TipRanks
Go Ultimate55% OFF

7Road Holdings Limited (0797) AI Stock Analysis

Top Page

HK:0797

7Road Holdings Limited

(HKEX:0797)

Select Model
Rating:62Neutral
Price Target:HKD 1.00â–¼(-10.31% Downside)
Action:reiterated
Date:10/31/26

The score is driven primarily by improved profitability and a very low-debt balance sheet, partially offset by weak cash conversion (deeply negative operating/free cash flow in the latest year). Technicals are moderately supportive with positive momentum, while valuation is a drag due to the high P/E and lack of dividend yield data.

Positive Factors
Revenue recoveryThe sharp 2025 revenue recovery indicates renewed business activity and restored operating scale after two loss-making years. If demand and execution remain supportive, stronger sales can help the company leverage its high-margin model and rebuild sustainable earnings over the next several quarters.
Negative Factors
Weak cash conversionNegative operating and free cash flow despite reported profit signals that earnings did not translate into cash during the latest year. If this mismatch persists, it could constrain reinvestment, increase dependence on balance-sheet resources, and reduce the durability of the earnings recovery.

7Road Holdings Limited (0797) vs. iShares MSCI Hong Kong ETF (EWH)

-50%0%50%100%150%200%HK:0797+48.67%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 2.64B
Dividend Yield
―
Average Volume (3M)
676.74K
Price to Earnings (P/E)
39.2
Beta (1Y)
-1.80
Revenue Growth
70.60%
EPS Growth
―
Country
Hong Kong
Employees
229
Sector
Communication Services
Sector Strength
60
Industry
Electronic Gaming & Multimedia

7Road Holdings Limited Business Overview & Revenue Model

Company Description

Operating as an investment holding company, 7Road Holdings Limited is a prominent player in the global gaming industry, specializing in the development and distribution of both web and mobile games, particularly across the People's Republic of China....

7Road Holdings Limited Financial Statement Overview

Summary

Strong 2025 rebound in profitability (revenue +47.9%, net margin ~7.1%, high gross margin ~70.8%) and a conservatively positioned balance sheet (debt-to-equity ~0.7%). However, cash flow quality is a major weakness: operating cash flow and free cash flow turned deeply negative in 2025 despite positive net income, and historical cash flow has been volatile.

Income Statement

66Positive

Balance Sheet

84Very Positive

Cash Flow

32Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue570.69M521.29M306.40M627.73M540.63M420.54M
Gross Profit411.80M369.02M212.28M383.10M261.20M224.47M
EBITDA66.99M139.75M8.48M74.13M145.35M218.44M
Net Income61.95M37.02M-73.45M-146.46M282.50M94.24M
Balance Sheet
Total Assets1.76B1.91B1.80B2.27B2.65B2.01B
Cash, Cash Equivalents and Short-Term Investments311.67M330.01M93.63M67.82M200.37M152.18M
Total Debt11.34M11.35M23.46M367.93M408.40M89.39M
Total Liabilities140.05M193.88M125.01M519.99M745.29M387.12M
Stockholders Equity1.62B1.71B1.68B1.75B1.90B1.61B
Cash Flow
Free Cash Flow-54.71M-209.91M47.34M240.23M63.25M-244.41M
Operating Cash Flow-48.65M-204.73M56.77M245.40M196.01M175.13M
Investing Cash Flow405.33M479.77M33.52M-219.80M-338.33M-369.79M
Financing Cash Flow-156.49M-20.87M-76.97M-82.50M135.45M-74.71M

7Road Holdings Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price1.11

Price Trends

50DMA1.02Positive
100DMA1.06Positive
200DMA0.87Positive

Market Momentum

MACD0.00Negative
RSI65.30Neutral
STOCH96.53Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0797, the sentiment is Positive. The current price of 1.11 is above the 20-day moving average (MA) of 1.00, above the 50-day MA of 1.02, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of 0.00 indicates Negative momentum. The RSI at 65.30 is Neutral, neither overbought nor oversold. The STOCH value of 96.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0797.

7Road Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (60)

Financial Indicators

HK:0797 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:2660HK:266077OutperformHKD 2.47B6.0713.07%16.95%18.51%13.18%
HK:0797HK:079762NeutralHKD 2.74B39.183.71%―70.60%―
HK:6633HK:663361NeutralHKD 2.14B4.9117.98%―-26.58%406.66%
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
HK:3798HK:379858NeutralHKD 1.45B18.843.21%―0.99%―
HK:0434HK:043451NeutralHKD 1.84B-1.52-45.89%1.42%3.44%-228.78%
HK:9990HK:999044NeutralHKD 1.20B-10.52-4.78%―-1.05%41.09%

* Communication Services Sector Average

Performance Comparison

-50%0%50%100%150%HK:0797HK:0434HK:9990HK:2660HK:3798HK:6633Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:0797 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:07977Road Holdings Limited1.110.4361.59%
HK:0434Boyaa Interactive International 2.58-2.68-51.05%
HK:9990Archosaur Games Inc.1.50-0.58-27.88%
HK:2660Zengame Technology Holding Ltd.2.360.209.21%
HK:3798Homeland Interactive Technology Ltd.1.13-0.09-7.38%
HK:6633Qingci Games, Inc.3.100.269.15%

7Road Holdings Limited Corporate Events

7Road Wins Shareholder Approval for 10% Share Buyback Mandate

Sep 4, 2026

Shareholders of 7Road Holdings Limited approved an ordinary resolution at an extraordinary general meeting on 4 September 2026, granting directors a new general mandate to repurchase up to 10% of the company’s issued shares, excluding treasury...

7Road Profit Nearly Doubles as China Gaming Market Expands

Aug 31, 2026

7Road Holdings Limited, a Cayman-incorporated company listed in Hong Kong, is a major participant in China’s gaming sector as a developer and operator of online and mobile titles. With operations spanning domestic and overseas markets, it focus...

7Road Reshapes Company Secretarial Team to Bolster Governance Compliance

Aug 31, 2026

7Road Holdings Limited has announced changes to its corporate governance team, with the resignation of joint company secretary, authorised representative and process agent Cheng Ching Kit effective 31 August 2026 and the appointment of Au Wing Han to...

7Road Holdings Calls EGM to Renew 10% Share Buyback Mandate

Aug 17, 2026

7Road Holdings Limited has called an extraordinary general meeting for 4 September 2026 in Shenzhen to seek shareholder approval for a new share repurchase mandate. The proposed resolution would allow directors to buy back shares on the Hong Kong Sto...

7Road Schedules Board Meeting to Approve 2026 Interim Results and Dividend Plan

Aug 11, 2026

7Road Holdings Limited has called a board meeting for 31 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the potential declaration and payment of an interim dividend, a decisio...

7Road Signals Strong Interim Profit Growth on Robust Online Game Revenue

Aug 7, 2026

7Road Holdings Limited has issued a positive profit alert, indicating that it expects to report net profit of about RMB52 million for the six months ended 30 June 2026, up from approximately RMB26.1 million a year earlier. The improvement is mainly a...

7Road Flags New Connected Transactions After Huatong Becomes Major Shareholder

Jul 31, 2026

7Road Holdings Limited has disclosed that Huatong, through its subsidiaries, has become a substantial shareholder with about 10.94% of its issued shares, turning existing commercial arrangements into continuing connected transactions under Hong Kong...

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: Oct 31, 2026