Sino-Entertainment Technology Holdings Limited (6933) AI Stock Analysis

• Market Cap: HK$295.32M
• Dividend Yield: N/A
• Average Volume (3M): 162.60K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -3.02%
• EPS Growth: 72.76%
• Country: HK
• Employees: 27
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 428,002,800
• 10 Day Avg. Volume: 63,800
• 30 Day Avg. Volume: 162,600
• PEG Ratio: 0.04
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 1.70
• P/FCF Ratio: -1.99
• 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: 53 Neutral
• Price Target: HK$0.69 ▲(11.29% Upside)

The score is primarily held back by weak financial performance—continued losses and cash burn—despite a cleaner (zero-debt) balance sheet. Technical indicators are notably positive and provide the main support to the score, while valuation is constrained by negative earnings and no dividend data.

Positive Factors

Zero Debt

A zero-debt balance sheet enhances financial flexibility and reduces interest burden, allowing the company to focus on operational improvements.

Improved Cash Burn

Improved cash burn indicates better cash management and operational efficiency, which can lead to enhanced financial stability over time.

Revenue Rebound

A significant revenue rebound suggests potential recovery in market demand and operational execution, supporting future growth prospects.

Negative Factors

Sustained Losses

Continued losses indicate challenges in achieving profitability, which can strain resources and limit strategic investments in the long term.

Weak Cash Generation

Persistent negative cash flow reflects limited self-funding capacity, necessitating external financing and potentially hindering growth initiatives.

Eroding Equity

Eroding equity due to sustained losses weakens the company's capital base, impacting its ability to withstand financial challenges and invest in growth.

Sino-Entertainment Technology Holdings Limited Business Overview & Revenue Model

Company Description

Sino-Entertainment Technology Holdings Limited, an investment holding company, develops and publishes mobile games in China. It primarily develops role-playing games and casual games. The company also engages in the development and sale of customized software and games; and sale of computers, computer accessories, and electronic products, as well as software development activities. Sino-Entertainment Technology Holdings Limited was founded in 2014 and is based in Hechi, China.

How the Company Makes Money

Sino-Entertainment Technology Holdings Limited generates revenue primarily through the sale of virtual items within its games, subscription services, and advertising. The company offers in-game purchases that enhance the gaming experience, such as virtual currency, premium content, and exclusive items. Additionally, it earns through partnerships with advertisers who place ads within the games, as well as from collaborations with other gaming and technology firms to expand its reach and product offerings. The company's revenue model is supported by a large user base that engages with its gaming platforms regularly, ensuring a consistent stream of income from both direct sales and advertising.

Sino-Entertainment Technology Holdings Limited Financial Statement Overview

Summary

Sino-Entertainment Technology Holdings Limited is facing significant financial challenges, marked by declining revenues, persistent losses, and negative cash flows. Although the balance sheet shows low leverage, the company's operational and cash flow struggles suggest a need for strategic shifts to stabilize and improve financial performance.

Income Statement

The company has experienced a significant decline in total revenue from $240.43 million in 2020 to $44.66 million in 2024, indicating substantial negative revenue growth. Gross profit and net income have been negative in recent years, with the net profit margin deteriorating. The EBIT and EBITDA margins are also negative, reflecting operational difficulties.

Balance Sheet

The company maintains a strong equity position with a high equity ratio. However, the return on equity is negative due to continuous net losses. Total debt is minimal, leading to a low debt-to-equity ratio, which suggests low financial leverage risk but also highlights potential challenges in leveraging growth.

Cash Flow

The company's cash flow situation is concerning, with consistently negative free cash flow and operating cash flow in recent years. The inability to generate positive cash flow from operations indicates potential liquidity issues and challenges in sustaining operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.46M	44.66M	9.00M	12.30M	104.27M	240.43M
Gross Profit	10.60M	1.79M	-14.37M	-3.71M	28.81M	111.87M
EBITDA	-12.86M	-16.72M	-95.18M	-57.35M	-4.06M	71.82M
Net Income	-25.96M	-27.89M	-103.38M	-97.53M	-2.95M	56.28M
Balance Sheet
Total Assets	117.16M	100.55M	138.41M	343.65M	299.90M	315.07M
Cash, Cash Equivalents and Short-Term Investments	21.31M	29.81M	87.71M	94.70M	88.49M	107.52M
Total Debt	0.00	0.00	23.27M	136.37M	206.00K	166.00K
Total Liabilities	6.70M	9.75M	33.70M	145.08M	12.54M	25.24M
Stockholders Equity	83.51M	84.75M	97.71M	190.59M	287.36M	289.83M
Cash Flow
Free Cash Flow	-29.83M	-38.20M	-23.83M	-1.70M	-17.73M	-23.65M
Operating Cash Flow	-29.83M	-20.75M	-23.83M	-1.70M	-17.73M	-23.65M
Investing Cash Flow	-9.48M	-6.19M	2.02M	-8.41M	205.00K	-24.62M
Financing Cash Flow	-24.73M	-24.75M	4.64M	13.92M	-157.00K	107.97M

Sino-Entertainment Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.62
• 50DMA: Positive
• 100DMA: Positive
• 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:6933, the sentiment is Positive. The current price of 0.62 is below the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.52, and above the 200-day MA of 0.34, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 55.26 is Neutral, neither overbought nor oversold. The STOCH value of 51.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6933.

Sino-Entertainment Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6860	66 Neutral	HK$379.34M	12.44	3.47%	―	-25.66%	-23.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
6933	53 Neutral	HK$295.32M	-10.16	-28.25%	―	-3.02%	72.76%
8267	46 Neutral	HK$134.86M	-23.25	-2.00%	―	20.90%	70.71%
0484	44 Neutral	HK$144.78M	-1.49	-15.08%	―	65.41%	-313.74%
8282	44 Neutral	HK$39.33M	-100.00	-1.54%	―	8.14%	99.25%
2022	42 Neutral	HK$98.40M	-6.31	-7.87%	―	-5.90%	60.75%

Sino-Entertainment Technology Holdings Limited Corporate Events

Sino-Entertainment Technology Issues Supplemental Announcement to 2024 Annual Report

Sino-Entertainment Technology Holdings Limited has issued a supplemental announcement to its 2024 Annual Report. The company disclosed that no options have been granted under its Share Option Scheme, maintaining the potential issuance of 40,000,000 shares, which is about 9.64% of the total issued shares. Additionally, under the Share Award Plan, 4,934,871 awarded shares vested during the year, with a weighted average closing price of HK$0.21. The supplemental information does not affect other details in the 2024 Annual Report.