SEHK:1909

Stock Analysis Report

Fire Rock Holdings

Executive Summary

Fire Rock Holdings Limited, an investment holding company, develops browser and mobile games in the People’s Republic of China, North America, Japan, Taiwan, and Germany.

Snowflake

Fundamentals

Outstanding track record with flawless balance sheet.

Risks

  • Fire Rock Holdings has significant price volatility in the past 3 months.
  • Fire Rock Holdings is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.2%

SEHK:1909

1.2%

HK Entertainment

1.9%

HK Market


1 Year Return

11.8%

SEHK:1909

-8.7%

HK Entertainment

-10.5%

HK Market

1909 outperformed the Entertainment industry which returned -8.8% over the past year.

1909 outperformed the Market in Hong Kong which returned -11.1% over the past year.


Share holder returns

1909IndustryMarket
7 Day-0.2%1.2%1.9%
30 Day5.9%-9.4%-7.1%
90 Day-5.3%-11.5%-4.5%
1 Year13.0%11.8%-7.5%-8.7%-7.3%-10.5%
3 Year189.6%172.7%-38.8%-40.0%15.1%3.7%
5 Yearn/a-35.0%-38.5%9.9%-8.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Fire Rock Holdings undervalued based on future cash flows and its price relative to the stock market?

15.7x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Fire Rock Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Fire Rock Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Fire Rock Holdings is overvalued based on earnings compared to the HK Entertainment industry average.

Fire Rock Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Fire Rock Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Fire Rock Holdings is overvalued based on assets compared to the HK Entertainment industry average.


Next Steps

Future Growth

How is Fire Rock Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

-24.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Fire Rock Holdings is high growth as no revenue estimate data is available.

Fire Rock Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Unable to compare Fire Rock Holdings's revenue growth to the Hong Kong market average as no estimate data is available.

Fire Rock Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.

Fire Rock Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Fire Rock Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Fire Rock Holdings performed over the past 5 years?

56.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Fire Rock Holdings has delivered over 20% year on year earnings growth in the past 5 years.

Fire Rock Holdings's 1-year earnings growth exceeds its 5-year average (94.1% vs 56.2%)

Fire Rock Holdings's earnings growth has exceeded the HK Entertainment industry average in the past year (94.1% vs -6.2%).


Return on Equity

Fire Rock Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).


Return on Assets

Fire Rock Holdings used its assets more efficiently than the HK Entertainment industry average last year based on Return on Assets.


Return on Capital Employed

Fire Rock Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Fire Rock Holdings's financial position?


Financial Position Analysis

Fire Rock Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Fire Rock Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Fire Rock Holdings has no debt.

Fire Rock Holdings has no debt compared to 5 years ago when it was 14.4%.

Fire Rock Holdings has no debt, it does not need to be covered by operating cash flow.

Fire Rock Holdings has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Fire Rock Holdings has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Fire Rock Holdings's current dividend yield, its reliability and sustainability?

1.31%

Current Dividend Yield


Dividend Yield and Payments Analysis

Fire Rock Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Fire Rock Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.18%).

Fire Rock Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Fire Rock Holdings has only been paying a dividend for 2 years, and since then dividends per share have fallen.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Yong Huang (39yo)

4.4yrs

Tenure

CN¥538,215

Compensation

Mr. Yong Huang has been the Chief Executive officer and Executive Director at Fire Rock Holdings Limited since March 2015 and November 2014 respectively. Mr. Huang served as General Manager and Director at ...


CEO Compensation Analysis

Yong's remuneration is lower than average for companies of similar size in Hong Kong.

Yong's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.4yrs

Average Tenure

36yo

Average Age

The tenure for the Fire Rock Holdings management team is about average.


Board Age and Tenure

4.0yrs

Average Tenure

40.5yo

Average Age

The tenure for the Fire Rock Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellCN¥11,971,20604 Feb 19
Po Hu
EntityIndividual
Shares2,494,000
Max PriceCN¥4.80
SellCN¥1,394,99901 Feb 19
Po Hu
EntityIndividual
Shares300,000
Max PriceCN¥4.65
SellCN¥4,042,00329 Jan 19
Po Hu
EntityIndividual
Shares940,000
Max PriceCN¥4.30
SellCN¥7,259,99625 Jan 19
Po Hu
EntityIndividual
Shares1,650,000
Max PriceCN¥4.40
SellCN¥5,500,00124 Jan 19
Po Hu
EntityIndividual
Shares1,250,000
Max PriceCN¥4.40
SellCN¥5,174,39917 Jan 19
Po Hu
EntityIndividual
Shares1,176,000
Max PriceCN¥4.40
SellCN¥3,990,00116 Jan 19
Po Hu
EntityIndividual
Shares950,000
Max PriceCN¥4.20

Ownership Breakdown


Management Team

  • Yong Huang (39yo)

    CEO & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥538.22k
  • Zhe Wu (38yo)

    Chief Planning Officer

    • Tenure: 4.8yrs
    • Compensation: CN¥329.61k
  • Zhenwu Rao (37yo)

    CTO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥329.97k
  • Dong Wei (50yo)

    CFO & Joint Company Secretary

    • Tenure: 4.4yrs
  • Jing Xu (35yo)

    Head of Project Development

    • Tenure: 0.0yrs
  • Bin Xiang (36yo)

    Chief Information Officer

    • Tenure: 0.0yrs
  • Xuan Chen (33yo)

    Head of Project Support

    • Tenure: 4.4yrs
  • Hon Chu (36yo)

    Joint Company Secretary

    • Tenure: 1.2yrs
  • Zhen Yuan (31yo)

    Chief Marketing Officer

    • Tenure: 0.0yrs

Board Members

  • Kan Yang (42yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥152.35k
  • Yong Huang (39yo)

    CEO & Executive Director

    • Tenure: 4.4yrs
    • Compensation: CN¥538.22k
  • Yan Zhang (48yo)

    Chairman

    • Tenure: 4.4yrs
    • Compensation: CN¥341.97k
  • Zhe Wu (38yo)

    Chief Planning Officer

    • Tenure: 4.8yrs
    • Compensation: CN¥329.61k
  • Zhenwu Rao (37yo)

    CTO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: CN¥329.97k
  • King Fai Chan (48yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: CN¥152.35k
  • Yunpeng He (43yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
  • Di Chen (39yo)

    Independent Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: CN¥152.35k

Company Information

Fire Rock Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fire Rock Holdings Limited
  • Ticker: 1909
  • Exchange: SEHK
  • Founded: 2011
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: HK$1.789b
  • Shares outstanding: 320.00m
  • Website: https://www.firerock.hk

Number of Employees


Location

  • Fire Rock Holdings Limited
  • Dongjiang Environmental Building
  • 4th Floor
  • Shenzhen
  • Guangdong Province
  • 518052
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1909SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDFeb 2016

Biography

Fire Rock Holdings Limited, an investment holding company, develops browser and mobile games in the People’s Republic of China, North America, Japan, Taiwan, and Germany. It offers games in various languag ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 13:18
End of Day Share Price2019/08/22 00:00
Earnings2019/03/31
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.