SZSE:002517

Stock Analysis Report

Kingnet Network

Executive Summary

Kingnet Network Co., Ltd. engages in the development and operation of Web and mobile games.


Snowflake Analysis

Excellent balance sheet and overvalued.


Similar Companies

Share Price & News

How has Kingnet Network's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 002517's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

2517

-4.7%

CN Entertainment

-0.1%

CN Market


1 Year Return

-42.4%

2517

0.4%

CN Entertainment

-9.2%

CN Market

Return vs Industry: 002517 underperformed the CN Entertainment industry which returned 0.8% over the past year.

Return vs Market: 002517 underperformed the CN Market which returned -9% over the past year.


Shareholder returns

2517IndustryMarket
7 Day-3.8%-4.7%-0.1%
30 Day-14.8%-10.5%-9.8%
90 Day2.2%-8.8%-6.1%
1 Year-42.4%-42.4%1.0%0.4%-7.7%-9.2%
3 Year-72.4%-72.7%-42.1%-43.1%-12.7%-16.2%
5 Yearn/a-46.5%-47.3%-21.7%-26.5%

Price Volatility Vs. Market

How volatile is Kingnet Network's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kingnet Network undervalued compared to its fair value and its price relative to the market?

1.23x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 002517 (CN¥2.82) is trading above our estimate of fair value (CN¥1.69)

Significantly Below Fair Value: 002517 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 002517 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: 002517 is unprofitable, so we can't compare its PE Ratio to the CN market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 002517's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 002517 is good value based on its PB Ratio (1.2x) compared to the CN Entertainment industry average (1.9x).


Next Steps

Future Growth

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

36.5%

Forecasted Media industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 002517's forecast earnings growth is above the savings rate (3.2%).

Earnings vs Market: Insufficient data to determine if 002517's earnings are forecast to grow faster than the CN market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 002517's revenue is forecast to grow faster than the CN market.

High Growth Revenue: Insufficient data to determine if 002517's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 002517's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kingnet Network performed over the past 5 years?

-17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 002517 is currently unprofitable.

Growing Profit Margin: 002517 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 002517 is unprofitable, and losses have increased over the past 5 years at a rate of -17.9% per year.

Accelerating Growth: Unable to compare 002517's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 002517 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (15.2%).


Return on Equity

High ROE: 002517 has a negative Return on Equity (-39.77%), as it is currently unprofitable.


Next Steps

Financial Health

How is Kingnet Network's financial position?


Financial Position Analysis

Short Term Liabilities: 002517's short term assets (CN¥2.5B) exceed its short term liabilities (CN¥838.0M).

Long Term Liabilities: 002517's short term assets (CN¥2.5B) exceed its long term liabilities (CN¥43.5M).


Debt to Equity History and Analysis

Debt Level: 002517's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: 002517's debt to equity ratio has reduced from 620.9% to 1.3% over the past 5 years.


Balance Sheet

Inventory Level: 002517 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 002517's debt is covered by short term assets (assets are 37.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 002517 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: 002517 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Kingnet Network's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 002517's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 002517's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 002517's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 002517's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 002517 is not paying a notable dividend for the CN market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 002517's dividend in 3 years as they are not forecast to pay a notable one for the CN market.


Next Steps

Management

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

4.3yrs

Average management tenure


CEO

Yue Wang (36yo)

no data

Tenure

CN¥1,383,100

Compensation

Mr. Yue Wang founded Shanghai Kingnet Technology Co., Ltd and serves as its Chief Executive Officer. 


Leadership Team

NamePositionTenureCompensationOwnership
Yue Wang
Founderno dataCN¥1.38m21.46% CN¥1.3b
Sheng Yuan
CFO, Deputy GM & Secretary4.25yrsCN¥1.15mno data
He Xin
Deputy General Manager4.25yrsCN¥728.60kno data
Chen Cong
Deputy GM & Non-Independent Director1.08yrsCN¥1.36m0.012% CN¥704.7k
Jun Shen
Deputy General Managerno dataCN¥205.30kno data
Min Yi
Deputy General Manager4.25yrsCN¥2.17mno data

4.3yrs

Average Tenure

37yo

Average Age

Experienced Management: 002517's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yue Wang
Founderno dataCN¥1.38m21.46% CN¥1.3b
Chen Cong
Deputy GM & Non-Independent Director1.08yrsCN¥1.36m0.012% CN¥704.7k
Shuang Hao
Director4.25yrsno datano data
Lin Hong
Chairman of the Supervisory Board4.25yrsno datano data
Feng Jin
Non-Independent Director1.08yrsCN¥147.20kno data
Fa Huang
Independent Director1.08yrsno datano data
Yayuan Zhu
Independent Director1.08yrsno datano data
Weigang Fu
Independent Director1.08yrsno datano data
Gang Li
Non-Independent Director1.08yrsCN¥10.18mno data
Siyun Li
Non-Independent Director1.08yrsno datano data

1.1yrs

Average Tenure

38yo

Average Age

Experienced Board: 002517's board of directors are not considered experienced ( 1.1 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

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


Top Shareholders

Company Information

Kingnet Network Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kingnet Network Co., Ltd.
  • Ticker: 2517
  • Exchange: SZSE
  • Founded: 2008
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: CN¥6.065b
  • Shares outstanding: 2.15b
  • Website: https://www.kingnet.com

Number of Employees


Location

  • Kingnet Network Co., Ltd.
  • Pujiang Technology Square
  • Building 3
  • Shanghai
  • 201114
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2517SZSE (Shenzhen Stock Exchange)YesDomestic SharesCNCNYDec 2015
2517XSEC (Shenzhen Stock Exchange - Shenzhen-Hong Kong Stock Connect)YesDomestic SharesCNCNYDec 2015

Biography

Kingnet Network Co., Ltd. engages in the development and operation of Web and mobile games. It operates various Internet platform products, such as XY games for Web games platforms; and XY Apple assistant, an application distribution platform, etc. The company also provides layout planning service for high-tech Internet business. In addition, it offers entertainment products. The company was founded in 2008 and is based in Shanghai, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 18:13
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.