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Changyou Alliance (1039) AI Stock Analysis
Changyou Alliance
(HKEX:1039)
The score is driven primarily by improving financial performance and a sharp recovery in 2025 cash flow, but it is held back by continued net losses, rising leverage, and volatile multi-year profitability/cash generation. Technicals are weak-to-neutral (below the 20-day average with subdued RSI/Stoch), and valuation signals are constrained by a negative P/E and no provided dividend yield.
Changyou Alliance (1039) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 94.17M
- Dividend Yield
- ―
- Average Volume (3M)
- 336.91K
- Price to Earnings (P/E)
- -5.0
- Beta (1Y)
- -0.11
- Revenue Growth
- 9.55%
- EPS Growth
- 2.00%
- Country
- Hong Kong
- Employees
- 47
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Specialty Retail
Changyou Alliance Business Overview & Revenue Model
Company Description
As an investment holding company, Changyou Alliance Group Limited is primarily involved in the digital points industry across the People's Republic of China. The firm runs the "Changyou electronic platform," a system designed to enable customers to t...
Changyou Alliance Financial Statement Overview
Summary
Operating fundamentals are improving (revenue up ~10.9% in 2025, gross margin up to ~22.8%, and a return to positive EBIT/EBITDA margins), and 2025 shows a strong rebound to positive operating and free cash flow (~31M). However, net income remains negative (net margin ~-8.4%), profitability/cash flow have been volatile across multiple years, and leverage has been rising (debt ~0.80x equity), keeping the financial profile below average despite the recovery.
Income Statement
34NegativeBalance Sheet
45NeutralCash Flow
58Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 177.85M | 192.09M | 180.71M | 226.75M | 215.04M | 114.21M |
| Gross Profit | 43.72M | 43.85M | 39.27M | 39.27M | 28.27M | 12.67M |
| EBITDA | 10.00M | 9.34M | 175.00K | -5.33M | -17.55M | -93.97M |
| Net Income | -15.95M | -16.08M | -19.52M | -37.56M | -34.73M | -49.47M |
Balance Sheet | ||||||
| Total Assets | 149.03M | 148.90M | 138.82M | 149.55M | 154.41M | 191.01M |
| Cash, Cash Equivalents and Short-Term Investments | 39.00M | 33.82M | 8.43M | 25.71M | 33.63M | 51.34M |
| Total Debt | 177.48M | 175.50M | 165.75M | 168.76M | 145.69M | 115.92M |
| Total Liabilities | 307.93M | 310.37M | 293.19M | 302.87M | 270.21M | 253.23M |
| Stockholders Equity | 213.66M | 219.64M | 232.70M | 234.69M | 271.55M | 311.12M |
Cash Flow | ||||||
| Free Cash Flow | 22.76M | 31.01M | -18.76M | 6.65M | -7.15M | -103.90M |
| Operating Cash Flow | 22.97M | 31.26M | -18.39M | 6.91M | -7.01M | -103.39M |
| Investing Cash Flow | -400.13K | -438.35K | -552.00K | -157.00K | -527.00K | -530.00K |
| Financing Cash Flow | -10.01M | -6.04M | 1.72M | -14.40M | -11.09M | 3.82M |
Changyou Alliance Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1039, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of -20.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1039.
Changyou Alliance Peers Comparison
Overall Rating
HK:017873Outperform
HK:220969Neutral
HK:234762Neutral
HK:989650Neutral- HK:103946Neutral
HK:049337Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:0178 | 73Outperform | HKD 4.05B | 19.92 | 16.40% | 2.06% | 11.19% | 160.48% |
| HK:2209 | 69Neutral | HKD 1.21B | 5.64 | 31.59% | 3.46% | 31.51% | 22.05% |
| HK:2347 | 62Neutral | HKD 374.55M | 22.29 | 6.22% | 3.95% | -2.26% | -17.43% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| HK:9896 | 50Neutral | HKD 24.06B | 17.16 | 14.11% | 6.58% | 30.79% | -44.14% |
| HK:1039 | 46Neutral | HKD 94.17M | -5.01 | -7.36% | ― | 9.55% | 2.00% |
| HK:0493 | 37Underperform | HKD 758.47M | -0.08 | 21.77% | ― | -28.44% | 42.64% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1039 | Changyou Alliance Group Ltd. | 0.05 | 0.01 | 36.84% | |
| HK:0493 | GOME Retail Holdings | 0.01 | -0.01 | -44.44% | |
| HK:2209 | YesAsia Holdings Limited | 2.89 | -1.92 | -39.95% | |
| HK:9896 | MINISO Group Holding Ltd. | 19.82 | -20.46 | -50.80% | |
| HK:0178 | Sa Sa International Holdings Limited | 1.30 | 0.73 | 126.96% | |
| HK:2347 | Yoho Group Holdings Ltd. | 0.76 | 0.14 | 22.19% |
Changyou Alliance Corporate Events
Changyou International Swings to Interim Profit Despite Revenue Decline
Changyou International Group reported interim revenue of RMB77.2 million for the six months ended 30 June 2026, down 14.6% year on year, as gross merchandise value from its Changyou Alliance business fell 11.1% to RMB109.1 million. Despite the toplin...
Changyou International Flags Interim Profit on FX Gains and Lower Tax
Changyou International Group Limited said it expects to swing to a consolidated profit of about RMB3.7 million for the six months ended 30 June 2026, compared with a loss of roughly RMB3.8 million a year earlier. The group attributes the improvement...
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 29, 2026