Fire Rock Holdings Ltd (1909) AI Stock Analysis

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Fire Rock Holdings Ltd

(HKEX:1909)

Select Model

Rating:47Neutral

Price Target:HKD 1.50▼(-13.04% Downside)

Action:reiterated

Date:10/17/26

The score is primarily constrained by weak financial performance—sharp profitability deterioration and negative/volatile cash flow—despite a recently conservative leverage position. Technicals are modestly supportive with price above key short-to-medium moving averages, but mixed momentum and a position below the 200-day average limit conviction. Valuation is also pressured by losses (negative P/E) and no provided dividend yield.

Positive Factors

2025 Revenue GrowthStrong 2025 revenue growth indicates the company expanded its top line materially during the latest reported year. If the increase is sustained, it can provide a broader base for operating leverage, reinvestment, and recovery in profitability over the next several quarters.

Negative Factors

Severe Profitability DeteriorationProfitability deteriorated sharply even as revenue grew, showing that expansion is not currently translating into earnings. The collapse in net margin and substantial EBIT compression weaken internal funding capacity and make a durable recovery dependent on restoring cost, pricing, or product economics.

Fire Rock Holdings Ltd (1909) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 418.87M
Dividend Yield: ―
Average Volume (3M): 51.16K
Price to Earnings (P/E): -5.2
Beta (1Y): 0.58
Revenue Growth: -2.04%
EPS Growth: -46.22%
Country: Hong Kong
Employees: 188
Sector: Communication Services
Sector Strength: 60
Industry: Electronic Gaming & Multimedia

Fire Rock Holdings Ltd Business Overview & Revenue Model

Company Description

Fire Rock Holdings Limited functions as an investment holding enterprise, primarily specializing in the development of games for web browsers and mobile devices. Its market reach encompasses the People's Republic of China, North America, Europe, and...

Fire Rock Holdings Ltd Financial Statement Overview

Summary

Despite strong 2025 revenue growth (+36.6% YoY), profitability deteriorated sharply (net margin -44.1%; EBIT margin ~3.2%) and gross margin fell materially (~62.8% vs ~78.0% in 2024). Cash flow also weakened with negative operating cash flow (-1.7M) and negative free cash flow (-3.0M). The balance sheet is conservatively levered recently (debt-to-equity ~0.026 in 2025), but large losses and multi-year volatility keep the financial profile below average.

Income Statement

34Negative

Balance Sheet

76Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Jun 2023	Dec 2021
Income Statement
Total Revenue	184.57M	146.15M	140.59M	134.93M	115.06M	1.04B
Gross Profit	123.55M	95.48M	112.77M	107.54M	76.59M	867.08M
EBITDA	3.52M	15.30M	22.24M	592.19M	13.74M	712.50M
Net Income	-73.56M	-64.38M	-17.07M	559.91M	30.20M	-1.21B
Balance Sheet
Total Assets	148.81M	157.81M	134.68M	160.87M	189.71M	397.29M
Cash, Cash Equivalents and Short-Term Investments	91.30M	112.84M	53.64M	85.49M	119.54M	347.75M
Total Debt	10.64M	3.35M	1.99M	1.22M	585.92M	620.00M
Total Liabilities	30.50M	22.84M	20.68M	20.55M	610.97M	852.93M
Stockholders Equity	109.11M	128.25M	112.30M	131.07M	-430.01M	-461.39M
Cash Flow
Free Cash Flow	-15.75M	-3.02M	5.70M	-38.63M	-2.70M	523.86M
Operating Cash Flow	-13.86M	-1.73M	6.16M	-23.72M	2.59M	550.61M
Investing Cash Flow	2.65M	-778.00K	-9.24M	4.52M	-19.61M	-741.98M
Financing Cash Flow	70.36M	61.58M	-27.61M	-16.32M	-212.01M	-178.83M

Fire Rock Holdings Ltd Technical Analysis

Technical Analysis SentimentNegative

Last Price1.73

Price Trends

50DMA1.83Negative

100DMA1.84Negative

200DMA2.07Negative

Market Momentum

MACD-0.00Positive

RSI41.52Neutral

STOCH10.61Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1909, the sentiment is Negative. The current price of 1.73 is below the 20-day moving average (MA) of 1.81, below the 50-day MA of 1.83, and below the 200-day MA of 2.07, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 10.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1909.

Fire Rock Holdings Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

HK:1909 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:2458	80Outperform	HKD 836.77M	3.87	37.21%	―	16.38%	80.73%
HK:2660	77Outperform	HKD 2.47B	6.07	13.07%	16.95%	18.51%	13.18%
HK:6820	61Neutral	HKD 730.58M	4.82	9.81%	5.97%	0.50%	101.22%
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
HK:1909	47Neutral	HKD 418.87M	-5.18	-61.95%	―	-2.04%	-46.22%
HK:0302	42Neutral	HKD 511.41M	-0.45	-38.88%	―	-30.74%	64.20%
HK:1119	41Neutral	HKD 686.94M	95.66	0.56%	―	4.87%	―

* Communication Services Sector Average

Performance Comparison

HK:1909 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1909	Fire Rock Holdings Ltd	1.73	-0.16	-8.73%
HK:1119	iDreamSky Technology Holdings Limited	0.30	-0.52	-63.25%
HK:2458	Gala Technology Holding Limited	6.58	0.12	1.78%
HK:2660	Zengame Technology Holding Ltd.	2.36	0.20	9.21%
HK:0302	CMGE Technology Group Limited	0.16	-0.24	-59.00%
HK:6820	FriendTimes Inc.	0.34	-0.17	-33.93%

Fire Rock Holdings Ltd Corporate Events

Fire Rock Holdings Narrows Revenue Gains But Extends Interim Loss

Aug 10, 2026

Fire Rock Holdings reported a modest 1.8% rise in revenue to HKD74.2 million for the six months ended 30 June 2026, with gross profit up 2.3% to HKD56.7 million, indicating stable core operations despite higher operating expenses. However, the group&...

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 17, 2026

Fire Rock Holdings Ltd AI Stock Analysis

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