IGG (SZSC:799) - Share price, News & Analysis

799 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

799 Stock Overview

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

Rewards

Trading at 32% below our estimate of its fair value

Risk Analysis

Profit margins (6.1%) are lower than last year (38.4%)

IGG Competitors

Kingsoft

SEHK:3888

HK$32.9b

NetDragon Websoft Holdings

SEHK:777

HK$8.5b

Archosaur Games

SEHK:9990

HK$6.1b

Boyaa Interactive International

SEHK:434

HK$300.2m

Price History & Performance

Summary of all time highs, changes and price drops for IGG
Historical stock prices
Current Share Price	HK$3.27
52 Week High	HK$13.68
52 Week Low	HK$2.97
Beta	0.66
1 Month Change	-12.57%
3 Month Change	-30.13%
1 Year Change	-75.11%
3 Year Change	-66.73%
5 Year Change	n/a
Change since IPO	-44.58%

Shareholder Returns

	799	HK Entertainment	HK Market
7D	4.5%	2.7%	1.0%
1Y	-75.1%	-51.8%	-23.5%

Return vs Industry: 799 underperformed the Hong Kong Entertainment industry which returned -51.8% over the past year.

Return vs Market: 799 underperformed the Hong Kong Market which returned -23.5% over the past year.

Price Volatility

Is 799's price volatile compared to industry and market?
799 volatility
799 Average Weekly Movement	7.0%
Entertainment Industry Average Movement	10.0%
Market Average Movement	7.9%
10% most volatile stocks in HK Market	14.5%
10% least volatile stocks in HK Market	3.9%

Stable Share Price: 799 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 799's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	3,101	Duke Cai	https://www.igg.com

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 mobile, browser, PC, and client-based online games in 23 languages. It also licenses online games; and provides customer support and technical support services.

IGG Fundamentals Summary

How do IGG's earnings and revenue compare to its market cap?
799 fundamental statistics
Market Cap	HK$3.87b
Earnings (TTM)	HK$370.44m
Revenue (TTM)	HK$6.05b

10.5x

P/E Ratio

0.6x

P/S Ratio

Is 799 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
799 income statement (TTM)
Revenue	HK$6.05b
Cost of Revenue	HK$1.85b
Gross Profit	HK$4.20b
Other Expenses	HK$3.83b
Earnings	HK$370.44m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.31
Gross Margin	69.38%
Net Profit Margin	6.12%
Debt/Equity Ratio	0%

How did 799 perform over the long term?

See historical performance and comparison

Valuation

Is IGG undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

32.0%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 799 (HK$3.27) is trading below our estimate of fair value (HK$4.81)

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

Price To Earnings Ratio

PE vs Industry: 799 is poor value based on its PE Ratio (10.5x) compared to the Hong Kong Entertainment industry average (8.8x).

PE vs Market: 799 is poor value based on its PE Ratio (10.5x) compared to the Hong Kong market (9.2x).

Price to Earnings Growth Ratio

PEG Ratio: 799 is poor value based on its PEG Ratio (10x)

Price to Book Ratio

PB vs Industry: 799 is overvalued based on its PB Ratio (1.2x) compared to the HK Entertainment industry average (1x).

Future Growth

How is IGG forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

1.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 799's forecast earnings growth (1% per year) is below the savings rate (1.5%).

Earnings vs Market: 799's earnings (1% per year) are forecast to grow slower than the Hong Kong market (15% per year).

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

Revenue vs Market: 799's revenue (1.3% per year) is forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Revenue: 799's revenue (1.3% 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 low in 3 years time (14.3%).

Past Performance

How has IGG 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

8.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 799 has high quality earnings.

Growing Profit Margin: 799's current net profit margins (6.1%) are lower than last year (38.4%).

Past Earnings Growth Analysis

Earnings Trend: 799's earnings have grown by 8.2% 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 (-82.3%) over the past year, making it difficult to compare to the Entertainment industry average (15.2%).

Return on Equity

High ROE: 799's Return on Equity (11.2%) is considered low.

Financial Health

How is IGG'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: 799's short term assets (HK$2.5B) exceed its short term liabilities (HK$1.1B).

Long Term Liabilities: 799's short term assets (HK$2.5B) exceed its long term liabilities (HK$80.6M).

Debt to Equity History and Analysis

Debt Level: 799 is debt free.

Reducing Debt: 799 had no debt 5 years ago.

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

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

3.40%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 799's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 799's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 799's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 799's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: 799 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 799 has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Media industry.

Management

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

13.0yrs

Average management tenure

CEO

Duke Cai (43 yo)

17.25yrs

Tenure

HK$25,758,000

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 ($USD3.28M) is above average for companies of similar size in the Hong Kong market ($USD415.98K).

Compensation vs Earnings: Duke 's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: 799's management team is seasoned and experienced (13 years average tenure).

Board Members

Experienced Board: 799's board of directors are considered experienced (6.7 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.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/04/30 00:00
End of Day Share Price	2022/04/29 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31