DB:0P4

Stock Analysis Report

Poly Culture Group

Executive Summary

Poly Culture Group Corporation Limited operates as a culture and art company in China.


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

How has Poly Culture Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0P4's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

0P4

25.4%

DE Entertainment

9.9%

DE Market


1 Year Return

-58.6%

0P4

-9.9%

DE Entertainment

-17.5%

DE Market

Return vs Industry: 0P4 underperformed the German Entertainment industry which returned -8.9% over the past year.

Return vs Market: 0P4 underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

0P4IndustryMarket
7 Day4.8%25.4%9.9%
30 Day-9.0%-16.6%-16.6%
90 Day-15.8%-27.0%-24.8%
1 Year-57.5%-58.6%-8.7%-9.9%-15.0%-17.5%
3 Year-75.4%-76.9%-4.7%-9.3%-17.4%-24.5%
5 Year-82.2%-83.9%38.9%27.7%-16.6%-28.1%

Price Volatility Vs. Market

How volatile is Poly Culture Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Poly Culture Group undervalued compared to its fair value and its price relative to the market?

4.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0P4 (€0.41) is trading above our estimate of fair value (€0.14)

Significantly Below Fair Value: 0P4 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0P4 is good value based on its PE Ratio (4.3x) compared to the Entertainment industry average (29.6x).

PE vs Market: 0P4 is good value based on its PE Ratio (4.3x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 0P4's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 0P4 is good value based on its PB Ratio (0.2x) compared to the DE Entertainment industry average (1x).


Next Steps

Future Growth

How is Poly Culture Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.3%

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 Poly Culture 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.


Next Steps

Past Performance

How has Poly Culture Group performed over the past 5 years?

-0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0P4 has high quality earnings.

Growing Profit Margin: 0P4's current net profit margins (5.9%) are lower than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 0P4's earnings have declined by -0.3% per year over the past 5 years.

Accelerating Growth: 0P4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0P4 had negative earnings growth (-15.1%) over the past year, making it difficult to compare to the Entertainment industry average (-50.4%).


Return on Equity

High ROE: 0P4's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Poly Culture Group's financial position?


Financial Position Analysis

Short Term Liabilities: 0P4's short term assets (CN¥8.8B) exceed its short term liabilities (CN¥5.8B).

Long Term Liabilities: 0P4's short term assets (CN¥8.8B) exceed its long term liabilities (CN¥1.8B).


Debt to Equity History and Analysis

Debt Level: 0P4's debt to equity ratio (76.4%) is considered high.

Reducing Debt: 0P4's debt to equity ratio has increased from 15.4% to 76.4% over the past 5 years.

Debt Coverage: 0P4's debt is not well covered by operating cash flow (3.9%).

Interest Coverage: 0P4's interest payments on its debt are well covered by EBIT (29.4x coverage).


Balance Sheet

Inventory Level: 0P4 has a high level of physical assets or inventory.

Debt Coverage by Assets: 0P4's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Poly Culture Group's current dividend yield, its reliability and sustainability?

4.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0P4's dividend (4.35%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: 0P4's dividend (4.35%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: 0P4 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 0P4 has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.9%), 0P4's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Yingchun Jiang (50yo)

9.25s

Tenure

CN¥2,098,000

Compensation

Mr. Yingchun Jiang serves as Non Executive Director at Digital Domain Holdings Limited since May 30, 2019. He has been the Chief Executive Officer and Executive Director at Poly Culture Group Corporation L ...


CEO Compensation Analysis

Compensation vs Market: Yingchun's total compensation ($USD295.67K) is below average for companies of similar size in the German market ($USD432.27K).

Compensation vs Earnings: Yingchun's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Niansha Xu
Chairman5.25yrsno datano data
Yingchun Jiang
CEO, GM & Executive Director9.25yrsCN¥2.10mno data
Xi Zhang
Vice Chairman3.25yrsno datano data
Shibin Liu
CFO & Chief Accountant3yrsno datano data
Wei Wang
VP, Vice GM & Joint Company Secretary4yrsno datano data
Weiqiang Li
Executive Director0.67yrno datano data
Suet Lun Leung
Joint Company Secretary1.42yrsno datano data

3.0yrs

Average Tenure

50yo

Average Age

Experienced Management: 0P4's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Niansha Xu
Chairman5.25yrsno datano data
Yingchun Jiang
CEO, GM & Executive Director9.25yrsCN¥2.10mno data
Xi Zhang
Vice Chairman3.25yrsno datano data
Weiqiang Li
Executive Director0.67yrno datano data
Wai Ming Yip
Independent Non-Executive Director6.25yrsCN¥121.00kno data
Xiaohui Li
Independent Non-Executive Director9.25yrsCN¥121.00kno data
Boqian Li
Independent Non-Executive Director6.25yrsCN¥121.00kno data
Keling Wang
Non-Executive Director3.25yrsno datano data
Yuwen Chen
Chairman of Supervisory Board3.25yrsno datano data
Geming Huang
Non-Executive Director1.67yrsno datano data

4.3yrs

Average Tenure

54yo

Average Age

Experienced Board: 0P4's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 0P4 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Poly Culture Group Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Poly Culture Group Corporation Limited
  • Ticker: 0P4
  • Exchange: DB
  • Founded: 2000
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: HK$1.089b
  • Listing Market Cap: HK$127.814m
  • Shares outstanding: 246.32m
  • Website: https://www.polyculture.com.cn

Number of Employees


Location

  • Poly Culture Group Corporation Limited
  • 1 North Street of Chaoyangmen
  • 25th Floor
  • Beijing
  • 100010
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3636SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares Foreign ListedHKHKDMar 2014
0P4DB (Deutsche Boerse AG)YesForeign Shares Foreign ListedDEEURMar 2014

Biography

Poly Culture Group Corporation Limited operates as a culture and art company in China. It operates in three segments: Art Business and Auction, Performance and Theatre Management, and Cinema Investment and Management. The Art Business and Auction segment buys and sells Chinese antiques, Chinese modern and contemporary calligraphy and painting, Chinese ancient calligraphy and painting, Chinese oil painting and sculptures, and other Chinese cultural relics and artwork. This segment also provides artwork investment consultation and other services. The Performance and Theatre Management segment engages in the daily management of theatre; arrangement of performances; leasing of theatres; and provision of theatre design consultation services. The Cinema Investment and Management segment is involved in cinema construction and cinema operation activities. Poly Culture Group Corporation Limited also engages in the auction of moveable property, real estate, and intangible assets; and advertisement agency, engineering and technology management consulting, entertainment content production, film screening, and snacks retailing activities, as well as provides asset management, acquisition, disposition, restructuring, and related consulting business services. The company was founded in 2000 and is headquartered in Beijing, the People’s Republic of China. Poly Culture Group Corporation Limited is a subsidiary of Poly Group Corporation Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 22:25
End of Day Share Price2020/03/31 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.