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Rego Interactive Co., Ltd. (HK:2422)
:2422
Hong Kong Market
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Rego Interactive Co., Ltd. (2422) AI Stock Analysis

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HK:2422

Rego Interactive Co., Ltd.

(2422)

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Neutral 44 (OpenAI - Gpt-5.6Sol)
Rating:44Neutral
Price Target:
HK$1.50
▲(82.93% Upside)
Action:Reiterated
Date:08/25/26
The score is primarily held down by weak financial performance—margin collapse, sustained losses, and significant negative operating/free cash flow—despite strong revenue growth. Technicals also lean bearish in the near term with the price below key short-term moving averages and weak RSI/Stoch readings. Valuation provides limited support because the negative P/E reflects ongoing losses and no dividend yield data is available.
Positive Factors
Strong Revenue Growth
The sharp 2025 revenue rebound shows that the company can expand its top line despite recent profitability problems. Continued growth in digital games and online services could improve operating leverage over the next several quarters if revenue gains are converted into healthier margins.
Negative Factors
Severe Margin Compression and Losses
Revenue growth has not translated into profitable expansion. The steep gross-margin decline and shift to negative operating profit indicate that pricing, product mix, or cost control has weakened, making future earnings dependent on a durable improvement in economics rather than sales growth alone.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
The sharp 2025 revenue rebound shows that the company can expand its top line despite recent profitability problems. Continued growth in digital games and online services could improve operating leverage over the next several quarters if revenue gains are converted into healthier margins.
Read all positive factors

Rego Interactive Co., Ltd. (2422) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company Description
Rego Interactive Co., Ltd, founded in 2009 and based in Hangzhou, China, delivers a broad spectrum of marketing and technology services throughout the People's Republic of China. Its operations are divided into two core segments: Marketing and Pro...

Rego Interactive Co., Ltd. Financial Statement Overview

Summary
Despite sharp 2025 revenue growth (+85.7%), profitability and cash generation deteriorated materially: gross margin fell to 8.9% (from 26.9% in 2024), operating profit remained negative (2024–2025 vs. positive in 2020–2023), and net margin stayed deeply negative (-14.5%). The balance sheet is still workable with moderate leverage (~0.45x debt-to-equity) and meaningful equity, but negative ROE (-25.1%) and rising leverage increase risk if losses persist.
Income Statement
33
Negative
Balance Sheet
55
Neutral
Cash Flow
27
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue504.12M503.59M244.65M191.06M256.59M219.55M
Gross Profit36.05M44.66M65.81M101.67M133.46M110.21M
EBITDA-21.60M-46.80M-25.60M23.43M84.34M69.19M
Net Income-47.84M-73.21M-37.96M12.56M68.50M49.98M
Balance Sheet
Total Assets541.38M479.54M531.95M637.38M399.70M235.06M
Cash, Cash Equivalents and Short-Term Investments60.19M76.75M138.99M186.48M186.85M61.48M
Total Debt115.41M129.05M94.05M156.35M38.35M21.10M
Total Liabilities196.95M198.20M173.16M244.73M102.24M129.16M
Stockholders Equity348.07M283.73M359.62M392.66M297.46M105.90M
Cash Flow
Free Cash Flow-129.26M-69.26M-13.65M-80.46M-9.51M24.28M
Operating Cash Flow-127.78M-67.79M14.33M-77.74M-7.18M26.59M
Investing Cash Flow-24.36M-25.94M5.86M-100.82M-2.33M-7.22M
Financing Cash Flow64.60M30.80M-67.68M178.19M134.88M10.05M

Rego Interactive Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.82
Price Trends
50DMA
2.31
Negative
100DMA
2.05
Negative
200DMA
1.63
Positive
Market Momentum
MACD
-0.07
Positive
RSI
39.40
Neutral
STOCH
25.93
Neutral
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 0.82 is below the 20-day moving average (MA) of 2.03, below the 50-day MA of 2.31, and below the 200-day MA of 1.63, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 39.40 is Neutral, neither overbought nor oversold. The STOCH value of 25.93 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$2.70B6.2116.67%9.00%3.40%12.68%
67
Neutral
HK$20.11B30.7623.78%2.16%25.61%95.27%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
52
Neutral
HK$864.00M533.333.06%3.86%-1.69%-73.57%
46
Neutral
HK$205.61M19.58-47.52%23.70%1.67%―
44
Neutral
HK$2.96B-52.30-15.14%―95.63%20.22%
44
Neutral
HK$600.58M120.001.73%―885.14%―
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2422
Rego Interactive Co., Ltd.
1.80
1.34
291.30%
HK:0752
Pico Far East Holdings
2.11
-0.28
-11.60%
HK:1716
Most Kwai Chung Ltd.
3.20
2.66
492.59%
HK:1860
Mobvista, Inc.
11.90
-4.20
-26.09%
HK:1993
Asiaray Media Group Ltd.
0.43
-0.32
-42.67%
HK:0205
SEEC Media Group Limited
0.48
0.18
60.00%

Rego Interactive Co., Ltd. Corporate Events

Rego Interactive Swings to Profit as It Bets on AI-Driven Agentic Marketing
Aug 31, 2026
In the first half of 2026, Rego Interactive reported marginal revenue growth to RMB136.1 million, but its profitability improved sharply, swinging from a loss to a net profit of RMB5.7 million. Gross profit fell by 40.1%, yet the turnaround in ear...
Rego Interactive Sets August Board Meeting to Approve Interim Results and Consider Dividend
Aug 19, 2026
Rego Interactive Co., Ltd. has scheduled a board meeting for 31 August 2026 to review and approve the group’s interim results for the six months ended 30 June 2026. The board will also consider the potential declaration of an interim dividen...
Rego Interactive Signals Profit Turnaround on Cost Cuts and Portfolio Streamlining
Aug 14, 2026
Rego Interactive Co., Ltd., a Cayman Islands-incorporated group listed in Hong Kong, operates in the digital and interactive services space. It has been tightening customer selection to manage credit risk while optimising its cost structure and re...
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: Aug 25, 2026