Ourgame International Holdings Ltd (6899) AI Stock Analysis

• Market Cap: HK$242.30M
• Dividend Yield: N/A
• Average Volume (3M): 624.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 159
• Sector: Services
• Sector Strength: N/A
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.04
• Shares Outstanding: 1,077,799,900
• 10 Day Avg. Volume: 308,200
• 30 Day Avg. Volume: 624,666
• PEG Ratio: -0.05
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 2.08
• P/FCF Ratio: -8.62
• 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: 41 Neutral
• Price Target: HK$0.22 ▼(-25.17% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by persistent losses and negative cash flows. Technical analysis suggests a bearish trend, with the stock trading below key moving averages and approaching oversold levels. Valuation challenges further weigh on the score, as the lack of profitability and dividends complicates traditional valuation assessments.

Positive Factors

Low Debt Levels

A low debt-to-equity ratio indicates conservative financial leverage, providing the company with greater financial flexibility and reduced risk of insolvency.

Stable Gross Profit Margin

A stable gross profit margin suggests effective cost management, which can help the company maintain profitability as it scales its operations.

Revenue Growth

Even modest revenue growth indicates potential for market expansion and increased adoption of the company's gaming platforms.

Negative Factors

Negative Cash Flow

Negative cash flow highlights liquidity challenges, which can hinder the company's ability to invest in growth opportunities and meet financial obligations.

Persistent Losses

Ongoing losses indicate structural issues in the business model, potentially limiting the company's ability to achieve sustainable profitability.

Negative Return on Equity

A negative ROE suggests the company is not generating sufficient returns on shareholder investments, impacting investor confidence and future capital raising.

Ourgame International Holdings Ltd Business Overview & Revenue Model

Company Description

Ourgame International Holdings Limited, an investment holding company, develops and operates online card and board games in the People's Republic of China and internationally. The company operates through Lianzhong Group and AESE Group segments. It operates an integrated online game platform that distributes PC games and provides services through its PC client portals, such as Ourgame Hall; and distributes mobile games and provides services primarily for Android and iOS operating systems through third-party distribution and payment channels, including mobile operators. The company also provides web games through its website ourgame.com, worldpokertour.com, and by third-party distribution channels; and hosts games and offers on-going updates and technical support services for the operation of self-developed and licensed games, as well as prevents, detects, and resolves in-game cheating and hacking activities. In addition, it provides computer related technical support services; offers television production, brand licensing, tour management, and consulting services; and organizes and broadcasts online to offline mind-sports events, tournaments, TV shows, and contents. Ourgame International Holdings Limited was founded in 1998 and is based in Grand Cayman, Cayman Islands.

How the Company Makes Money

Ourgame generates revenue primarily through the monetization of its gaming platforms, which includes in-game purchases, subscriptions, and advertising. The company benefits from a freemium model, where users can access basic game features for free but are encouraged to make purchases for enhanced experiences or virtual goods. Additionally, partnerships with other gaming companies and platforms help broaden its reach, while licensing deals for its game titles contribute further to its earnings. In recent years, the growth of mobile gaming has significantly bolstered its revenue streams, as the company adapts its offerings to meet the demands of mobile users.

Ourgame International Holdings Ltd Financial Statement Overview

Summary

Ourgame International Holdings Ltd faces significant financial challenges, with persistent losses and negative cash flows. While the company maintains a low level of debt, its inability to generate positive returns and cash flow raises concerns about its financial health and sustainability. The slight revenue growth and stable gross profit margin are positive signs, but they are overshadowed by the broader issues of profitability and liquidity.

Income Statement

The company has shown a slight revenue growth of 3.59% in the latest year, but it continues to struggle with profitability, as evidenced by a negative net profit margin of -96.75% and a negative EBIT margin of -91.27%. The gross profit margin remains relatively stable at around 50%, indicating some efficiency in cost management. However, the persistent negative margins highlight ongoing challenges in achieving profitability.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.14, suggesting conservative leverage. However, the return on equity is significantly negative at -121.75%, indicating that the company is not generating returns for its shareholders. The equity ratio stands at 72.92%, reflecting a strong equity base relative to total assets, but the negative ROE remains a concern.

Cash Flow

The cash flow statement reveals negative operating cash flow and free cash flow, with a free cash flow growth rate of -38.17%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite a free cash flow to net income ratio of 1.02, the overall cash flow situation is weak, highlighting liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.27M	92.19M	89.00M	217.71M	143.81M	110.41M
Gross Profit	41.68M	46.32M	44.88M	83.92M	56.15M	24.66M
EBITDA	-42.36M	-82.50M	-69.93M	-50.30M	-107.60M	-269.03M
Net Income	-104.51M	-89.19M	-62.77M	-29.61M	-135.32M	-396.67M
Balance Sheet
Total Assets	66.47M	100.48M	187.46M	773.60M	810.02M	735.37M
Cash, Cash Equivalents and Short-Term Investments	12.73M	13.64M	35.46M	571.89M	616.65M	79.42M
Total Debt	13.50M	9.94M	5.30M	59.73M	57.19M	89.71M
Total Liabilities	34.30M	33.59M	36.57M	107.38M	122.04M	247.48M
Stockholders Equity	35.45M	73.26M	161.83M	283.49M	279.59M	240.95M
Cash Flow
Free Cash Flow	-28.25M	-22.20M	-16.07M	-86.13M	-121.37M	-71.23M
Operating Cash Flow	-27.00M	-21.73M	-15.43M	-81.87M	-115.16M	-23.10M
Investing Cash Flow	5.17M	1.48M	-31.82M	-476.17M	668.46M	-106.79M
Financing Cash Flow	-5.69M	-1.57M	-4.59M	-15.06M	-45.96M	52.36M

Ourgame International Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Positive
• 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:6899, the sentiment is Neutral. The current price of 0.29 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.27, and above the 200-day MA of 0.21, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of 44.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6899.

Ourgame International Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6860	60 Neutral	HK$368.19M	12.07	3.47%	―	-25.66%	-23.36%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
2022	45 Neutral	HK$100.25M	―	-7.87%	―	-5.90%	60.75%
8267	45 Neutral	HK$177.36M	-30.57	-2.00%	―	20.90%	70.71%
6899	41 Neutral	HK$242.30M	―	―	―	―	―
6933	29 Underperform	HK$141.24M	-4.86	-28.25%	―	-3.02%	72.76%