Homeland Interactive Technology Ltd. (3798) AI Stock Analysis

• Market Cap: HK$1.90B
• Dividend Yield: 6.76%
• Average Volume (3M): 223.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.09
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$1.50 ▲(1.35% 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

Strong Balance Sheet

A low debt-to-equity ratio indicates financial stability and low leverage, providing the company with flexibility to invest in growth opportunities.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on a single source, enhancing resilience against market fluctuations and supporting long-term growth.

Robust Equity Base

A strong equity base provides financial stability and can support future investments and strategic initiatives, aiding in long-term sustainability.

Negative Factors

Declining Revenue

Declining revenue indicates potential loss of market share or demand, which can impact long-term financial health and growth prospects.

Negative Cash Flow

Negative cash flow affects liquidity and operational sustainability, limiting the company's ability to invest in growth and manage expenses effectively.

Profitability Challenges

Decreasing profitability margins suggest operational inefficiencies and could hinder the company's ability to generate sustainable profits over time.

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: 1.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.48 is below the 20-day moving average (MA) of 1.50, above the 50-day MA of 1.35, and above the 200-day MA of 1.17, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 50.72 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$2.40B	7.21	12.02%	14.46%	-27.66%	-51.96%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3798	56 Neutral	HK$1.90B	-26.91	-3.33%	6.76%	-23.42%	-191.82%
6633	56 Neutral	HK$2.24B	27.30	4.10%	―	-41.86%	―
6820	51 Neutral	HK$1.16B	16.11	5.50%	―	30.71%	―
9990	45 Neutral	HK$1.37B	-7.52	-7.69%	―	41.00%	23.75%
0302	39 Underperform	HK$1.15B	-0.41	-57.29%	―	-36.80%	-666.80%

Homeland Interactive Technology Ltd. Corporate Events

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.

Homeland Interactive Technology Ltd. Expands Share Award Scheme

Homeland Interactive Technology Ltd. has announced the purchase of 1,786,000 shares from the open market as part of its Share Award Scheme, reflecting the company’s confidence in its business outlook and its strategy to attract talent. Additionally, the company has granted 4,233,967 Award Shares to a selected employee, aimed at incentivizing and motivating the participant to contribute to the company’s future growth.