FriendTimes Inc. (6820) AI Stock Analysis

• Market Cap: HK$1.16B
• Dividend Yield: N/A
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.55
• Revenue Growth: 30.71%
• EPS Growth: N/A
• Country: HK
• Employees: 887
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.02
• Shares Outstanding: 2,180,850,000
• 10 Day Avg. Volume: 1,322,200
• 30 Day Avg. Volume: 2,258,866
• PEG Ratio: 0.36
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -20.90
• 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

• Rating: 51 Neutral
• Price Target: HK$0.50 ▼(-10.71% Downside)

FriendTimes Inc. receives a score of 51, driven by mixed financial performance and bearish technical indicators. While the company shows financial stability and improved cash flow, profitability issues and negative market momentum weigh heavily. The valuation is moderate, but the lack of a dividend yield reduces its appeal.

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 primarily through the sale of in-game purchases and virtual goods. The company's free-to-play games are monetized through a combination of microtransactions, where players can purchase virtual items, enhancements, or currency to enhance their gaming experience. Additionally, the company earns money through advertising by integrating ads within their games, thereby providing an additional revenue stream. FriendTimes may also engage in strategic partnerships with other companies to expand their reach and enhance their offerings, further contributing to their earnings.

FriendTimes Inc. Financial Statement Overview

Summary

FriendTimes Inc. presents a mixed financial picture. Revenue growth and strong gross profit margins are positive, but profitability remains a concern with negative net profit margins. The balance sheet is strong with low leverage, and cash flow has improved significantly, although conversion of income to cash needs attention. The company appears to be stabilizing financially, but operational efficiency and profitability require further improvement.

Income Statement

FriendTimes Inc. shows a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 4.02%, but the company is struggling with profitability as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at approximately 70%, suggesting efficient cost management. However, the declining EBIT and EBITDA margins highlight operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.13, indicating conservative leverage. The equity ratio is healthy, and the return on equity has improved to 5.48% in the TTM, showing a recovery from previous losses. Overall, the company's balance sheet suggests financial stability with manageable debt levels.

Cash Flow

Cash flow analysis reveals significant improvement in free cash flow, with a growth rate of 347.15% in the TTM. The operating cash flow to net income ratio is negative, indicating potential issues in converting income into cash. However, the free cash flow to net income ratio is slightly above 1, suggesting that the company is generating adequate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26B	1.16B	1.06B	1.52B	1.62B	2.18B
Gross Profit	912.35M	813.52M	702.40M	1.04B	1.09B	1.47B
EBITDA	108.00M	-5.01M	-43.17M	22.36M	256.61M	543.00M
Net Income	64.19M	-48.86M	-138.12M	25.11M	275.48M	503.52M
Balance Sheet
Total Assets	1.42B	1.40B	1.47B	1.61B	1.81B	1.79B
Cash, Cash Equivalents and Short-Term Investments	785.97M	786.36M	949.27M	946.14M	1.05B	1.23B
Total Debt	111.10M	149.42M	147.88M	1.37M	1.12M	1.17M
Total Liabilities	224.95M	252.40M	262.05M	116.23M	160.32M	225.76M
Stockholders Equity	1.19B	1.15B	1.20B	1.50B	1.65B	1.57B
Cash Flow
Free Cash Flow	96.13M	-53.13M	-49.92M	117.20M	199.48M	484.32M
Operating Cash Flow	96.30M	-52.83M	-46.29M	155.21M	262.66M	575.01M
Investing Cash Flow	-346.27M	5.86M	60.11M	-278.04M	-385.54M	-128.00M
Financing Cash Flow	-64.59M	-15.31M	-21.70M	-225.36M	-217.04M	-221.65M

FriendTimes Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 0.56 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.62, and below the 200-day MA of 0.66, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 44.58 is Neutral, neither overbought nor oversold. The STOCH value of 41.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6820.

FriendTimes Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2660	―	HK$2.41B	7.25	12.02%	14.96%	-27.66%	-51.96%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6860	―	HK$344.01M	11.40	3.47%	―	-25.66%	-23.36%
6820	―	HK$1.16B	16.11	5.50%	―	30.71%	―
9990	―	HK$1.61B	―	-7.69%	―	41.00%	23.75%
6633	―	HK$1.78B	22.83	4.10%	―	-41.86%	―
0302	―	HK$1.23B	-0.43	-57.29%	―	-36.80%	-666.80%

FriendTimes Inc. Corporate Events

FriendTimes Inc. Updates Nomination Committee Terms to Enhance Governance

FriendTimes Inc. has updated the terms of reference for its Nomination Committee, which is responsible for identifying and recommending candidates for the company’s board of directors. This move aims to enhance governance by ensuring compliance with the Hong Kong Stock Exchange’s listing rules and improving the board’s performance evaluation process.

The most recent analyst rating on (HK:6820) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FriendTimes Inc. stock, see the HK:6820 Stock Forecast page.

FriendTimes Inc. Announces Changes in Nomination Committee

FriendTimes Inc., a company incorporated in the Cayman Islands, announced changes in its Nomination Committee. Effective August 28, 2025, Mr. Zhu Wei will no longer serve as a member, while Ms. Tang Haiyan has been appointed to the committee. The Nomination Committee will now include one executive Director, Mr. Jiang Xiaohuang, and two independent non-executive Directors, Mr. Zhang Jinsong and Ms. Tang Haiyan.

The most recent analyst rating on (HK:6820) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FriendTimes Inc. stock, see the HK:6820 Stock Forecast page.

FriendTimes Inc. Announces Board Composition and Committee Roles

FriendTimes Inc. has announced the composition of its board of directors, which includes both executive and independent non-executive directors. The board is structured with three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each. This organizational update is likely aimed at enhancing governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:6820) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FriendTimes Inc. stock, see the HK:6820 Stock Forecast page.

FriendTimes Inc. Reports Strong Financial Turnaround in H1 2025

FriendTimes Inc. reported an 18.5% increase in revenue to approximately RMB623.5 million for the first half of 2025, with a profit of RMB40.7 million, marking a significant turnaround from a loss in the previous year. The growth was driven by successful new game launches, increased revenue from high-gross profit channels, and reduced research and development and sales expenses ratios, enhancing the company’s market position and profitability.

The most recent analyst rating on (HK:6820) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on FriendTimes Inc. stock, see the HK:6820 Stock Forecast page.

FriendTimes Inc. Schedules Board Meeting to Discuss Interim Results

FriendTimes Inc. has announced that its board of directors will meet on August 28, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend and other business matters, which could impact the company’s financial strategy and shareholder relations.