Declared Dividend • May 17
First quarter dividend of CN¥0.40 announced Shareholders will receive a dividend of CN¥0.40. Ex-date: 22nd May 2026 Payment date: 22nd May 2026 Dividend yield will be 3.9%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (72% cash payout ratio). The dividend has increased by an average of 35% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 14% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 17
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CN¥1.32 (up from CN¥1.21 in FY 2024). Revenue: CN¥16.0b (down 8.5% from FY 2024). Net income: CN¥2.90b (up 8.5% from FY 2024). Profit margin: 18% (up from 15% in FY 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) also missed analyst estimates by 5.9%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Annonce • Apr 17
37 Interactive Entertainment Network Technology Group Co., Ltd., Annual General Meeting, May 13, 2026 37 Interactive Entertainment Network Technology Group Co., Ltd., Annual General Meeting, May 13, 2026, at 14:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Annonce • Mar 31
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Q1, 2026 Results on Apr 28, 2026 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report Q1, 2026 results on Apr 28, 2026 Buy Or Sell Opportunity • Feb 03
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 12% to CN¥25.90. The fair value is estimated to be CN¥21.29, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 3.0%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 13% in the next 2 years. Price Target Changed • Jan 26
Price target increased by 7.1% to CN¥25.56 Up from CN¥23.88, the current price target is an average from 8 analysts. New target price is 5.4% below last closing price of CN¥27.02. Stock is up 82% over the past year. The company is forecast to post earnings per share of CN¥1.40 for next year compared to CN¥1.21 last year. Buy Or Sell Opportunity • Jan 05
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 20% to CN¥25.96. The fair value is estimated to be CN¥20.75, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 3.0%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 14% in the next 2 years. Annonce • Dec 31
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Fiscal Year 2025 Results on Apr 17, 2026 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report fiscal year 2025 results on Apr 17, 2026 New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (97% cash payout ratio). Share price has been volatile over the past 3 months (7.4% average weekly change). Valuation Update With 7 Day Price Move • Nov 04
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥23.44, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 27x in the Entertainment industry in China. Total returns to shareholders of 76% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥20.54 per share. Declared Dividend • Nov 03
Third quarter dividend of CN¥0.21 announced Shareholders will receive a dividend of CN¥0.21. Ex-date: 6th November 2025 Payment date: 6th November 2025 Dividend yield will be 4.4%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (26% earnings payout ratio) but not adequately covered by cash flows (97% cash payout ratio). The dividend has increased by an average of 55% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 12% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 29
Third quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2025 results: EPS: CN¥0.43 (up from CN¥0.29 in 3Q 2024). Revenue: CN¥3.97b (down 3.2% from 3Q 2024). Net income: CN¥944.5m (up 49% from 3Q 2024). Profit margin: 24% (up from 15% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) exceeded analyst estimates by 36%. Revenue is forecast to grow 9.0% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 11% per year, which means it is well ahead of earnings. Annonce • Sep 30
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Q3, 2025 Results on Oct 29, 2025 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report Q3, 2025 results on Oct 29, 2025 Valuation Update With 7 Day Price Move • Sep 09
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to CN¥22.74, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 29x in the Entertainment industry in China. Total returns to shareholders of 40% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥9.20 per share. Price Target Changed • Sep 02
Price target increased by 7.8% to CN¥21.13 Up from CN¥19.60, the current price target is an average from 8 analysts. New target price is 9.5% above last closing price of CN¥19.30. Stock is up 41% over the past year. The company is forecast to post earnings per share of CN¥1.28 for next year compared to CN¥1.21 last year. Declared Dividend • Aug 30
Second quarter dividend of CN¥0.21 announced Shareholders will receive a dividend of CN¥0.21. Ex-date: 4th September 2025 Payment date: 4th September 2025 Dividend yield will be 5.1%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (78% earnings payout ratio) but not covered by cash flows (150% cash payout ratio). The dividend has increased by an average of 55% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 27
Second quarter 2025 earnings: EPS in line with expectations, revenues disappoint Second quarter 2025 results: EPS: CN¥0.39 (up from CN¥0.29 in 2Q 2024). Revenue: CN¥4.24b (down 5.3% from 2Q 2024). Net income: CN¥851.1m (up 31% from 2Q 2024). Profit margin: 20% (up from 14% in 2Q 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 9.3% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Annonce • Jul 02
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report First Half, 2025 Results on Aug 26, 2025 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report first half, 2025 results on Aug 26, 2025 Declared Dividend • May 25
Dividend of CN¥0.21 announced Shareholders will receive a dividend of CN¥0.21. Ex-date: 27th May 2025 Payment date: 27th May 2025 Dividend yield will be 6.9%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (67% earnings payout ratio) but not covered by cash flows (178% cash payout ratio). The dividend has increased by an average of 55% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 40% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Declared Dividend • May 16
First quarter dividend of CN¥0.37 announced Shareholders will receive a dividend of CN¥0.37. Ex-date: 21st May 2025 Payment date: 21st May 2025 Dividend yield will be 5.3%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (67% earnings payout ratio) but not covered by cash flows (178% cash payout ratio). The dividend has increased by an average of 55% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 40% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annonce • Apr 22
37 Interactive Entertainment Network Technology Group Co., Ltd. Proposes Final Cash Dividend for the Year 2024 37 Interactive Entertainment Network Technology Group Co., Ltd. proposed final cash dividend/10 shares (tax included) of CNY 3.70000000 for the year 2024. Annonce • Apr 20
37 Interactive Entertainment Network Technology Group Co., Ltd., Annual General Meeting, May 12, 2025 37 Interactive Entertainment Network Technology Group Co., Ltd., Annual General Meeting, May 12, 2025, at 14:30 China Standard Time. Location: The Company's Meeting Room, Guangzhou, Guangdong China Reported Earnings • Apr 19
Full year 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2024 results: EPS: CN¥1.21 (up from CN¥1.20 in FY 2023). Revenue: CN¥17.4b (up 5.4% from FY 2023). Net income: CN¥2.67b (flat on FY 2023). Profit margin: 15% (in line with FY 2023). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) exceeded analyst estimates by 4.6%. Revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 10% per year. Buy Or Sell Opportunity • Apr 19
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 2.6% to CN¥15.17. The fair value is estimated to be CN¥12.56, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.3% over the last 3 years. Earnings per share has declined by 11%. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 20% in the next 2 years. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 8 experienced directors. 4 highly experienced directors. Independent Director Feng Tao was the last director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Annonce • Mar 31
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Q1, 2025 Results on Apr 30, 2025 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report Q1, 2025 results on Apr 30, 2025 Annonce • Dec 31
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Fiscal Year 2024 Results on Apr 19, 2025 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report fiscal year 2024 results on Apr 19, 2025 Reported Earnings • Oct 31
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: EPS: CN¥0.29 (down from CN¥0.44 in 3Q 2023). Revenue: CN¥4.11b (down 4.1% from 3Q 2023). Net income: CN¥632.8m (down 35% from 3Q 2023). Profit margin: 15% (down from 23% in 3Q 2023). The decrease in margin was primarily driven by higher expenses. Revenue missed analyst estimates by 6.2%. Earnings per share (EPS) also missed analyst estimates by 11%. Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 13% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Oct 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CN¥16.14, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 23x in the Entertainment industry in China. Total loss to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥11.04 per share. Annonce • Sep 30
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Q3, 2024 Results on Oct 31, 2024 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report Q3, 2024 results on Oct 31, 2024 Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥16.27, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 21x in the Entertainment industry in China. Total loss to shareholders of 12% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥11.05 per share. Annonce • Aug 30
37 Interactive Entertainment Network Technology Group Co., Ltd. Announces Interim Profit Distribution (A Shares) for 2024, Payable on 04 September 2024 37 Interactive Entertainment Network Technology Group Co., Ltd. announced 2024 interim profit distribution plan to be implemented (A shares) of Cash dividend per 10 shares (tax included) of CNY 2.10000000. Record date: 03 September 2024; Ex-date: 04 September 2024; Payment date: 04 September 2024. New Risk • Aug 29
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 21% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (21% accrual ratio). Minor Risk Dividend is not well covered by cash flows (125% cash payout ratio). Annonce • Aug 28
37 Interactive Entertainment Network Technology Group Co., Ltd. Proposes Dividend for the First Half of 2024 37 Interactive Entertainment Network Technology Group Co., Ltd. proposed Cash dividend/10 shares (tax included): CNY2.10000000 for the first half of 2024. Buy Or Sell Opportunity • Aug 27
Now 24% overvalued Over the last 90 days, the stock has fallen 6.4% to CN¥13.67. The fair value is estimated to be CN¥11.02, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.0% over the last 3 years, while earnings per share has been flat. Revenue is forecast to grow by 20% in 2 years. Earnings are forecast to grow by 40% in the next 2 years. Price Target Changed • Aug 08
Price target decreased by 9.1% to CN¥23.39 Down from CN¥25.74, the current price target is an average from 11 analysts. New target price is 73% above last closing price of CN¥13.50. Stock is down 49% over the past year. The company is forecast to post earnings per share of CN¥1.54 for next year compared to CN¥1.20 last year. Annonce • Jun 29
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report First Half, 2024 Results on Aug 27, 2024 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report first half, 2024 results on Aug 27, 2024 Declared Dividend • May 22
Dividend of CN¥0.21 announced Shareholders will receive a dividend of CN¥0.21. Ex-date: 24th May 2024 Payment date: 24th May 2024 Dividend yield will be 6.5%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (73% earnings payout ratio) but not covered by cash flows (116% cash payout ratio). The dividend has increased by an average of 36% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 61% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Declared Dividend • May 16
Dividend reduced to CN¥0.37 Dividend of CN¥0.37 is 18% lower than last year. Ex-date: 21st May 2024 Payment date: 21st May 2024 Dividend yield will be 4.8%, which is higher than the industry average of 2.6%. Sustainability & Growth Dividend is covered by earnings (73% earnings payout ratio) but not covered by cash flows (116% cash payout ratio). The dividend has increased by an average of 36% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 61% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Annonce • May 15
37 Interactive Entertainment Network Technology Group Co., Ltd. Implements Final Dividend for 2023, Payable on 21 May 2024 37 Interactive Entertainment Network Technology Group Co., Ltd. implemented final cash dividend of CNY 3.70000000 per 10 shares (tax included) for 2023. Record date: 20 May 2024. Ex-date: 21 May 2024. Payment date: 21 May 2024. Major Estimate Revision • Apr 26
Consensus EPS estimates fall by 21% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥19.6b to CN¥19.3b. EPS estimate also fell from CN¥1.75 per share to CN¥1.38 per share. Net income forecast to grow 13% next year vs 52% growth forecast for Entertainment industry in China. Consensus price target down from CN¥30.95 to CN¥25.90. Share price was steady at CN¥16.56 over the past week. Price Target Changed • Apr 23
Price target decreased by 12% to CN¥27.10 Down from CN¥30.95, the current price target is an average from 10 analysts. New target price is 61% above last closing price of CN¥16.79. Stock is down 46% over the past year. The company is forecast to post earnings per share of CN¥1.66 for next year compared to CN¥1.20 last year. Annonce • Apr 21
37 Interactive Entertainment Network Technology Group Co., Ltd., Annual General Meeting, May 10, 2024 37 Interactive Entertainment Network Technology Group Co., Ltd., Annual General Meeting, May 10, 2024, at 14:30 China Standard Time. Reported Earnings • Apr 20
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: CN¥1.20 (down from CN¥1.34 in FY 2022). Revenue: CN¥16.5b (flat on FY 2022). Net income: CN¥2.66b (down 10.0% from FY 2022). Profit margin: 16% (down from 18% in FY 2022). Revenue missed analyst estimates by 4.0%. Earnings per share (EPS) also missed analyst estimates by 17%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Annonce • Mar 30
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Q1, 2024 Results on Apr 30, 2024 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report Q1, 2024 results on Apr 30, 2024 Annonce • Dec 30
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Fiscal Year 2023 Results on Apr 20, 2024 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report fiscal year 2023 results on Apr 20, 2024 Valuation Update With 7 Day Price Move • Dec 25
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to CN¥18.96, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 18x in the Entertainment industry in China. Total loss to shareholders of 22% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥17.05 per share. New Risk • Nov 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Chinese stocks, typically moving 6.3% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (6.3% average weekly change). Valuation Update With 7 Day Price Move • Nov 06
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to CN¥23.76, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 18x in the Entertainment industry in China. Total loss to shareholders of 12% over the past three years. Reported Earnings • Nov 01
Third quarter 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2023 results: EPS: CN¥0.44 (up from CN¥0.25 in 3Q 2022). Revenue: CN¥4.28b (up 19% from 3Q 2022). Net income: CN¥966.2m (up 72% from 3Q 2022). Profit margin: 23% (up from 16% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) exceeded analyst estimates by 2.2%. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Annonce • Sep 30
37 Interactive Entertainment Network Technology Group Co., Ltd. to Report Q3, 2023 Results on Oct 31, 2023 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that they will report Q3, 2023 results on Oct 31, 2023 Annonce • Sep 22
37 Interactive Entertainment Network Technology Group Co., Ltd. Announces Interim Dividend for A Shares for the Year 2023, Payable on 28 September 2023 37 Interactive Entertainment Network Technology Group Co., Ltd. announced interim Cash dividend/10 shares (tax included): CNY 4.50000000 for A shares for the year 2023. Record date is 27 September 2023. Ex-date is 28 September 2023. Payment date is 28 September 2023. Annonce • Sep 20
37 Interactive Entertainment Network Technology Group Co., Ltd. Approves Interim Cash Dividend 37 Interactive Entertainment Network Technology Group Co., Ltd. at its AGM held on September 18, 2023 approved the interim profit distribution of Cash dividend/10 shares (tax included): CNY 4.50000000. Price Target Changed • Sep 08
Price target decreased by 7.0% to CN¥34.79 Down from CN¥37.42, the current price target is an average from 11 analysts. New target price is 62% above last closing price of CN¥21.53. Stock is up 12% over the past year. The company is forecast to post earnings per share of CN¥1.48 for next year compared to CN¥1.34 last year. Annonce • Sep 01
37 Interactive Entertainment Network Technology Group Co., Ltd. Interim Dividend or the first half of 2023 as follows 37 Interactive Entertainment Network Technology Group Co., Ltd. announced on 31 August 2023 the profit distribution proposal for the first half of 2023 as follows: Cash dividend/10 shares (tax included): CNY 4.50000000. New Risk • Aug 31
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 15% Last year net profit margin: 22% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.7% average weekly change). Profit margins are more than 30% lower than last year (15% net profit margin). Reported Earnings • Aug 31
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: CN¥0.20 (down from CN¥0.42 in 2Q 2022). Revenue: CN¥4.00b (flat on 2Q 2022). Net income: CN¥451.5m (down 52% from 2Q 2022). Profit margin: 11% (down from 23% in 2Q 2022). Revenue missed analyst estimates by 5.7%. Earnings per share (EPS) also missed analyst estimates by 32%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 20% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Annonce • May 30
37 Interactive Entertainment Network Technology Group Co., Ltd. Announces Final Profit Distribution Plan to Be Implemented on A Shares for the Year 2022, Payable on 02 June 2023 37 Interactive Entertainment Network Technology Group Co., Ltd. announced final profit distribution plan to be implemented on A shares as cash dividend per ten shares (tax included) of CNY 4.50000000 for the year 2022, payable on 02 June 2023. Record date is 01 June 2023. Ex-date is 02 June 2023. Valuation Update With 7 Day Price Move • May 12
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥28.50, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 31x in the Entertainment industry in China. Total loss to shareholders of 18% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥14.32 per share. Price Target Changed • May 10
Price target increased by 8.6% to CN¥31.86 Up from CN¥29.34, the current price target is an average from 11 analysts. New target price is 7.3% above last closing price of CN¥29.68. Stock is up 31% over the past year. The company is forecast to post earnings per share of CN¥1.51 for next year compared to CN¥1.34 last year. Reported Earnings • Apr 28
Full year 2022 earnings released: EPS: CN¥1.34 (vs CN¥1.31 in FY 2021) Full year 2022 results: EPS: CN¥1.34 (up from CN¥1.31 in FY 2021). Revenue: CN¥16.4b (up 1.2% from FY 2021). Net income: CN¥2.95b (up 2.7% from FY 2021). Profit margin: 18% (in line with FY 2021). Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 16% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to CN¥30.98, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 27x in the Entertainment industry in China. Total loss to shareholders of 5.9% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥16.99 per share. Price Target Changed • Apr 14
Price target increased by 11% to CN¥26.22 Up from CN¥23.58, the current price target is an average from 11 analysts. New target price is approximately in line with last closing price of CN¥27.33. Stock is up 22% over the past year. The company is forecast to post earnings per share of CN¥1.33 for next year compared to CN¥1.31 last year. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to CN¥26.64, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 21x in the Entertainment industry in China. Total loss to shareholders of 17% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥17.00 per share. Price Target Changed • Nov 19
Price target decreased to CN¥23.45 Down from CN¥26.43, the current price target is an average from 11 analysts. New target price is 27% above last closing price of CN¥18.49. Stock is down 30% over the past year. The company is forecast to post earnings per share of CN¥1.33 for next year compared to CN¥1.31 last year. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Director Feng Tao was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Annonce • Nov 12
37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555) announces an Equity Buyback for CNY 600 million worth of its shares. 37 Interactive Entertainment Network Technology Group Co., Ltd. (SZSE:002555) announces a share repurchase program. Under the program, the company will repurchase up to CNY 600 million worth of its shares. The program is valid for 12 months. Price Target Changed • Nov 04
Price target decreased to CN¥25.82 Down from CN¥27.80, the current price target is an average from 11 analysts. New target price is 67% above last closing price of CN¥15.42. Stock is down 40% over the past year. The company is forecast to post earnings per share of CN¥1.33 for next year compared to CN¥1.31 last year. Price Target Changed • Oct 31
Price target decreased to CN¥26.88 Down from CN¥29.14, the current price target is an average from 11 analysts. New target price is 85% above last closing price of CN¥14.49. Stock is down 43% over the past year. The company is forecast to post earnings per share of CN¥1.37 for next year compared to CN¥1.31 last year. Reported Earnings • Oct 31
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: CN¥0.25 (down from CN¥0.42 in 3Q 2021). Revenue: CN¥3.59b (down 22% from 3Q 2021). Net income: CN¥561.6m (down 35% from 3Q 2021). Profit margin: 16% (down from 19% in 3Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) also missed analyst estimates by 33%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 18% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Annonce • Sep 17
37 Interactive Entertainment Network Technology Group Co., Ltd. Approves 2022 Interim Profit Distribution Plan Cash Dividend 37 Interactive Entertainment Network Technology Group Co., Ltd. in its 2nd Extraordinary General Meeting of 2022 on 15 September 2022 approved 2022 interim profit distribution plan Cash dividend (tax included) is CNY 3.5000000 for per 10 shares. Reported Earnings • Sep 02
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: CN¥0.42 (up from CN¥0.36 in 2Q 2021). Revenue: CN¥4.00b (up 7.6% from 2Q 2021). Net income: CN¥935.2m (up 27% from 2Q 2021). Profit margin: 23% (up from 20% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 12%. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to grow 21%, compared to a 30% growth forecast for the Entertainment industry in China. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Annonce • Sep 01
37 Interactive Entertainment Network Technology Group Co., Ltd. Announces Profit Distribution Proposal for the First Half of 2022 37 Interactive Entertainment Network Technology Group Co., Ltd. announced profit distribution proposal for the first half of 2022 Cash dividend (tax included) is CNY 3.5000000 for per 10 shares. Annonce • May 21
37 Interactive Entertainment Network Technology Group Co., Ltd. Announces Final Dividend on A Shares for the Year 2021, Payable on 27 May 2022 37 Interactive Entertainment Network Technology Group Co., Ltd. announced final cash dividend/10 shares (tax included) of CNY 3.70000000 on A shares for the year 2021. Record date is 26 May 2022. Ex-date is 27 May 2022. Payment date is 27 May 2022. Annonce • May 19
37 Interactive Entertainment Network Technology Group Co., Ltd. Approves Final Cash Dividend for the Year 2021 37 Interactive Entertainment Network Technology Group Co., Ltd. announced that at its Annual General Meeting of 2021 held on 17 May 2022, approved cash dividend/10 shares (tax included) of CNY 3.70000000 for the year 2021. Annonce • Apr 27
37 Interactive Entertainment Network Technology Group Co., Ltd. Proposes Cash Dividend for 2021 37 Interactive Entertainment Network Technology Group Co., Ltd. proposed cash dividend of CNY 3.70000000 (tax included) per 10 shares for 2021. Board Change • Apr 27
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 5 experienced directors. No highly experienced directors. Supervisor Feng Yong Liu is the most experienced director on the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Board Change • Apr 02
High number of new and inexperienced directors There are 7 new directors who have joined the board in the last 3 years. The company's board is composed of: 7 new directors. 5 experienced directors. No highly experienced directors. Supervisor Feng Yong Liu is the most experienced director on the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Valuation Update With 7 Day Price Move • Mar 22
Investor sentiment improved over the past week After last week's 22% share price gain to CN¥22.39, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 17x in the Entertainment industry in China. Total returns to shareholders of 76% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥30.09 per share. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment deteriorated over the past week After last week's 16% share price decline to CN¥21.51, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 20x in the Entertainment industry in China. Total returns to shareholders of 64% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CN¥32.28 per share. Buying Opportunity • Feb 16
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 4.6%. The fair value is estimated to be CN¥31.93, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 21% per annum over the last 3 years. Earnings per share has grown by 23% per annum over the last 3 years.