SEHK:1089

Stock Analysis Report

Leyou Technologies Holdings

Executive Summary

Leyou Technologies Holdings Limited engages in the online game operation and retail game development activities in the People’s Republic of China, Canada, the United Kingdom, and the United States.

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Excellent balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1089's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.6%

1089

0.06%

HK Entertainment

2.7%

HK Market


1 Year Return

-3.3%

1089

-27.3%

HK Entertainment

-19.8%

HK Market

Return vs Industry: 1089 exceeded the Hong Kong Entertainment industry which returned -29.3% over the past year.

Return vs Market: 1089 exceeded the Hong Kong Market which returned -21.1% over the past year.


Shareholder returns

1089IndustryMarket
7 Day2.6%0.06%2.7%
30 Day-14.7%-10.3%-7.2%
90 Day-9.3%-12.2%-12.1%
1 Year-3.3%-3.3%-26.3%-27.3%-16.9%-19.8%
3 Year44.7%44.7%-44.2%-46.4%0.9%-9.3%
5 Year115.7%115.7%-65.7%-67.6%-12.6%-26.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Leyou Technologies Holdings undervalued compared to its fair value and its price relative to the market?

3.76x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1089 (HK$2.33) is trading above our estimate of fair value (HK$1.78)

Significantly Below Fair Value: 1089 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1089 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: 1089 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 1089's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1089 is overvalued based on its PB Ratio (3.8x) compared to the HK Entertainment industry average (1.1x).


Next Steps

Future Growth

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

53.1%

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 Leyou Technologies 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 Leyou Technologies Holdings performed over the past 5 years?

42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1089 is currently unprofitable.

Growing Profit Margin: 1089 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1089 is unprofitable, but has reduced losses over the past 5 years at a rate of 42.6% per year.

Accelerating Growth: Unable to compare 1089's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1089 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (11.5%).


Return on Equity

High ROE: 1089 has a negative Return on Equity (-2.58%), as it is currently unprofitable.


Next Steps

Financial Health

How is Leyou Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1089's short term assets ($80.6M) exceed its short term liabilities ($51.4M).

Long Term Liabilities: 1089's short term assets ($80.6M) exceed its long term liabilities ($19.7M).


Debt to Equity History and Analysis

Debt Level: 1089's debt to equity ratio (10.2%) is considered satisfactory.

Reducing Debt: 1089's debt to equity ratio has reduced from 50.6% to 10.2% over the past 5 years.

Debt Coverage: 1089's debt is well covered by operating cash flow (240.1%).

Interest Coverage: 1089 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Leyou Technologies Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1089's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1089'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 1089's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1089's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1089 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1089's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.9yrs

Average board tenure


CEO

Alex Xu (46yo)

2.83s

Tenure

US$666,000

Compensation

Mr. Yiran Xu, also known as Alex, serves as Investment Partner at Great Chiliocosm Capital. He serves as Chief Executive Officer at Beijing Gameley Technology Co.,Ltd. Mr. Xu serves as Independent Directo ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD666.00K) is above average for companies of similar size in the Hong Kong market ($USD493.37K).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Yiran Xu
Chairman & CEO2.83yrsUS$666.00kno data
Yang Li
Deputy Chairman of the Board1.42yrsUS$615.81k0.061% $4.4m
Zhenghao Gu
Executive Director3.08yrsUS$63.00kno data
Bo Cao
Executive Director2.58yrsUS$63.00kno data
Eric Todd
Non-Executive Director4.75yrsUS$15.00kno data
Chi Yuen Chan
Independent Non-Executive Director4.75yrsUS$15.00kno data
Chung Ming Hu
Independent Non-Executive Director9.33yrsUS$15.00kno data
Ngai Kit Kwan
Independent Non-Executive Director2.75yrsUS$15.00kno data

2.9yrs

Average Tenure

46.5yo

Average Age

Experienced Board: 1089's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Leyou Technologies Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Leyou Technologies Holdings Limited
  • Ticker: 1089
  • Exchange: SEHK
  • Founded: 1998
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: HK$7.181b
  • Shares outstanding: 3.08b
  • Website: https://leyoutech.com.hk

Number of Employees


Location

  • Leyou Technologies Holdings Limited
  • Tower Two
  • Suite 3201
  • Admiralty
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1089SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2011
1089SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2011
LEYO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 2011

Biography

Leyou Technologies Holdings Limited engages in the online game operation and retail game development activities in the People’s Republic of China, Canada, the United Kingdom, and the United States. It primarily develops and publishes Warframe, a free-to-play science fiction-themed multiplayer third-person action game available on PC and consoles; and Dirty Bomb, a free-to-play multiplayer shooter game. The company also provides work-for-hire, game hosting, and support services; and sells merchandise goods. In addition, it offers marketing support, online, and consultancy and back-end technology services; and engages in the development, operation, and management of online games, as well as development of computer software. The company was formerly known as Sumpo Food Holdings Limited and changed its name to Leyou Technologies Holdings Limited in January 2015. Leyou Technologies Holdings Limited was founded in 1998 and is headquartered in Admiralty, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:28
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.