FriendTimes (SEHK:6820) - Share price, News & Analysis

6820 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	6/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

6820 Stock Overview

FriendTimes Inc., through its subsidiaries, develops, publishes, and operates mobile games in the People’s Republic of China and internationally.

Rewards

Trading at 86.6% below our estimate of its fair value

Earnings are forecast to grow 33.84% per year

Risk Analysis

Dividend of 9.64% is not well covered by earnings

FriendTimes Competitors

Price History & Performance

Summary of all time highs, changes and price drops for FriendTimes
Historical stock prices
Current Share Price	HK$1.19
52 Week High	HK$2.75
52 Week Low	HK$1.00
Beta	-0.74
1 Month Change	-4.03%
3 Month Change	-2.46%
1 Year Change	-54.41%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-21.71%

Recent News & Updates

May 18

FriendTimes (HKG:6820) Has Announced A Dividend Of HK$0.12

FriendTimes Inc. ( HKG:6820 ) has announced that it will pay a dividend of HK$0.12 per share on the 8th of June. Based...

Shareholder Returns

	6820	HK Entertainment	HK Market
7D	-9.8%	0.5%	2.0%
1Y	-54.4%	-50.7%	-24.0%

Return vs Industry: 6820 underperformed the Hong Kong Entertainment industry which returned -50.7% over the past year.

Return vs Market: 6820 underperformed the Hong Kong Market which returned -24% over the past year.

Price Volatility

Is 6820's price volatile compared to industry and market?
6820 volatility
6820 Average Weekly Movement	8.5%
Entertainment Industry Average Movement	10.9%
Market Average Movement	8.0%
10% most volatile stocks in HK Market	15.1%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 6820 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: 6820's weekly volatility (9%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	1,362	Xiaohuang Jiang	https://www.friendtimes.net

FriendTimes Inc., through its subsidiaries, develops, publishes, and operates mobile games in the People’s Republic of China and internationally. The company offers mobile games and female-oriented mobile games, including Fate of the Empress, Fate:The Loved Journey, Promise of Lingyun, Royal Chaos, Rise of Queendom, Legend of Empress, Yokai Kitchen, and Fate: Royal Revenge. It also invests in, produces, and distributes film and TV copyrights.

FriendTimes Fundamentals Summary

How do FriendTimes's earnings and revenue compare to its market cap?
6820 fundamental statistics
Market Cap	CN¥2.20b
Earnings (TTM)	CN¥275.48m
Revenue (TTM)	CN¥1.62b

8.0x

P/E Ratio

1.4x

P/S Ratio

Is 6820 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6820 income statement (TTM)
Revenue	CN¥1.62b
Cost of Revenue	CN¥526.71m
Gross Profit	CN¥1.09b
Other Expenses	CN¥813.95m
Earnings	CN¥275.48m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.13
Gross Margin	67.41%
Net Profit Margin	17.04%
Debt/Equity Ratio	0%

How did 6820 perform over the long term?

See historical performance and comparison

Dividends

9.6%

Current Dividend Yield

77%

Payout Ratio

Valuation

Is FriendTimes 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: 6820 (HK$1.19) is trading below our estimate of fair value (HK$8.87)

Significantly Below Fair Value: 6820 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 6820 is good value based on its Price-To-Earnings Ratio (8x) compared to the Hong Kong Entertainment industry average (8.8x).

PE vs Market: 6820 is good value based on its Price-To-Earnings Ratio (8x) compared to the Hong Kong market (8.8x).

Price to Earnings Growth Ratio

PEG Ratio: 6820 is good value based on its PEG Ratio (0.2x)

Price to Book Ratio

PB vs Industry: 6820 is overvalued based on its Price-To-Book Ratio (1.3x) compared to the HK Entertainment industry average (1x).

Future Growth

How is FriendTimes forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

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

33.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6820's forecast earnings growth (33.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 6820's earnings (33.8% per year) are forecast to grow faster than the Hong Kong market (16.4% per year).

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

Revenue vs Market: 6820's revenue (25.1% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 6820's revenue (25.1% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6820's Return on Equity is forecast to be high in 3 years time (24.5%)

Past Performance

How has FriendTimes 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

17.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6820 has high quality earnings.

Growing Profit Margin: 6820's current net profit margins (17%) are lower than last year (23.1%).

Past Earnings Growth Analysis

Earnings Trend: 6820's earnings have grown by 17.7% per year over the past 5 years.

Accelerating Growth: 6820's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6820 had negative earnings growth (-45.3%) over the past year, making it difficult to compare to the Entertainment industry average (12.9%).

Return on Equity

High ROE: 6820's Return on Equity (16.7%) is considered low.

Financial Health

How is FriendTimes's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 6820's short term assets (CN¥1.2B) exceed its short term liabilities (CN¥151.4M).

Long Term Liabilities: 6820's short term assets (CN¥1.2B) exceed its long term liabilities (CN¥9.0M).

Debt to Equity History and Analysis

Debt Level: 6820 is debt free.

Reducing Debt: 6820 has no debt compared to 5 years ago when its debt to equity ratio was 7.5%.

Debt Coverage: 6820 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6820 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

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

9.64%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6820's dividend (9.64%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.82%).

High Dividend: 6820's dividend (9.64%) is in the top 25% of dividend payers in the Hong Kong market (7.77%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 6820 has been paying a dividend for less than 10 years.

Growing Dividend: 6820's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (77.4%), 6820's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (106.2%), 6820's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

3.3yrs

Average board tenure

CEO

Xiaohuang Jiang (38 yo)

no data

Tenure

Mr. Xiaohuang Jiang is an Executive Director of FriendTimes Inc. since February 21, 2019 and serves as its Chairman and Chief Executive Officer. He is the Founder of FriendTimes Inc. Mr. Jiang is responsib...

Board Members

Experienced Board: 6820's board of directors are considered experienced (3.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: 6820 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	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31