Executive Summary
iDreamSky Technology Holdings Limited operates as a digital entertainment platform in the game publishing market in China.
Rewards
Risk Analysis
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
-0.7%
HK Entertainment
1.7%
HK Market
1 Year Return
-15.5%
1119
-14.0%
HK Entertainment
-2.9%
HK Market
Return vs Industry: 1119 underperformed the Hong Kong Entertainment industry which returned -14% over the past year.
Return vs Market: 1119 underperformed the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 1119 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | -0.7% | 1.7% |
| 30 Day | 1.6% | -3.9% | -4.8% |
| 90 Day | 13.8% | 3.3% | 3.4% |
| 1 Year | -15.5%-15.5% | -13.0%-14.0% | 0.7%-2.9% |
| 3 Year | n/a | -37.4%-39.6% | 15.3%3.6% |
| 5 Year | n/a | -31.6%-36.8% | 15.9%-3.5% |
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
1 week ago | Simply Wall St
Did iDreamSky Technology Holdings Limited (HKG:1119) Use Debt To Deliver Its ROE Of 10%?3 weeks ago | Simply Wall St
Have Insiders Been Buying iDreamSky Technology Holdings Limited (HKG:1119) Shares This Year?1 month ago | Simply Wall St
Do Insiders Own Shares In iDreamSky Technology Holdings Limited (HKG:1119)?Valuation
Is iDreamSky Technology Holdings undervalued compared to its fair value and its price relative to the market?
16.16x
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 (13.4x).
PE vs Market: 1119 is poor value based on its PE Ratio (16.2x) compared to the Hong Kong market (10.1x).
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 (1x).
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 (10.5% 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
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 ($USD131.40K) is below average for companies of similar size in the Hong Kong market ($USD495.88K).
Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-founder | 0yrs | CN¥918.00k | 20.18% CN¥1.2b | |
| Co-founder | 0yrs | CN¥28.75m | 1.16% CN¥69.2m | |
| CFO & Executive Director | 0yrs | CN¥798.00k | 2.3% CN¥136.7m | |
| Co-founder | 0yrs | CN¥917.00k | 3.91% CN¥233.0m | |
| Chief Marketing Officer | 1.8yrs | no data | no data | |
| Chief Strategy Officer | 1.8yrs | no data | no data | |
| Company Secretary | 1.3yrs | no data | no data | |
| Joint Company Secretary | 1.3yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-founder | 0yrs | CN¥918.00k | 20.18% CN¥1.2b | |
| Co-founder | 0yrs | CN¥28.75m | 1.16% CN¥69.2m | |
| CFO & Executive Director | 0yrs | CN¥798.00k | 2.3% CN¥136.7m | |
| Co-founder | 0yrs | CN¥917.00k | 3.91% CN¥233.0m | |
| Independent Non-Executive Director | 1.8yrs | CN¥100.00k | no data | |
| Non-Executive Director | 1.8yrs | no data | no data | |
| Independent Non-Executive Director | 1.8yrs | CN¥100.00k | no data | |
| Non-Executive Director | 1.8yrs | no data | no data | |
| Independent Non-Executive Director | 1.8yrs | CN¥100.00k | no 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$5.956b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1119 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Dec 2018 |
| 08IA | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2018 |
| 1119 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/17 13:08 |
| End of Day Share Price | 2020/02/17 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.