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ZX Inc.
(9890)
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Rating:55Neutral
Price Target:
HK$7.50
▼(-25.22% Downside)
Action:Reiterated
Date:09/26/26
The score is primarily held back by weak financial quality signals—especially three years of negative operating and free cash flow despite the 2025 earnings rebound—alongside a bearish technical trend with negative momentum. These risks are partly offset by a much improved balance sheet (very low leverage) and a low P/E that indicates attractive headline valuation.
Positive Factors
Very Low Leverage
Very low leverage materially strengthens financial flexibility and reduces the burden of interest and refinancing obligations. This gives ZX Inc. greater capacity to withstand operating volatility, preserve capital during weaker periods, and support future investment without relying heavily on additional borrowing.
Negative Factors
Multi-Year Revenue Decline
Persistent revenue contraction signals weakening business scale and reduces confidence that the company has a durable growth engine. Continued top-line pressure can limit operating leverage, constrain reinvestment, and make the recent profit rebound more dependent on factors that may not persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Very low leverage materially strengthens financial flexibility and reduces the burden of interest and refinancing obligations. This gives ZX Inc. greater capacity to withstand operating volatility, preserve capital during weaker periods, and support future investment without relying heavily on additional borrowing.
Read all positive factors
ZX Inc. (9890) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$3.92B
Dividend YieldN/A
Average Volume (3M)594.06K
Price to Earnings (P/E)3.2
Beta (1Y)1.23
Revenue Growth-4.30%
EPS Growth10.81%
CountryHK
Employees1,110
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.98
Shares Outstanding534,439,940
10 Day Avg. Volume477,913
30 Day Avg. Volume594,059
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 | -42.31M | 298.06M | 78.09M | 512.97M | 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 | 4.16B | 3.94B | 1.26B | 899.69M | 1.53B | 1.85B |
| Total Debt | 1.64B | 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 | 623.35M | -341.33M | -2.05B | -2.57B | 2.11B | 2.59B |
| Operating Cash Flow | 833.11M | -122.86M | -2.00B | -2.35B | 2.28B | 2.63B |
| Investing Cash Flow | -628.96M | 277.37M | 2.10B | 2.86B | -3.21B | -2.30B |
| Financing Cash Flow | 264.39M | -289.27M | -67.72M | -232.31M | 443.13M | -32.30M |
ZX Inc. Technical Analysis
Negative
10.03
Price Trends
9.42
Negative
10.08
Negative
13.36
Negative
Market Momentum
-0.57
Positive
25.62
Positive
5.39
Positive
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 above the 20-day moving average (MA) of 8.88, above the 50-day MA of 9.42, and below the 200-day MA of 13.36, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 25.62 is Positive, neither overbought nor oversold. The STOCH value of 5.39 is Positive, 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$3.14B | 5.36 | 17.09% | 5.47% | -1.22% | 1.26% | |
77 Outperform | HK$2.47B | 6.07 | 13.07% | 16.95% | 18.51% | 13.18% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | HK$3.92B | 3.19 | 25.04% | ― | -4.30% | 10.81% | |
52 Neutral | HK$3.99B | 21.35 | 2.93% | 13.31% | -15.56% | ― | |
51 Neutral | HK$1.84B | -1.52 | -45.89% | 1.42% | 3.44% | -228.78% | |
44 Neutral | HK$1.20B | -10.52 | -4.78% | 0.53% | -1.05% | 41.09% |
* Communication Services Sector Average
HK:9890
ZX Inc.
7.44
-8.30
-52.73%
HK:0799
IGG
2.74
-0.49
-15.09%
HK:0434
Boyaa Interactive International
2.58
-2.68
-51.05%
HK:0777
NetDragon Websoft Holdings
7.51
-3.35
-30.82%
HK:9990
Archosaur Games Inc.
1.50
-0.58
-27.88%
HK:2660
Zengame Technology Holding Ltd.
2.36
0.20
9.21%
ZX Inc. Corporate Events
Tanwan Inc. Interim Results Highlight Profit Squeeze Amid Growing China Gaming Market
Aug 25, 2026
Tanwan Inc. reported interim results for the six months to June 30, 2026 against a backdrop of robust growth in China’s gaming market, where industry revenue rose 12.17% year-on-year to RMB188.45 billion and user numbers climbed to 684 milli...
Tanwan Inc. Launches New HK$100 Million Share Buyback
Aug 25, 2026
Tanwan Inc. has expanded its on-market share repurchase program, authorizing up to HK$100 million in additional buybacks over six months following the expiry of a prior mandate. The move follows earlier repurchases totaling about HK$232 million an...
Tanwan Inc. Warns of Steep Profit Slide as Core Games Mature
Aug 14, 2026
Tanwan Inc. has issued a profit warning, telling investors it expects net profit of about RMB200 million to RMB250 million for the first half of 2026, a sharp drop of roughly 62% to 69% from RMB650 million a year earlier. The decline highlights mo...
Tanwan Inc. Sets Board Meeting to Review Interim Results and Consider Dividend
Aug 13, 2026
Tanwan Inc. has scheduled a board meeting for August 25, 2026, to review and approve the interim results for the six months ended June 30, 2026, and to decide on the publication of these results. The board will also consider the payment of an inte...
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...
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.