As someone who was keeping an eye on the mobile game stocks listed in HKEX, Friendtimes Inc definitely caught my eyes in 2020 as it was one of the fastest moving stocks across 2020.
Anyone who was vested at the peak would have lost around 50% of their initial invested amount.
What led to the rise in its share price initially?
1) Covid 19
Covid 19 has brought about a shift in consumers preference in entertainment and resulted in higher amount of people turning to games on various platforms. This has resulted in more hype in gaming stocks such as FriendTimes Inc as there were more people expecting good results coming out from these companies.
2) Flagship game delivering
浮生为卿歌, a game launched on 31 December 2019, quickly captured the female market and make waves in China.
It made the 4th place as one of the top 10 growth in China iOS game market in 2020
At its peak, it propelled Friendtimes to the 15th position for May 2020 in the Top 30 China Game Developers Revenue ranking.
Previewing Full Year Results (Is it time to buy?)
After looking at this ranking, i am less than optimistic that the 2nd half will outgrow the first half. Which means that assuming results maintains, an eps of 0.14 rmb would be expected.