FriendTimes Inc. (6820) AI Stock Analysis

• Market Cap: HK$1.53B
• Dividend Yield: N/A
• Average Volume (3M): 3.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 7.55%
• EPS Growth: 64.78%
• Country: HK
• Employees: 887
• Sector: Communication Services
• Sector Strength: 90
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.02
• Shares Outstanding: 2,180,850,000
• 10 Day Avg. Volume: 2,368,200
• 30 Day Avg. Volume: 3,130,533
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: -28.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.50 ▼(-28.57% Downside)

The overall stock score reflects significant financial performance challenges, including declining revenues and negative profitability. Technical analysis indicates bearish momentum, and valuation metrics are unattractive due to negative earnings and lack of dividends. These factors collectively result in a low overall 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 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. 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: Negative
• Last Price: 0.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 0.7 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.82, and above the 200-day MA of 0.67, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 41.51 is Neutral, neither overbought nor oversold. The STOCH value of 37.04 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$2.52B	5.14	12.02%	5.88%	-27.66%	-51.96%
6860	71 Outperform	HK$418.39M	11.78	4.10%	―	-7.48%	416.22%
6633	61 Neutral	HK$2.32B	41.82	2.87%	―	-31.60%	―
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
9990	49 Neutral	HK$1.55B	―	-7.69%	―	41.00%	23.75%
0302	49 Neutral	HK$1.56B	―	-43.81%	―	-27.68%	-11792.65%
6820	45 Neutral	HK$1.53B	―	-4.15%	―	7.55%	64.78%

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.