SEHK:6860

Stock Analysis Report

Executive Summary

FingerTango Inc., an investment holding company, develops, operates, and publishes mobile games in the People’s Republic of China.

Rewards

Trading at 50.7% below its fair value

Risk Analysis

Highly volatile share price over past 3 months

Profit margins (10.8%) are lower than last year (19.7%)

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6860's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

6860

0.1%

HK Entertainment

3.7%

HK Market


1 Year Return

-65.5%

6860

-5.7%

HK Entertainment

2.4%

HK Market

Return vs Industry: 6860 underperformed the Hong Kong Entertainment industry which returned -5.7% over the past year.

Return vs Market: 6860 underperformed the Hong Kong Market which returned 2.4% over the past year.


Shareholder returns

6860IndustryMarket
7 Day-1.7%0.1%3.7%
30 Day-16.9%2.4%4.2%
90 Day-30.6%-0.09%1.7%
1 Year-65.5%-65.5%-4.2%-5.7%6.0%2.4%
3 Yearn/a-34.8%-36.8%25.6%12.9%
5 Yearn/a-40.5%-45.5%23.2%2.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is FingerTango 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: 6860 (HK$0.59) is trading below our estimate of fair value (HK$1.2)

Significantly Below Fair Value: 6860 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6860 is good value based on its PE Ratio (8.2x) compared to the Entertainment industry average (11.9x).

PE vs Market: 6860 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6860's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6860 is good value based on its PB Ratio (0.8x) compared to the HK Entertainment industry average (1.1x).


Next Steps

Future Growth

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

65.2%

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 FingerTango 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 FingerTango performed over the past 5 years?

12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6860 has high quality earnings.

Growing Profit Margin: 6860's current net profit margins (10.8%) are lower than last year (19.7%).


Past Earnings Growth Analysis

Earnings Trend: 6860's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: 6860's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6860 had negative earnings growth (-48.2%) over the past year, making it difficult to compare to the Entertainment industry average (-6.2%).


Return on Equity

High ROE: 6860's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FingerTango's financial position?


Financial Position Analysis

Short Term Liabilities: 6860's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥260.1M).

Long Term Liabilities: 6860's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥1.4M).


Debt to Equity History and Analysis

Debt Level: 6860 is debt free.

Reducing Debt: 6860 has not had any debt for past 5 years.

Debt Coverage: 6860 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 6860 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 6860 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 6860's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 6860's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6860'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 6860's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6860'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 6860's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of FingerTango's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Jie Liu (37yo)

0yrs

Tenure

0

Mr. Jie Liu serves as the Chairman of the Board and Chief Executive Officer of Fingertango Inc. and has been its Executive Director since March 16, 2018. 


Management Age and Tenure

1.8yrs

Average Tenure

38yo

Average Age

Experienced Management: 6860's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

40yo

Average Age

Experienced Board: 6860's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 6860 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellHK$55,000,15712 Nov 19
Jie Liu
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares100,000,000
Max PriceHK$0.55
SellHK$36,300,10412 Nov 19
Yanbin Zhu
EntityIndividual
Role
Member of the Board of Directors
Executive Director & COO
Shares66,000,000
Max PriceHK$0.55

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.5%.


Management Team

  • Yu Kit Wong (37yo)

    Joint Company Secretary

    • Tenure: 1.5yrs
  • Jie Liu (37yo)

    Chairman & CEO

    • Tenure: 0yrs
  • Yanbin Zhu (38yo)

    Executive Director & COO

    • Tenure: 0.5yrs
  • Zaicheng Wang (40yo)

    Executive Director & Joint Company Secretary

    • Tenure: 1.8yrs
  • Zhanxi Liu (40yo)

    CFO & Executive Director

    • Tenure: 1.8yrs

Board Members

  • Jie Liu (37yo)

    Chairman & CEO

    • Tenure: 0yrs
  • Yanbin Zhu (38yo)

    Executive Director & COO

    • Tenure: 0.5yrs
  • Zaicheng Wang (40yo)

    Executive Director & Joint Company Secretary

    • Tenure: 1.8yrs
  • Zhanxi Liu (40yo)

    CFO & Executive Director

    • Tenure: 1.8yrs
  • Jingdou Guo (41yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
  • Minru Yao (41yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs

Company Information

FingerTango Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FingerTango Inc.
  • Ticker: 6860
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Market Cap: HK$1.134b
  • Shares outstanding: 1.92b
  • Website: https://www.fingertango.com

Number of Employees


Location

  • FingerTango Inc.
  • 1132 Zhongshan Avenue West
  • 3rd Floor
  • Tianhe
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6860SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018

Biography

FingerTango Inc., an investment holding company, develops, operates, and publishes mobile games in the People’s Republic of China. The company publishes and sells simulation mobile games. As of December 31 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 13:11
End of Day Share Price2019/12/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.