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Changyou Alliance
(1039)
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Rating:46Neutral
Price Target:
HK$0.05
▲(22.50% Upside)
Action:Reiterated
Date:09/11/26
The score is primarily held back by weak financial performance driven by ongoing net losses, historical volatility, and rising leverage, despite improving operating margins and a strong return to positive free cash flow. Technicals are neutral with modest near-term improvement but no clear long-term uptrend, while valuation is constrained by a negative P/E and lack of dividend yield data.
Positive Factors
Revenue and operating recovery
Revenue growth of about 10.9% in 2025, alongside renewed positive EBIT and EBITDA margins, indicates the core operation is recovering rather than merely cutting costs. If sustained, improved activity can rebuild earnings capacity and provide a stronger base for future cash generation.
Negative Factors
Persistent net losses
Despite positive EBIT and EBITDA, the company still reported a substantial net loss, showing that operational recovery has not yet translated into bottom-line profitability. Continued losses can erode equity, limit internally funded growth, and weaken the durability of the broader financial improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and operating recovery
Revenue growth of about 10.9% in 2025, alongside renewed positive EBIT and EBITDA margins, indicates the core operation is recovering rather than merely cutting costs. If sustained, improved activity can rebuild earnings capacity and provide a stronger base for future cash generation.
Read all positive factors
Changyou Alliance (1039) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$90.55M
Dividend YieldN/A
Average Volume (3M)183.77K
Price to Earnings (P/E)―
Beta (1Y)0.02
Revenue Growth9.55%
EPS Growth2.00%
CountryHK
Employees47
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding1,810,953,200
10 Day Avg. Volume108,300
30 Day Avg. Volume183,766
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)0.39
Price to Sales (P/S)0.44
P/FCF Ratio2.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 t...
Changyou Alliance Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
45
Neutral
Cash Flow
58
Neutral
| 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 | 9.55M | 8.44M | -1.95M | -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
Positive
0.04
Price Trends
0.05
Positive
0.05
Negative
0.05
Negative
Market Momentum
<0.01
Negative
54.69
Neutral
17.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1039, the sentiment is Positive. The current price of 0.04 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1039.
Changyou Alliance Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$1.49B | 6.93 | 31.59% | 2.82% | 31.51% | 22.05% | |
73 Outperform | HK$3.20B | 15.73 | 16.40% | 2.62% | 11.19% | 160.48% | |
65 Neutral | HK$359.76M | 21.41 | 6.22% | 4.11% | -2.26% | -17.43% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
47 Neutral | HK$21.61B | 15.51 | 14.11% | 7.33% | 30.79% | -44.14% | |
46 Neutral | HK$90.55M | -4.85 | -7.36% | ― | 9.55% | 2.00% | |
41 Neutral | HK$758.47M | -0.08 | 21.77% | 3.96% | -28.44% | 42.64% |
* Consumer Cyclical Sector Average
HK:1039
Changyou Alliance
0.05
0.01
28.21%
HK:0493
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0.01
>-0.01
-47.37%
HK:2209
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3.55
-2.72
-43.37%
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MINISO Group Holding Ltd.
17.80
-28.73
-61.75%
HK:0178
Sa Sa International Holdings Limited
1.03
0.45
76.37%
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Yoho Group Holdings Ltd.
0.73
0.01
1.67%
Changyou Alliance Corporate Events
Changyou International Swings to Interim Profit Despite Revenue Decline
Aug 26, 2026
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 top...
Changyou International Flags Interim Profit on FX Gains and Lower Tax
Aug 13, 2026
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 improveme...
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.