SEHK:799

Stock Analysis Report

Executive Summary

IGG Inc, an investment holding company, engages in the development and operation of mobile and online games in Asia, North America, Europe, and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 799 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.5%

799

0.5%

HK Entertainment

-0.4%

HK Market


1 Year Return

-51.2%

799

-6.3%

HK Entertainment

-0.4%

HK Market

Return vs Industry: 799 underperformed the Hong Kong Entertainment industry which returned 0.4% over the past year.

Return vs Market: 799 underperformed the Hong Kong Market which returned 6.4% over the past year.


Shareholder returns

799IndustryMarket
7 Day-5.5%0.5%-0.4%
30 Day3.0%5.2%-1.2%
90 Day14.8%4.6%4.2%
1 Year-49.3%-51.2%-5.1%-6.3%3.3%-0.4%
3 Year10.4%-1.2%-32.4%-34.8%20.4%8.2%
5 Year167.9%114.2%-35.7%-41.4%18.8%-1.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is IGG 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: 799 (HK$6.54) is trading below our estimate of fair value (HK$15.86)

Significantly Below Fair Value: 799 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 799 is good value based on its PE Ratio (6.6x) compared to the Entertainment industry average (12.6x).

PE vs Market: 799 is good value based on its PE Ratio (6.6x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 799 is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: 799 is overvalued based on its PB Ratio (3.3x) compared to the HK Entertainment industry average (1.1x).


Next Steps

Future Growth

How is IGG forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 799's forecast earnings growth (6.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 799's earnings (6.9% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 799's earnings are forecast to grow, but not significantly.

Revenue vs Market: 799's revenue (2.8% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 799's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 799's Return on Equity is forecast to be high in 3 years time (33.4%)


Next Steps

Past Performance

How has IGG performed over the past 5 years?

31.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 799 has high quality earnings.

Growing Profit Margin: 799's current net profit margins (22.6%) are lower than last year (24.6%).


Past Earnings Growth Analysis

Earnings Trend: 799's earnings have grown significantly by 31.3% per year over the past 5 years.

Accelerating Growth: 799's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 799 had negative earnings growth (-9.4%) over the past year, making it difficult to compare to the Entertainment industry average (-6.2%).


Return on Equity

High ROE: 799's Return on Equity (50.4%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IGG's financial position?


Financial Position Analysis

Short Term Liabilities: 799's short term assets ($348.0M) exceed its short term liabilities ($117.2M).

Long Term Liabilities: 799's short term assets ($348.0M) exceed its long term liabilities ($8.9M).


Debt to Equity History and Analysis

Debt Level: 799 is debt free.

Reducing Debt: 799 has not had any debt for past 5 years.

Debt Coverage: 799 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 799 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 799 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 799's debt is covered by short term assets.


Next Steps

Dividend

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

5.81%

Current Dividend Yield


Dividend Yield vs Market

company5.8%marketbottom25%2.2%markettop25%6.2%industryaverage3.3%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: 799's dividend (5.23%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).

High Dividend: 799's dividend (5.23%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).


Stability and Growth of Payments

Stable Dividend: 799 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 799's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.8%), 799's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 799's dividends in 3 years are forecast to be well covered by earnings (29.9% payout ratio).


Next Steps

Management

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

5.2yrs

Average management tenure


CEO

Duke Cai (41yo)

0yrs

Tenure

US$1,909,000

Compensation

Mr. Zongjian Cai, also known as Duke, co-founded IGG Inc. in 2005 and serves as its Chief Executive Officer. Mr. Cai has been an Executive Director of IGG Inc. since October 31, 2007 and also serves as its ...


CEO Compensation Analysis

Compensation vs Market: Duke 's total compensation ($USD1.91M) is above average for companies of similar size in the Hong Kong market ($USD470.54K).

Compensation vs Earnings: Duke 's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.2yrs

Average Tenure

46.5yo

Average Age

Experienced Management: 799's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

48yo

Average Age

Experienced Board: 799's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$324,79613 Aug 19
Dajian Yu
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares55,000
Max PriceHK$5.91

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Duke Cai (41yo)

    Co-Founder

    • Compensation: US$1.91m
  • Kevin Xu (44yo)

    Co-Founder

    • Tenure: 4.4yrs
    • Compensation: US$1.44m
  • Yvonne Kwong (64yo)

    Joint Secretary

    • Hong Zhang (47yo)

      CTO, Senior VP of Global Operations & Executive Director

      • Tenure: 4.4yrs
      • Compensation: US$1.63m
    • Jessie Shen (48yo)

      CFO, Joint Secretary & Executive Director

      • Tenure: 3.6yrs
      • Compensation: US$1.47m
    • Feng Chen (46yo)

      Senior VP of Corporate Strategy & Executive Director

      • Tenure: 3.6yrs
      • Compensation: US$71.00k

    Board Members

    • Horn Kee Leong (67yo)

      Independent Non-Executive Director

      • Tenure: 6.3yrs
      • Compensation: US$98.00k
    • Duke Cai (41yo)

      Co-Founder

      • Compensation: US$1.91m
    • Kevin Xu (44yo)

      Co-Founder

      • Tenure: 4.4yrs
      • Compensation: US$1.44m
    • Edmond Chi (62yo)

      Non-Executive Director

      • Tenure: 4.4yrs
      • Compensation: US$71.00k
    • Dajian Yu (70yo)

      Independent Non-Executive Director

      • Tenure: 6.3yrs
      • Compensation: US$74.00k
    • Zhao Lu (51yo)

      Independent Non-Executive Director

      • Tenure: 6.3yrs
      • Compensation: US$74.00k
    • Hong Zhang (47yo)

      CTO, Senior VP of Global Operations & Executive Director

      • Tenure: 4.4yrs
      • Compensation: US$1.63m
    • Jessie Shen (48yo)

      CFO, Joint Secretary & Executive Director

      • Tenure: 3.6yrs
      • Compensation: US$1.47m
    • Meijia Chen

      Director of IGG HK

      • Feng Chen (46yo)

        Senior VP of Corporate Strategy & Executive Director

        • Tenure: 3.6yrs
        • Compensation: US$71.00k

      Company Information

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


      Key Information

      • Name: IGG Inc
      • Ticker: 799
      • Exchange: SEHK
      • Founded: 2006
      • Industry: Interactive Home Entertainment
      • Sector: Media
      • Market Cap: HK$7.508b
      • Shares outstanding: 1.25b
      • Website: https://www.igg.com

      Number of Employees


      Location

      • IGG Inc
      • 80 Pasir Panjang Road
      • No 18-84 Mapletree Business City
      • Singapore
      • 117372
      • Singapore

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      799SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2013
      I91DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2013
      IGGG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDOct 2013
      799SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2013
      799SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2013

      Biography

      IGG Inc, an investment holding company, engages in the development and operation of mobile and online games in Asia, North America, Europe, and internationally. The company offers free-to-play mobile, browser, and client-based online games in 21 languages. It also licenses online games; researches and develops games; and provides customer support services. The company was founded in 2006 and is headquartered in Singapore. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/29 13:02
      End of Day Share Price2020/01/29 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.