SEHK:302

Stock Analysis Report

CMGE Technology Group

Executive Summary

CMGE Technology Group Limited publishes and operates IP-based games in the People's Republic of China.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

How has CMGE Technology Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 302's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

302

4.1%

HK Entertainment

7.4%

HK Market


1 Year Return

n/a

302

-24.9%

HK Entertainment

-22.7%

HK Market

Return vs Industry: Insufficient data to determine how 302 performed against the Hong Kong Entertainment industry.

Return vs Market: Insufficient data to determine how 302 performed against the Hong Kong Market.


Shareholder returns

302IndustryMarket
7 Day3.0%4.1%7.4%
30 Day-16.8%-9.6%-11.2%
90 Day-10.9%-11.2%-17.3%
1 Yearn/a-23.9%-24.9%-19.9%-22.7%
3 Yearn/a-45.6%-47.8%-5.3%-14.8%
5 Yearn/a-57.7%-60.1%-8.7%-23.4%

Price Volatility Vs. Market

How volatile is CMGE Technology Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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$2.74) is trading below our estimate of fair value (HK$7.59)

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


Price To Earnings Ratio

PE vs Industry: 302 is poor value based on its PE Ratio (19.1x) compared to the Entertainment industry average (11.4x).

PE vs Market: 302 is poor value based on its PE Ratio (19.1x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 302 is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: 302 is overvalued based on its PB Ratio (1.4x) compared to the HK Entertainment industry average (0.8x).


Next Steps

Future Growth

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

36.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 302's forecast earnings growth (9.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 302's earnings (9.7% per year) are forecast to grow slower than the Hong Kong market (12.8% per year).

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

Revenue vs Market: 302's revenue (3.4% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 302's revenue (3.4% 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 (15.7%).


Next Steps

Past Performance

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

-20.2%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 302 has high quality earnings.

Growing Profit Margin: 302's current net profit margins (8.2%) are lower than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 302's year-on-year earnings growth rate was positive 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 (-20.2%) over the past year, making it difficult to compare to the Entertainment industry average (32.7%).


Return on Equity

High ROE: 302's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is CMGE Technology Group's financial position?


Financial Position Analysis

Short Term Liabilities: 302's short term assets (CN¥2.6B) exceed its short term liabilities (CN¥1.3B).

Long Term Liabilities: 302's short term assets (CN¥2.6B) exceed its long term liabilities (CN¥212.9M).


Debt to Equity History and Analysis

Debt Level: 302's debt to equity ratio (11.9%) 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 (70.2%).

Interest Coverage: 302's interest payments on its debt are well covered by EBIT (18.3x coverage).


Balance Sheet

Inventory Level: 302 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 302's debt is covered by short term assets (assets are 5.8x debt).


Next Steps

Dividend

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

3.75%

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 payouts.

High Dividend: Unable to evaluate 302'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 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.


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 302'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?


CEO

CMGE Technology Group has no CEO, or we have no data on them.


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.


Ownership Breakdown

Dilution of Shares: 302 only recently listed within the past 12 months, with total shares outstanding growing by 4.9% in the past year..


Top Shareholders

Company Information

CMGE Technology Group Limited's company bio, 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$6.455b
  • Shares outstanding: 2.33b
  • Website: https://www.cmge.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
302SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2019
302SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2019

Biography

CMGE Technology Group Limited publishes and operates IP-based games in the People's Republic of China. It offers games related to cultural products and art works, such as icons or characters from animations, novels, and motion pictures. The company was founded in 2009 and is headquartered in Shenzhen, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:36
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.