SEHK:1119

Stock Analysis Report

iDreamSky Technology Holdings

Executive Summary

iDreamSky Technology Holdings Limited operates as a digital entertainment platform in the game publishing market in China.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1119 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

1119

-1.0%

HK Entertainment

-2.1%

HK Market


1 Year Return

-15.4%

1119

-17.3%

HK Entertainment

-9.8%

HK Market

Return vs Industry: 1119 exceeded the Hong Kong Entertainment industry which returned -17.3% over the past year.

Return vs Market: 1119 underperformed the Hong Kong Market which returned -9.8% over the past year.


Shareholder returns

1119IndustryMarket
7 Day-1.2%-1.0%-2.1%
30 Day-6.9%-0.4%-3.2%
90 Day10.8%2.3%0.09%
1 Year-15.4%-15.4%-16.3%-17.3%-6.5%-9.8%
3 Yearn/a-36.4%-38.5%11.6%0.3%
5 Yearn/a-33.6%-38.4%11.7%-6.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is iDreamSky Technology Holdings undervalued compared to its fair value and its price relative to the market?

16.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1119's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1119's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1119 is poor value based on its PE Ratio (16.2x) compared to the Entertainment industry average (13.8x).

PE vs Market: 1119 is poor value based on its PE Ratio (16.2x) compared to the Hong Kong market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 1119 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 1119 is overvalued based on its PB Ratio (1.6x) compared to the HK Entertainment industry average (0.9x).


Next Steps

Future Growth

How is iDreamSky Technology Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

38.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1119's forecast earnings growth (38.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1119's earnings (38.1% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1119's revenue (15.8% per year) is forecast to grow faster than the Hong Kong market (9.7% per year).

High Growth Revenue: 1119's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1119's Return on Equity is forecast to be low in 3 years time (19.5%).


Next Steps

Past Performance

How has iDreamSky Technology Holdings performed over the past 5 years?

42.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1119 has a high level of non-cash earnings.

Growing Profit Margin: 1119's current net profit margins (12%) are higher than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: 1119's earnings have grown significantly by 42.6% per year over the past 5 years.

Accelerating Growth: 1119's earnings growth over the past year (36.3%) is below its 5-year average (42.6% per year).

Earnings vs Industry: 1119 earnings growth over the past year (36.3%) exceeded the Entertainment industry -9.4%.


Return on Equity

High ROE: 1119's Return on Equity (10.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is iDreamSky Technology Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1119's short term assets (CN¥3.0B) exceed its short term liabilities (CN¥1.6B).

Long Term Liabilities: 1119's short term assets (CN¥3.0B) exceed its long term liabilities (CN¥143.0M).


Debt to Equity History and Analysis

Debt Level: 1119's debt to equity ratio (27%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1119's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1119's debt is not well covered by operating cash flow (3.2%).

Interest Coverage: 1119's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet

Inventory Level: 1119 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1119's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage3.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1119's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1119'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 1119's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1119'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 1119'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?

1.5yrs

Average management tenure


CEO

Michael Chen (36yo)

CN¥918,000

Compensation

Mr. Xiangyu Chen, also known as Michael, serves as the Chief Executive Officer, Chairman of the Board, Executive Director, and Co-founder of iDreamSky Technology Holdings Limited. Mr. Chen is the Co-Found ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD130.86K) is below average for companies of similar size in the Hong Kong market ($USD493.46K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xiangyu Chen
Co-founder0yrsCN¥918.00k20.18% CN¥1.3b
Lyndon Ko
Co-founder0yrsCN¥28.75m1.16% CN¥73.0m
Junwen Lei
CFO & Executive Director0yrsCN¥798.00k2.3% CN¥144.2m
Song Guan
Co-founder0yrsCN¥917.00k3.91% CN¥245.7m
Yau Ho
Chief Marketing Officer1.8yrsno datano data
Hui Fang
Chief Strategy Officer1.8yrsno datano data
Heng Zhang
Company Secretary1.3yrsno datano data
Suet Lun Leung
Joint Company Secretary1.3yrsno datano data

1.5yrs

Average Tenure

36yo

Average Age

Experienced Management: 1119's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Xiangyu Chen
Co-founder0yrsCN¥918.00k20.18% CN¥1.3b
Lyndon Ko
Co-founder0yrsCN¥28.75m1.16% CN¥73.0m
Junwen Lei
CFO & Executive Director0yrsCN¥798.00k2.3% CN¥144.2m
Song Guan
Co-founder0yrsCN¥917.00k3.91% CN¥245.7m
Bin Yu
Independent Non-Executive Director1.8yrsCN¥100.00kno data
Xiaoyi Ma
Non-Executive Director1.8yrsno datano data
Weining Zhang
Independent Non-Executive Director1.8yrsCN¥100.00kno data
Feng Du
Non-Executive Director1.8yrsno datano data
Xintian Li
Independent Non-Executive Director1.8yrsCN¥100.00kno data

1.8yrs

Average Tenure

40yo

Average Age

Experienced Board: 1119's board of directors are not considered experienced ( 1.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: iDreamSky Technology Holdings Limited
  • Ticker: 1119
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: HK$6.281b
  • Shares outstanding: 1.20b
  • Website: https://www.idreamsky.com

Number of Employees


Location

  • iDreamSky Technology Holdings Limited
  • A3 Building
  • 16th Floor
  • Shenzhen
  • Guangdong Province
  • 518057
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1119SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2018
08IADB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2018
1119SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2018

Biography

iDreamSky Technology Holdings Limited operates as a digital entertainment platform in the game publishing market in China. It primarily publishes third-party licensed games and self-developed games to the game players through various mobile application stores and software Websites, as well as through other game publishers. The company’s game portfolio includes RPGs, matching puzzle games, casual competition games, and endless running games. It also offers digital content services, such as comics, animation, TV plays, and interactive stories; and information services, including advertising services. The company was founded in 2011 and is headquartered in Shenzhen, 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 Analysis2020/02/26 13:21
End of Day Share Price2020/02/26 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.