SEHK:3773

Stock Analysis Report

Executive Summary

NNK Group Limited provides mobile top-up services to mobile subscribers in the People’s Republic of China.

Snowflake

Fundamentals

Adequate balance sheet with weak fundamentals.

Share Price & News

How has NNK Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

14.7%

3773

0.1%

HK Online Retail

3.3%

HK Market


1 Year Return

134.0%

3773

55.5%

HK Online Retail

1.6%

HK Market

Return vs Industry: 3773 exceeded the Hong Kong Online Retail industry which returned 55.5% over the past year.

Return vs Market: 3773 exceeded the Hong Kong Market which returned 1.6% over the past year.


Shareholder returns

3773IndustryMarket
7 Day14.7%0.1%3.3%
30 Day50.0%22.7%-0.009%
90 Day17.0%26.9%-5.1%
1 Year134.0%134.0%55.5%55.5%5.3%1.6%
3 Year23.1%19.4%-75.5%-75.6%16.1%4.4%
5 Yearn/a-49.8%-50.7%20.4%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: 3773 (HK$1.17) is trading above our estimate of fair value (HK$0.01)

Significantly Undervalued: 3773 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3773 is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: 3773 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 3773's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3773 is overvalued based on its PB Ratio (2.5x) compared to the HK Online Retail industry average (1.8x).


Next Steps

Future Growth

How is NNK Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

39.3%

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 NNK 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 NNK Group performed over the past 5 years?

-76.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3773 is unprofitable, and losses have increased over the past 5 years at a rate of -76.7% per year.

Accelerating Growth: Unable to compare 3773's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3773 is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-21.1%).


Return on Equity

High ROE: 3773 has a negative Return on Equity (-7.04%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 3773 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 3773 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is NNK Group's financial position?


Financial Position Analysis

Short Term Liabilities: 3773's short term assets (CN¥276.6M) exceeds its short term liabilities (CN¥93.6M)

Long Term Liabilities: 3773's short term assets (276.6M) exceeds its long term liabilities (10.1M)


Debt to Equity History and Analysis

Debt Level: 3773's debt to equity ratio (11.2%) is considered satisfactory

Reducing Debt: 3773's debt to equity ratio has reduced from 257.4% to 11.2% over the past 5 years.

Debt Coverage: 3773's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: Insufficient data to determine if 3773's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 3773 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3773's debt is covered by short term assets (assets are 13.828450x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 3773's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3773'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 3773's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3773's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3773 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3773'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 NNK Group's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Hua Yang (47yo)

5.3yrs

Tenure

CN¥1,204,000

Compensation

Mr. Yang Hua is a founder of NNK Group Limited and serves its Chief Executive Officer and president. Mr. Yang has been Executive Director at NNK Group Limited since June 18, 2014. He is responsible for NNK ...


CEO Compensation Analysis

Compensation vs. Market: Hua's total compensation ($USD170.13K) is about average for companies of similar size in the Hong Kong market ($USD211.62K).

Compensation vs Earnings: Hua's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.8yrs

Average Tenure

47yo

Average Age

Experienced Management: 3773's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

51yo

Average Age

Experienced Board: 3773's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Ming Xing Luo (49yo)

    Chief Investment Officer and Senior Vice President

    • Tenure: 3.7yrs
    • Compensation: CN¥56.00k
  • Wai Ling Wong (39yo)

    Joint Company Secretary

    • Tenure: 3.9yrs
  • Junmou Huang (52yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥1.21m
  • Hua Yang (47yo)

    Founder

    • Tenure: 5.3yrs
    • Compensation: CN¥1.20m
  • Wai Tung Wong (38yo)

    CFO & Joint Company Secretary

    • Tenure: 2.1yrs

Board Members

  • Jinlin Zhao (50yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥127.00k
  • Zida Yu (55yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥127.00k
  • Junmou Huang (52yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: CN¥1.21m
  • Hua Yang (47yo)

    Founder

    • Tenure: 5.3yrs
    • Compensation: CN¥1.20m
  • Xiangcheng Li (50yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥127.00k
  • Xinhua Xu (71yo)

    Non-Executive Director

    • Tenure: 5.3yrs
    • Compensation: CN¥127.00k
  • Zhangxi Lin (67yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥127.00k
  • Haomin Qian (43yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: CN¥127.00k

Company Information

NNK Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NNK Group Limited
  • Ticker: 3773
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: HK$481.400m
  • Shares outstanding: 415.00m
  • Website: https://www.nnk.com.hk

Number of Employees


Location

  • NNK Group Limited
  • Building F5
  • 5th Floor
  • Shenzhen
  • Guangdong Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3773SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2016

Biography

NNK Group Limited provides mobile top-up services to mobile subscribers in the People’s Republic of China. The company operates 007ka Top-up Platform for mobile top-up through electronic banking systems. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:50
End of Day Share Price2019/10/18 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.