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777

NetDragon Websoft Holdings SZSC:777 Stock Report

Last Price

HK$14.96

Market Cap

HK$8.1b

7D

-2.6%

1Y

-31.5%

Updated

20 May, 2022

Data

Company Financials +
777 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance2/6
Financial Health5/6
Dividends4/6

777 Stock Overview

NetDragon Websoft Holdings Limited, an investment holding company, develops online and mobile games in the People’s Republic of China, the United States, the United Kingdom, and internationally.

NetDragon Websoft Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for NetDragon Websoft Holdings
Historical stock prices
Current Share PriceHK$14.96
52 Week HighHK$23.40
52 Week LowHK$13.62
Beta0.51
1 Month Change-5.79%
3 Month Change-25.20%
1 Year Change-31.53%
3 Year Change-25.57%
5 Year Change-27.38%
Change since IPO-34.53%

Recent News & Updates

Shareholder Returns

777HK EntertainmentHK Market
7D-2.6%2.3%2.1%
1Y-31.5%-51.0%-25.1%

Return vs Industry: 777 exceeded the Hong Kong Entertainment industry which returned -51% over the past year.

Return vs Market: 777 underperformed the Hong Kong Market which returned -25.1% over the past year.

Price Volatility

Is 777's price volatile compared to industry and market?
777 volatility
777 Average Weekly Movement6.4%
Entertainment Industry Average Movement10.8%
Market Average Movement8.0%
10% most volatile stocks in HK Market15.1%
10% least volatile stocks in HK Market3.9%

Stable Share Price: 777 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 777's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19994,762Luyuan Liuhttps://www.netdragon.com

NetDragon Websoft Holdings Limited, an investment holding company, develops online and mobile games in the People’s Republic of China, the United States, the United Kingdom, and internationally. It engages in the games design, programming and graphics, and online and mobile games operation; online education and related application business; and mobile solution, products, and marketing businesses. The company’s games for kids include JumpStart, School of Dragons, Neopets, World of Madagascar, and Math Blaster; and other games comprise Eudemons Online, Conquer Online, Way of the Five, Conquer Online and Adventure Navigation.

NetDragon Websoft Holdings Fundamentals Summary

How do NetDragon Websoft Holdings's earnings and revenue compare to its market cap?
777 fundamental statistics
Market CapCN¥6.90b
Earnings (TTM)CN¥1.06b
Revenue (TTM)CN¥7.04b

6.5x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
777 income statement (TTM)
RevenueCN¥7.04b
Cost of RevenueCN¥2.51b
Gross ProfitCN¥4.52b
Other ExpensesCN¥3.46b
EarningsCN¥1.06b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.97
Gross Margin64.28%
Net Profit Margin15.10%
Debt/Equity Ratio21.0%

How did 777 perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

34%

Payout Ratio

Does 777 pay a reliable dividends?

See 777 dividend history and benchmarks
When do you need to buy 777 by to receive an upcoming dividend?
NetDragon Websoft Holdings dividend dates
Ex Dividend DateJun 07 2022
Dividend Pay DateJul 08 2022
Days until Ex dividend18 days
Days until Dividend pay date49 days

Does 777 pay a reliable dividends?

See 777 dividend history and benchmarks

Valuation

Is NetDragon Websoft Holdings 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: 777 (HK$14.96) is trading below our estimate of fair value (HK$81.56)

Significantly Below Fair Value: 777 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 777 is good value based on its PE Ratio (6.5x) compared to the Hong Kong Entertainment industry average (9x).

PE vs Market: 777 is good value based on its PE Ratio (6.5x) compared to the Hong Kong market (8.8x).


Price to Earnings Growth Ratio

PEG Ratio: 777 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 777's PB Ratio (0.9x) is in line with the HK Entertainment industry average.


Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 777's forecast earnings growth (15.6% per year) is above the savings rate (1.5%).

Earnings vs Market: 777's earnings (15.6% per year) are forecast to grow slower than the Hong Kong market (16.6% per year).

High Growth Earnings: 777's earnings are forecast to grow, but not significantly.

Revenue vs Market: 777's revenue (12.3% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 777's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 777's Return on Equity is forecast to be low in 3 years time (16.4%).


Past Performance

How has NetDragon Websoft Holdings 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


48.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 777 has high quality earnings.

Growing Profit Margin: 777's current net profit margins (15.1%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: 777 has become profitable over the past 5 years, growing earnings by 48.4% per year.

Accelerating Growth: 777's earnings growth over the past year (11.4%) is below its 5-year average (48.4% per year).

Earnings vs Industry: 777 earnings growth over the past year (11.4%) underperformed the Entertainment industry 12.9%.


Return on Equity

High ROE: 777's Return on Equity (13.9%) is considered low.


Financial Health

How is NetDragon Websoft Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 777's short term assets (CN¥6.9B) exceed its short term liabilities (CN¥2.6B).

Long Term Liabilities: 777's short term assets (CN¥6.9B) exceed its long term liabilities (CN¥1.3B).


Debt to Equity History and Analysis

Debt Level: 777 has more cash than its total debt.

Reducing Debt: 777's debt to equity ratio has increased from 3.5% to 21% over the past 5 years.

Debt Coverage: 777's debt is well covered by operating cash flow (69%).

Interest Coverage: 777's interest payments on its debt are well covered by EBIT (11.6x coverage).


Balance Sheet


Dividend

What is NetDragon Websoft Holdings'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


5.22%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 20 2022Ex Dividend DateJun 07 2022Dividend Pay DateJul 08 202231 days from Ex DividendBuy in the next 18 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 777's dividend (5.22%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.81%).

High Dividend: 777's dividend (5.22%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.82%).


Stability and Growth of Payments

Stable Dividend: 777's dividend payments have been volatile in the past 10 years.

Growing Dividend: 777's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34%), 777's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.1%), 777's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

8.6yrs

Average management tenure


CEO

Luyuan Liu (48 yo)

no data

Tenure

CN¥1,028,000

Compensation

Mr. Luyuan Liu serves as the Chief Executive Officer and Compliance Officer of NetDragon Websoft Holdings Limited (formerly known as NetDragon Websoft Inc.) Mr. Liu is mainly responsible for the overall ma...


CEO Compensation Analysis

Compensation vs Market: Luyuan's total compensation ($USD153.17K) is below average for companies of similar size in the Hong Kong market ($USD554.95K).

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


Leadership Team

Experienced Management: 777's management team is seasoned and experienced (8.6 years average tenure).


Board Members

Experienced Board: 777's board of directors are seasoned and experienced ( 14.6 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

NetDragon Websoft Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: NetDragon Websoft Holdings Limited
  • Ticker: 777
  • Exchange: SZSC
  • Founded: 1999
  • Industry: Interactive Home Entertainment
  • Sector: Media
  • Implied Market Cap: HK$8.069b
  • Shares outstanding: 539.34m
  • Website: https://www.netdragon.com

Number of Employees


Location

  • NetDragon Websoft Holdings Limited
  • 851 Building
  • 58 Wenquan Branch Road
  • Fuzhou
  • Fujian Province
  • 350001
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/20 00:00
End of Day Share Price2022/05/19 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.