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99L

99 LoyaltyASX:99L Stock Report

Market Cap

AU$69.6m

7D

0%

1Y

-36.8%

Updated

17 Oct, 2021

Data

Company Financials
99L fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends0/6

99L Overview

99 Loyalty Limited, an investment holding company, provides customer engagement technology and solutions in the People’s Republic of China.

Price History & Performance

Summary of all time highs, changes and price drops for 99 Loyalty
Historical stock prices
Current Share PriceAU$0.06
52 Week HighAU$0.054
52 Week LowAU$0.12
Beta-0.15
1 Month Change1.70%
3 Month Change0%
1 Year Change-36.84%
3 Year Change-32.58%
5 Year Change-40.00%
Change since IPO-86.67%

Recent News & Updates

Apr 12
If You Like EPS Growth Then Check Out 99 Technology (ASX:NNT) Before It's Too Late

If You Like EPS Growth Then Check Out 99 Technology (ASX:NNT) Before It's Too Late

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Mar 22
99 Technology (ASX:NNT) Might Have The Makings Of A Multi-Bagger

99 Technology (ASX:NNT) Might Have The Makings Of A Multi-Bagger

To find a multi-bagger stock, what are the underlying trends we should look for in a business? In a perfect world, we'd...

Mar 01
There Is A Reason 99 Technology Limited's (ASX:NNT) Price Is Undemanding

There Is A Reason 99 Technology Limited's (ASX:NNT) Price Is Undemanding

99 Technology Limited's ( ASX:NNT ) price-to-earnings (or "P/E") ratio of 15.7x might make it look like a buy right now...

Shareholder Returns

99LAU SoftwareAU Market
7D0%2.8%0.9%
1Y-36.8%27.7%20.2%

Return vs Industry: 99L underperformed the Australian Software industry which returned 27.7% over the past year.

Return vs Market: 99L underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is 99L's price volatile compared to industry and market?
99L volatility
99L Beta-0.15
Industry Beta0.84
Market Beta1

Stable Share Price: 99L is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 99L's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011n/aHenry Huan Chenhttps://www.99tech.com

99 Loyalty Limited, an investment holding company, provides customer engagement technology and solutions in the People’s Republic of China. The company offers mobile solutions platform, including 99 Marketplace that offers virtual products, applications, lifestyle entertainments, marketing services, platform operations, and O2O solutions for banks and other big institutions; business procurement tools; integrated marketing solutions that provides various offline to online marketing solutions and tools; and loyalty management and solutions. It also provides cloud delivered solutions platform, such as business development platform for insurance sector, rewards redemption services, employee benefit services, and insurance brokerage services to business partners and their consumers and employees.

99 Loyalty Fundamentals Summary

How do 99 Loyalty's earnings and revenue compare to its market cap?
99L fundamental statistics
Market CapCN¥332.32m
Earnings (TTM)CN¥11.07m
Revenue (TTM)CN¥233.28m

30.0x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
99L income statement (TTM)
RevenueCN¥233.28m
Cost of RevenueCN¥944.34k
Gross ProfitCN¥232.33m
ExpensesCN¥221.26m
EarningsCN¥11.07m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.0095
Gross Margin99.60%
Net Profit Margin4.75%
Debt/Equity Ratio31.5%

How did 99L perform over the long term?

See historical performance and comparison

Valuation

Is 99 Loyalty undervalued compared to its fair value and its price relative to the market?

30.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 99L's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 99L's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 99L is good value based on its PE Ratio (30x) compared to the Australian Software industry average (42.5x).

PE vs Market: 99L is poor value based on its PE Ratio (30x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 99L's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 99L is good value based on its PB Ratio (1x) compared to the AU Software industry average (5.2x).


Future Growth

How is 99 Loyalty forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

41.1%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as 99 Loyalty has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has 99 Loyalty performed over the past 5 years?

50.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 99L has a high level of non-cash earnings.

Growing Profit Margin: 99L's current net profit margins (4.7%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: 99L's earnings have grown significantly by 50% per year over the past 5 years.

Accelerating Growth: 99L's earnings growth over the past year (777.8%) exceeds its 5-year average (50% per year).

Earnings vs Industry: 99L earnings growth over the past year (777.8%) exceeded the Software industry 37.5%.


Return on Equity

High ROE: 99L's Return on Equity (3.3%) is considered low.


Financial Health

How is 99 Loyalty's financial position?


Financial Position Analysis

Short Term Liabilities: 99L's short term assets (CN¥521.7M) exceed its short term liabilities (CN¥260.5M).

Long Term Liabilities: 99L's short term assets (CN¥521.7M) exceed its long term liabilities (CN¥12.3M).


Debt to Equity History and Analysis

Debt Level: 99L's debt to equity ratio (31.5%) is considered satisfactory.

Reducing Debt: 99L's debt to equity ratio has reduced from 39.2% to 31.5% over the past 5 years.

Debt Coverage: 99L's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 99L's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Dividend

What is 99 Loyalty current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 99L's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 99L's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 99L's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 99L's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 99L's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.8yrs

Average management tenure


CEO

Henry Huan Chen (46 yo)

0.83

Tenure

Mr. Henry Huan Chen has been Chief Executive Officer of 99 Royalty Limited (formerly known as 99 Loyalty Limited (formerly known as 99 Technology Limited)) (formerly known as 99 Wuxian Limited) since Decem...


Leadership Team

Experienced Management: 99L's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 99L's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

99 Loyalty Limited's employee growth, exchange listings and data sources


Key Information

  • Name: 99 Loyalty Limited
  • Ticker: 99L
  • Exchange: ASX
  • Founded: 2011
  • Industry: Application Software
  • Sector: Software
  • Market Cap: AU$69.581m
  • Shares outstanding: 1.16b
  • Website: https://www.99tech.com

Location

  • 99 Loyalty Limited
  • Hong Kong Prosperity Tower
  • 3rd Floor
  • Shanghai
  • 200023
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 07:00
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.