FriendTimes Inc. (6820) AI Stock Analysis

• Market Cap: HK$1.00B
• Dividend Yield: N/A
• Average Volume (3M): 2.26M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.48
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(8.70% Upside)

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.

Positive Factors

Revenue Growth

FriendTimes Inc. demonstrates robust revenue growth, indicating effective market penetration and product adoption, which supports long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio suggests conservative financial management, providing FriendTimes with the flexibility to invest in growth opportunities without significant financial strain.

Cash Flow Improvement

Substantial improvement in free cash flow indicates enhanced operational efficiency and the ability to fund future growth initiatives internally, strengthening the company's financial position.

Negative Factors

Profitability Concerns

Negative net profit margins highlight challenges in converting revenue into profit, which could hinder long-term financial health if not addressed.

Operational Challenges

Decreasing EBIT and EBITDA margins suggest operational inefficiencies, which may impact the company's ability to sustain profitability and competitive positioning over time.

Income Conversion Issues

Negative cash conversion indicates inefficiencies in turning income into cash, potentially affecting liquidity and the ability to reinvest in business growth.

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 generates revenue primarily through in-game purchases, where players can buy virtual goods, enhancements, and subscriptions to enhance their gaming experience. Additionally, the company earns money through advertising partnerships, integrating advertisements within its games to reach a broad audience of gamers. Another significant revenue stream includes strategic collaborations and partnerships with technology companies and advertising agencies, which help expand its market reach and increase brand visibility. The combination of these revenue streams allows FriendTimes to capitalize on the growing demand for mobile gaming and social interaction platforms.

FriendTimes Inc. Financial Statement Overview

Summary

FriendTimes Inc. shows mixed financial performance. Revenue growth and strong gross profit margins are positive, but profitability is a concern with negative net profit margins. The balance sheet is stable with low leverage, and cash flow has improved significantly, although income conversion to cash needs attention.

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: 0.46
• 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 0.46 is below the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.50, and below the 200-day MA of 0.65, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 40.31 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 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	72 Outperform	HK$2.69B	7.99	12.02%	13.83%	-27.66%	-51.96%
6860	66 Neutral	HK$347.73M	12.38	3.47%	―	-25.66%	-23.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6633	56 Neutral	HK$2.21B	26.87	4.10%	―	-41.86%	―
6820	51 Neutral	HK$1.00B	14.74	5.50%	―	30.71%	―
9990	45 Neutral	HK$1.37B	-7.30	-7.69%	―	41.00%	23.75%
0302	39 Underperform	HK$1.24B	-0.43	-57.29%	―	-36.80%	-666.80%

FriendTimes Inc. Corporate Events

FriendTimes Boosts Share Purchases Under Award Scheme to Align Staff and Shareholder Interests

FriendTimes Inc. has announced that, under its previously adopted share award scheme, a trustee has purchased company shares in the market equivalent to about 0.4% of its total share capital in the fourth quarter of 2025, and around 4.1% cumulatively between 28 August 2023 and 19 December 2025. The board says these purchases signal management’s confidence in the company’s business outlook and form part of a broader strategy to attract and retain key talent by aligning employee and shareholder interests, which it views as important for the group’s long-term sustainable growth.

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.