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302

CMGE Technology GroupSEHK:302 Stock Report

Market Cap

HK$8.7b

7D

-0.9%

1Y

-0.3%

Updated

26 Oct, 2021

Data

Company Financials +
302 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends3/6

302 Overview

CMGE Technology Group Limited develops, publishes, and operates intellectual property (IP) - based PC and mobile games in the People's Republic of China.

Price History & Performance

Summary of all time highs, changes and price drops for CMGE Technology Group
Historical stock prices
Current Share PriceHK$3.15
52 Week HighHK$2.66
52 Week LowHK$5.09
Beta0
1 Month Change-0.94%
3 Month Change-30.00%
1 Year Change-0.32%
3 Year Changen/a
5 Year Changen/a
Change since IPO9.00%

Recent News & Updates

Sep 15
Does CMGE Technology Group (HKG:302) Have A Healthy Balance Sheet?

Does CMGE Technology Group (HKG:302) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 28
With EPS Growth And More, CMGE Technology Group (HKG:302) Is Interesting

With EPS Growth And More, CMGE Technology Group (HKG:302) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jul 13
Returns On Capital At CMGE Technology Group (HKG:302) Have Stalled

Returns On Capital At CMGE Technology Group (HKG:302) Have Stalled

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

302HK EntertainmentHK Market
7D-0.9%0.3%0.4%
1Y-0.3%-7.5%6.7%

Return vs Industry: 302 exceeded the Hong Kong Entertainment industry which returned -7.5% over the past year.

Return vs Market: 302 underperformed the Hong Kong Market which returned 6.7% over the past year.

Price Volatility

Is 302's price volatile compared to industry and market?
302 volatility
302 Beta0
Industry Beta0.63
Market Beta1

Stable Share Price: 302 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: 302's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20091,115Jian Xiaohttps://www.cmge.com

CMGE Technology Group Limited develops, publishes, and operates intellectual property (IP) - based PC and mobile games in the People's Republic of China. The company offers games on IPs related to cultural products and art works, such as icons or characters from animations, novels, and motion pictures. As of December 31, 2020, it operated 81 games.

CMGE Technology Group Fundamentals Summary

How do CMGE Technology Group's earnings and revenue compare to its market cap?
302 fundamental statistics
Market CapCN¥7.16b
Earnings (TTM)CN¥807.11m
Revenue (TTM)CN¥4.29b

8.9x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
302 income statement (TTM)
RevenueCN¥4.29b
Cost of RevenueCN¥2.75b
Gross ProfitCN¥1.53b
ExpensesCN¥724.33m
EarningsCN¥807.11m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.29
Gross Margin35.73%
Net Profit Margin18.83%
Debt/Equity Ratio8.0%

How did 302 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

25%

Payout Ratio

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 302 (HK$3.15) is trading below our estimate of fair value (HK$13.06)

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 (8.9x) compared to the Hong Kong Entertainment industry average (11.1x).

PE vs Market: 302 is good value based on its PE Ratio (8.9x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 302 is poor value based on its PEG Ratio (29.4x)


Price to Book Ratio

PB vs Industry: 302's PB Ratio (1.3x) is in line with the HK Entertainment industry average.


Future Growth

How is CMGE Technology Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 302's forecast earnings growth (0.3% per year) is below the savings rate (1.5%).

Earnings vs Market: 302's earnings (0.3% per year) are forecast to grow slower than the Hong Kong market (17.6% per year).

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

Revenue vs Market: 302's revenue (7% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 302's revenue (7% 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 (15.5%).


Past Performance

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

28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 302 has a large one-off gain of CN¥245.7M impacting its June 30 2021 financial results.

Growing Profit Margin: 302's current net profit margins (18.8%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 302's earnings have grown significantly by 28.6% per year over the past 5 years.

Accelerating Growth: 302's earnings growth over the past year (192.7%) exceeds its 5-year average (28.6% per year).

Earnings vs Industry: 302 earnings growth over the past year (192.7%) exceeded the Entertainment industry 7.2%.


Return on Equity

High ROE: 302's Return on Equity (14%) is considered low.


Financial Health

How is CMGE Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: 302's short term assets (CN¥3.5B) exceed its short term liabilities (CN¥1.2B).

Long Term Liabilities: 302's short term assets (CN¥3.5B) exceed its long term liabilities (CN¥242.4M).


Debt to Equity History and Analysis

Debt Level: 302's debt to equity ratio (8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 302's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 302's debt is well covered by operating cash flow (108.9%).

Interest Coverage: 302 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

2.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 302's dividend (2.94%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 302's dividend (2.94%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.8%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 302's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 302's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.3%), 302's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 302's dividends in 3 years are forecast to be well covered by earnings (23.8% payout ratio).


Next Steps

Management

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

2.1yrs

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 Partner at China Prosperity Pa...


CEO Compensation Analysis

Compensation vs Market: Jian's total compensation ($USD6.39M) is above average for companies of similar size in the Hong Kong market ($USD440.19K).

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 ( 2.1 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 18.8%.


Top Shareholders

Company Information

CMGE Technology Group Limited's employee growth, exchange listings and data sources


Key Information

  • Name: CMGE Technology Group Limited
  • Ticker: 302
  • Exchange: SEHK
  • Founded: 2009
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: HK$8.719b
  • Shares outstanding: 2.77b
  • Website: https://www.cmge.com

Number of Employees


Location

  • CMGE Technology Group Limited
  • Building No. 4
  • 10th Floor
  • Shenzhen
  • Guangdong Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:31
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.