BST:3IY

Stock Analysis Report

Executive Summary

Loto Interactive Limited, an investment holding company, provides lottery-related technologies, systems and solutions to two state-run lottery operators in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

How has Loto Interactive's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.1%

3IY

14.2%

DE Hospitality

3.9%

DE Market


1 Year Return

225.0%

3IY

-16.8%

DE Hospitality

3.4%

DE Market

Return vs Industry: 3IY exceeded the German Hospitality industry which returned -16.8% over the past year.

Return vs Market: 3IY exceeded the German Market which returned 3.4% over the past year.


Shareholder returns

3IYIndustryMarket
7 Day-7.1%14.2%3.9%
30 Day-15.6%22.3%2.1%
90 Day-34.3%26.9%3.7%
1 Year225.0%225.0%-11.1%-16.8%6.7%3.4%
3 Yearn/a16.3%0.7%18.9%8.6%
5 Yearn/a36.2%9.2%41.8%22.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Loto Interactive undervalued compared to its fair value and its price relative to the market?

0.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 3IY's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 3IY's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 3IY is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: 3IY is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 3IY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3IY is good value based on its PB Ratio (1x) compared to the DE Hospitality industry average (2.6x).


Next Steps

Future Growth

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

22.3%

Forecasted Consumer Services 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 Loto Interactive 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.


Next Steps

Past Performance

How has Loto Interactive performed over the past 5 years?

19.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3IY is unprofitable, but has reduced losses over the past 5 years at a rate of 19.9% per year.

Accelerating Growth: Unable to compare 3IY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3IY is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-28.4%).


Return on Equity

High ROE: 3IY has a negative Return on Equity (-10.09%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 3IY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 3IY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Loto Interactive's financial position?


Financial Position Analysis

Short Term Liabilities: 3IY's short term assets (HK$361.2M) exceeds its short term liabilities (HK$132.2M)

Long Term Liabilities: 3IY's short term assets (361.2M) exceeds its long term liabilities (1.1M)


Debt to Equity History and Analysis

Debt Level: 3IY is debt free.

Reducing Debt: 3IY has no debt compared to 5 years ago when its debt to equity ratio was 0%.

Debt Coverage: 3IY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3IY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3IY has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 3IY's debt is covered by short term assets.


Next Steps

Dividend

What is Loto Interactive's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage6.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 3IY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3IY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 3IY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3IY'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 3IY's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Loto Interactive's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Bingzhong Wang (36yo)

2.3yrs

Tenure

HK$5,414,000

Compensation

Mr. Bingzhong Wang has been Executive Director at MelcoLot Limited since June 19, 2017 and has been its Chief Executive Officer and Compliance Officer since July 10, 2017. Mr. Wang serves as Director at Dr ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Bingzhong's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Bingzhong's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.3yrs

Average Tenure

36yo

Average Age

Experienced Management: 3IY's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

40yo

Average Age

Experienced Board: 3IY's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Bingzhong Wang (36yo)

    CEO, Compliance Officer & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$5.41m
  • Mandy Chow (42yo)

    Company Secretary

    • Tenure: 2.3yrs
  • Lilan Huang (36yo)

    CFO & Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$1.11m

Board Members

  • Zhengming Pan (40yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: HK$743.00k
  • Bingzhong Wang (36yo)

    CEO, Compliance Officer & Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$5.41m
  • Sen Lin (42yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$414.00k
  • Hao Yan (40yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$414.00k
  • Haitian Lu (39yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$414.00k
  • Qiang Yuan (45yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: HK$2.80m
  • Lilan Huang (36yo)

    CFO & Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$1.11m

Company Information

Loto Interactive Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Loto Interactive Limited
  • Ticker: 3IY
  • Exchange: BST
  • Founded:
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: HK$344.287m
  • Listing Market Cap: HK$39.463m
  • Shares outstanding: 3.16b
  • Website: https://www.lotoie.com

Number of Employees


Location

  • Loto Interactive Limited
  • Bank of China Tower
  • 50th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8198SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2002
3IYBST (Boerse-Stuttgart)YesOrdinary SharesDEEURMay 2002

Biography

Loto Interactive Limited, an investment holding company, provides lottery-related technologies, systems and solutions to two state-run lottery operators in the People’s Republic of China. It operates throu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 21:21
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.