SEHK:1896

Stock Analysis Report

Maoyan Entertainment

Executive Summary

Maoyan Entertainment operates a platform that provides Internet-empowered entertainment services in China.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-9.2%

1896

9.3%

HK Online Retail

0.3%

HK Market


1 Year Return

n/a

1896

56.0%

HK Online Retail

-1.5%

HK Market

Return vs Industry: Insufficient data to determine how 1896 performed against the Hong Kong Online Retail industry.

Return vs Market: Insufficient data to determine how 1896 performed against the Hong Kong Market.


Shareholder returns

1896IndustryMarket
7 Day-9.2%9.3%0.3%
30 Day-16.1%21.1%0.5%
90 Day-21.8%38.0%-4.4%
1 Yearn/a56.0%56.0%2.1%-1.5%
3 Yearn/a-75.6%-75.7%14.7%3.2%
5 Yearn/a-49.9%-50.8%21.5%1.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1896 (HK$10.82) is trading below our estimate of fair value (HK$14.51)

Significantly Below Fair Value: 1896 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1896 is poor value based on its PE Ratio (28.2x) compared to the Online Retail industry average (23.1x).

PE vs Market: 1896 is poor value based on its PE Ratio (28.2x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1896 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1896 is good value based on its PB Ratio (1.4x) compared to the HK Online Retail industry average (1.8x).


Next Steps

Future Growth

How is Maoyan Entertainment forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

44.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1896's forecast earnings growth (44.5% per year) is above the savings rate (2%).

Earnings vs Market: 1896's earnings (44.5% per year) are forecast to grow faster than the Hong Kong market (11.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1896's revenue (16% per year) is forecast to grow faster than the Hong Kong market (10.4% per year).

High Growth Revenue: 1896's revenue (16% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1896's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Maoyan Entertainment performed over the past 5 years?

122.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1896's earnings have grown significantly by 122.3% per year over the past 5 years.

Accelerating Growth: 1896 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1896 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Online Retail industry (-21.1%).


Return on Equity

High ROE: 1896's Return on Equity (4.4%) is considered low.


Return on Assets

ROA vs Industry: 1896's Return on Assets is below or equal to the Online Retail industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 1896's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Maoyan Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: 1896's short term assets (CN¥5.6B) exceeds its short term liabilities (CN¥3.3B)

Long Term Liabilities: 1896's short term assets (5.6B) exceeds its long term liabilities (217.4M)


Debt to Equity History and Analysis

Debt Level: 1896's debt to equity ratio (14.4%) is considered satisfactory

Reducing Debt: Insufficient data to determine if 1896's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1896's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1896's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet

Inventory Level: 1896 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1896's debt is covered by short term assets (assets are 4.860360x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.3%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1896's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1896's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1896's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1896'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 1896's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Zhihao Zheng (49yo)

0yrs

Tenure

CN¥70,793,000

Compensation

Mr. Zhihao Zheng is the Chief Executive Officer of Maoyan Entertainment and has been its Executive Director since December 8, 2017. 


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Zhihao's total compensation is reasonable compared to companies of similar size in the Hong Kong market.

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


Management Age and Tenure

1.2yrs

Average Tenure

39yo

Average Age

Experienced Management: 1896's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

2.1yrs

Average Tenure

47yo

Average Age

Experienced Board: 1896's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

BuyCN¥4,402,04329 Mar 19
Jian Wang
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares270,800
Max PriceCN¥16.26
BuyCN¥3,010,73929 Mar 19
Jian Wang
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares179,200
Max PriceCN¥16.80

Ownership Breakdown


Management Team

  • Changtian Wang (54yo)

    Chairman

    • Tenure: 3.3yrs
  • Teddy Gu (36yo)

    President

    • Tenure: 2yrs
  • Ching Cheng (31yo)

    Joint Company Secretary

    • Tenure: 1.2yrs
  • Kangping Shi (42yo)

    Chief Financial Officer

    • Tenure: 0yrs
  • Zhihao Zheng (49yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥70.79m
  • Li Kang (36yo)

    Chief Operating Officer

    • Tenure: 0yrs
  • Xia Zheng

    Joint Company Secretary

    • Tenure: 1.2yrs

Board Members

  • Sean Chen (37yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Changtian Wang (54yo)

    Chairman

    • Tenure: 3.3yrs
  • Xiao Ping Li (45yo)

    Non-Executive Director

    • Tenure: 2.1yrs
  • Hua Wang (42yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Charles Chan (65yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Weibiao Zhan (47yo)

    Non-Executive Director

    • Tenure: 2.1yrs
  • Zhihao Zheng (49yo)

    CEO & Executive Director

    • Tenure: 0yrs
    • Compensation: CN¥70.79m
  • Jian Wang (47yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Ning Lin (44yo)

    Non-Executive Director

    • Tenure: 2.1yrs
  • Dong Ma (50yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs

Company Information

Maoyan Entertainment's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Maoyan Entertainment
  • Ticker: 1896
  • Exchange: SEHK
  • Founded: 2012
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: HK$12.187b
  • Shares outstanding: 1.13b
  • Website: https://maoyan.com

Number of Employees


Location

  • Maoyan Entertainment
  • No. 3 Building
  • Yonghe Hangxing Garden
  • Beijing
  • 100013
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1896SEHK (The Stock Exchange of Hong Kong Ltd.)YesClass A Ordinary SharesHKHKDFeb 2019
9MEDB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURFeb 2019
1896SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesClass A Ordinary SharesHKHKDFeb 2019
1896SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesClass A Ordinary SharesHKHKDFeb 2019

Biography

Maoyan Entertainment operates a platform that provides Internet-empowered entertainment services in China. The company offers online entertainment ticketing, entertainment content, e-commerce, advertising, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:55
End of Day Share Price2019/10/22 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.