeland Interactive Technology Ltd. (3798) AI Stock Analysis

• Market Cap: HK$1.78B
• Dividend Yield: 7.3%
• Average Volume (3M): 223.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -23.42%
• EPS Growth: -191.82%
• Country: HK
• Employees: 604
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.03
• Shares Outstanding: 1,283,403,400
• 10 Day Avg. Volume: 441,000
• 30 Day Avg. Volume: 223,266
• PEG Ratio: 0.19
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 37.59
• 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: 56 Neutral
• Price Target: HK$1.50 ▲(11.94% Upside)

The overall stock score is primarily influenced by the company's financial challenges, with declining revenue and profitability being significant concerns. However, the stock's technical indicators are positive, suggesting potential short-term momentum. The high dividend yield is a positive aspect, but the negative P/E ratio reflects underlying financial issues.

Positive Factors

Low leverage / strong balance sheet

Extremely low leverage and a high equity ratio provide durable financial flexibility. This enables the company to fund R&D, absorb cyclical downturns, and pursue strategic investments or partnerships without relying on costly external debt, supporting long‑term execution of strategy.

Diversified revenue streams

Multiple revenue channels (software licenses, subscriptions, institutional partnerships and in‑app monetization) create recurring and contractual income sources. This diversification reduces single‑product risk and supports more predictable cash flows and long‑term customer relationships.

Positioned in VR/AR and interactive tech

Operating in VR/AR and interactive experiences targets structurally growing end markets—gaming, education, and corporate training. Long‑term adoption in these sectors can expand the addressable market for licensing and enterprise solutions, supporting sustained demand.

Negative Factors

Declining revenue trend

Material revenue decline undermines scale economics and long‑run investment capacity. Sustained top‑line contraction strains ability to fund product development and sales, risks market share loss, and complicates efforts to rebuild margins over the medium term.

Zero operating and free cash flow in 2024

Lack of cash generation in 2024 signals weakened operational convertibility of earnings into cash. This threatens liquidity and forces reliance on balance sheet reserves or external financing, limiting capacity to invest, sustain product support, or pursue growth initiatives sustainably.

Margin deterioration and negative profitability

Sharp gross and net margin erosion indicates worsening unit economics and pricing or cost pressures. Negative profitability and margin compression reduce reinvestment capacity and ROE prospects, making it harder to fund growth and defend competitive positions over the medium term.

Homeland Interactive Technology Ltd. Business Overview & Revenue Model

Company Description

Homeland Interactive Technology Ltd. engages in the development, publication, and operation of localized mobile card and board games in the People's Republic of China. It offers mahjong, poker, and casual games. The company also distributes third-party mobile games. Homeland Interactive Technology Ltd. was founded in 2009 and is headquartered in Xiamen, the People's Republic of China.

How the Company Makes Money

Homeland Interactive Technology Ltd. generates revenue through several key streams. The primary source of income comes from the sale of software licenses for its interactive applications and tools, which cater to both individual consumers and businesses. Additionally, the company earns revenue from subscription services that provide ongoing access to its software and updates. Partnerships with educational institutions and corporate clients also contribute significantly to its earnings, as these collaborations often involve custom solutions and long-term contracts. Furthermore, Homeland may monetize its technology through advertising and in-app purchases within its applications, thereby diversifying its revenue sources.

Homeland Interactive Technology Ltd. Financial Statement Overview

Summary

Homeland Interactive Technology Ltd. faces significant financial challenges as indicated by declining revenue, profitability, and cash flow generation. Despite a strong balance sheet, the company needs to address its operational inefficiencies and restore growth to improve financial health.

Income Statement

The company showed a significant decline in revenue from 2023 to 2024, with a revenue growth rate of -22.14%. The gross profit margin decreased from 65.03% in 2023 to 45.43% in 2024, indicating a decline in profitability. Net profit margin also turned negative in 2024 at -5.35%, compared to 24.55% in 2023. Negative EBIT and EBITDA margins in 2024 further highlight operational challenges.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0.011, indicating low leverage. The equity ratio stands at a solid 86.85% in 2024, reflecting a robust equity base. However, the return on equity dropped significantly from 20.98% in 2023 to -3.94% in 2024 due to the negative net income.

Cash Flow

Cash flow metrics are weak, with zero operating and free cash flows reported in 2024. This represents a substantial decline from the positive free cash flow of 373.20 million in 2023. The lack of cash flow generation poses risks to liquidity and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.39B	1.78B	1.56B	1.14B	772.03M
Gross Profit	513.67M	629.59M	1.16B	1.02B	837.05M	592.09M
EBITDA	-93.20M	-158.36M	437.71M	260.81M	449.92M	421.73M
Net Income	-64.79M	-74.17M	436.94M	465.68M	500.28M	390.80M
Balance Sheet
Total Assets	2.23B	2.17B	2.29B	2.11B	1.73B	1.10B
Cash, Cash Equivalents and Short-Term Investments	1.44B	1.21B	1.44B	1.22B	1.13B	732.72M
Total Debt	15.77M	21.25M	20.75M	17.80M	30.71M	10.57M
Total Liabilities	249.68M	250.96M	202.77M	311.29M	288.63M	155.32M
Stockholders Equity	1.92B	1.88B	2.08B	1.79B	1.44B	950.13M
Cash Flow
Free Cash Flow	258.25M	43.69M	373.20M	228.83M	387.34M	393.69M
Operating Cash Flow	269.68M	71.07M	402.11M	240.25M	401.18M	398.01M
Investing Cash Flow	-316.08M	-493.05M	-11.65M	-58.97M	15.62M	-78.15M
Financing Cash Flow	-153.66M	-164.47M	-215.76M	-149.21M	-23.26M	-88.14M

Homeland Interactive Technology Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.34
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3798, the sentiment is Neutral. The current price of 1.34 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.44, and above the 200-day MA of 1.21, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.20 is Neutral, neither overbought nor oversold. The STOCH value of 59.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3798.

Homeland Interactive Technology Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2660	72 Outperform	HK$2.69B	8.08	12.02%	13.83%	-27.66%	-51.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6820	59 Neutral	HK$1.20B	16.72	5.50%	―	30.71%	―
3798	56 Neutral	HK$1.78B	-25.27	-3.33%	7.30%	-23.42%	-191.82%
6633	56 Neutral	HK$2.19B	26.71	4.10%	―	-41.86%	―
9990	45 Neutral	HK$1.35B	-7.44	-7.69%	―	41.00%	23.75%
0302	39 Underperform	HK$1.26B	-0.44	-57.29%	―	-36.80%	-666.80%

Homeland Interactive Technology Ltd. Corporate Events

Homeland Interactive Discloses Wealth Management Subscriptions Funded by Idle Cash

Homeland Interactive Technology Ltd. disclosed that between 7 February and 29 November 2024 it subscribed to various wealth management products from several financial institutions using its idle self-owned funds, including investments in the GaoTeng WeValue USD Money Market Fund, a Hong Kong-domiciled fund targeting money market returns with capital preservation. While each individual subscription was below the threshold for separate disclosure under Hong Kong listing rules, the aggregated value of subscriptions with the same institutions pushed the relevant percentage ratio above 5% but below 25%, making them disclosable transactions subject to reporting and announcement requirements, underscoring the company’s active treasury management and the regulatory scrutiny on its use of surplus liquidity.

The most recent analyst rating on (HK:3798) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Homeland Interactive Technology Ltd. stock, see the HK:3798 Stock Forecast page.

Homeland Interactive Acquires Shenzhen Properties in Major Transaction

Homeland Interactive Technology Ltd. has announced a discloseable transaction involving the acquisition of commercial properties in Shenzhen for RMB107,496,900. The properties, currently leased out, will not have their leases renewed post-acquisition, which may impact rental income and net profits previously generated from these properties.

The most recent analyst rating on (HK:3798) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Homeland Interactive Technology Ltd. stock, see the HK:3798 Stock Forecast page.