SEHK:1400

Stock Analysis Report

Moody Technology Holdings

Executive Summary

Moody Technology Holdings Limited, an investment holding company, designs, manufactures, and sells fabrics and yarns in the People’s Republic of China.

Rewards

Trading at 98.7% below its fair value

Risk Analysis

Earnings have declined by -53.16% per year over past 5 years

Does not have a meaningful market cap (HK$20M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Moody Technology Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1400's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.4%

1400

-1.5%

HK Luxury

2.2%

HK Market


1 Year Return

-84.3%

1400

19.0%

HK Luxury

-0.8%

HK Market

Return vs Industry: 1400 underperformed the Hong Kong Luxury industry which returned 19% over the past year.

Return vs Market: 1400 underperformed the Hong Kong Market which returned -0.8% over the past year.


Shareholder returns

1400IndustryMarket
7 Day4.4%-1.5%2.2%
30 Day4.4%-3.0%-0.6%
90 Day-45.0%3.1%-0.9%
1 Year-84.3%-84.3%23.1%19.0%2.8%-0.8%
3 Year-98.0%-98.0%45.2%27.4%19.5%7.4%
5 Year-99.1%-99.1%51.1%21.5%20.7%0.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Moody Technology Holdings 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: 1400 (HK$0.09) is trading below our estimate of fair value (HK$7.34)

Significantly Below Fair Value: 1400 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1400 is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.

PE vs Market: 1400 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1400's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1400 has negative assets, so we can't compare its PB Ratio to the HK Luxury industry average.


Next Steps

Future Growth

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

17.9%

Forecasted Consumer Durables 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 Moody Technology Holdings 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 Moody Technology Holdings performed over the past 5 years?

-53.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1400 is currently unprofitable.

Growing Profit Margin: 1400 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1400 is unprofitable, and losses have increased over the past 5 years at a rate of -53.2% per year.

Accelerating Growth: Unable to compare 1400's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1400 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (-2.8%).


Return on Equity

High ROE: 1400's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Moody Technology Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1400 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 1400 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: 1400 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 1400's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 1400 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1400 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: Whilst unprofitable 1400 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1400 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 67.8% per year.


Next Steps

Dividend

What is Moody Technology Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.2%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1400's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1400'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 1400's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1400'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 1400's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Moody Technology Holdings's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Moody Technology Holdings has no CEO, or we have no data on them.


Management Age and Tenure

4.5yrs

Average Tenure

41.5yo

Average Age

Experienced Management: 1400's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

0.3yrs

Average Tenure

35yo

Average Age

Experienced Board: 1400's board of directors are not considered experienced ( 0.3 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

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.9%.


Management Team

  • Wenwang Zhang (56yo)

    Head of Production Department & Vice GM - Hongtai (China)

    • Tenure: 8.8yrs
  • Xuemin Liu (59yo)

    Head of Research & Development Department and Chief Engineer of Hongtai (China)

    • Tenure: 8.8yrs
  • Jinxu Cai

    Executive

    • Tenure: 0yrs
  • Henry Tse (35yo)

    Company Secretary

    • Tenure: 0.08yrs
  • Cai Yujun

    Executive

    • Tenure: 0yrs
  • Ke Mingcai

    Executive

    • Tenure: 0yrs
  • Wu Bingying

    Executive

    • Tenure: 0yrs
  • Jianxiong Wu (48yo)

    Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: CN¥143.00k
  • Guoqin Lin (30yo)

    Executive Director

    • Tenure: 0.2yrs
  • Zhiping Wang (31yo)

    Executive Director

    • Tenure: 0.08yrs

Board Members

  • Yun Chow (39yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Jianxiong Wu (48yo)

    Chairman of the Board

    • Tenure: 0.7yrs
    • Compensation: CN¥143.00k
  • Yugang Lin (50yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: CN¥16.00k
  • Guoqin Lin (30yo)

    Executive Director

    • Tenure: 0.2yrs
  • Junting Liu (29yo)

    Independent Non-Executive Director

    • Tenure: 0.2yrs
  • Zhiping Wang (31yo)

    Executive Director

    • Tenure: 0.08yrs

Company Information

Moody Technology Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Moody Technology Holdings Limited
  • Ticker: 1400
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: HK$19.716m
  • Shares outstanding: 186.00m
  • Website: https://www.moodytech-holdingltd.com

Number of Employees


Location

  • Moody Technology Holdings Limited
  • Wubao Science and Technology Park
  • Hongshan Town
  • Shishi
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1400SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2014

Biography

Moody Technology Holdings Limited, an investment holding company, designs, manufactures, and sells fabrics and yarns in the People’s Republic of China. The company operates in two segments, Sales of Fabric ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 12:58
End of Day Share Price2019/12/12 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.