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6034

G-bits Network Technology (Xiamen) SHSE:603444 Stock Report

Last Price

CN¥248.51

Market Cap

CN¥17.9b

7D

-1.7%

1Y

-36.5%

Updated

05 Oct, 2022

Data

Company Financials +

G-bits Network Technology (Xiamen) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for G-bits Network Technology (Xiamen)
Historical stock prices
Current Share PriceCN¥248.51
52 Week HighCN¥448.55
52 Week LowCN¥236.66
Beta0.088
1 Month Change-10.46%
3 Month Change-33.55%
1 Year Change-36.49%
3 Year Change-5.88%
5 Year Change11.15%
Change since IPO219.59%

Recent News & Updates

Shareholder Returns

603444CN EntertainmentCN Market
7D-1.7%-4.9%-3.3%
1Y-36.5%-25.1%-19.2%

Return vs Industry: 603444 underperformed the CN Entertainment industry which returned -25.1% over the past year.

Return vs Market: 603444 underperformed the CN Market which returned -19.2% over the past year.

Price Volatility

Is 603444's price volatile compared to industry and market?
603444 volatility
603444 Average Weekly Movement4.9%
Entertainment Industry Average Movement5.6%
Market Average Movement5.8%
10% most volatile stocks in CN Market9.2%
10% least volatile stocks in CN Market3.8%

Stable Share Price: 603444 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 603444's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20041,091Hong Yan Luhttps://www.g-bits.com

G-bits Network Technology (Xiamen) Co., Ltd. develops and operates of video games. The company offers client, web, mobile, and VR games.

G-bits Network Technology (Xiamen) Fundamentals Summary

How do G-bits Network Technology (Xiamen)'s earnings and revenue compare to its market cap?
603444 fundamental statistics
Market CapCN¥17.86b
Earnings (TTM)CN¥1.26b
Revenue (TTM)CN¥4.74b

14.2x

P/E Ratio

3.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
603444 income statement (TTM)
RevenueCN¥4.74b
Cost of RevenueCN¥519.05m
Gross ProfitCN¥4.22b
Other ExpensesCN¥2.97b
EarningsCN¥1.26b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)17.48
Gross Margin89.05%
Net Profit Margin26.48%
Debt/Equity Ratio0%

How did 603444 perform over the long term?

See historical performance and comparison

Dividends

6.4%

Current Dividend Yield

92%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 603444 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 603444?

Other financial metrics that can be useful for relative valuation.

603444 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA7.9x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does 603444's PE Ratio compare to its peers?

603444 PE Ratio vs Peers
The above table shows the PE ratio for 603444 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.3x
300418 Kunlun Tech
12.2x17.3%CN¥14.6b
002517 Kingnet Network
14.9x22.1%CN¥13.8b
300518 Shen Zhen Shengxunda TechnologyLtd
78.3xn/aCN¥6.9b
002624 Perfect World
19.7x14.9%CN¥24.6b
603444 G-bits Network Technology (Xiamen)
14.2x15.9%CN¥17.9b

Price-To-Earnings vs Peers: 603444 is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (31.3x).


Price to Earnings Ratio vs Industry

How does 603444's PE Ratio compare vs other companies in the CN Entertainment Industry?

Price-To-Earnings vs Industry: 603444 is good value based on its Price-To-Earnings Ratio (14.2x) compared to the CN Entertainment industry average (25.3x)


Price to Earnings Ratio vs Fair Ratio

What is 603444's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

603444 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.2x
Fair PE Ratio21.1x

Price-To-Earnings vs Fair Ratio: 603444 is good value based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (21.1x).


Share Price vs Fair Value

What is the Fair Price of 603444 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 603444 (CN¥248.51) is trading below our estimate of fair value (CN¥977.88)

Significantly Below Fair Value: 603444 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is G-bits Network Technology (Xiamen) forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603444's forecast earnings growth (15.9% per year) is above the savings rate (3.2%).

Earnings vs Market: 603444's earnings (15.9% per year) are forecast to grow slower than the CN market (25.8% per year).

High Growth Earnings: 603444's earnings are forecast to grow, but not significantly.

Revenue vs Market: 603444's revenue (14.5% per year) is forecast to grow slower than the CN market (18.1% per year).

High Growth Revenue: 603444's revenue (14.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 603444's Return on Equity is forecast to be high in 3 years time (28.7%)


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Past Performance

How has G-bits Network Technology (Xiamen) performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 603444 has high quality earnings.

Growing Profit Margin: 603444's current net profit margins (26.5%) are lower than last year (37.6%).


Past Earnings Growth Analysis

Earnings Trend: 603444's earnings have grown by 19.9% per year over the past 5 years.

Accelerating Growth: 603444's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 603444 had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Entertainment industry average (-18.7%).


Return on Equity

High ROE: 603444's Return on Equity (34.3%) is considered high.


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Financial Health

How is G-bits Network Technology (Xiamen)'s financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 603444's short term assets (CN¥3.9B) exceed its short term liabilities (CN¥1.9B).

Long Term Liabilities: 603444's short term assets (CN¥3.9B) exceed its long term liabilities (CN¥187.8M).


Debt to Equity History and Analysis

Debt Level: 603444 is debt free.

Reducing Debt: 603444 has no debt compared to 5 years ago when its debt to equity ratio was 6.3%.

Debt Coverage: 603444 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 603444 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is G-bits Network Technology (Xiamen) current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.44%

Current Dividend Yield

Dividend Yield vs Market

G-bits Network Technology (Xiamen) Dividend Yield vs Market
How does G-bits Network Technology (Xiamen) dividend yield compare to the market?
SegmentDividend Yield
Company (G-bits Network Technology (Xiamen))6.4%
Market Bottom 25% (CN)0.5%
Market Top 25% (CN)2.2%
Industry Average (Entertainment)2.8%
Analyst forecast in 3 Years (G-bits Network Technology (Xiamen))5.8%

Notable Dividend: 603444's dividend (6.44%) is higher than the bottom 25% of dividend payers in the CN market (0.55%).

High Dividend: 603444's dividend (6.44%) is in the top 25% of dividend payers in the CN market (2.16%)


Stability and Growth of Payments

Stable Dividend: 603444 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 603444's dividend payments have increased, but the company has only paid a dividend for 5 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (91.6%), 603444's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.1%), 603444's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

0.8yrs

Average board tenure


CEO

Hong Yan Lu (45 yo)

no data

Tenure

CN¥713,300

Compensation

Mr. Lu Hong Yan serves as Chairman of the Board and General Manager at Xiamen Gigabit Network Limited. Mr. Lu serves as an Executive Director of Xiamen Jufeng Software Technology Co., Ltd., Xiamen Leiting...


Board Members

Experienced Board: 603444's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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

What is the ownership structure of 603444?
Owner TypeNumber of SharesOwnership Percentage
Institutions10,227,46214.2%
General Public28,680,43339.9%
Individual Insiders32,958,38745.9%

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


Top Shareholders

Top 25 shareholders own 57.02% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
30.1%
Hong Yan Lu
21,629,475CN¥5.4b0%no data
11.47%
Tuo Lin Chen
8,240,025CN¥2.0b0%no data
2.02%
Zhi Hui Huang
1,450,282CN¥360.4m0%no data
1.88%
Pei Ying Li
1,350,000CN¥335.5m0%no data
1.59%
Zhongtai Securities (Shanghai) Asset Management Co.,Ltd.
1,142,768CN¥284.0m0%3.1%
1.58%
Fullgoal Fund Management Co., Ltd.
1,138,844CN¥283.0m0%0.12%
1.05%
National Council for Social Security Fund
751,901CN¥186.9m0%0.04%
0.9%
Yinhua Fund Management Co. Ltd.
644,434CN¥160.1m-13.2%0.15%
0.85%
Bosera Asset Management Co., Ltd.
614,010CN¥152.6m0%0.14%
0.74%
China Asset Management Co., Ltd.
529,215CN¥131.5m0%0.04%
0.68%
E Fund Management Co., Ltd.
486,618CN¥120.9m0%0.03%
0.63%
Lombarda China Fund Management Co., Ltd.
454,597CN¥113.0m0%0.06%
0.55%
GF Fund Management Co., Ltd.
396,984CN¥98.7m0%0.04%
0.5%
China Southern Asset Management Co., Ltd.
356,610CN¥88.6m0%0.04%
0.46%
Baoying Fund Management Co., Ltd.
333,100CN¥82.8m0%0.39%
0.3%
Guotai Asset Management Co., Ltd.
212,397CN¥52.8m0%0.04%
0.28%
Yan Gao
204,125CN¥50.7m0%no data
0.25%
The Vanguard Group, Inc.
182,916CN¥45.5m0%no data
0.24%
Acadian Asset Management LLC
174,519CN¥43.4m0.03%0.02%
0.23%
Great Wall Fund Management Co. Ltd.
163,752CN¥40.7m0%0.16%
0.18%
BlackRock, Inc.
127,167CN¥31.6m6.44%no data
0.15%
ABC-CA Fund Management Co., Ltd.
107,200CN¥26.6m0%0.07%
0.13%
ICBC Credit Suisse Asset Management Co., Ltd.
96,080CN¥23.9m0%0.02%
0.13%
Penghua Fund Management Co. Ltd.
94,506CN¥23.5m0%0.02%
0.13%
Strategic Advisers LLC
93,773CN¥23.3m0.17%no data

Company Information

G-bits Network Technology (Xiamen) Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: G-bits Network Technology (Xiamen) Co., Ltd.
  • Ticker: 603444
  • Exchange: SHSE
  • Founded: 2004
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Implied Market Cap: CN¥17.859b
  • Shares outstanding: 71.87m
  • Website: https://www.g-bits.com

Number of Employees


Location

  • G-bits Network Technology (Xiamen) Co., Ltd.
  • Room 101, No. 4, Wanghai Road
  • Xiamen Software Park 2
  • Xiamen
  • Fujian Province
  • 361008
  • China


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
603444SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYJan 2017
603444XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYJan 2017

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.