Rego Interactive Co., Ltd. (2422) AI Stock Analysis

• Market Cap: HK$622.50M
• Dividend Yield: N/A
• Average Volume (3M): 238.60K
• Price to Earnings (P/E): 130.3
• Beta (1Y): 0.10
• Revenue Growth: 10.61%
• EPS Growth: -1890.91%
• Country: HK
• Employees: 311
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -0.03
• Shares Outstanding: 1,500,000,000
• 10 Day Avg. Volume: 371,400
• 30 Day Avg. Volume: 238,600
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$0.50
• Price Target Upside: 19.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(19.05% Upside)

Rego Interactive Co., Ltd. has a challenging financial performance with significant issues in profitability and cash flow, which are the most significant factors impacting the score. Technical analysis shows some short-term strength, but the valuation is weak due to negative earnings and no dividend yield.

Rego Interactive Co., Ltd. Business Overview & Revenue Model

Company Description

Rego Interactive Co., Ltd provides marketing services in the People's Republic of China. It operates in two segments, Marketing and Promotion Services, and Information Technology (IT) Solutions Services. The Marketing and Promotion Services segment offers promotion and advertising services, where the company assist enterprise advertisers in acquiring and/or reactivating users through various services, including traditional marketing and promotion services; advertisement placement services; and advertisement distribution services. This segment also provides virtual goods sourcing and delivery services, where it sources virtual goods, such as top-up coupons of telecommunication services, digital vouchers, and gift cards for enterprises and delivers the virtual goods to user acquisition, engagement, and/or retention purposes. The IT Solutions Services segment offers mobile game, and software development and maintenance services; and solutions on lottery-related software systems and equipment. The company also sells lottery tickets through its offline shops. Its customers primarily include enterprise advertisers and advertising agents using its traditional marketing and promotion services; enterprise advertisers and advertising agents engaging for advertisement placement services; media publishers as advertising agents using its advertisement distribution services; enterprises and virtual goods procurement agents procuring virtual goods; and mobile game operators, as well as welfare lottery centers and lottery sales points using its IT solutions services. The company was founded in 2009 and is headquartered in Hangzhou, China.

How the Company Makes Money

Rego Interactive Co., Ltd. generates revenue primarily through the sale and distribution of its mobile games and applications. The company employs a freemium model for many of its games, where the basic version is free to play, while in-game purchases and premium features provide additional revenue streams. Additionally, Rego Interactive earns income from digital marketing services by offering targeted advertising solutions and interactive marketing campaigns for corporate clients. Partnerships with other technology firms and content creators further augment their revenue by expanding their service offerings and market reach.

Rego Interactive Co., Ltd. Financial Statement Overview

Summary

Rego Interactive Co., Ltd. is experiencing revenue growth but faces profitability and cash flow challenges. The balance sheet is stable, but attention to improving profitability and cash flow is crucial to support future growth and financial stability.

Income Statement

The company shows a significant revenue growth from the previous year, indicating positive business momentum. However, the negative net income and EBIT margins suggest struggles with profitability, which could be due to cost management issues or increased expenses.

Balance Sheet

The balance sheet is relatively stable with a healthy equity position. The debt-to-equity ratio is moderate, but the decline in stockholders' equity indicates potential financial risk if leveraged excessively.

Cash Flow

Cash flows indicate instability with negative operating cash flow and zero free cash flow, highlighting liquidity concerns. The company must improve cash management to bolster financial health.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	244.65M	191.06M	256.59M	219.55M	113.04M
Gross Profit	65.81M	101.67M	133.46M	110.21M	75.87M
EBITDA	-27.39M	24.22M	95.23M	66.03M	52.61M
Net Income	-37.96M	12.56M	68.50M	49.98M	45.78M
Balance Sheet
Total Assets	531.95M	637.38M	399.70M	235.06M	154.31M
Cash, Cash Equivalents and Short-Term Investments	138.99M	186.48M	186.85M	61.48M	32.06M
Total Debt	94.05M	156.35M	38.35M	21.10M	10.38M
Total Liabilities	173.16M	244.73M	102.24M	129.16M	51.66M
Stockholders Equity	359.62M	392.66M	297.46M	105.90M	102.65M
Cash Flow
Free Cash Flow	-13.65M	-80.46M	-9.51M	24.28M	7.20M
Operating Cash Flow	14.33M	-77.74M	-7.18M	26.59M	15.96M
Investing Cash Flow	5.86M	-100.82M	-2.33M	-7.22M	-21.52M
Financing Cash Flow	-67.68M	178.19M	134.88M	10.05M	-4.72M

Rego Interactive Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2422, the sentiment is Negative. The current price of 0.42 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.41, and below the 200-day MA of 0.51, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2422.

Rego Interactive Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9919	69 Neutral	752.19M	8.24	23.21%	9.21%	-9.72%	-13.36%
2422	52 Neutral	HK$622.50M	130.30	-16.52%	―	10.61%	-1890.91%
1753	48 Neutral	306.89M	-6.01	-2.98%	―	-5.89%	-330.91%
1993	45 Neutral	329.93M	-6.41	0.00%	―	-38.24%	-31.99%
1917	43 Neutral	137.88M	-8.70	0.00%	―	-5.03%	-35.29%
0205	38 Underperform	309.18M	-22.58	0.00%	―	-4.13%	76.38%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Rego Interactive Co., Ltd. Corporate Events

Rego Interactive Reports Interim Financial Results Amid Shifting Advertising Landscape

Rego Interactive Co., Ltd. announced its unaudited interim financial results for the first half of 2025, revealing a 16.8% increase in revenue but a significant decline in gross profit and a net loss compared to the previous year. The company attributes these results to a downturn in consumer market sentiment in China, leading to reduced marketing budgets, and the rapid evolution of digital advertising driven by AI and automation. Despite these challenges, Rego Interactive aims to capitalize on its expertise and new product offerings to navigate the shifting advertising landscape.

The most recent analyst rating on (HK:2422) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Rego Interactive Co., Ltd. stock, see the HK:2422 Stock Forecast page.

Rego Interactive Issues Profit Warning Amid Economic Challenges

Rego Interactive Co., Ltd. has issued a profit warning, anticipating a significant net loss of at least RMB17.3 million for the first half of 2025, a stark contrast to the net profit recorded in the same period of 2024. This downturn is attributed to reduced marketing budgets in China and a cautious approach in customer selection amid a challenging global economic climate. The company plans to focus on its core business areas, improve operational efficiency, and seek new opportunities in digitalization solutions to navigate the economic uncertainties.

The most recent analyst rating on (HK:2422) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Rego Interactive Co., Ltd. stock, see the HK:2422 Stock Forecast page.

Rego Interactive Updates on 2023 Share Award Scheme

Rego Interactive Co., Ltd has issued a supplemental announcement regarding its 2024 Annual Report, specifically addressing the 2023 Share Award Scheme. The scheme, which allows employees, officers, and directors to participate, is funded by existing shares, with 14,864,000 shares available for grant. However, no awards under this scheme have been granted or agreed upon during the financial year ending December 31, 2024, or the six months ending June 30, 2025. This supplemental information does not alter other details in the 2024 Annual Report.

Rego Interactive Expands with Strategic Acquisition in Lottery Marketing Sector

Rego Interactive Co., Ltd announced a supplemental disclosure regarding its acquisition of a 95% equity interest in a target company that provides lottery marketing support services in China. The acquisition, valued at RMB18,300,000, was based on a comprehensive valuation using the market approach, reflecting the target company’s financial performance and growth prospects. This strategic move is expected to enhance Rego Interactive’s market positioning in the charitable fundraising sector, aligning with regulatory compliance and operational standards in China.

Rego Interactive Co., Ltd Announces Acquisition of Target Company Shares

Rego Interactive Co., Ltd has announced a discloseable transaction involving the acquisition of all existing issued shares of a target company for RMB18,300,000. This acquisition, conducted through a wholly-owned subsidiary, is subject to notification and announcement requirements under the Hong Kong Listing Rules, as it exceeds certain percentage ratios. The transaction is expected to enhance Rego Interactive’s market positioning by integrating the target company’s resources and expertise.

Rego Interactive Co., Ltd. Announces Unanimous Approval of AGM Resolutions

Rego Interactive Co., Ltd. successfully held its Annual General Meeting on June 26, 2025, where all proposed resolutions were unanimously approved by shareholders. The resolutions included the re-election of several executive directors, the re-appointment of BDO Limited as the company’s auditor, and granting the board mandates to manage share allotments and repurchases, indicating strong shareholder support and strategic positioning for future growth.

Rego Interactive’s Shareholders Pledge Shares for Subsidiary Guarantee

Rego Interactive Co., Ltd. announced that its controlling shareholders, Vicen Investments Limited, Tanshin Investments Limited, and Sprus Investments Limited, have pledged a significant number of shares with Hangzhou Xingsheng Equity Investment Co., Ltd. as security for a guarantee amounting to RMB18,500,000 for its subsidiary, Hangzhou Rego Network Company Limited. The pledged shares, which collectively account for a small percentage of the company’s total shares, remain under the ownership and control of the shareholders, ensuring no transfer of ownership or voting rights during the pledge period.