DB:FZKB

Stock Analysis Report

Executive Summary

The9 Limited, together with its subsidiaries, operates and develops proprietary and licensed online games in the People’s Republic of China.


Snowflake Analysis

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has The9's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

FZKB

8.0%

DE Entertainment

2.2%

DE Market


1 Year Return

-82.5%

FZKB

-8.2%

DE Entertainment

-17.2%

DE Market

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

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


Shareholder returns

FZKBIndustryMarket
7 Day0.6%8.0%2.2%
30 Day-49.4%-14.9%-15.7%
90 Day-59.5%-25.4%-24.0%
1 Year-82.5%-82.5%-7.0%-8.2%-14.9%-17.2%
3 Year-88.6%-88.6%-3.0%-7.2%-16.4%-23.3%
5 Year-93.2%-93.2%40.9%30.2%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is The9's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is The9 undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether The9 is trading at an attractive price based on the cash flow it is expected to produce in the future. But as The9 has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of FZKB’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through The9 regulatory filings.
  • Explore potentially undervalued companies in the Media industry.

Future Growth

How is The9 forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.2%

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 The9 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 The9 performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FZKB is currently unprofitable.

Growing Profit Margin: FZKB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FZKB is unprofitable, but has reduced losses over the past 5 years at a rate of 6.4% per year.

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

Earnings vs Industry: FZKB is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (-50.4%).


Return on Equity

High ROE: FZKB's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is The9's financial position?


Financial Position Analysis

Short Term Liabilities: FZKB has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: FZKB has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: FZKB has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: FZKB's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: FZKB has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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: Insufficient data to determine if FZKB has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FZKB has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is The9's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

13.0yrs

Average management tenure


CEO

Jun Zhu (52yo)

17.5s

Tenure

Mr. Jun Zhu co-founded the The9 Limited and has been its Chief Executive Officer since October 2002 and served as its President since May 16, 2010. Under Mr. Zhu's leadership, The9 has grown to become one  ...


Leadership Team

NamePositionTenureCompensationOwnership
Jun Zhu
Co-Founder17.5yrsno data32.79% CN¥6.7m
Arthur Lau
President2.25yrsno datano data
Kwok Ho Lai
CFO & Director4.25yrsno data1.32% CN¥268.6k
Chris Shen
Vice President14.25yrsno datano data
Wendy Weng
Manager of Investor Relationsno datano datano data

13.0yrs

Average Tenure

46.5yo

Average Age

Experienced Management: FZKB's management team is seasoned and experienced (12.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jun Zhu
Co-Founder17.5yrsno data32.79% CN¥6.7m
Kwok Ho Lai
CFO & Director4.25yrsno data1.32% CN¥268.6k
Ka Keung Yeung
Independent Non Executive Director14.75yrsno datano data
Davin Alexander Mackenzie
Independent Non Executive Director14.75yrsno datano data
Kwok Keung Chau
Independent Director4.5yrsno datano data

14.8yrs

Average Tenure

52yo

Average Age

Experienced Board: FZKB's board of directors are seasoned and experienced ( 14.7 years average tenure).


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 substantially diluted in the past year, with total shares outstanding growing by 85.4%.


Top Shareholders

Company Information

The9 Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The9 Limited
  • Ticker: FZKB
  • Exchange: DB
  • Founded: 1999
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: US$22.388m
  • Listing Market Cap: US$20.374m
  • Shares outstanding: 45.70m
  • Website: https://www.the9.com

Number of Employees


Location

  • The9 Limited
  • Building No. 3
  • 690 Bibo Road
  • Shanghai
  • 201203
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NCTYNasdaqCM (Nasdaq Capital Market)YesADR EACH REP 3 SHS SPONUSUSDDec 2004
FZKBDB (Deutsche Boerse AG)YesADR EACH REP 3 SHS SPONDEEURDec 2004
0LF2LSE (London Stock Exchange)YesADR EACH REP 3 SHS SPONGBUSDDec 2004

Biography

The9 Limited, together with its subsidiaries, operates and develops proprietary and licensed online games in the People’s Republic of China. The company offers online games, including massively multiplayer online games, mobile games, Web games, and TV games. It also provides technical consulting services. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was founded in 1999 and is headquartered in Shanghai, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 02:06
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.