Spearhead Integrated Marketing Communication Group (SZSE:300071) - Share price, News & Analysis

Q: What is the Fair Price of 300071 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

300071 (CN¥3.18) is trading above our estimate of [[fair value]] (CN¥0.39)

300071 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

300071 Stock Overview

Spearhead Integrated Marketing Communication Group provides marketing services in China.

Rewards

Price-To-Earnings ratio (10.5x) is below the CN market (34.2x)

Became profitable this year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Spearhead Integrated Marketing Communication Group Competitors

Hunan TV & Broadcast Intermediary

SZSE:000917

CN¥7.4b

Beijing Quanshi World Online Network Information

SZSE:002995

CN¥2.1b

Simei MediaLtd

SZSE:002712

CN¥2.3b

Hylink Digital Solution

SHSE:603825

CN¥4.3b

Price History & Performance

Summary of all time highs, changes and price drops for Spearhead Integrated Marketing Communication Group
Historical stock prices
Current Share Price	CN¥3.18
52 Week High	CN¥4.01
52 Week Low	CN¥1.85
Beta	0.28
1 Month Change	6.36%
3 Month Change	11.97%
1 Year Change	57.43%
3 Year Change	-5.36%
5 Year Change	-61.08%
Change since IPO	-20.04%

Shareholder Returns

	300071	CN Media	CN Market
7D	3.2%	-0.2%	1.3%
1Y	57.4%	-8.5%	-6.8%

Return vs Industry: 300071 exceeded the CN Media industry which returned -8.5% over the past year.

Return vs Market: 300071 exceeded the CN Market which returned -6.8% over the past year.

Price Volatility

Is 300071's price volatile compared to industry and market?
300071 volatility
300071 Average Weekly Movement	8.0%
Media Industry Average Movement	7.1%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.0%

Stable Share Price: 300071 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 300071's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	990	Wei Liu	https://www.spearhead.com.cn

Spearhead Integrated Marketing Communication Group provides marketing services in China. It offers digital, experiential, content, big data, and public relation and communication marketing services. The company was founded in 2003 and is based in Beijing, China.

Spearhead Integrated Marketing Communication Group Fundamentals Summary

How do Spearhead Integrated Marketing Communication Group's earnings and revenue compare to its market cap?
300071 fundamental statistics
Market Cap	CN¥2.93b
Earnings (TTM)	CN¥278.24m
Revenue (TTM)	CN¥1.06b

10.5x

P/E Ratio

2.8x

P/S Ratio

Is 300071 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
300071 income statement (TTM)
Revenue	CN¥1.06b
Cost of Revenue	CN¥708.86m
Gross Profit	CN¥351.36m
Other Expenses	CN¥73.12m
Earnings	CN¥278.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.30
Gross Margin	33.14%
Net Profit Margin	26.24%
Debt/Equity Ratio	0%

How did 300071 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 300071 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 300071?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 300071. This is calculated by dividing 300071's market cap by their current preferred multiple.
What is 300071's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥2.93b

300071 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/Revenue	2.8x
Enterprise Value/EBITDA	305.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 300071's PE Ratio compare to its peers?

300071 PE Ratio vs Peers

The above table shows the PE ratio for 300071 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	45.8x
000917 Hunan TV & Broadcast Intermediary	21.6x	n/a	CN¥7.4b
002995 Beijing Quanshi World Online Network Information	73.4x	n/a	CN¥2.1b
002712 Simei MediaLtd	69.5x	n/a	CN¥2.3b
603825 Hylink Digital Solution	18.6x	27.4%	CN¥4.3b
300071 Spearhead Integrated Marketing Communication Group	10.5x	n/a	CN¥2.9b

Forward PE

Price-To-Earnings vs Peers: 300071 is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (45.8x).

Price to Earnings Ratio vs Industry

How does 300071's PE Ratio compare vs other companies in the CN Media Industry?

Price-To-Earnings vs Industry: 300071 is good value based on its Price-To-Earnings Ratio (10.5x) compared to the CN Media industry average (28.1x)

Price to Earnings Ratio vs Fair Ratio

What is 300071'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.

300071 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 300071's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 300071 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 300071 (CN¥3.18) is trading above our estimate of fair value (CN¥0.39)

Significantly Below Fair Value: 300071 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 300071's PEG Ratio to determine if it is good value.

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Future Growth

How is Spearhead Integrated Marketing Communication Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.3%

Forecasted Media 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 Spearhead Integrated Marketing Communication Group 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.

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Examine Spearhead Integrated Marketing Communication Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Spearhead Integrated Marketing Communication Group 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

-3.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 300071 has a high level of non-cash earnings.

Growing Profit Margin: 300071 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: 300071 has become profitable over the past 5 years, growing earnings by -3% per year.

Accelerating Growth: 300071 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 300071 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (9.4%).

Return on Equity

High ROE: 300071's Return on Equity (483.5%) is considered outstanding.

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Financial Health

How is Spearhead Integrated Marketing Communication Group'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: 300071's short term assets (CN¥789.0M) exceed its short term liabilities (CN¥573.9M).

Long Term Liabilities: 300071's short term assets (CN¥789.0M) exceed its long term liabilities (CN¥350.1M).

Debt to Equity History and Analysis

Debt Level: 300071 is debt free.

Reducing Debt: 300071 has no debt compared to 5 years ago when its debt to equity ratio was 53.4%.

Debt Coverage: 300071 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 300071 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Spearhead Integrated Marketing Communication Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 300071's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 300071'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 300071's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 300071's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 300071 is not paying a notable dividend for the CN market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 300071 has not reported any payouts.

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Management

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

1.7yrs

Average board tenure

CEO

Wei Liu

1.67yrs

Tenure

CN¥498,100

Compensation

Mr. Wei Liu served as the Chairman of the Board of Spearhead Integrated Marketing Communication Group until November 2020. He serves as the General Manager of Spearhead Integrated Marketing Communication G...

Board Members

Experienced Board: 300071's board of directors are not considered experienced ( 1.7 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 been diluted in the past year, with total shares outstanding growing by 37.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31