Inke Ltd. (3700) AI Stock Analysis

• Market Cap: HK$1.83B
• Dividend Yield: 4.08%
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.46
• Revenue Growth: -17.47%
• EPS Growth: -7.94%
• Country: HK
• Employees: 1,416
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.14
• Shares Outstanding: 1,937,442,000
• 10 Day Avg. Volume: 1,752,030
• 30 Day Avg. Volume: 2,629,616
• PEG Ratio: -0.41
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 85.79
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.77
• Revenue Forecast (FY): HK$60.87B

• Rating: 66 Neutral
• Price Target: HK$1.00 ▲(0.00% Upside)

Inke Ltd.'s overall stock score is driven by its solid financial performance and attractive valuation. However, the technical indicators suggest bearish momentum, which poses a risk to short-term price stability. The low P/E ratio and high dividend yield provide a strong valuation case, but investors should be cautious of the current negative technical signals.

Inke Ltd. Business Overview & Revenue Model

Company Description

Inke Ltd. (3700) is a leading technology company operating in the live-streaming industry. It primarily focuses on providing social networking and live-streaming services through its mobile applications. The company offers a platform where users can broadcast and watch real-time videos, enabling interactive communication and entertainment. Inke Ltd. has established itself as a significant player in the market by leveraging advanced technology and engaging content to attract a diverse user base.

How the Company Makes Money

Inke Ltd. generates revenue primarily through its live-streaming platform. The company's revenue model includes in-app purchases, where users buy virtual gifts and currency to support their favorite broadcasters. These virtual gifts can be purchased using real money, creating a direct revenue stream. Additionally, Inke Ltd. may earn from advertising partnerships, where brands pay to promote their products or services within the app. The company also benefits from collaborations with content creators and influencers, who drive engagement and increase user spending on the platform. Overall, the combination of in-app purchases, advertising, and strategic partnerships forms the core of Inke Ltd.'s revenue generation strategy.

Inke Ltd. Financial Statement Overview

Summary

Inke Ltd. demonstrates a solid financial position with consistent revenue growth and a strong equity structure. However, declining EBIT margins and fluctuating cash flow efficiency are areas of concern. The company's strong asset base and low debt levels provide a cushion for addressing these issues.

Income Statement

Inke Ltd. has shown consistent revenue growth from 2019 to 2024, with a compound annual growth rate reflecting a positive trajectory. The gross profit margin is strong, indicating good cost control relative to revenue. However, there is a decline in EBIT and net profit margins from 2023 to 2024, suggesting potential issues in operational efficiency or increased expenses.

Balance Sheet

The company maintains a strong equity position, as evidenced by a solid debt-to-equity ratio indicating low leverage and reduced financial risk. The equity ratio is healthy, reflecting a stable financial foundation with a significant portion of assets funded by equity rather than debt. However, the return on equity has fluctuated, indicating inconsistent efficiency in generating profits from equity.

Cash Flow

Free cash flow has been positive, showing the company's ability to generate cash after capital expenditures. However, the free cash flow growth rate and operating cash flow to net income ratio have been erratic, indicating potential volatility in cash generation and operational cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.00B	6.85B	6.84B	6.32B	9.18B	4.95B
Gross Profit	2.96B	3.34B	2.83B	2.55B	3.31B	1.20B
EBITDA	173.20M	288.47M	578.14M	546.76M	551.42M	63.99M
Net Income	303.98M	180.31M	386.53M	-166.10M	415.38M	193.91M
Balance Sheet
Total Assets	5.42B	5.57B	5.15B	4.66B	5.24B	4.67B
Cash, Cash Equivalents and Short-Term Investments	3.13B	2.96B	3.29B	2.89B	2.89B	2.88B
Total Debt	25.45M	29.72M	26.20M	39.93M	182.82M	159.23M
Total Liabilities	706.35M	1.13B	863.87M	808.17M	1.31B	1.13B
Stockholders Equity	4.64B	4.40B	4.27B	3.85B	3.93B	3.51B
Cash Flow
Free Cash Flow	269.69M	46.71M	346.51M	214.07M	536.69M	146.55M
Operating Cash Flow	278.60M	371.89M	406.96M	229.85M	559.08M	153.36M
Investing Cash Flow	-507.42M	-437.64M	354.28M	-513.97M	129.97M	777.62M
Financing Cash Flow	-93.86M	-102.21M	-27.10M	-69.40M	-52.34M	-159.74M

Inke Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3700, the sentiment is Negative. The current price of 1 is below the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.23, and below the 200-day MA of 1.43, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 15.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3700.

Inke Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3700	66 Neutral	HK$1.83B	5.80	6.95%	4.08%	-17.47%	-7.94%
9898	65 Neutral	HK$20.59B	7.67	10.70%	7.61%	0.99%	14.41%
0772	61 Neutral	$43.27B	300.00	0.67%	―	-10.26%	-85.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
2390	57 Neutral	HK$2.80B	18.44	3.26%	―	-22.45%	―
1980	52 Neutral	$737.25M	-15.53	-2.08%	4.41%	15.66%	47.36%
1896	52 Neutral	HK$8.16B	99.43	0.82%	4.24%	-7.61%	-90.51%

Inke Ltd. Corporate Events

Inkeverse Group Acquires Significant Stake in GoFintech

Inkeverse Group Limited has entered into a Subscription Agreement with GoFintech Quantum Innovation Limited to acquire 168,539,325 shares at a price of HK$1.78 each. This transaction is classified as a discloseable transaction under the Listing Rules, requiring reporting and announcement but exempt from shareholder approval. The subscription price represents a discount to recent market prices, and the company considers this investment to be fair and reasonable, aligning with its interests and those of its shareholders.

The most recent analyst rating on (HK:3700) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Inke Ltd. stock, see the HK:3700 Stock Forecast page.

Inkeverse Group Sees Profit Surge Despite Revenue Decline

Inkeverse Group Limited reported a 24.2% decline in revenue for the first half of 2025 compared to the same period in 2024. Despite the decrease in revenue, the company achieved a significant increase in operating profit by 170.2% and profit for the period by 102.8%, indicating improved operational efficiency. The average monthly active users decreased by 16.1%, while the average monthly revenue per user fell by 9.8%, reflecting challenges in user engagement and monetization.

The most recent analyst rating on (HK:3700) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Inke Ltd. stock, see the HK:3700 Stock Forecast page.

Inkeverse Group Engages in Strategic Share Purchase with Skywork AI

Inkeverse Group Limited, through its subsidiary Beijing Meelive, has entered into a Series A Preferred Share Purchase Agreement with Skywork AI. This transaction involves Beijing Meelive purchasing 9,950,617 Series A Preferred Shares of Skywork AI for RMB100,000,000, representing approximately 0.67% of Skywork AI’s enlarged share capital. This move is part of a connected transaction due to the involvement of Kunlun Group Limited, a substantial shareholder of Inkeverse and an associate of Skywork AI. The transaction is subject to certain conditions and regulatory approvals but does not require independent shareholder approval under the Listing Rules.

The most recent analyst rating on (HK:3700) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Inke Ltd. stock, see the HK:3700 Stock Forecast page.

Inkeverse Group Projects Over 90% Profit Increase for H1 2025

Inkeverse Group Limited has announced a significant increase in its expected net profit for the first half of 2025, projecting a net profit of not less than RMB260.0 million, which marks an increase of over 90% compared to the same period last year. This growth is primarily attributed to changes in the fair value of the company’s financial instruments. However, the figures are based on preliminary unaudited management accounts and are subject to adjustments. The final results will be disclosed in the company’s interim results announcement expected by the end of August 2025.

The most recent analyst rating on (HK:3700) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Inke Ltd. stock, see the HK:3700 Stock Forecast page.

Inkeverse Group Schedules Board Meeting to Review Interim Results

Inkeverse Group Limited, a company incorporated in the Cayman Islands, announced that its board of directors will hold a meeting on August 29, 2025. The meeting will focus on approving the interim results for the first half of 2025 and considering the payment of an interim dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder value, potentially impacting its market positioning and stakeholder confidence.