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Changyou Alliance (HK:1039)
:1039
Hong Kong Market
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Changyou Alliance (1039) AI Stock Analysis

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HK:1039

Changyou Alliance

(1039)

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Neutral 46 (OpenAI - Gpt-5.6Sol)
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)

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
Operational trends are improving (2025 revenue up ~10.9%, gross margin up to ~22.8%, and EBIT/EBITDA back to positive), and cash flow rebounded strongly (positive operating and free cash flow). However, net income remains negative (net margin ~-8.4%), profitability and cash flow have been volatile across multiple years, and leverage has been rising (debt ~0.80x equity), keeping the overall financial profile below average.
Income Statement
34
Negative
Balance Sheet
45
Neutral
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue177.85M192.09M180.71M226.75M215.04M114.21M
Gross Profit43.72M43.85M39.27M39.27M28.27M12.67M
EBITDA9.55M8.44M-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 Assets149.03M148.90M138.82M149.55M154.41M191.01M
Cash, Cash Equivalents and Short-Term Investments39.00M33.82M8.43M25.71M33.63M51.34M
Total Debt177.48M175.50M165.75M168.76M145.69M115.92M
Total Liabilities307.93M310.37M293.19M302.87M270.21M253.23M
Stockholders Equity213.66M219.64M232.70M234.69M271.55M311.12M
Cash Flow
Free Cash Flow22.76M31.01M-18.76M6.65M-7.15M-103.90M
Operating Cash Flow22.97M31.26M-18.39M6.91M-7.01M-103.39M
Investing Cash Flow-400.13K-438.35K-552.00K-157.00K-527.00K-530.00K
Financing Cash Flow-10.01M-6.04M1.72M-14.40M-11.09M3.82M

Changyou Alliance Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.04
Price Trends
50DMA
0.05
Positive
100DMA
0.05
Negative
200DMA
0.05
Negative
Market Momentum
MACD
<0.01
Negative
RSI
54.69
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$1.49B6.9331.59%2.82%31.51%22.05%
73
Outperform
HK$3.20B15.7316.40%2.62%11.19%160.48%
65
Neutral
HK$359.76M21.416.22%4.11%-2.26%-17.43%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
47
Neutral
HK$21.61B15.5114.11%7.33%30.79%-44.14%
46
Neutral
HK$90.55M-4.85-7.36%9.55%2.00%
41
Neutral
HK$758.47M-0.0821.77%3.96%-28.44%42.64%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1039
Changyou Alliance
0.05
0.01
28.21%
HK:0493
GOME Retail Holdings
0.01
>-0.01
-47.37%
HK:2209
YesAsia Holdings Limited
3.55
-2.72
-43.37%
HK:9896
MINISO Group Holding Ltd.
17.80
-28.73
-61.75%
HK:0178
Sa Sa International Holdings Limited
1.03
0.45
76.37%
HK:2347
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.Date of analysis: Sep 11, 2026