FingerTango, Inc. (6860) AI Stock Analysis

• Market Cap: HK$368.19M
• Dividend Yield: N/A
• Average Volume (3M): 597.07K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.17
• Revenue Growth: -25.66%
• EPS Growth: -23.36%
• Country: HK
• Employees: 245
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): <0.01
• Shares Outstanding: 1,918,088,000
• 10 Day Avg. Volume: 961,300
• 30 Day Avg. Volume: 597,066
• PEG Ratio: 0.02
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 58.62
• 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: 60 Neutral
• Price Target: HK$0.21 ▲(15.00% Upside)

The overall stock score is primarily influenced by the mixed financial performance, with strong balance sheet fundamentals offset by liquidity concerns. Technical analysis indicates a bearish trend, while valuation suggests the stock is reasonably priced. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage and high equity levels provides FingerTango with a solid financial foundation, enhancing its ability to withstand economic fluctuations and invest in growth opportunities.

Improving Profitability Margins

Improved profitability margins indicate effective cost management and operational efficiency, which can lead to sustainable earnings growth and better competitive positioning in the long term.

Cost Management Effectiveness

Strong gross profit margins suggest effective cost controls, which are crucial for maintaining profitability and competitive pricing strategies in the gaming industry.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses risks to FingerTango's long-term growth prospects, potentially impacting its market position and ability to invest in new game development.

Cash Flow Challenges

Limited cash generation capability and lack of positive cash flows can hinder FingerTango's ability to fund operations, invest in growth, and manage financial obligations effectively.

Liquidity Issues

Liquidity challenges may constrain FingerTango's operational flexibility and ability to respond to market opportunities or financial shocks, impacting its long-term stability.

FingerTango, Inc. Business Overview & Revenue Model

Company Description

FingerTango Inc., an investment holding company, develops and publishes mobile games in the People's Republic of China. The company publishes and sells simulation mobile games. It also engages in the technical support and development, internet culture, and internet and software technology development and service activities. As of December 31, 2021, the company had approximately 185.0 million cumulative registered users. FingerTango Inc. was founded in 2013 and is headquartered in Guangzhou, the People's Republic of China. FingerTango Inc. is a subsidiary of LJ Technology Holding Limited.

How the Company Makes Money

FingerTango generates revenue primarily through in-app purchases and advertising within its mobile games. The company offers free-to-play games that attract a large user base, and monetizes this audience by selling virtual goods, character upgrades, and premium features. Additionally, FingerTango partners with advertising networks to display ads in its games, earning revenue from impressions and clicks. Significant partnerships with other gaming companies and platforms also enhance its market presence and revenue opportunities, as they may collaborate on cross-promotional campaigns and co-develop new titles.

FingerTango, Inc. Financial Statement Overview

Summary

FingerTango, Inc. presents a mixed financial condition. The income statement shows improving profitability margins, but the declining revenue trend raises concerns. The balance sheet is strong with low leverage and high equity levels, providing a solid foundation. However, the cash flow statement indicates potential liquidity challenges, as the company struggles to generate positive cash flows.

Income Statement

The company shows a mixed picture. Revenue growth is volatile, with a decline from the previous year, yet there is a recovery in profitability with an improved EBIT and net profit margin. Gross profit margin remains relatively strong, indicating cost management effectiveness, but the declining revenue trend poses potential risks.

Balance Sheet

The balance sheet is robust with a strong equity position and low debt levels, as indicated by the low debt-to-equity ratio. Return on equity has improved significantly, suggesting better profitability and efficiency. The equity ratio indicates a stable financial structure with a high percentage of assets financed by equity.

Cash Flow

Cash flow analysis raises concerns due to the absence of positive operating cash flow and free cash flow. Despite a reduction in debt levels, there is limited cash generation capability. The lack of growth in free cash flow suggests potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	386.79M	609.15M	646.10M	832.51M	613.01M	748.23M
Gross Profit	197.77M	345.89M	371.95M	532.17M	361.25M	464.00M
EBITDA	5.29M	29.25M	31.68M	-111.32M	-519.80M	113.84M
Net Income	25.86M	32.84M	6.77M	-139.35M	-517.40M	127.64M
Balance Sheet
Total Assets	1.01B	1.00B	1.01B	1.06B	1.19B	1.64B
Cash, Cash Equivalents and Short-Term Investments	696.95M	648.74M	677.67M	758.64M	741.14M	701.59M
Total Debt	10.98M	14.47M	20.20M	26.57M	32.46M	3.63M
Total Liabilities	189.46M	180.84M	226.17M	278.45M	293.81M	209.88M
Stockholders Equity	823.31M	821.42M	785.73M	777.81M	894.30M	1.43B
Cash Flow
Free Cash Flow	34.48M	3.72M	-52.02M	17.95M	102.17M	-85.03M
Operating Cash Flow	34.92M	41.00M	-46.09M	28.00M	110.72M	-78.23M
Investing Cash Flow	-116.17M	-227.04M	-103.71M	35.50M	-58.00K	-142.30M
Financing Cash Flow	-7.03M	-7.40M	-6.37M	-5.90M	-11.81M	-8.00M

FingerTango, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6860, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.19, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6860.

FingerTango, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6860	60 Neutral	HK$368.19M	12.07	3.47%	―	-25.66%	-23.36%
1961	46 Neutral	HK$238.65M	-3.68	-34.36%	―	-43.62%	22.41%
1022	46 Neutral	HK$979.69M	62.50	2.72%	―	183.41%	39.68%
0484	44 Neutral	€134.68M	-1.38	-15.08%	―	65.41%	-313.74%
1909	41 Neutral	HK$374.40M	-8.90	-36.46%	―	12.84%	-113.72%
6899	41 Neutral	HK$240.20M	―	―	―	―	―

FingerTango, Inc. Corporate Events

FingerTango Reports Revenue Decline Amidst Growing Chinese Gaming Market

FingerTango, Inc. reported a 35.5% decline in revenue for the first half of 2025, compared to the same period in 2024, due to reduced advertising and marketing expenditures and decreased revenue from mature games. Despite the downturn, the Chinese gaming market showed growth, with a 14.08% increase in sales revenue, highlighting the potential for recovery and strategic realignment for FingerTango in a growing industry.

FingerTango Inc. Announces Board Composition and Committee Roles

FingerTango Inc. has announced the composition of its board of directors and the roles and functions of each member. The board includes both executive and independent non-executive directors, with Dr. Chan Man Fung serving as Chairman and Ms. Li Nini as Chief Executive Officer. The announcement details the membership of three board committees: Audit, Remuneration, and Nomination, highlighting the leadership roles within these committees. This update reflects the company’s governance structure and may influence its strategic direction and stakeholder confidence.

FingerTango, Inc. Announces Changes to Board of Directors

FingerTango, Inc. announced a change in its board of directors, with Mr. CHOW Wing Yiu resigning as an independent non-executive director and chairman of the audit committee due to other business commitments. Mr. YIP Chong Ho Eric has been appointed to fill these roles, bringing over 11 years of experience in auditing, accounting, and finance. This change is expected to bring fresh perspectives to the company’s governance and strengthen its board with Mr. Yip’s extensive expertise in the financial sector.

FingerTango Inc. Schedules Board Meeting to Review Interim Results

FingerTango Inc. has announced an upcoming board meeting scheduled for August 28, 2025, where the board will review and approve the unaudited interim results for the first half of 2025. This meeting will also consider the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.