FriendTimes Inc. (6820) AI Stock Analysis

• Market Cap: HK$1.35B
• Dividend Yield: N/A
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.34
• 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: 2,724,800
• 30 Day Avg. Volume: 2,661,733
• 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: HK$0.50
• Price Target Upside: -19.35% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: HK$0.50 ▼(-19.35% Downside)

FriendTimes Inc. receives a moderate overall stock score of 52. The company's financial performance is mixed, with strong gross profit margins but challenges in profitability. Technical analysis indicates bearish momentum, and valuation is moderate with a reasonable P/E ratio but no dividend yield. The absence of earnings call data and corporate events limits additional insights.

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: 0.62
• 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 0.62 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.67, and below the 200-day MA of 0.67, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.12 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 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	74 Outperform	HK$2.37B	7.12	12.02%	15.28%	-27.66%	-51.96%
6860	62 Neutral	HK$362.61M	11.89	3.47%	―	-25.66%	-23.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6633	53 Neutral	HK$2.25B	27.38	4.10%	―	-41.86%	―
6820	52 Neutral	HK$1.35B	18.84	5.50%	―	30.71%	―
9990	49 Neutral	HK$1.89B	―	-7.69%	―	41.00%	23.75%
0302	44 Neutral	HK$1.48B	―	-57.29%	―	-36.80%	-666.80%

FriendTimes Inc. Corporate Events

FriendTimes Inc. Announces Positive Profit Outlook Amid Successful Game Launches

FriendTimes Inc. has announced a positive profit alert for the first half of 2025, expecting significant revenue and profit growth compared to the previous year. This growth is attributed to successful new game launches, increased revenue from high-gross-profit channels, and reduced expenses. The company has also launched a new game, ‘Culinary Chaos,’ which has quickly gained popularity and engaged in multiple cross-industry collaborations. The board remains confident in the company’s long-term prospects, with the chairman committing not to sell shares in the near future.

FriendTimes Inc. Engages in Major Structured Deposit Agreements

FriendTimes Inc. announced that its subsidiary, FriendTimes Technology, has entered into three Structured Deposit Agreements with Shanghai Pudong Development Bank, Suzhou Wuzhong Sub-branch, amounting to RMB90,000,000. These principal-protected deposits are considered a discloseable transaction under Hong Kong’s Listing Rules, requiring reporting and announcement but exempt from shareholder approval.

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.