7Road Holdings Limited (0797) AI Stock Analysis

7Road Holdings Limited

(HKEX:0797)

Select Model

Rating:62Neutral

Price Target:HKD 1.00▼(-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)

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
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	570.69M	521.29M	306.40M	627.73M	540.63M	420.54M
Gross Profit	411.80M	369.02M	212.28M	383.10M	261.20M	224.47M
EBITDA	66.99M	139.75M	8.48M	74.13M	145.35M	218.44M
Net Income	61.95M	37.02M	-73.45M	-146.46M	282.50M	94.24M
Balance Sheet
Total Assets	1.76B	1.91B	1.80B	2.27B	2.65B	2.01B
Cash, Cash Equivalents and Short-Term Investments	311.67M	330.01M	93.63M	67.82M	200.37M	152.18M
Total Debt	11.34M	11.35M	23.46M	367.93M	408.40M	89.39M
Total Liabilities	140.05M	193.88M	125.01M	519.99M	745.29M	387.12M
Stockholders Equity	1.62B	1.71B	1.68B	1.75B	1.90B	1.61B
Cash Flow
Free Cash Flow	-54.71M	-209.91M	47.34M	240.23M	63.25M	-244.41M
Operating Cash Flow	-48.65M	-204.73M	56.77M	245.40M	196.01M	175.13M
Investing Cash Flow	405.33M	479.77M	33.52M	-219.80M	-338.33M	-369.79M
Financing Cash Flow	-156.49M	-20.87M	-76.97M	-82.50M	135.45M	-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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:2660	77Outperform	HKD 2.47B	6.07	13.07%	16.95%	18.51%	13.18%
HK:0797	62Neutral	HKD 2.74B	39.18	3.71%	―	70.60%	―
HK:6633	61Neutral	HKD 2.14B	4.91	17.98%	―	-26.58%	406.66%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
HK:3798	58Neutral	HKD 1.45B	18.84	3.21%	―	0.99%	―
HK:0434	53Neutral	HKD 1.84B	-1.52	-45.89%	1.42%	3.44%	-228.78%
HK:9990	44Neutral	HKD 1.20B	-10.52	-4.78%	―	-1.05%	41.09%

* Communication Services Sector Average

Performance Comparison

HK:0797 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:0797	7Road Holdings Limited	1.11	0.43	61.59%
HK:0434	Boyaa Interactive International	2.58	-2.68	-51.05%
HK:9990	Archosaur Games Inc.	1.50	-0.58	-27.88%
HK:2660	Zengame Technology Holding Ltd.	2.36	0.20	9.21%
HK:3798	Homeland Interactive Technology Ltd.	1.13	-0.09	-7.38%
HK:6633	Qingci Games, Inc.	3.10	0.26	9.15%

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

7Road Holdings Limited AI Stock Analysis