FriendTimes Inc. (6820) AI Stock Analysis

• Market Cap: HK$2.12B
• Dividend Yield: N/A
• Average Volume (3M): 10.43M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• Revenue Growth: 7.55%
• EPS Growth: 64.78%
• Country: HK
• Employees: 887
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.01
• Shares Outstanding: 2,180,850,000
• 10 Day Avg. Volume: 4,439,600
• 30 Day Avg. Volume: 10,427,680
• PEG Ratio: -0.80
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.77
• 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: 50 Neutral
• Price Target: HK$1.00 ▲(3.09%Upside)

The overall stock score for FriendTimes Inc. is primarily influenced by weak financial performance with ongoing losses and cash flow issues. Technical indicators show some positive momentum, but the negative P/E ratio and lack of dividend yield highlight valuation concerns. The absence of earnings call and corporate event updates limits further insights.

FriendTimes Inc. Business Overview & Revenue Model

Company Description

FriendTimes Inc. (6820) is a prominent player in the mobile gaming industry, primarily focused on the development and publishing of interactive entertainment products. The company specializes in creating high-quality, immersive gaming experiences that cater to a global audience, with a diverse portfolio that includes role-playing games (RPGs) and simulation games. As an innovative leader in the gaming sector, FriendTimes Inc. leverages cutting-edge technology and creative storytelling to engage millions of users worldwide.

How the Company Makes Money

FriendTimes Inc. generates revenue through a variety of streams, primarily centered around its mobile gaming applications. The company monetizes its games through in-app purchases, allowing players to buy virtual goods, enhancements, and additional content to enhance their gaming experience. Additionally, FriendTimes Inc. may incorporate advertising within its games, partnering with ad networks to display ads to users, which provides another source of income. Furthermore, the company may engage in strategic partnerships and collaborations that expand its reach and drive further monetization opportunities. These combined revenue streams enable FriendTimes Inc. to maintain a strong financial position in the competitive mobile gaming market.

FriendTimes Inc. Financial Statement Overview

Summary

FriendTimes Inc. faces significant challenges with declining revenues, negative profitability, and cash flow issues. Despite a strong equity position and low leverage, operational inefficiencies need to be addressed to improve financial performance.

Income Statement

FriendTimes Inc. has experienced a consistent decline in revenue from 2020 to 2024. The gross profit margin remains positive, but the net profit margin has been negative for the past three years, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges. The revenue growth rate has been negative, signaling contraction in business activity.

Balance Sheet

The company maintains a strong equity base with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting limited leverage and a conservative capital structure. However, the return on equity has been negative, reflecting a lack of profitability in recent periods.

Cash Flow

FriendTimes Inc. has shown a decline in operating cash flow, with negative free cash flow in recent years. The operating cash flow to net income ratio is negative due to losses, and free cash flow growth has been negative, highlighting cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	1.06B	1.52B	1.62B	2.18B
Gross Profit	813.52M	702.40M	1.04B	1.09B	1.47B
EBITDA	-5.01M	-43.17M	34.77M	256.61M	543.00M
Net Income	-48.86M	-138.12M	25.11M	275.48M	503.52M
Balance Sheet
Total Assets	1.40B	1.47B	1.61B	1.81B	1.79B
Cash, Cash Equivalents and Short-Term Investments	786.36M	949.27M	946.14M	1.05B	1.21B
Total Debt	149.42M	147.88M	1.37M	1.12M	1.17M
Total Liabilities	252.40M	262.05M	116.23M	160.32M	225.76M
Stockholders Equity	1.15B	1.20B	1.50B	1.65B	1.57B
Cash Flow
Free Cash Flow	-53.13M	-49.92M	117.20M	199.48M	484.32M
Operating Cash Flow	-52.83M	-46.29M	155.21M	262.66M	575.01M
Investing Cash Flow	5.86M	60.11M	-278.04M	-385.54M	-128.00M
Financing Cash Flow	-15.31M	-21.70M	-225.36M	-217.04M	-221.65M

FriendTimes Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.97
• 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:6820, the sentiment is Positive. The current price of 0.97 is below the 20-day moving average (MA) of 0.99, above the 50-day MA of 0.77, and above the 200-day MA of 0.64, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.44 is Neutral, neither overbought nor oversold. The STOCH value of 54.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6820.

FriendTimes Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2660	73 Outperform	HK$2.72B	5.68	17.68%	5.70%	-21.05%	-42.14%
6860	70 Outperform	HK$332.85M	9.37	4.10%	―	-7.48%	416.22%
Sector *	55 Neutral	HK$64.39B	-1.86	-1.90%	7.19%	-4.17%	-13.99%
6633	51 Neutral	HK$2.13B	38.45	2.87%	―	-31.60%	―
9990	51 Neutral	HK$1.40B	―	-12.95%	―	23.51%	11.90%
6820	50 Neutral	HK$2.12B	―	-4.15%	―	7.55%	64.78%
0302	49 Neutral	HK$1.42B	―	-43.81%	―	-27.68%	-11792.65%

FriendTimes Inc. Corporate Events

FriendTimes Inc. Expands Share Award Scheme to Boost Growth

FriendTimes Inc. announced that its Share Award Scheme has resulted in the purchase of approximately 3.7% of the company’s total share capital by the Trustee from August 2023 to June 2025. This move reflects the company’s confidence in its future prospects and is part of a strategy to attract talent and align employee interests with the company’s long-term growth objectives.

FriendTimes Inc. Engages in Significant Structured Deposits

FriendTimes Inc. announced that its subsidiary, FriendTimes Technology, has entered into four Structured Deposit Agreements with Shanghai Pudong Development Bank, Suzhou Wuzhong Sub-branch, subscribing to principal-protected deposits totaling RMB110,000,000. This transaction is considered discloseable under Hong Kong’s Listing Rules, requiring reporting and announcement but exempt from shareholder approval, indicating a strategic financial maneuver to potentially enhance the company’s financial stability and market positioning.

FriendTimes Inc. Successfully Passes All Resolutions at 2025 AGM

FriendTimes Inc. announced that all proposed resolutions at its Annual General Meeting on May 22, 2025, were passed by poll voting. Key resolutions included the re-election of directors, authorization for the board to fix directors’ remuneration, re-appointment of auditors, and granting mandates for share allotment and repurchase. These decisions are expected to strengthen the company’s governance and operational flexibility, potentially enhancing its market position and shareholder value.

FriendTimes Inc. Engages in RMB70 Million Structured Deposit Agreements

FriendTimes Inc., through its wholly-owned subsidiary FriendTimes Technology, has entered into three structured deposit agreements with Shanghai Pudong Development Bank, Suzhou Wuzhong Sub-branch, amounting to a total of RMB70,000,000. This transaction, classified as a discloseable transaction under Chapter 14 of the Listing Rules, does not require shareholder approval but is subject to reporting and announcement requirements. The structured deposits are principal-protected with floating returns and are linked to the EUR/USD exchange rate, potentially impacting the company’s financial strategy and market positioning.

FriendTimes Inc. Announces 2025 Annual General Meeting

FriendTimes Inc. has announced its upcoming Annual General Meeting scheduled for May 22, 2025, in Suzhou, China. Key agenda items include the review of the company’s financial statements for 2024, the re-election of board members, re-appointment of KPMG as auditors, and a resolution to authorize the directors to issue additional shares. This meeting is significant for stakeholders as it addresses governance and strategic decisions that could impact the company’s future operations and market positioning.