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9919

Activation Group Holdings SEHK:9919 Stock Report

Last Price

HK$1.15

Market Cap

HK$857.8m

7D

3.6%

1Y

26.4%

Updated

29 Jun, 2022

Data

Company Financials +
9919 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance6/6
Financial Health6/6
Dividends3/6

9919 Stock Overview

Activation Group Holdings Limited, an investment holding company, primarily provides integrated marketing solutions in Mainland China, Hong Kong, and Singapore.

Activation Group Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Activation Group Holdings
Historical stock prices
Current Share PriceHK$1.15
52 Week HighHK$2.03
52 Week LowHK$0.70
Beta1.45
1 Month Change1.77%
3 Month Change-5.74%
1 Year Change26.37%
3 Year Changen/a
5 Year Changen/a
Change since IPO-26.75%

Recent News & Updates

Shareholder Returns

9919HK MediaHK Market
7D3.6%5.7%3.1%
1Y26.4%-46.7%-21.2%

Return vs Industry: 9919 exceeded the Hong Kong Media industry which returned -46.4% over the past year.

Return vs Market: 9919 exceeded the Hong Kong Market which returned -20.1% over the past year.

Price Volatility

Is 9919's price volatile compared to industry and market?
9919 volatility
9919 Average Weekly Movement4.3%
Media Industry Average Movement10.4%
Market Average Movement6.9%
10% most volatile stocks in HK Market13.7%
10% least volatile stocks in HK Market3.3%

Stable Share Price: 9919 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 9919's weekly volatility has decreased from 11% to 4% over the past year.

About the Company

FoundedEmployeesCEOWebsite
2013285Steve Lauhttps://www.activation-gp.com

Activation Group Holdings Limited, an investment holding company, primarily provides integrated marketing solutions in Mainland China, Hong Kong, and Singapore. It operates through three segments: Experiential Marketing Services, Digital and Communication Services, and IP Development. The company offers integrated marketing solutions, including experiential marketing, digital and brand communication, and public relations services.

Activation Group Holdings Fundamentals Summary

How do Activation Group Holdings's earnings and revenue compare to its market cap?
9919 fundamental statistics
Market CapCN¥733.13m
Earnings (TTM)CN¥92.49m
Revenue (TTM)CN¥904.06m

7.9x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
9919 income statement (TTM)
RevenueCN¥904.06m
Cost of RevenueCN¥636.77m
Gross ProfitCN¥267.28m
Other ExpensesCN¥174.80m
EarningsCN¥92.49m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin29.56%
Net Profit Margin10.23%
Debt/Equity Ratio0%

How did 9919 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

20%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 9919 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 9919?

Other financial metrics that can be useful for relative valuation.

9919 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA2.5x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 9919's PE Ratio compare to its peers?

9919 PE Ratio vs Peers
The above table shows the PE ratio for 9919 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.6x
1490 Cheshi Technology
13xn/aHK$624.0m
1163 Adtiger Corporations
46.3xn/aHK$641.2m
752 Pico Far East Holdings
9.5xn/aHK$1.4b
623 SinoMedia Holding
9.4xn/aHK$406.2m
9919 Activation Group Holdings
7.9xn/aHK$857.8m

Price-To-Earnings vs Peers: 9919 is good value based on its Price-To-Earnings Ratio (7.9x) compared to the peer average (19.6x).


Price to Earnings Ratio vs Industry

How does 9919's PE Ratio compare vs other companies in the Asian Media Industry?

Price-To-Earnings vs Industry: 9919 is good value based on its Price-To-Earnings Ratio (7.9x) compared to the Hong Kong Media industry average (12.7x)


Price to Earnings Ratio vs Fair Ratio

What is 9919's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

9919 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 9919's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 9919 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 9919 (HK$1.15) is trading below our estimate of fair value (HK$11.03)

Significantly Below Fair Value: 9919 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 9919's PEG Ratio to determine if it is good value.


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Future Growth

How is Activation Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


26.5%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 9919's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if 9919's earnings are forecast to grow faster than the Hong Kong market

High Growth Earnings: Insufficient data to determine if 9919's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 9919's revenue (26.5% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 9919's revenue (26.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 9919's Return on Equity is forecast to be high in 3 years time (33.5%)


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Past Performance

How has Activation Group Holdings performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


23.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 9919 has high quality earnings.

Growing Profit Margin: 9919's current net profit margins (10.2%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: 9919's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: 9919's earnings growth over the past year (294.9%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: 9919 earnings growth over the past year (294.9%) exceeded the Media industry 13.3%.


Return on Equity

High ROE: 9919's Return on Equity (23.9%) is considered high.


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Financial Health

How is Activation Group Holdings'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: 9919's short term assets (CN¥670.7M) exceed its short term liabilities (CN¥279.4M).

Long Term Liabilities: 9919's short term assets (CN¥670.7M) exceed its long term liabilities (CN¥7.5M).


Debt to Equity History and Analysis

Debt Level: 9919 is debt free.

Reducing Debt: 9919 has no debt compared to 5 years ago when its debt to equity ratio was 2.4%.

Debt Coverage: 9919 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 9919 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Activation Group Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.29%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 9919's dividend (3.29%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.7%).

High Dividend: 9919's dividend (3.29%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.69%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 9919's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 9919's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (19.7%), 9919's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (14.1%), 9919's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

2.8yrs

Average board tenure


CEO

Steve Lau (46 yo)

no data

Tenure

Mr. Lau Kam Yiu, also known as Steve, is the Joint-Chairman and Chief Executive Officer of Activation Group Holdings Ltd. and has been its Executive Director since September 16, 2019. Mr. Lau has experienc...


Board Members

Experienced Board: 9919's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

Activation Group Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Activation Group Holdings Limited
  • Ticker: 9919
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Advertising
  • Sector: Media
  • Implied Market Cap: HK$857.769m
  • Shares outstanding: 745.89m
  • Website: https://www.activation-gp.com

Number of Employees


Location

  • Activation Group Holdings Limited
  • No. 399A Liu Zhou Road
  • 8th Floor
  • Shanghai
  • 200235
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.