Qingci Games, Inc. (6633) AI Stock Analysis

• Market Cap: HK$2.24B
• Dividend Yield: N/A
• Average Volume (3M): 135.57K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.26
• Revenue Growth: -41.86%
• EPS Growth: N/A
• Country: HK
• Employees: 564
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.11
• Shares Outstanding: 691,330,500
• 10 Day Avg. Volume: 1,300
• 30 Day Avg. Volume: 135,566
• PEG Ratio: -0.17
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 3.22
• P/FCF Ratio: 393.78
• 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
• EPS Forecast (FY): 0.93
• Revenue Forecast (FY): HK$3.88B

• Rating: 56 Neutral
• Price Target: HK$3.50 ▲(29.15% Upside)

The overall stock score of 56 reflects a mixed outlook. The company's strong balance sheet is offset by volatility in revenue and profitability, as well as cash flow challenges. Technical indicators show a positive short-term trend, but the high P/E ratio suggests potential overvaluation.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing Qingci Games to invest in growth opportunities and weather economic downturns.

Diverse Revenue Streams

The diverse revenue streams from in-game purchases and ads help mitigate risks associated with reliance on a single income source, supporting long-term financial health.

Robust User Engagement Strategy

The free-to-play model enhances user acquisition and engagement, critical for sustaining a large user base and driving in-game purchases, ensuring continued revenue generation.

Negative Factors

Revenue Volatility

Volatile revenue trends can hinder long-term planning and investment, as inconsistent income streams make it challenging to forecast and allocate resources effectively.

Cash Flow Challenges

Inconsistent cash flow from operations raises concerns about the company's ability to fund its operations and growth initiatives, potentially impacting financial stability.

Unstable Profit Margins

Unstable profit margins reflect operational inefficiencies and can affect the company's ability to sustain profitability, impacting long-term financial performance.

Qingci Games, Inc. Business Overview & Revenue Model

Company Description

Qingci Games, Inc. (6633) is a prominent player in the mobile gaming industry, focusing on the development and publishing of innovative and engaging games tailored for a global audience. The company operates primarily in the entertainment sector, leveraging advanced technology and creative design to deliver high-quality gaming experiences. Qingci Games is known for its diverse portfolio of titles that cater to various gaming preferences, including action, strategy, and casual games.

How the Company Makes Money

Qingci Games generates revenue through multiple streams, primarily from in-game purchases and advertisements. The company's games are often free-to-play, allowing users to download and play without an upfront cost, which helps to maximize user acquisition. In-game purchases, such as virtual goods, character upgrades, and additional levels, provide a significant portion of the revenue. Additionally, Qingci Games monetizes its user base through advertising, partnering with major ad networks to display ads within their games. Strategic partnerships with other gaming companies and platforms also enhance its market reach and revenue opportunities. The combination of a robust user engagement strategy and effective monetization practices enables Qingci Games to maintain a steady income flow.

Qingci Games, Inc. Financial Statement Overview

Summary

Qingci Games, Inc. exhibits a mixed financial profile. The balance sheet is strong with low leverage, but the income statement highlights volatility in revenue and profitability. Cash flow challenges raise concerns about operational efficiency and liquidity.

Income Statement

Revenue has shown volatility with significant fluctuation over the years. The gross profit margin is relatively healthy, but the net profit margin is unstable, with years of negative net income. EBIT and EBITDA margins have been inconsistent, indicating operational challenges.

Balance Sheet

The company maintains a strong equity base with a low debt-to-equity ratio, indicating financial stability. However, the return on equity has been erratic due to fluctuating net income. The equity ratio suggests a robust capital structure.

Cash Flow

Cash flow from operations has been inconsistent with recent years showing negative figures. Free cash flow growth has been negative, and the ratios to net income highlight potential issues in translating earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	532.52M	627.96M	905.74M	630.37M	1.11B	1.23B
Gross Profit	305.48M	363.12M	557.88M	422.09M	812.60M	942.36M
EBITDA	15.66M	-11.11M	-8.72M	94.57M	386.48M	115.97M
Net Income	76.32M	51.12M	-37.37M	50.28M	-368.64M	103.74M
Balance Sheet
Total Assets	2.03B	1.98B	2.00B	1.92B	1.87B	734.82M
Cash, Cash Equivalents and Short-Term Investments	1.68B	1.60B	1.53B	1.49B	1.52B	444.55M
Total Debt	32.75M	40.53M	44.37M	26.80M	32.56M	99.46M
Total Liabilities	156.41M	174.23M	255.97M	157.50M	222.57M	520.62M
Stockholders Equity	1.88B	1.82B	1.75B	1.76B	1.65B	214.20M
Cash Flow
Free Cash Flow	74.46M	5.13M	-6.80M	-34.60M	194.02M	440.12M
Operating Cash Flow	77.49M	9.38M	-3.22M	-20.19M	199.94M	443.60M
Investing Cash Flow	-99.81M	-84.32M	-487.07M	-156.76M	-425.10M	49.59M
Financing Cash Flow	-10.99M	-11.61M	9.92M	-46.18M	957.43M	-60.37M

Qingci Games, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.71
• 50DMA: Positive
• 100DMA: Negative
• 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:6633, the sentiment is Negative. The current price of 2.71 is below the 20-day moving average (MA) of 3.49, below the 50-day MA of 3.21, and below the 200-day MA of 3.18, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 44.77 is Neutral, neither overbought nor oversold. The STOCH value of 57.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6633.

Qingci Games, Inc. 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%
6633	56 Neutral	HK$2.24B	27.30	4.10%	―	-41.86%	―
3798	56 Neutral	HK$1.90B	-26.91	-3.33%	6.76%	-23.42%	-191.82%
6820	51 Neutral	HK$1.16B	16.11	5.50%	―	30.71%	―
0797	41 Neutral	HK$2.03B	-51.72	-2.25%	―	6.33%	87.05%
0302	39 Underperform	HK$1.15B	-0.41	-57.29%	―	-36.80%	-666.80%

Qingci Games, Inc. Corporate Events

Qingci Games Partners with Disney for New Game Development

Qingci Games Inc. has entered into a game license assignment agreement with The Walt Disney Company (China) Limited to develop and publish a new game based on Disney and Pixar properties. This agreement highlights Qingci Games’ strong position in the gaming industry and offers significant growth opportunities, aligning with its strategy to advance R&D and introduce new IP products for sustained performance growth.