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Sino-Entertainment Technology Holdings Limited (HK:6933)
:6933
Hong Kong Market

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

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HK

Sino-Entertainment Technology Holdings Limited

(6933)

Rating:29Underperform
Price Target:
Sino-Entertainment Technology Holdings Limited is struggling with severe financial issues, including declining revenue and negative cash flows, which are the most significant factors affecting its stock score. The weak technical indicators and lack of attractive valuation metrics further contribute to a low stock score. The stock appears to be in a downtrend with limited near-term upside potential.

Sino-Entertainment Technology Holdings Limited (6933) vs. iShares MSCI Hong Kong ETF (EWH)

Sino-Entertainment Technology Holdings Limited Business Overview & Revenue Model

Company DescriptionSino-Entertainment Technology Holdings Limited (6933) is a company engaged in the development, publishing, and operation of mobile and online games. The company focuses on creating immersive gaming experiences for a diverse audience, leveraging cutting-edge technology and innovative game design. Sino-Entertainment operates primarily in the digital entertainment sector, catering to both domestic and international markets.
How the Company Makes MoneySino-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
20
Very Negative
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
35
Negative
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
15
Very Negative
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
44.66M9.00M12.30M104.27M240.43M
Gross Profit
1.79M-14.37M-3.71M28.81M111.87M
EBIT
-21.56M-80.51M-61.21M-7.96M69.82M
EBITDA
-16.72M-95.18M-57.35M-4.06M71.82M
Net Income Common Stockholders
-27.89M-103.38M-97.53M-2.95M56.28M
Balance SheetCash, Cash Equivalents and Short-Term Investments
29.81M89.98M94.70M88.49M107.52M
Total Assets
100.55M138.41M343.65M299.90M315.07M
Total Debt
0.0023.27M136.37M206.00K166.00K
Net Debt
-29.71M-56.30M41.79M-88.05M-106.03M
Total Liabilities
9.75M33.70M145.08M12.54M25.24M
Stockholders Equity
84.75M97.71M190.59M287.36M289.83M
Cash FlowFree Cash Flow
-38.20M-23.83M-1.70M-17.73M-23.65M
Operating Cash Flow
-20.75M-23.83M-1.70M-17.73M-23.65M
Investing Cash Flow
-6.19M2.02M-8.41M205.00K-24.62M
Financing Cash Flow
-24.75M4.64M13.92M-157.00K107.97M

Sino-Entertainment Technology Holdings Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.16
Price Trends
50DMA
0.15
Positive
100DMA
0.17
Negative
200DMA
0.18
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
77.64
Negative
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6933, the sentiment is Neutral. The current price of 0.16 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.15, and below the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 77.64 is Negative, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6933.

Sino-Entertainment Technology Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
HK$634.96B18.7323.90%2.08%0.85%6.37%
79
Outperform
$783.89B17.8723.82%19.20%156.71%
78
Outperform
$4.53T21.2421.25%7.09%8.88%54.27%
75
Outperform
HK$525.48B13.0027.63%11.46%3.41%60.46%
61
Neutral
$14.55B5.92-3.82%8.36%2.79%-33.24%
43
Neutral
HK$90.97M-12.08%-8.88%44.44%
29
Underperform
HK$62.64M-30.59%395.82%73.06%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6933
Sino-Entertainment Technology Holdings Limited
0.16
-0.08
-33.33%
HK:2022
Digital Hollywood Interactive Limited
0.05
-0.05
-50.00%
HK:9999
Netease Inc
204.00
67.39
49.33%
HK:3690
Meituan
128.60
13.20
11.44%
HK:2899
Zijin Mining Group Co
19.18
2.82
17.27%
HK:0700
Tencent Holdings
505.50
128.39
34.05%

Sino-Entertainment Technology Holdings Limited Corporate Events

Sino-Entertainment Technology Announces Share Scheme Approval and Employee Awards
Apr 23, 2025

Sino-Entertainment Technology Holdings Limited has announced the conditional approval for listing shares under its new Share Scheme, following a shareholder meeting. The company has granted 13,165,000 award shares to twelve employees, with a vesting period extending over two years, aiming to incentivize and retain talent within the organization.

Sino-Entertainment Technology Holdings Announces 2025 AGM and Key Resolutions
Apr 11, 2025

Sino-Entertainment Technology Holdings Limited has announced its upcoming Annual General Meeting, scheduled for June 17, 2025, in Hong Kong. Key agenda items include the re-election of directors, reappointment of auditors, and granting of mandates to the board for share repurchase and issuance, which could impact the company’s governance and capital management strategies.

Sino-Entertainment Technology Gains Unanimous Shareholder Approval at EGM
Apr 9, 2025

Sino-Entertainment Technology Holdings Limited announced the results of their Extraordinary General Meeting (EGM) held on April 9, 2025. During the meeting, the shareholders unanimously approved the Shareholders’ Agreement and the related transactions through a poll. The resolution was passed with 100% of the votes in favor, indicating strong shareholder support for the company’s strategic decisions.

Sino-Entertainment Adopts New Share Scheme in Strategic Move
Apr 9, 2025

Sino-Entertainment Technology Holdings Limited successfully passed all proposed ordinary resolutions during its Extraordinary General Meeting held on April 9, 2025. The key resolutions included the adoption of a New Share Scheme and the termination of previous share option and award plans, indicating a strategic shift in the company’s equity compensation approach. This move, supported unanimously by shareholders, reflects the company’s efforts to align its incentive structures with future growth objectives, potentially enhancing its market position and stakeholder value.

Sino-Entertainment Reports Reduced Losses in 2024 Financial Results
Mar 31, 2025

Sino-Entertainment Technology Holdings Limited reported its financial results for the year ending December 31, 2024, showing a significant reduction in losses compared to the previous year. The company achieved a gross profit of RMB 1,791,000, a notable improvement from a loss of RMB 14,374,000 in 2023, despite an increase in administrative expenses and research and development costs. The reversal of impairment losses under the expected credit loss model contributed positively to the financial outcome, although the company still reported a net loss of RMB 29,068,000 for the year. This financial performance indicates a potential recovery trajectory, which may impact the company’s market positioning and stakeholder confidence.

Sino-Entertainment Proposes New Share Scheme at Upcoming EGM
Mar 21, 2025

Sino-Entertainment Technology Holdings Limited has announced an extraordinary general meeting to discuss and potentially approve a new share scheme. This scheme aims to replace the existing share option and award plans, allowing for the issuance of new shares and the management of awards to eligible participants. The new scheme is contingent upon approval from the Hong Kong Stock Exchange and aims to enhance the company’s equity-based compensation structure, potentially impacting its market positioning and stakeholder interests.

Sino-Entertainment Technology Announces EGM for Shareholders’ Agreement Approval
Mar 21, 2025

Sino-Entertainment Technology Holdings Limited has announced an Extraordinary General Meeting (EGM) scheduled for April 9, 2025, in Hong Kong. The meeting will focus on approving and implementing a Shareholders’ Agreement, which includes authorizing the company’s directors to execute necessary documents and actions related to the agreement. This development could have significant implications for the company’s governance and operational strategies, potentially affecting its market positioning and stakeholder relationships.

Sino-Entertainment Technology Holdings Schedules Board Meeting for Annual Results
Mar 10, 2025

Sino-Entertainment Technology Holdings Limited has announced a board meeting scheduled for March 31, 2025, to discuss and approve the audited annual results for the year ending December 31, 2024. The meeting will also consider the payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.

Sino-Entertainment Reports Reduced Losses for FY2024
Mar 5, 2025

Sino-Entertainment Technology Holdings Limited has announced a significant reduction in its net loss for the fiscal year ending December 31, 2024, with an expected loss of approximately RMB40.0 million compared to RMB104.6 million in the previous year. This improvement is attributed to increased revenue from game co-publishing and development, reversal of impairment losses, and higher administrative expenses due to amortization and share-based payments. Stakeholders are advised to review the final audited results with caution when they are released in March 2025.

Sino-Entertainment Acquires SocialFi App Source Code to Boost Web3 Presence
Feb 28, 2025

Sino-Entertainment Technology Holdings Limited announced a major transaction involving the acquisition of the core source code and intellectual properties of the SocialFi mobile app through a capital injection of HK$20 million. This strategic move is aimed at capitalizing on the growing decentralized social network market, projected to reach USD101,200.8 million by 2033, and is expected to enhance the company’s position within the Web3 ecosystem. The acquisition is considered beneficial for the company as it saves development time and is supported by a profit guarantee under the Shareholders’ Agreement.

Sino-Entertainment Technology Holdings Announces Delay in Circular Despatch
Feb 28, 2025

Sino-Entertainment Technology Holdings Limited has announced a delay in the despatch of a circular related to a major transaction involving an acquisition through contribution in kind. The circular, initially expected by February 28, 2025, will now be postponed to on or before March 31, 2025, due to the need for additional time to finalize certain information.

Sino-Entertainment Announces Major Transaction Involving SocialFi Mobile App Acquisition
Feb 12, 2025

Sino-Entertainment Technology Holdings Limited has announced a major transaction involving an acquisition through contribution in kind under a Shareholders’ Agreement. This transaction entails SEHKIHL, a wholly-owned subsidiary, injecting HK$20 million into TEIL, while TIMCL will transfer core source code and intellectual properties related to a SocialFi mobile app. This acquisition surpasses 25% of applicable percentage ratios, making it a major transaction under the Listing Rules, and requires shareholders’ approval in an upcoming EGM.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.