CMGE Technology Group (SEHK:302) - Share price, News & Analysis

302 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	1/6
Past Performance	1/6
Financial Health	5/6
Dividends	0/6

302 Stock Overview

CMGE Technology Group Limited, an investment holding company, operates as an intellectual property (IP)-based game publisher and developer in Mainland China, Hong Kong, Taiwan, and South Korea.

Rewards

Trading at 80.3% below our estimate of its fair value

Earnings are forecast to grow 2.63% per year

Risk Analysis

High level of non-cash earnings

CMGE Technology Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for CMGE Technology Group
Historical stock prices
Current Share Price	HK$2.02
52 Week High	HK$5.09
52 Week Low	HK$1.88
Beta	0.26
1 Month Change	-11.40%
3 Month Change	-34.20%
1 Year Change	-41.28%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-30.10%

Recent News & Updates

May 13

CMGE Technology Group (HKG:302) Seems To Use Debt Quite Sensibly

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Apr 10

Some CMGE Technology Group Limited (HKG:302) Analysts Just Made A Major Cut To Next Year's Estimates

Market forces rained on the parade of CMGE Technology Group Limited ( HKG:302 ) shareholders today, when the analysts...

Shareholder Returns

	302	HK Entertainment	HK Market
7D	2.0%	0.7%	0.05%
1Y	-41.3%	-50.7%	-25.2%

Return vs Industry: 302 exceeded the Hong Kong Entertainment industry which returned -50.7% over the past year.

Return vs Market: 302 underperformed the Hong Kong Market which returned -25.2% over the past year.

Price Volatility

Is 302's price volatile compared to industry and market?
302 volatility
302 Average Weekly Movement	8.6%
Entertainment Industry Average Movement	10.6%
Market Average Movement	8.0%
10% most volatile stocks in HK Market	14.9%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 302 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 302's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2009	1,176	Jian Xiao	https://www.cmge.com

CMGE Technology Group Limited, an investment holding company, operates as an intellectual property (IP)-based game publisher and developer in Mainland China, Hong Kong, Taiwan, and South Korea. The company offers games on IPs related to cultural products and art works, such as icons or characters from animations, novels, and motion pictures. It is also involved in the mobile game publishing, game development, and licensing of IP, as well as investment business.

CMGE Technology Group Fundamentals Summary

How do CMGE Technology Group's earnings and revenue compare to its market cap?
302 fundamental statistics
Market Cap	CN¥4.80b
Earnings (TTM)	CN¥611.77m
Revenue (TTM)	CN¥3.96b

7.8x

P/E Ratio

1.2x

P/S Ratio

Is 302 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
302 income statement (TTM)
Revenue	CN¥3.96b
Cost of Revenue	CN¥2.48b
Gross Profit	CN¥1.47b
Other Expenses	CN¥861.72m
Earnings	CN¥611.77m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.22
Gross Margin	37.24%
Net Profit Margin	15.46%
Debt/Equity Ratio	13.2%

How did 302 perform over the long term?

See historical performance and comparison

Valuation

Is CMGE Technology Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 302 (HK$2.02) is trading below our estimate of fair value (HK$10.27)

Significantly Below Fair Value: 302 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 302 is good value based on its PE Ratio (7.8x) compared to the Hong Kong Entertainment industry average (9.2x).

PE vs Market: 302 is good value based on its PE Ratio (7.8x) compared to the Hong Kong market (8.7x).

Price to Earnings Growth Ratio

PEG Ratio: 302 is poor value based on its PEG Ratio (3x)

Price to Book Ratio

PB vs Industry: 302 is good value based on its PB Ratio (0.8x) compared to the HK Entertainment industry average (1x).

Future Growth

How is CMGE Technology Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

2.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 302's forecast earnings growth (2.6% per year) is above the savings rate (1.5%).

Earnings vs Market: 302's earnings (2.6% per year) are forecast to grow slower than the Hong Kong market (14.8% per year).

High Growth Earnings: 302's earnings are forecast to grow, but not significantly.

Revenue vs Market: 302's revenue (4.6% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 302's revenue (4.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 302's Return on Equity is forecast to be low in 3 years time (9.3%).

Past Performance

How has CMGE Technology Group performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 302 has a high level of non-cash earnings.

Growing Profit Margin: 302's current net profit margins (15.5%) are lower than last year (18.4%).

Past Earnings Growth Analysis

Earnings Trend: 302's earnings have grown significantly by 26.4% per year over the past 5 years.

Accelerating Growth: 302's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 302 had negative earnings growth (-12.8%) over the past year, making it difficult to compare to the Entertainment industry average (12.9%).

Return on Equity

High ROE: 302's Return on Equity (10.3%) is considered low.

Financial Health

How is CMGE Technology Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 302's short term assets (CN¥3.3B) exceed its short term liabilities (CN¥1.8B).

Long Term Liabilities: 302's short term assets (CN¥3.3B) exceed its long term liabilities (CN¥259.7M).

Debt to Equity History and Analysis

Debt Level: 302 has more cash than its total debt.

Reducing Debt: 302's debt to equity ratio has increased from 0% to 13.2% over the past 5 years.

Debt Coverage: 302's debt is well covered by operating cash flow (45.7%).

Interest Coverage: 302's interest payments on its debt are well covered by EBIT (41.2x coverage).

Balance Sheet

Dividend

What is CMGE Technology Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.73%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 302's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 302's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 302's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 302's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 302 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 302 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

2.7yrs

Average board tenure

CEO

Jian Xiao (40 yo)

no data

Tenure

CN¥40,772,000

Compensation

Mr. Jian Xiao is the Chairman and the Chief Executive Officer at CMGE Technology Group Limited and has been the Executive Director since April 25, 2018. He serves as Founding Managing Partner at China Pros...

CEO Compensation Analysis

Compensation vs Market: Jian's total compensation ($USD6.05M) is above average for companies of similar size in the Hong Kong market ($USD526.09K).

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

Board Members

Experienced Board: 302's board of directors are not considered experienced ( 2.7 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31