SEHK:1039

Stock Analysis Report

Fortunet e-Commerce Group

Executive Summary

Fortunet e-Commerce Group Limited, an investment holding company, engages in the digital points business in the People’s Republic of China.


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Fortunet e-Commerce Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1039 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.4%

1039

6.4%

HK Online Retail

4.0%

HK Market


1 Year Return

-10.8%

1039

45.1%

HK Online Retail

-20.1%

HK Market

Return vs Industry: 1039 underperformed the Hong Kong Online Retail industry which returned 45.1% over the past year.

Return vs Market: 1039 exceeded the Hong Kong Market which returned -20.1% over the past year.


Shareholder returns

1039IndustryMarket
7 Day3.4%6.4%4.0%
30 Day-8.1%-12.4%-11.3%
90 Day23.0%-13.7%-15.6%
1 Year-10.8%-10.8%45.1%45.1%-17.2%-20.1%
3 Year-68.4%-68.4%-59.0%-59.2%-2.9%-12.7%
5 Year-48.3%-48.3%-63.7%-64.1%-6.8%-21.8%

Price Volatility Vs. Market

How volatile is Fortunet e-Commerce Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Fortunet e-Commerce Group undervalued compared to its fair value and its price relative to the market?

2.07x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1039's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1039's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1039 is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: 1039 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1039's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1039 is overvalued based on its PB Ratio (2.1x) compared to the HK Online Retail industry average (1.5x).


Next Steps

Future Growth

How is Fortunet e-Commerce Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

97.0%

Forecasted Retail 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 Fortunet e-Commerce Group 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 Fortunet e-Commerce Group performed over the past 5 years?

39.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1039 is currently unprofitable.

Growing Profit Margin: 1039 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1039 is unprofitable, but has reduced losses over the past 5 years at a rate of 39% per year.

Accelerating Growth: Unable to compare 1039's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1039 is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (2.2%).


Return on Equity

High ROE: 1039 has a negative Return on Equity (-105.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is Fortunet e-Commerce Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1039's short term assets (CN¥354.9M) exceed its short term liabilities (CN¥162.9M).

Long Term Liabilities: 1039 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 1039's debt to equity ratio (61.9%) is considered high.

Reducing Debt: 1039's debt to equity ratio has increased from 54.7% to 61.9% over the past 5 years.


Balance Sheet

Inventory Level: 1039 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1039's debt is covered by short term assets (assets are 2.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1039 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 1039 has less than a year of cash runway if free cash flow continues to reduce at historical rates of -47.6% each year


Next Steps

Dividend

What is Fortunet e-Commerce Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1039's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1039'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 1039's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1039'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 1039's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.0yrs

Average board tenure


CEO

Fortunet e-Commerce Group has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Jerome Cheng
Chairman of the Board5yrsCN¥18.51mno data
Weitao Yuan
Executive Director5yrsCN¥880.00kno data
Chi Wong
Independent Non-Executive Director5yrsCN¥263.00kno data
Jialin Liu
Independent Non-Executive Director2.92yrsCN¥263.00kno data
Chi Keung Chan
Independent Non-Executive Director5yrsCN¥263.00kno data
Yan Guo
Non-Executive Director5yrsCN¥263.00kno data

5.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 1039's board of directors are considered experienced (5 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

Fortunet e-Commerce Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Fortunet e-Commerce Group Limited
  • Ticker: 1039
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: HK$823.984m
  • Shares outstanding: 1.81b
  • Website: https://www.fortunetecomm.com

Number of Employees


Location

  • Fortunet e-Commerce Group Limited
  • Sun Hung Kai Centre
  • Room 1001-1009
  • Wanchai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1039SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2010

Biography

Fortunet e-Commerce Group Limited, an investment holding company, engages in the digital points business in the People’s Republic of China. The company operates an electronic platform to facilitate awards earned by customers of loyalty programs of other companies to be exchanged in the form of virtual assets and credits for consumption of merchandises, games, entertainment, financial services, and other commercial transactions. It sells and purchases merchandise on the Changyou platform, which include physical goods and virtual assets, such as electronic gift cards and coupons. The company provides games and entertainment services, such as self-developed online games under the brand name Quiz King; and external games by connecting with 1768 platform. It also offers travel and related services, including flight reservations, hotel rooms and tourist attraction tickets bookings, duty-free goods, point rewards, and foods. Further, the company provides financial services comprising point’s consumption and cashier output services, as well as QR code payment services with special merchants and UnionPay merchants; points account, points-based consumption, marketing and other loyalty management operation, and system services for finance, urban rail transit, home life, and sports sectors; loan product and credit card recommendation services, and payment in installment services; insurance, funds, wealth management, and smart investment advisory services, as well as points-based investment portfolio; and payment and cashier services. The company was formerly known as Changfeng Axle (China) Company Limited and changed its name to Fortunet e-Commerce Group Limited in June 2015. Fortunet e-Commerce Group Limited was founded in 2001 and is based in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:20
End of Day Share Price2020/03/27 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.