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6939

MEGAIN Holding (Cayman) SEHK:6939 Stock Report

Last Price

HK$0.54

Market Cap

HK$280.1m

7D

-32.5%

1Y

-61.7%

Updated

22 Sep, 2022

Data

Company Financials
6939 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health4/6
Dividends2/6

6939 Stock Overview

MEGAIN Holding (Cayman) Co., Ltd., an investment holding company, engages in the research, design, development, and sale of compatible cartridge chips and other chips in the People's Republic of China and internationally.

MEGAIN Holding (Cayman) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MEGAIN Holding (Cayman)
Historical stock prices
Current Share PriceHK$0.54
52 Week HighHK$1.44
52 Week LowHK$0.46
Beta0
1 Month Change-45.46%
3 Month Change-50.46%
1 Year Change-61.70%
3 Year Changen/a
5 Year Changen/a
Change since IPO-59.70%

Recent News & Updates

Aug 11
Investors Could Be Concerned With MEGAIN Holding (Cayman)'s (HKG:6939) Returns On Capital

Investors Could Be Concerned With MEGAIN Holding (Cayman)'s (HKG:6939) Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. One common approach is to try and...

Jun 10
MEGAIN Holding (Cayman)'s (HKG:6939) Shareholders Will Receive A Bigger Dividend Than Last Year

MEGAIN Holding (Cayman)'s (HKG:6939) Shareholders Will Receive A Bigger Dividend Than Last Year

The board of MEGAIN Holding (Cayman) Co., Ltd. ( HKG:6939 ) has announced that it will be increasing its dividend on...

Shareholder Returns

6939HK SemiconductorHK Market
7D-32.5%-6.8%-2.7%
1Y-61.7%-31.6%-23.6%

Return vs Industry: 6939 underperformed the Hong Kong Semiconductor industry which returned -31.6% over the past year.

Return vs Market: 6939 underperformed the Hong Kong Market which returned -23.6% over the past year.

Price Volatility

Is 6939's price volatile compared to industry and market?
6939 volatility
6939 Average Weekly Movement10.3%
Semiconductor Industry Average Movement7.0%
Market Average Movement6.4%
10% most volatile stocks in HK Market12.9%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 6939 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 6939's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
2016136Hua Wanghttps://www.megaincayman.com

MEGAIN Holding (Cayman) Co., Ltd., an investment holding company, engages in the research, design, development, and sale of compatible cartridge chips and other chips in the People's Republic of China and internationally. It also trades in integrated circuits and other cartridge components, including plastic parts and toners, as ancillary services to its customers; and provides technical and design services for chips at the request of customers. The company was incorporated in 2016 and is headquartered in Zhuhai, the People's Republic of China.

MEGAIN Holding (Cayman) Fundamentals Summary

How do MEGAIN Holding (Cayman)'s earnings and revenue compare to its market cap?
6939 fundamental statistics
Market CapHK$280.13m
Earnings (TTM)HK$48.76m
Revenue (TTM)HK$196.73m

5.7x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
6939 income statement (TTM)
RevenueCN¥176.61m
Cost of RevenueCN¥90.39m
Gross ProfitCN¥86.22m
Other ExpensesCN¥42.45m
EarningsCN¥43.78m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.084
Gross Margin48.82%
Net Profit Margin24.79%
Debt/Equity Ratio1.2%

How did 6939 perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 6939 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6939?

Other financial metrics that can be useful for relative valuation.

6939 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does 6939's PE Ratio compare to its peers?

6939 PE Ratio vs Peers
The above table shows the PE ratio for 6939 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.9x
1305 Wai Chi Holdings
3.9xn/aHK$271.0m
8490 Niche-Tech Group
17.8xn/aHK$148.2m
2878 Solomon Systech (International)
4.5xn/aHK$1.2b
85 China Electronics Huada Technology
5.5xn/aHK$1.5b
6939 MEGAIN Holding (Cayman)
5.7xn/aHK$280.1m

Price-To-Earnings vs Peers: 6939 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the peer average (7.9x).


Price to Earnings Ratio vs Industry

How does 6939's PE Ratio compare vs other companies in the Asian Semiconductor Industry?

Price-To-Earnings vs Industry: 6939 is good value based on its Price-To-Earnings Ratio (5.7x) compared to the Asian Semiconductor industry average (16.7x)


Price to Earnings Ratio vs Fair Ratio

What is 6939's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6939 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6939's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of 6939 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6939 (HK$0.54) is trading above our estimate of fair value (HK$0.4)

Significantly Below Fair Value: 6939 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is MEGAIN Holding (Cayman) forecast to perform in the next 1 to 3 years based on estimates from 0 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


7.0%

Forecasted Semiconductors 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 MEGAIN Holding (Cayman) 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.


Discover growth companies

Past Performance

How has MEGAIN Holding (Cayman) performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6939 has high quality earnings.

Growing Profit Margin: 6939's current net profit margins (24.8%) are higher than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: 6939's earnings have declined by 19.7% per year over the past 5 years.

Accelerating Growth: 6939's earnings growth over the past year (103.5%) exceeds its 5-year average (-19.7% per year).

Earnings vs Industry: 6939 earnings growth over the past year (103.5%) exceeded the Semiconductor industry 73.3%.


Return on Equity

High ROE: 6939's Return on Equity (13%) is considered low.


Discover strong past performing companies

Financial Health

How is MEGAIN Holding (Cayman)'s financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6939's short term assets (CN¥356.2M) exceed its short term liabilities (CN¥34.1M).

Long Term Liabilities: 6939's short term assets (CN¥356.2M) exceed its long term liabilities (CN¥2.4M).


Debt to Equity History and Analysis

Debt Level: 6939 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 6939's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6939's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 6939 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is MEGAIN Holding (Cayman) current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.95%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6939's dividend (4.95%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.92%).

High Dividend: 6939's dividend (4.95%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.54%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 6939's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6939's dividend payments are increasing as they only just started paying a dividend.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.5%), 6939's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 6939 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

4.6yrs

Average management tenure


CEO

Hua Wang (35 yo)

6.67yrs

Tenure

Mr. Hua Wang serves as Chief Executive Officer at Megain Holding (Cayman) Co., Ltd. since January 01, 2016. Mr. Wang has been an executive director and the general manager of Zhuhai Megain since August 201...


Leadership Team

Experienced Management: 6939's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: 6939's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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.


Top Shareholders

Top 5 shareholders own 91.08% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
19.27%
Hsien-Wei Cheng
99,950,000CN¥54.0m0%no data
18.8%
Erhao Yu
97,500,000CN¥52.7m0%no data
18.8%
Yiding Yu
97,500,000CN¥52.7m0%no data
17.6%
Kuo-Chang Lee
91,300,000CN¥49.3m0%no data
16.63%
Tsz Leung Lam
86,250,000CN¥46.6m0%no data

Company Information

MEGAIN Holding (Cayman) Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: MEGAIN Holding (Cayman) Co., Ltd.
  • Ticker: 6939
  • Exchange: SEHK
  • Founded: 2016
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Implied Market Cap: HK$280.125m
  • Shares outstanding: 518.75m
  • Website: https://www.megaincayman.com

Number of Employees


Location

  • MEGAIN Holding (Cayman) Co., Ltd.
  • Block A
  • Floor 3
  • Zhuhai
  • Guangdong Province
  • 519000
  • China


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6939SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/22 00:00
End of Day Share Price2022/09/22 00:00
Earnings2022/06/30
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.