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ZX Inc. (HK:9890)
:9890
Hong Kong Market
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ZX Inc. (9890) AI Stock Analysis

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HK:9890

ZX Inc.

(9890)

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Neutral 53 (OpenAI - 5.2)
Rating:53Neutral
Price Target:
HK$10.50
▼(-42.72% Downside)
Action:Reiterated
Date:06/26/26
The score is held back primarily by weak cash-flow quality (negative operating and free cash flow for three consecutive years) and a bearish technical setup (price below all key moving averages with negative MACD). These risks are partially offset by a strengthened balance sheet with very low leverage and an inexpensive valuation (low P/E), but sustainability of earnings remains the key issue.
Positive Factors
Balance sheet strength
Material de‑leveraging and a larger equity base provide durable financial flexibility. Very low debt reduces refinancing and interest risks, enabling the company to fund operations, absorb shocks, and pursue strategic investments or opportunistic M&A without immediate cashflow pressure.
Negative Factors
Weak cash conversion
Persistent negative operating and free cash flow despite reported profits signals earnings are not translating into cash. This undermines liquidity, raises funding and execution risk, constrains capital allocation, and threatens durability of reported earnings if cash conversion isn't restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Material de‑leveraging and a larger equity base provide durable financial flexibility. Very low debt reduces refinancing and interest risks, enabling the company to fund operations, absorb shocks, and pursue strategic investments or opportunistic M&A without immediate cashflow pressure.
Read all positive factors

ZX Inc. (9890) vs. iShares MSCI Hong Kong ETF (EWH)

ZX Inc. Business Overview & Revenue Model

Company Description
Operating across Mainland China and Hong Kong, ZX Inc. primarily functions as an online game publisher, with its gaming portfolio marketed and managed under the Tan Wan brand. The company's business activities extend beyond digital entertainment t...

ZX Inc. Financial Statement Overview

Summary
Despite a sharp 2025 net income rebound (~HK$1.45B) and a much stronger balance sheet (very low leverage; debt-to-equity ~0.02), overall quality is constrained by weak cash conversion. Operating cash flow and free cash flow have been negative for three straight years (2025 OCF ~-HK$123M; FCF ~-HK$341M), and revenue has been declining over multiple years, raising durability and funding risk concerns.
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
24
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.05B5.58B6.51B8.82B5.74B
Gross Profit2.31B4.02B4.57B6.41B4.74B
EBITDA287.69M59.72M477.81M715.77M741.64M
Net Income1.45B-3.62M235.49M514.07M615.91M
Balance Sheet
Total Assets7.39B5.56B7.27B9.80B6.56B
Cash, Cash Equivalents and Short-Term Investments3.94B1.26B899.69M1.53B1.85B
Total Debt102.59M1.77B3.21B6.41B3.72B
Total Liabilities3.10B3.14B4.99B8.09B5.38B
Stockholders Equity4.19B2.40B2.29B1.73B1.18B
Cash Flow
Free Cash Flow-341.33M-2.05B-2.57B2.11B2.59B
Operating Cash Flow-122.86M-2.00B-2.35B2.28B2.63B
Investing Cash Flow277.37M2.10B2.86B-3.21B-2.30B
Financing Cash Flow-289.27M-67.72M-232.31M443.13M-32.30M

ZX Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price18.33
Price Trends
50DMA
13.71
Negative
100DMA
15.44
Negative
200DMA
15.54
Negative
Market Momentum
MACD
-1.06
Positive
RSI
30.64
Neutral
STOCH
12.25
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9890, the sentiment is Negative. The current price of 18.33 is above the 20-day moving average (MA) of 12.15, above the 50-day MA of 13.71, and above the 200-day MA of 15.54, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 30.64 is Neutral, neither overbought nor oversold. The STOCH value of 12.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9890.

ZX Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
HK$3.82B6.5317.91%3.82%-4.19%0.41%
78
Outperform
HK$2.24B5.5013.44%13.83%-6.66%-19.70%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
53
Neutral
HK$5.31B3.1439.89%-25.43%
49
Neutral
HK$1.41B-3.7242.91%3.01%-0.01%-211.29%
48
Neutral
HK$3.85B21.932.73%8.76%-26.02%-51.13%
44
Neutral
HK$1.61B-34.62-1.80%14.35%87.20%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9890
ZX Inc.
10.06
-1.98
-16.45%
HK:0799
IGG
3.33
-0.25
-7.01%
HK:0434
Boyaa Interactive International
1.97
-3.73
-65.45%
HK:0777
NetDragon Websoft Holdings
7.26
-2.22
-23.43%
HK:9990
Archosaur Games Inc.
2.00
0.26
14.94%
HK:2660
Zengame Technology Holding Ltd.
2.16
-0.12
-5.26%

ZX Inc. Corporate Events

Tanwan Inc. Shareholders Back All Resolutions at 2026 AGM
Jun 17, 2026
Tanwan Inc. reported that its annual general meeting in Guangzhou on June 17, 2026, achieved a turnout representing about 64% of its issued share capital eligible to vote, with all directors attending in person or electronically and an independent...
Tanwan Inc. Calls AGM to Approve Accounts and Renew Share Issuance Mandate
Apr 28, 2026
Tanwan Inc. has called its annual general meeting for June 17, 2026, in Guangzhou, where shareholders will review and adopt the audited consolidated financial statements for the year ended December 31, 2025. They will also vote on director re-elec...
Tanwan Inc. Adds Shares to 2026 RSU Scheme With Modest Market Purchase
Apr 22, 2026
Tanwan Inc. has disclosed that a trustee acting for its 2026 Restricted Share Unit Scheme purchased 13,800 shares on the market on April 22, 2026, at an average price of about HK$15.07 per share, for total consideration of roughly HK$0.2 million. ...
Tanwan Inc. Expands Share Pool for 2026 Restricted Share Unit Scheme
Apr 21, 2026
Tanwan Inc. has disclosed that a trustee acting under its 2026 Restricted Share Unit Scheme has purchased 100,000 company shares on the market, representing approximately 0.02% of its issued share capital, at an average price of about HK$15.12, fo...
Tanwan Inc. Adds Shares for 2026 Restricted Share Unit Scheme
Apr 20, 2026
Tanwan Inc. has disclosed that, under its 2026 Restricted Share Unit Scheme adopted in February 2026, a trustee purchased 50,000 shares on April 20, 2026, at an average price of about HK$15.37 per share, for a total consideration of roughly HK$0.8...
Tanwan Inc. Expands Share Pool for 2026 RSU Scheme With Market Purchase
Apr 17, 2026
Tanwan Inc. has reported that, under its 2026 Restricted Share Unit Scheme adopted in February 2026, a trustee purchased 100,000 company shares on the market on April 17, 2026, at an average price of about HK$15.12, for a total consideration of ro...
Tanwan Inc. Expands Trust Holdings Under 2026 Restricted Share Unit Scheme
Apr 16, 2026
Tanwan Inc. has disclosed that, under its 2026 Restricted Share Unit Scheme, a trustee purchased 100,000 shares on April 16, 2026 in the open market, representing about 0.02% of the company’s issued share capital, for a total consideration o...
Tanwan Inc. Expands Holdings for 2026 Restricted Share Unit Scheme via Market Purchase
Apr 15, 2026
Tanwan Inc. has disclosed that a trustee acting for its 2026 Restricted Share Unit Scheme purchased 150,000 shares on the market on April 15, 2026, at an average price of about HK$14.60, for total consideration of roughly HK$2.19 million. The purc...
Tanwan Inc. Launches New 2026 RSU Scheme Funded by Market Share Purchases
Mar 30, 2026
Tanwan Inc. has adopted a 2026 Restricted Share Unit Scheme designed to attract, retain and reward employees, connected entities and service providers by granting them equity-based awards. The plan aims to align participant incentives with long-te...
Tanwan Inc. Posts 2025 Results Amid Expanding China and Global Gaming Markets
Mar 27, 2026
Tanwan Inc. reported its annual results for 2025 against a backdrop of solid growth in the global and Chinese gaming sectors, with global games revenue projected at US$197 billion and China’s domestic gaming market reaching RMB350.79 billion...
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.Date of analysis: Jun 26, 2026