SEHK:680

Stock Analysis Report

Executive Summary

Nan Hai Corporation Limited, an investment holding company, primarily engages in the culture and media, property development, and corporate information technology (IT) application services businesses in Mainland China, Hong Kong, North America, Europe, Australia, and internationally.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Nan Hai's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 680's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.9%

680

4.1%

HK Entertainment

7.4%

HK Market


1 Year Return

-58.1%

680

-24.9%

HK Entertainment

-22.7%

HK Market

Return vs Industry: 680 underperformed the Hong Kong Entertainment industry which returned -23.4% over the past year.

Return vs Market: 680 underperformed the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

680IndustryMarket
7 Day-2.9%4.1%7.4%
30 Day-20.2%-9.6%-11.2%
90 Day-35.0%-11.2%-17.3%
1 Year-57.7%-58.1%-23.9%-24.9%-19.9%-22.7%
3 Year-73.5%-74.2%-45.6%-47.8%-5.3%-14.8%
5 Year77.0%71.8%-57.7%-60.1%-8.7%-23.4%

Price Volatility Vs. Market

How volatile is Nan Hai's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nan Hai 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: 680 (HK$0.07) is trading below our estimate of fair value (HK$0.87)

Significantly Below Fair Value: 680 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 680 is unprofitable, so we can't compare its PE Ratio to the Entertainment industry average.

PE vs Market: 680 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 680's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 680 is overvalued based on its PB Ratio (1x) compared to the HK Entertainment industry average (0.8x).


Next Steps

Future Growth

How is Nan Hai forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

51.5%

Forecasted Media industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Nan Hai has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Nan Hai performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 680 is currently unprofitable.

Growing Profit Margin: 680 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 680 is unprofitable, but has reduced losses over the past 5 years at a rate of 19.8% per year.

Accelerating Growth: Unable to compare 680's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 680 is unprofitable, making it difficult to compare its past year earnings growth to the Entertainment industry (32.7%).


Return on Equity

High ROE: 680 has a negative Return on Equity (-12.12%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nan Hai's financial position?


Financial Position Analysis

Short Term Liabilities: 680's short term assets (HK$25.2B) do not cover its short term liabilities (HK$34.8B).

Long Term Liabilities: 680's short term assets (HK$25.2B) exceed its long term liabilities (HK$10.8B).


Debt to Equity History and Analysis

Debt Level: 680's debt to equity ratio (356.1%) is considered high.

Reducing Debt: 680's debt to equity ratio has increased from 150.8% to 356.1% over the past 5 years.


Balance Sheet

Inventory Level: 680 has a high level of physical assets or inventory.

Debt Coverage by Assets: 680's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 680 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 680 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Nan Hai's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 680's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 680'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 680's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 680's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 680 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 680'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?

2.6yrs

Average management tenure


CEO

Rong Liu (47yo)

2s

Tenure

HK$838,000

Compensation

Ms. Rong Liu is Chairlady of the Board at Sino-i Technology Ltd since January 2, 2018. Ms. Liu has been Chief Executive Officer of Nan Hai Corp. Ltd since February 12, 2018. She served General Manager of  ...


CEO Compensation Analysis

Compensation vs Market: Rong's total compensation ($USD108.11K) is below average for companies of similar size in the Hong Kong market ($USD480.55K).

Compensation vs Earnings: Rong's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Pun Hoi Yu
Executive Chairmanno dataHK$378.00k46.24% HK$2.2b
Rong Liu
CEO & Executive Director2yrsHK$838.00kno data
Heran Xu
Chief Strategy Officer1.25yrsno datano data
Yang Zhang
Vice General Manager3.17yrsno datano data
Jay Aggarwal
Company Secretary1.67yrsno datano data
Bo Xue
General Manager of Nan Hai Development Ltd & The Peninsula Shenzhen Property Development Co Ltd14.17yrsno datano data
Ming Fei Chen
General Manager of CE Dongli Technology Company Ltd & Beijing Xinnet Cyber Information Company Ltd12.67yrsno datano data

2.6yrs

Average Tenure

47yo

Average Age

Experienced Management: 680's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pun Hoi Yu
Executive Chairmanno dataHK$378.00k46.24% HK$2.2b
Rong Liu
CEO & Executive Director2yrsHK$838.00kno data
Bing Lam
Non-Executive Director19.42yrsHK$120.00kno data
Yip Lau
Independent Non-Executive Director13.83yrsHK$120.00kno data
Suining Xiao
Independent Non-Executive Director3.83yrsHK$282.00kno data
Yeung Ho
Independent Non-Executive Director3.42yrsHK$120.00kno data

11.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 680's board of directors are seasoned and experienced ( 11 years average tenure).


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

Nan Hai Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nan Hai Corporation Limited
  • Ticker: 680
  • Exchange: SEHK
  • Founded:
  • Industry: Movies and Entertainment
  • Sector: Media
  • Market Cap: HK$4.668b
  • Shares outstanding: 68.65b
  • Website: https://www.nanhaicorp.com

Number of Employees


Location

  • Nan Hai Corporation Limited
  • Sino-i Campus
  • No. 1, Disheng West Road
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
680SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
SO7DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NANH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992

Biography

Nan Hai Corporation Limited, an investment holding company, primarily engages in the culture and media, property development, and corporate information technology (IT) application services businesses in Mainland China, Hong Kong, North America, Europe, Australia, and internationally. The company operates through five segments: Enterprise Cloud Services, Property Development, Culture and Media Services, News Media Business, and Innovative Business. It is involved in the investment, construction, and operation of the cinema; production and distribution of the movies; cinema digital media technology business; research and development, and operation of system integration service equipment; and cinema media transmission business. The company also engages in the real estate development and property management services. In addition, it provides e-commerce and IT application services, including Website building, virtual hosting, online shop, enterprise mailbox, network marketing promotion, etc.; and Internet basic services, such as domain name registration, Web hosting, enterprise communication, and SaaS-based enterprise operations and management services, as well as integrated solutions for SMEs, enterprises, institutions, and individuals through online direct sales and agent channels. Further, the company engages in the news media, securities and movie projectors trading, and debt issuance businesses. Additionally, it provides decoration, advertising, and digital media technology services; sells decoration materials; and manufactures, distributes, and retails toiletries. As of December 31, 2018, the company operated 494 cinemas with 3,014 screens. Nan Hai Corporation Limited is headquartered in Beijing, China. Nan Hai Corporation Limited is a subsidiary of Dadi Holdings Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:09
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.