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2131

Netjoy Holdings SEHK:2131 Stock Report

Last Price

HK$1.39

Market Cap

HK$1.1b

7D

0%

1Y

-64.9%

Updated

16 Aug, 2022

Data

Company Financials +
2131 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance2/6
Financial Health4/6
Dividends2/6

2131 Stock Overview

Netjoy Holdings Limited, an investment holding company, principally engages in the provision of online advertising services in the People’s Republic of China.

Netjoy Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Netjoy Holdings
Historical stock prices
Current Share PriceHK$1.39
52 Week HighHK$4.85
52 Week LowHK$1.22
Beta0
1 Month Change-9.15%
3 Month Change-28.72%
1 Year Change-64.90%
3 Year Changen/a
5 Year Changen/a
Change since IPO-82.88%

Recent News & Updates

Aug 01
Some Investors May Be Worried About Netjoy Holdings' (HKG:2131) Returns On Capital

Some Investors May Be Worried About Netjoy Holdings' (HKG:2131) Returns On Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

2131HK MediaHK Market
7D0%0.4%-0.2%
1Y-64.9%-46.5%-21.6%

Return vs Industry: 2131 underperformed the Hong Kong Media industry which returned -46.5% over the past year.

Return vs Market: 2131 underperformed the Hong Kong Market which returned -21.6% over the past year.

Price Volatility

Is 2131's price volatile compared to industry and market?
2131 volatility
2131 Average Weekly Movement7.4%
Media Industry Average Movement11.5%
Market Average Movement6.5%
10% most volatile stocks in HK Market12.6%
10% least volatile stocks in HK Market3.2%

Stable Share Price: 2131 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 2131's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2012441Chen Wanghttps://www.netjoy.com

Netjoy Holdings Limited, an investment holding company, principally engages in the provision of online advertising services in the People’s Republic of China. The company operates in three segments: Online Marketing Solutions Business, Software as a Service (SaaS), and Other Business. The company provides short video marketing solutions and online content services.

Netjoy Holdings Fundamentals Summary

How do Netjoy Holdings's earnings and revenue compare to its market cap?
2131 fundamental statistics
Market CapCN¥914.43m
Earnings (TTM)CN¥117.40m
Revenue (TTM)CN¥3.12b

8.1x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2131 income statement (TTM)
RevenueCN¥3.12b
Cost of RevenueCN¥2.90b
Gross ProfitCN¥218.67m
Other ExpensesCN¥101.27m
EarningsCN¥117.40m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.15
Gross Margin7.00%
Net Profit Margin3.76%
Debt/Equity Ratio38.7%

How did 2131 perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2131 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2131?

Other financial metrics that can be useful for relative valuation.

2131 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA10.7x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does 2131's PE Ratio compare to its peers?

2131 PE Ratio vs Peers
The above table shows the PE ratio for 2131 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.4x
1163 Adtiger Corporations
26.8xn/aHK$1.2b
9919 Activation Group Holdings
13.4xn/aHK$752.7m
752 Pico Far East Holdings
9.2xn/aHK$1.4b
1948 Uju Holding
8xn/aHK$2.4b
2131 Netjoy Holdings
8.1x28.2%HK$1.1b

Price-To-Earnings vs Peers: 2131 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (14.4x).


Price to Earnings Ratio vs Industry

How does 2131's PE Ratio compare vs other companies in the Asian Media Industry?

Price-To-Earnings vs Industry: 2131 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the Hong Kong Media industry average (11x)


Price to Earnings Ratio vs Fair Ratio

What is 2131's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2131 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.1x
Fair PE Ratio11.3x

Price-To-Earnings vs Fair Ratio: 2131 is good value based on its Price-To-Earnings Ratio (8.1x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).


Share Price vs Fair Value

What is the Fair Price of 2131 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2131 (HK$1.39) is trading above our estimate of fair value (HK$0.97)

Significantly Below Fair Value: 2131 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2131's forecast earnings growth (28.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 2131's earnings (28.2% per year) are forecast to grow faster than the Hong Kong market (16.8% per year).

High Growth Earnings: 2131's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2131's revenue (25.5% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 2131's revenue (25.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2131's Return on Equity is forecast to be low in 3 years time (12.8%).


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Past Performance

How has Netjoy Holdings performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2131 has a high level of non-cash earnings.

Growing Profit Margin: 2131's current net profit margins (3.8%) are lower than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: 2131's earnings have grown significantly by 26.1% per year over the past 5 years.

Accelerating Growth: 2131's earnings growth over the past year (13.3%) is below its 5-year average (26.1% per year).

Earnings vs Industry: 2131 earnings growth over the past year (13.3%) exceeded the Media industry 10.1%.


Return on Equity

High ROE: 2131's Return on Equity (7.4%) is considered low.


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Financial Health

How is Netjoy Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2131's short term assets (CN¥2.4B) exceed its short term liabilities (CN¥871.8M).

Long Term Liabilities: 2131's short term assets (CN¥2.4B) exceed its long term liabilities (CN¥3.6M).


Debt to Equity History and Analysis

Debt Level: 2131's net debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2131's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 2131's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 2131's interest payments on its debt are well covered by EBIT (10.9x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2131's dividend (3.38%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.87%).

High Dividend: 2131's dividend (3.38%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.31%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2131's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2131's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.7%), 2131's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 2131 is paying a dividend but the company has no free cash flows.


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Management

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

1.1yrs

Average management tenure


CEO

Chen Wang (44 yo)

no data

Tenure

Mr. Chen Wang is Chief Executive Officer at Netjoy Holdings Ltd and has been its Executive Director since March 29, 2019. He is primarily responsible for developing overall corporate and business strategie...


Leadership Team

Experienced Management: 2131's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2131'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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Netjoy Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Netjoy Holdings Limited
  • Ticker: 2131
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Advertising
  • Sector: Media
  • Implied Market Cap: HK$1.058b
  • Shares outstanding: 795.66m
  • Website: https://www.netjoy.com

Number of Employees


Location

  • Netjoy Holdings Limited
  • No. 396 Guilin Road
  • 5th Floor
  • Shanghai
  • 200233
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.