FriendTimes Inc. (6820) AI Stock Analysis

• Market Cap: HK$2.49B
• Dividend Yield: N/A
• Average Volume (3M): 6.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 7.55%
• EPS Growth: 64.78%
• Country: HK
• Employees: 887
• Sector: Communication Services
• Sector Strength: 90
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.01
• Shares Outstanding: 2,180,850,000
• 10 Day Avg. Volume: 18,429,242
• 30 Day Avg. Volume: 6,493,814
• 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: 53 Neutral
• Price Target: HK$1.00 ▼(-10.71%Downside)

The most significant factor influencing FriendTimes Inc.'s overall stock score is its financial performance, which is currently weak due to declining revenues and profitability issues. Technical analysis provides some positive momentum, but valuation concerns due to negative earnings and lack of dividends further weigh down the score.

FriendTimes Inc. Business Overview & Revenue Model

Company Description

FriendTimes Inc., through its subsidiaries, develops, publishes, and operates mobile games in the People's Republic of China and internationally. The company offers mobile games and female-oriented mobile games, including Fate of the Empress, Fate:The Loved Journey, Promise of Lingyun, Royal Chaos, Rise of Queendom, Legend of Empress, Yokai Kitchen, and Fate: Royal Revenge. It also invests in, produces, and distributes film and TV copyrights. The company was founded in 2010 and is headquartered in Suzhou, the People's Republic of China.

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
	EBIT
-29.15M	-68.75M	5.65M	240.75M	543.02M
	EBITDA
-5.01M	-43.17M	34.77M	256.61M	543.00M
	Net Income Common Stockholders
-48.86M	-138.12M	25.11M	275.48M	503.52M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
786.36M	949.27M	946.14M	1.05B	1.21B
	Total Assets
1.40B	1.47B	1.61B	1.81B	1.79B
	Total Debt
149.42M	147.88M	1.37M	1.12M	1.17M
	Net Debt
-185.41M	-248.33M	-402.57M	-751.15M	-1.09B
	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: 1.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1.12 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.63, and above the 200-day MA of 0.60, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 80.93 is Negative, neither overbought nor oversold. The STOCH value of 87.81 is Negative, 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
Sector *	61 Neutral	$14.79B	5.90	-3.99%	6.20%	2.67%	-30.30%
6820	53 Neutral	HK$2.49B	―	-4.15%	―	7.55%	64.78%
ANPDF		$34.81B	15.39	28.11%	2.55%	―	―
XIACF		$176.64B	40.57	14.98%	―	―	―
9999	81 Outperform	HK$639.34B	18.86	23.90%	2.07%	0.85%	6.37%
2400	63 Neutral	HK$20.15B	22.47	38.63%	―	44.92%	―

FriendTimes Inc. Corporate Events

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.

FriendTimes Inc. Reports 2024 Financial Results and Strategic AI Integration

FriendTimes Inc. announced its annual results for the year ended December 31, 2024, highlighting a 10.1% increase in revenue and a significant reduction in losses compared to the previous year. The company did not propose a dividend for 2024. FriendTimes is enhancing its product offerings with new games across various genres, including female-oriented, male-oriented, and casual games, while also integrating AI to improve gaming experiences. The strategic focus on AI aims to enhance operational efficiency and user engagement, positioning FriendTimes as an innovative leader in the gaming industry.

FriendTimes Inc. Schedules Board Meeting to Discuss Year-End Results

FriendTimes Inc. has announced a board meeting scheduled for March 24, 2025, to discuss and approve the company’s final results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend and the potential closure of the register of members, indicating key financial decisions that could impact stakeholders.