Archosaur Games Inc. (9990) AI Stock Analysis

• Market Cap: HK$1.37B
• Dividend Yield: N/A
• Average Volume (3M): 863.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• Revenue Growth: 41.00%
• EPS Growth: 23.75%
• Country: HK
• Employees: 1,083
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 801,196,100
• 10 Day Avg. Volume: 718,800
• 30 Day Avg. Volume: 863,076
• PEG Ratio: 0.48
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.91
• P/FCF Ratio: -4.96
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$2.00 ▲(14.94% Upside)

Archosaur Games Inc. faces significant financial and technical challenges. The company's financial performance is hindered by negative profitability and cash flow issues, despite a strong balance sheet. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and technical indicators signaling oversold conditions. Valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively result in a low overall stock score.

Positive Factors

Revenue Growth

A strong revenue growth rate of 41% indicates robust demand for Archosaur Games' products, suggesting effective market penetration and potential for future expansion.

Strong Equity Position

A strong equity position provides financial stability and flexibility, allowing the company to invest in growth opportunities and withstand economic fluctuations.

Innovative Business Model

The free-to-play model with in-game purchases and partnerships supports sustainable revenue streams, leveraging player engagement and industry collaborations.

Negative Factors

Profitability Challenges

Consistently negative profit margins highlight operational inefficiencies, which could hinder long-term financial health and investor confidence.

Negative Cash Flow

Negative cash flow from operations indicates difficulty in generating cash, which could limit the company's ability to fund growth and manage debt.

Operational Challenges

Negative EBIT and EBITDA margins suggest ongoing operational challenges, potentially impacting the company's ability to achieve sustainable profitability.

Archosaur Games Inc. Business Overview & Revenue Model

Company Description

Archosaur Games Inc., an investment holding company, develops and operates mobile games in Mainland China and internationally. It primarily focuses on the development of massively multiplayer online role-playing, simulation, female-oriented, shooting, strategy cards, and other genres games. The company was founded in 1997 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Archosaur Games Inc. generates revenue through multiple streams, primarily from in-game purchases, premium game sales, and advertising. The company develops free-to-play games that often incorporate microtransactions, allowing players to buy virtual goods or enhancements to improve their gaming experience. Additionally, Archosaur Games may offer premium titles for direct purchase, contributing to its sales revenue. Strategic partnerships with platform providers and advertising networks further enhance its revenue potential, as the company can monetize its user base through ad placements within its games.

Archosaur Games Inc. Financial Statement Overview

Summary

Archosaur Games Inc. is facing substantial financial challenges, particularly in profitability and cash flow generation. The income statement and cash flow metrics reflect operational and profitability issues, despite a relatively strong balance sheet with a solid equity position.

Income Statement

The company has shown a negative trend in profitability with declining gross profit margins and consistently negative net profit margins over the years. Revenue growth has been inconsistent, with a decline in 2020 followed by fluctuations. EBIT and EBITDA margins have also been negative, indicating operational challenges.

Balance Sheet

The balance sheet shows a strong equity base with a positive equity ratio, as stockholders' equity is significantly higher than total liabilities. However, the company has been operating with negative net debt, indicating a strong cash position, but the debt-to-equity ratio is low due to minimal debt levels.

Cash Flow

The company has experienced significant negative operating cash flows in recent years, contributing to negative free cash flow. The free cash flow to net income ratio is negative, highlighting challenges in generating cash from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.14B	908.49M	584.12M	920.83M	1.21B
Gross Profit	957.08M	826.00M	650.41M	423.62M	713.53M	925.91M
EBITDA	-221.48M	-309.62M	-265.27M	-697.48M	-220.93M	108.12M
Net Income	-164.94M	-287.25M	-315.56M	-768.55M	-303.32M	-759.02M
Balance Sheet
Total Assets	2.70B	2.60B	2.74B	2.95B	3.52B	4.00B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.58B	1.98B	2.03B	2.70B	3.34B
Total Debt	137.14M	15.55M	44.30M	102.72M	135.88M	164.84M
Total Liabilities	641.32M	493.08M	409.69M	363.13M	351.69M	452.55M
Stockholders Equity	2.06B	2.11B	2.33B	2.59B	3.17B	3.55B
Cash Flow
Free Cash Flow	-180.69M	-208.81M	-83.93M	-525.61M	-176.54M	442.64M
Operating Cash Flow	-155.78M	-188.01M	-79.54M	-514.53M	-151.75M	456.81M
Investing Cash Flow	-107.97M	122.46M	-589.10M	85.66M	-1.09B	153.61M
Financing Cash Flow	-32.86M	-60.20M	-19.16M	-118.31M	-114.77M	1.90B

Archosaur Games Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9990, the sentiment is Negative. The current price of 1.74 is below the 20-day moving average (MA) of 1.77, below the 50-day MA of 1.98, and below the 200-day MA of 1.76, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9990.

Archosaur Games Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
3798	56 Neutral	HK$1.90B	-26.91	-3.33%	7.04%	-23.42%	-191.82%
6633	56 Neutral	HK$2.07B	25.27	4.10%	―	-41.86%	―
6820	51 Neutral	HK$1.16B	16.11	5.50%	―	30.71%	―
9990	45 Neutral	HK$1.37B	-7.52	-7.69%	―	41.00%	23.75%
1119	39 Underperform	HK$1.30B	―	-27.26%	―	-17.65%	48.05%
0302	39 Underperform	HK$1.15B	-0.41	-57.29%	―	-36.80%	-666.80%

Archosaur Games Inc. Corporate Events

Archosaur Games to Renew Tencent Partnership

Archosaur Games Inc. has announced an extraordinary general meeting to approve the renewal of its Tencent Game Cooperation Framework Agreement. This agreement, which includes IP rights licensing and exclusive publishing by Tencent, is set to enhance Archosaur’s operational capabilities and strengthen its market position over the next three years.

Archosaur Games Inc. Engages in Significant Wealth Management Transactions

Archosaur Games Inc. announced that its subsidiary, Archosaur Entertainment, has subscribed to wealth management products worth US$20 million through Standard Chartered Hong Kong. These transactions, involving bond-linked notes and credit-linked investments, are considered discloseable under Hong Kong’s listing rules due to their aggregated value exceeding 5% but remaining under 25%, thus requiring notification and announcement without needing shareholder approval.

Archosaur Games Renews Key Agreements with Tencent and Perfect World

Archosaur Games Inc. has announced the renewal and amendment of its existing agreements with Tencent and Perfect World, extending them for three years from January 2026 to December 2028. These agreements, which involve IP rights licensing, exclusive game publishing, and cloud services, are crucial for the company’s operations and market positioning. The transactions under these agreements are subject to various reporting and approval requirements under Hong Kong’s Listing Rules, highlighting their significance to the company’s strategic partnerships and financial planning.

Archosaur Games Renews Beijing Office Lease for Five Years

Archosaur Games Inc. has announced the renewal of a property lease agreement for office space in Beijing, effective from August 2025 to August 2030. This transaction, considered a discloseable transaction under Hong Kong’s listing rules, will allow the company to continue using the property for office purposes, with rental payments financed by the company’s own funds.

Archosaur Games Invests $24.2 Million in Wealth Management Products

Archosaur Games Inc. announced that its subsidiary, Archosaur Entertainment, has subscribed to wealth management products through UBS Singapore, with an aggregate investment value of US$24.2 million. This transaction is considered a discloseable transaction under the Hong Kong Listing Rules, as the aggregated percentage ratio exceeds 5% but is less than 25%, requiring notification and announcement but exempting shareholder approval. This strategic financial move is likely to impact the company’s financial portfolio and market positioning, as it involves significant investments in equity-linked and bond-linked notes.