Linekong Interactive Group Co., Ltd. (8267) AI Stock Analysis

• Market Cap: HK$125.63M
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 20.90%
• EPS Growth: 70.71%
• Country: HK
• Employees: 57
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 369,492,950
• 10 Day Avg. Volume: 1,137,750
• 30 Day Avg. Volume: 1,350,096
• PEG Ratio: -0.08
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.06
• P/FCF Ratio: -2.91
• 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: 51 Neutral
• Price Target: HK$0.34 ▲(14.00% Upside)

The score is primarily held back by weak financial performance—ongoing losses, sharply lower gross margin, and negative free cash flow—despite revenue returning to growth and a low-risk balance sheet with zero debt. Technicals provide some support with moderately positive momentum and price strength versus key moving averages, while valuation remains challenged due to negative earnings and no dividend yield data.

Positive Factors

Revenue recovery

A return to positive revenue growth signals renewed player demand and improving monetization for core titles. If sustained, this underpins scale benefits for live-operations, marketing ROI, and potential margin recovery as fixed costs are spread over higher sales, aiding longer-term profitability.

Conservative balance sheet

Zero debt provides durable financial flexibility: it reduces solvency risk, lowers fixed financing costs, and gives management capacity to fund product development, marketing or M&A from internal or modest external sources without onerous leverage, improving resilience in downturns.

Recurring digital monetization model

A business model centered on in‑game purchases, publishing services and licensing creates recurring revenue streams and multiple monetization levers. Strong live-ops and platform partnerships can sustain user engagement and lifetime value, supporting durable cash generation if titles perform.

Negative Factors

Sharp gross margin decline

A large drop in gross margin materially weakens the company's ability to convert revenue into operating profit. This compression suggests rising direct costs or lower monetization per user and, if persistent, will hinder reinvestment in content, squeeze operating margins, and slow the path to sustainable profitability.

Persistent losses and weak returns

Ongoing net losses and negative ROE indicate the capital base is not generating adequate returns. Over time this erodes equity value and limits the firm's capacity to self-finance growth. Restoring consistent profitability is required to justify reinvestment and reverse the negative return trend.

Negative free cash flow

Deeply negative free cash flow despite some operating cash improvement shows the business is not yet self-funding its investment needs. Continued FCF deficits can force external financing, dilute shareholders, or constrain content development and marketing, increasing execution and growth risks.

Linekong Interactive Group Co., Ltd. Business Overview & Revenue Model

Company Description

Linekong Interactive Group Co., Ltd., an investment holding company, researches, develops, and publishes online games in the People's Republic of China and internationally. It operates through two segments, Game Business and Film Business. The company publishes self-developed games and licensed games through its own game distribution channels, as well as third-party game distribution channels, payment collection channels, and prepaid game card distributors. It also produces and distributes film and television drama series, as well as provides technology consulting and services, and artist management services. The company was formerly known as Linekong Interactive Co., Ltd. and changed its name to Linekong Interactive Group Co., Ltd. in June 2015. Linekong Interactive Group Co., Ltd. was incorporated in 2007 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Linekong Interactive Group Co., Ltd. generates revenue through a diversified model primarily centered around its gaming products. The company earns money by distributing its games on various platforms, including iOS, Android, and PC. Revenue streams include in-game purchases, where players buy virtual goods and enhancements to improve their gaming experience. Additionally, the company benefits from advertising within its games and collaboration with other gaming platforms and distributors. Strategic partnerships with technology firms and entertainment companies also contribute to broadening their market reach and enhancing monetization opportunities.

Linekong Interactive Group Co., Ltd. Financial Statement Overview

Summary

Revenue returned to growth in 2024 (+13% YoY) and operating cash flow improved to positive, but profitability remains weak with negative operating/net margins and a sharp gross margin drop (25.3% to 14.7%). The balance sheet is a bright spot with negligible debt (zero in 2024), yet returns remain negative (ROE -12.4%) and free cash flow was deeply negative in 2024.

Income Statement

Revenue returned to growth in 2024 (+13.0% YoY) after a weak multi-year period, but profitability remains a clear drag. Gross margin fell sharply (25.3% in 2023 to 14.7% in 2024) and the company is still loss-making with negative operating and net margins in every year shown. While losses are much smaller than 2021–2022, the 2024 operating loss widened versus 2023, signaling the turnaround is not yet consistent.

Balance Sheet

The balance sheet is a relative strength: debt is minimal and fell to zero in 2024, keeping financial leverage very low. Equity remains sizable versus total assets, providing a cushion. The main weakness is persistent negative returns on equity (still -12.4% in 2024), which indicates the capital base is not yet generating adequate earnings despite the conservative leverage profile.

Cash Flow

Cash generation is mixed. Operating cash flow turned positive in 2024 (vs. negative in 2023), which is encouraging, but free cash flow was deeply negative in 2024 and deteriorated meaningfully versus 2023. Overall, the business is not consistently self-funding—free cash flow has been negative in most years shown, with only 2021 posting positive free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.80M	146.05M	135.51M	71.06M	85.93M	211.88M
Gross Profit	12.12M	21.43M	34.32M	20.93M	25.27M	49.25M
EBITDA	-32.95M	-35.66M	-12.36M	-52.99M	-39.83M	-13.30M
Net Income	-4.84M	-29.03M	-17.43M	-60.64M	-75.31M	-34.51M
Balance Sheet
Total Assets	325.88M	315.53M	320.57M	364.82M	448.89M	572.43M
Cash, Cash Equivalents and Short-Term Investments	77.76M	89.88M	106.06M	148.50M	195.69M	176.00M
Total Debt	0.00	0.00	645.00K	3.45M	54.61M	106.35M
Total Liabilities	80.28M	81.32M	72.91M	102.42M	144.90M	178.74M
Stockholders Equity	246.41M	234.65M	247.23M	262.41M	303.49M	384.38M
Cash Flow
Free Cash Flow	-60.43M	-53.24M	-47.47M	-65.51M	24.36M	-55.54M
Operating Cash Flow	-51.70M	13.17M	-22.29M	-16.57M	38.45M	12.71M
Investing Cash Flow	37.55M	-1.61M	-17.53M	40.44M	74.14M	100.97M
Financing Cash Flow	-211.00K	-704.00K	-1.10M	-55.16M	-57.44M	-109.76M

Linekong Interactive Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8267, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.36, and below the 200-day MA of 0.46, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.00 is Neutral, neither overbought nor oversold. The STOCH value of 12.54 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8267.

Linekong Interactive Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6860	66 Neutral	HK$416.53M	13.66	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	51 Neutral	HK$125.63M	-21.66	-2.00%	―	20.90%	70.71%
0484	44 Neutral	HK$159.93M	-1.64	-15.08%	―	65.41%	-313.74%
8282	44 Neutral	HK$32.49M	-82.61	-1.54%	―	8.14%	99.25%
2022	42 Neutral	HK$100.25M	-6.43	-7.87%	―	-5.90%	60.75%