Inke Ltd. (3700) AI Stock Analysis

• Market Cap: €2.30B
• Dividend Yield: 3.19%
• Average Volume (3M): 9.80M
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.40
• 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: 11,386,247
• 30 Day Avg. Volume: 9,796,181
• 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: €1.47
• Price Target Upside: 15.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: HK$1.50 ▲(18.11% Upside)

Inke Ltd. scores well in valuation due to its attractive P/E ratio and dividend yield, indicating potential undervaluation. Financial performance is stable with strong revenue growth and a solid equity position, though there are concerns about operational efficiency and cash flow consistency. Technical analysis suggests a bearish trend, which could impact short-term performance. Overall, the stock presents a balanced risk-reward profile with a focus on improving operational metrics.

Inke Ltd. Business Overview & Revenue Model

Company Description

Inkeverse Group Limited, an investment holding company, operates mobile live streaming platforms in the People's Republic of China. The company's products include Inke App, a mobile live streaming application; JiMu and Yinpao social networking platforms; and Duiyuan App, a match dating app. It provides online advertising, value-added telecommunication, internet cultural, online audio and video program, and talent agency services. The company also offers supporting services for the operation of mobile livestreaming platforms; and technology and consulting services. The company was formerly known as Inke Limited and changed its name to Inkeverse Group Limited in June 2022. Inkeverse Group Limited was founded in 2015 and is headquartered in Beijing, China.

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. has shown consistent revenue growth with a strong gross profit margin, indicating good cost control. However, declining EBIT and net profit margins, along with fluctuating cash flow efficiency, suggest challenges in operational efficiency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.85B	6.84B	6.32B	9.18B	4.95B
Gross Profit	3.34B	2.83B	2.55B	3.31B	1.20B
EBITDA	288.47M	578.14M	524.30M	551.42M	63.99M
Net Income	180.31M	386.53M	-166.10M	415.38M	193.91M
Balance Sheet
Total Assets	5.57B	5.15B	4.66B	5.24B	4.67B
Cash, Cash Equivalents and Short-Term Investments	2.96B	3.29B	2.89B	2.89B	2.88B
Total Debt	29.72M	26.20M	39.93M	182.82M	159.23M
Total Liabilities	1.13B	863.87M	808.17M	1.31B	1.13B
Stockholders Equity	4.40B	4.27B	3.85B	3.93B	3.51B
Cash Flow
Free Cash Flow	46.71M	346.51M	214.07M	536.69M	146.55M
Operating Cash Flow	371.89M	406.96M	229.85M	559.08M	153.36M
Investing Cash Flow	-437.64M	354.28M	-513.97M	129.97M	777.62M
Financing Cash Flow	-102.21M	-27.10M	-69.40M	-52.34M	-159.74M

Inke Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 1.27 is below the 20-day moving average (MA) of 1.39, below the 50-day MA of 1.38, and below the 200-day MA of 1.56, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 40.17 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 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	72 Outperform	€2.30B	7.41	6.95%	3.19%	-17.47%	-7.94%
9898	71 Outperform	23.54B	8.74	8.64%	6.68%	0.99%	14.41%
2390	65 Neutral	3.46B	21.69	-4.15%	―	-22.45%	―
0772	60 Neutral	41.78B	289.66	-1.14%	―	-10.26%	-85.75%
1896	56 Neutral	9.48B	115.58	2.01%	3.92%	-7.61%	-90.51%
1980	48 Neutral	704.72M	-14.84	0.89%	4.62%	15.66%	47.36%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

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.

Inkeverse Group Limited Announces Successful AGM Resolutions

Inkeverse Group Limited, a company incorporated in the Cayman Islands, announced the successful passing of all proposed resolutions during its Annual General Meeting held on June 26, 2025. The resolutions included the re-election of directors, re-appointment of auditors, and granting of mandates for share issuance and repurchase. The approval of these resolutions reflects shareholder confidence and supports the company’s strategic direction.

Inkeverse Group Updates Nomination Committee Terms

Inkeverse Group Limited has updated the terms of reference for its Nomination Committee, which is responsible for overseeing the appointment and composition of the company’s Board of Directors. The amendments, effective from June 26, 2025, include stipulations regarding the composition of the committee, requiring a majority of independent non-executive directors and at least one member of a different gender, reflecting a commitment to diversity and compliance with regulatory standards.