| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 37.60 | 16991 |
| Intrinsic value (DCF) | 28.88 | 13027 |
| Graham-Dodd Method | 0.10 | -55 |
| Graham Formula | n/a |
Ourgame International Holdings Limited is a Cayman Islands-incorporated online gaming company focused on developing and operating digital card and board games across global markets. Headquartered in Grand Cayman with primary operations in China, the company operates through two main segments: Lianzhong Group for its core gaming operations and AESE Group for mind-sports events and content. Ourgame's diversified gaming portfolio includes PC client platforms like Ourgame Hall, mobile games for Android and iOS systems, and web-based games distributed through third-party channels. The company has established itself in the competitive electronic gaming and multimedia sector by offering comprehensive gaming services including technical support, anti-cheating systems, and ongoing game updates. Beyond digital gaming, Ourgame has expanded into television production, brand licensing, and organizing hybrid online-to-offline mind-sports tournaments and events. Founded in 1998, the company leverages its long-standing industry presence to maintain relevance in the rapidly evolving Asian gaming market while exploring international expansion opportunities.
Ourgame International presents a high-risk investment proposition with concerning financial metrics. The company reported a net loss of HKD 29.6 million in FY2022 despite HKD 217.7 million in revenue, indicating profitability challenges. Negative operating cash flow of HKD 81.9 million raises liquidity concerns, though the company maintains HKD 87.3 million in cash against HKD 59.7 million in debt. The gaming sector's competitive intensity, particularly in China's regulated market, creates significant headwinds. The lack of dividend payments and diluted EPS of -HKD 0.0276 further diminish near-term attractiveness. While the company's beta of 0.69 suggests lower volatility than the broader market, the fundamental operational challenges and cash burn rate present substantial investment risks without clear catalysts for turnaround.
Ourgame International operates in the highly competitive Chinese online gaming market, where it faces intense pressure from both domestic giants and international players. The company's competitive positioning is challenged by its relatively small market capitalization of approximately HKD 201 million, which limits its ability to compete with well-funded competitors in game development, marketing, and user acquisition. Ourgame's primary competitive advantage lies in its specialized focus on card and board games, particularly through its Ourgame Hall platform, which provides some differentiation from mass-market gaming companies. The company's additional revenue streams from organizing mind-sports events and television production offer diversification but may not provide sufficient scale to offset gaming segment challenges. Its long-standing industry presence since 1998 provides brand recognition in certain niche segments, but this hasn't translated into sustainable profitability. The company's multi-platform approach (PC, mobile, web) allows for broader distribution but requires significant ongoing investment to maintain across all channels. In the tightly regulated Chinese gaming market, Ourgame faces additional compliance costs and content approval challenges that larger competitors may better absorb. The company's international operations provide some geographic diversification but likely contribute minimally to overall revenue given the dominance of established global gaming platforms.