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ZX Inc.
(9890)
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Rating:53Neutral
Price Target:
HK$11.50
▲(14.66% Upside)
Action:Reiterated
Date:06/26/26
The score is held back primarily by weak cash-flow quality (negative operating and free cash flow for three consecutive years) and a bearish technical setup (price below all key moving averages with negative MACD). These risks are partially offset by a strengthened balance sheet with very low leverage and an inexpensive valuation (low P/E), but sustainability of earnings remains the key issue.
Positive Factors
Balance sheet strength
Material deleveraging and a much larger equity base in 2025 provide lasting financial flexibility. Very low debt-to-equity reduces refinancing and solvency risk, enabling the company to fund operations or strategic initiatives through equity or cash buffers during cyclic periods.
Negative Factors
Weak cash generation
Three consecutive years of negative OCF and FCF mean reported profits are not converting to cash, raising structural funding risk. Persistent cash deficits constrain capex, dividends and debt servicing, forcing reliance on balance-sheet adjustments or external financing if not remedied.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Material deleveraging and a much larger equity base in 2025 provide lasting financial flexibility. Very low debt-to-equity reduces refinancing and solvency risk, enabling the company to fund operations or strategic initiatives through equity or cash buffers during cyclic periods.
Read all positive factors
ZX Inc. (9890) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$5.35B
Dividend YieldN/A
Average Volume (3M)727.68K
Price to Earnings (P/E)4.3
Beta (1Y)1.73
Revenue Growth-4.30%
EPS Growth10.81%
CountryHK
Employees1,239
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.98
Shares Outstanding534,439,940
10 Day Avg. Volume394,660
30 Day Avg. Volume727,676
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.94
Price to Sales (P/S)2.01
P/FCF Ratio-23.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.26
Revenue Forecast (FY)HK$5.62B
ZX Inc. Business Overview & Revenue Model
Company Description
Operating across Mainland China and Hong Kong, ZX Inc. primarily functions as an online game publisher, with its gaming portfolio marketed and managed under the Tan Wan brand. The company's business activities extend beyond digital entertainment t...
ZX Inc. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.98B | 4.05B | 5.58B | 6.51B | 8.82B | 5.74B |
| Gross Profit | 2.13B | 2.31B | 4.02B | 4.57B | 6.41B | 4.74B |
| EBITDA | -49.38M | 287.69M | 59.72M | 477.81M | 715.77M | 741.64M |
| Net Income | 1.05B | 1.45B | -3.62M | 235.49M | 514.07M | 615.91M |
Balance Sheet | ||||||
| Total Assets | 7.58B | 7.39B | 5.56B | 7.27B | 9.80B | 6.56B |
| Cash, Cash Equivalents and Short-Term Investments | 4.48B | 3.94B | 1.26B | 899.69M | 1.53B | 1.85B |
| Total Debt | 535.19M | 102.59M | 1.77B | 3.21B | 6.41B | 3.72B |
| Total Liabilities | 3.23B | 3.10B | 3.14B | 4.99B | 8.09B | 5.38B |
| Stockholders Equity | 4.22B | 4.19B | 2.40B | 2.29B | 1.73B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 406.83M | -341.33M | -2.05B | -2.57B | 2.11B | 2.59B |
| Operating Cash Flow | 606.99M | -122.86M | -2.00B | -2.35B | 2.28B | 2.63B |
| Investing Cash Flow | -365.15M | 277.37M | 2.10B | 2.86B | -3.21B | -2.30B |
| Financing Cash Flow | -122.75M | -289.27M | -67.72M | -232.31M | 443.13M | -32.30M |
ZX Inc. Technical Analysis
Negative
10.03
Price Trends
10.37
Negative
12.09
Negative
14.50
Negative
Market Momentum
-0.05
Negative
44.90
Neutral
44.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9890, the sentiment is Negative. The current price of 10.03 is below the 20-day moving average (MA) of 10.22, below the 50-day MA of 10.37, and below the 200-day MA of 14.50, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 44.90 is Neutral, neither overbought nor oversold. The STOCH value of 44.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9890.
ZX Inc. Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | HK$3.55B | 6.07 | 17.09% | 4.81% | -1.22% | 1.26% | |
77 Outperform | HK$2.42B | 6.09 | 12.98% | 17.02% | 18.51% | 13.18% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | HK$2.12B | -1.81 | -45.89% | 1.19% | 3.44% | -228.78% | |
53 Neutral | HK$5.35B | 4.31 | 25.04% | ― | -4.30% | 10.81% | |
41 Neutral | HK$4.34B | 21.44 | 2.92% | 13.40% | -15.56% | ― | |
39 Underperform | HK$1.39B | -12.30 | -4.78% | 0.53% | -1.05% | 41.09% |
* Communication Services Sector Average
HK:9890
ZX Inc.
9.98
-5.52
-35.61%
HK:0799
IGG
3.10
-0.42
-11.87%
HK:0434
Boyaa Interactive International
3.07
-4.65
-60.29%
HK:0777
NetDragon Websoft Holdings
7.46
-2.12
-22.16%
HK:9990
Archosaur Games Inc.
1.74
-0.19
-9.84%
HK:2660
Zengame Technology Holding Ltd.
2.35
0.09
3.84%
ZX Inc. Corporate Events
Tanwan Inc. boosts AI-driven gaming strategy with HK$232 million share buyback
Jul 31, 2026
Tanwan Inc. has repurchased 16,166,800 shares on the market between May 27, 2025 and July 24, 2026, at a total cost of about HK$232 million and an average price of HK$14.33 per share, holding them as treasury shares. The board views the buyback as...
Tanwan Inc. launches new “Yulgang” mobile game to deepen classic IP strategy
Jul 31, 2026
Tanwan Inc., a Cayman Islands-based game publisher, has built its business around Q-style martial arts mobile games, especially those derived from the classic “Yulgang” IP. Its portfolio, supported by an “AI + Game” develop...
Tanwan Inc. Launches New Space Hunter: Awakening Game in Strategic IP Push
Jul 14, 2026
Tanwan Inc. has launched open beta testing for Space Hunter: Awakening, a new side-scrolling fighting mobile game based on its long-running Space Hunter IP, which has accumulated over 250 million registered users and more than RMB6 billion in glob...
Tanwan Inc. Commits RMB380 Million to AI-Focused Fund, Builds Stake in Moore Threads
Jun 26, 2026
Tanwan Inc. disclosed that its onshore unit ZX WFOE subscribed to the China Merchants Asset Management Jinglu FoF No. 53 Single Asset Management Plan in late 2025, committing about RMB380 million from internal resources to an open-ended, equity-fo...
Tanwan Inc. Shareholders Back All Resolutions at 2026 AGM
Jun 17, 2026
Tanwan Inc. reported that its annual general meeting in Guangzhou on June 17, 2026, achieved a turnout representing about 64% of its issued share capital eligible to vote, with all directors attending in person or electronically and an independent...
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.