DB:SO7

Stock Analysis Report

Executive Summary

Nan Hai Corporation Limited, an investment holding company, primarily engages in the culture and media, property development, and corporate information technology (IT) application services businesses in Mainland China, Hong Kong, North America, Europe, Australia, and internationally.


Snowflake Analysis

Good value with imperfect balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SO7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.8%

SO7

-13.4%

DE Entertainment

-9.1%

DE Market


1 Year Return

-50.0%

SO7

18.9%

DE Entertainment

2.9%

DE Market

Return vs Industry: SO7 underperformed the German Entertainment industry which returned 18.9% over the past year.

Return vs Market: SO7 underperformed the German Market which returned 2.9% over the past year.


Shareholder returns

SO7IndustryMarket
7 Day-11.8%-13.4%-9.1%
30 Day-15.1%-11.9%-7.2%
90 Day-22.4%-7.8%-6.5%
1 Year-49.4%-50.0%20.5%18.9%6.1%2.9%
3 Year-69.0%-70.0%23.2%17.2%3.5%-5.6%
5 Year132.3%125.0%82.0%67.5%8.0%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SO7 (€0.01) is trading below our estimate of fair value (€0.12)

Significantly Below Fair Value: SO7 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SO7 is good value based on its PE Ratio (23.6x) compared to the Entertainment industry average (37.3x).

PE vs Market: SO7 is poor value based on its PE Ratio (23.6x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SO7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SO7 is good value based on its PB Ratio (1x) compared to the DE Entertainment industry average (1.3x).


Next Steps

Future Growth

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

22.4%

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 Nan Hai 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 Nan Hai performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SO7 has a large one-off gain of HK$1.4B impacting its June 30 2019 financial results.

Growing Profit Margin: SO7's current net profit margins (1.8%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: SO7's earnings have grown significantly by 33.6% per year over the past 5 years.

Accelerating Growth: SO7's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SO7 had negative earnings growth (-82.7%) over the past year, making it difficult to compare to the Entertainment industry average (14.9%).


Return on Equity

High ROE: SO7's Return on Equity (-0.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nan Hai's financial position?


Financial Position Analysis

Short Term Liabilities: SO7's short term assets (HK$26.3B) do not cover its short term liabilities (HK$32.1B).

Long Term Liabilities: SO7's short term assets (HK$26.3B) exceed its long term liabilities (HK$13.7B).


Debt to Equity History and Analysis

Debt Level: SO7's debt to equity ratio (326.6%) is considered high.

Reducing Debt: SO7's debt to equity ratio has increased from 117.9% to 326.6% over the past 5 years.

Debt Coverage: SO7's debt is well covered by operating cash flow (34.1%).

Interest Coverage: SO7's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: SO7 has a high level of physical assets or inventory.

Debt Coverage by Assets: SO7's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

1.79%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.5%markettop25%3.9%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SO7's dividend (1.76%) is higher than the bottom 25% of dividend payers in the German market (1.52%).

High Dividend: SO7's dividend (1.76%) is low compared to the top 25% of dividend payers in the German market (3.92%).


Stability and Growth of Payments

Stable Dividend: SO7 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SO7 has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.6%), SO7'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?

2.5yrs

Average management tenure


CEO

Rong Liu (47yo)

2yrs

Tenure

HK$838,000

Compensation

Ms. Rong Liu is Chairlady of the Board at Sino-i Technology Ltd since January 2, 2018. Ms. Liu has been Chief Executive Officer of Nan Hai Corp. Ltd since February 12, 2018. She served General Manager of  ...


CEO Compensation Analysis

Compensation vs Market: Rong's total compensation ($USD107.52K) is below average for companies of similar size in the German market ($USD1.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Pun Hoi Yu
Executive Chairman0yrsHK$378.00k46.24% HK$311.1m
Rong Liu
CEO & Executive Director2yrsHK$838.00kno data
Heran Xu
Chief Strategy Officer1.3yrsno datano data
Yang Zhang
Vice General Manager3.1yrsno datano data
Jay Aggarwal
Company Secretary1.6yrsno datano data
Bo Xue
General Manager of Nan Hai Development Ltd & The Peninsula Shenzhen Property Development Co Ltd14.1yrsno datano data
Ming Fei Chen
General Manager of CE Dongli Technology Company Ltd & Beijing Xinnet Cyber Information Company Ltd12.7yrsno datano data

2.5yrs

Average Tenure

47yo

Average Age

Experienced Management: SO7's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pun Hoi Yu
Executive Chairman0yrsHK$378.00k46.24% HK$311.1m
Rong Liu
CEO & Executive Director2yrsHK$838.00kno data
Bing Lam
Non-Executive Director19.4yrsHK$120.00kno data
Yip Lau
Independent Non-Executive Director13.8yrsHK$120.00kno data
Suining Xiao
Independent Non-Executive Director3.8yrsHK$282.00kno data
Yeung Ho
Independent Non-Executive Director3.4yrsHK$120.00kno data

10.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SO7's board of directors are seasoned and experienced ( 10.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Nan Hai Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nan Hai Corporation Limited
  • Ticker: SO7
  • Exchange: DB
  • Founded:
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: HK$5.766b
  • Listing Market Cap: HK$672.742m
  • Shares outstanding: 68.65b
  • Website: https://www.nanhaicorp.com

Number of Employees


Location

  • Nan Hai Corporation Limited
  • Sino-i Campus
  • No. 1, Disheng West Road
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
680SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
SO7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NANH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Nan Hai Corporation Limited, an investment holding company, primarily engages in the culture and media, property development, and corporate information technology (IT) application services businesses in Mainland China, Hong Kong, North America, Europe, Australia, and internationally. The company operates through five segments: Enterprise Cloud Services, Property Development, Culture and Media Services, News Media Business, and Innovative Business. It is involved in the investment, construction, and operation of the cinema; production and distribution of the movies; cinema digital media technology business; research and development, and operation of system integration service equipment; and cinema media transmission business. The company also engages in the real estate development and property management services. In addition, it provides e-commerce and IT application services, including Website building, virtual hosting, online shop, enterprise mailbox, network marketing promotion, etc.; and Internet basic services, such as domain name registration, Web hosting, enterprise communication, and SaaS-based enterprise operations and management services, as well as integrated solutions for SMEs, enterprises, institutions, and individuals through online direct sales and agent channels. Further, the company engages in the news media, securities and movie projectors trading, and debt issuance businesses. Additionally, it provides decoration, advertising, and digital media technology services; sells decoration materials; and manufactures, distributes, and retails toiletries. As of December 31, 2018, the company operated 494 cinemas with 3,014 screens. Nan Hai Corporation Limited is headquartered in Beijing, China. Nan Hai Corporation Limited is a subsidiary of Dadi Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 21:31
End of Day Share Price2020/02/28 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.