Stock

37 Interactive Entertainment Network Technology Group Co.

002555.SZ
65
Electronic Gaming & Multimedia · Technology
Price
¥16.64
-0.19 (-1.13%)
Market Cap
¥36.81B
Exchange
Shenzhen Stock Exchange
Winston Score
65
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Oct 9, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
21/30
Growth
Mixed
9/20
Cash Flow
Strong
8/10
Stability
Exceptional
9/10
Valuation
Good
5/10
Ownership
Good
10/15
Dividends
Good
3/5

65 of 100 counted points = Winston Score 65.

§Winston Score History

The full picture

37 Interactive Entertainment is a major Chinese video game company that publishes and develops online and mobile games. It operates popular titles across genres like RPGs, strategy, and simulation games, serving hundreds of millions of players mainly in China and Southeast Asia. The company is one of the largest web and mobile game publishers in China by revenue.

37 Interactive makes money primarily by selling in-game items and virtual currency through free-to-play games. It also earns revenue from game distribution and advertising services on its web platform. With a market cap around $41 billion and gross margins near 76%, the company benefits from a large existing player base and efficient online distribution. Key growth drivers include expanding into overseas markets and leveraging AI tools for game development, though increasing competition in China's gaming industry and regulatory uncertainty remain notable risks.

Share count broadly stable

+0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.20B (2021) → 2.20B (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
76.5%
Premium pricing power — 76.5% gross margin
Profit after running costs
Operating Margin
14.0%
Healthy — 14.0% operating margin
Return on the money invested
ROCE
15.0%
Good — 15.0% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-11.6%
Shrinking sales (-11.6% YoY)
Profit growth
EPS YoY
+16.4%
Earnings growing fast (+16.4% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
97%
Turns 97% of profit into real cash
Spare cash per sale
FCF Margin
19.9%
Converts sales into free cash efficiently (19.9%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

What it owes vs what it owns
Debt / Equity
0.32
Conservative — low debt load (0.32)
Covers its interest
Interest Cover
64.91x
Comfortably covers interest (64.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
11.2x
Attractive valuation — P/E 11.2

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
-1.5
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
2.40%
Moderate income — 2.40% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+9.5%
Dividend growing modestly (9.5% YoY)

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