6939

MEGAIN Holding (Cayman)SEHK:6939 Stock Report

Market Cap

HK$757.4m

7D

-4.6%

1Y

n/a

Updated

20 Sep, 2021

Data

Company Financials
6939 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance1/6
Financial Health5/6
Dividends0/6

6939 Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for MEGAIN Holding (Cayman)
Historical stock prices
Current Share PriceHK$1.46
52 Week HighHK$1.29
52 Week LowHK$2.00
Beta0
1 Month Change0.69%
3 Month Change-16.57%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO8.96%

Recent News & Updates

Shareholder Returns

6939HK SemiconductorHK Market
7D-4.6%-6.3%-4.6%
1Yn/a44.6%5.2%

Return vs Industry: Insufficient data to determine how 6939 performed against the Hong Kong Semiconductor industry.

Return vs Market: Insufficient data to determine how 6939 performed against the Hong Kong Market.

Price Volatility

Is 6939's price volatile compared to industry and market?
6939 volatility
6939 Beta0
Industry Beta0.77
Market Beta1

Stable Share Price: 6939 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: Insufficient data to determine 6939's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016148Hua 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 in the People's Republic of China and internationally. It also trades in integrated circuits and other cartridge components. The company was incorporated in 2016 and is headquartered in Zhuhai, the People's Republic of China.

Valuation

Is MEGAIN Holding (Cayman) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6939 (HK$1.46) is trading below our estimate of fair value (HK$3.86)

Significantly Below Fair Value: 6939 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6939 is poor value based on its PE Ratio (29.3x) compared to the Hong Kong Semiconductor industry average (24.6x).

PE vs Market: 6939 is poor value based on its PE Ratio (29.3x) compared to the Hong Kong market (10x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6939's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6939 is good value based on its PB Ratio (2.1x) compared to the HK Semiconductor industry average (2.4x).


Future Growth

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

9.9%

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.


Past Performance

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

-32.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6939 has high quality earnings.

Growing Profit Margin: 6939's current net profit margins (15.7%) are lower than last year (22.3%).


Past Earnings Growth Analysis

Earnings Trend: 6939's earnings have declined by 32.4% per year over the past 5 years.

Accelerating Growth: 6939's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6939 had negative earnings growth (-38.7%) over the past year, making it difficult to compare to the Semiconductor industry average (52%).


Return on Equity

High ROE: 6939's Return on Equity (7.1%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: 6939's short term assets (CN¥313.5M) exceed its short term liabilities (CN¥21.4M).

Long Term Liabilities: 6939's short term assets (CN¥313.5M) exceed its long term liabilities (CN¥678.0K).


Debt to Equity History and Analysis

Debt Level: 6939's debt to equity ratio (1.6%) is considered satisfactory.

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

Debt Coverage: 6939's debt is well covered by operating cash flow (1456.9%).

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


Balance Sheet


Dividend

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

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 6939's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 6939's dividend (0.91%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.75%).


Stability and Growth of Payments

Stable Dividend: 6939 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6939 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 6939 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 6939'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?

3.6yrs

Average management tenure


CEO

Hua Wang (34 yo)

5.67yrs

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 (3.6 years average tenure).


Board Members

Experienced Board: 6939's board of directors are not considered experienced ( 1.6 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: 6939 only recently listed within the past 12 months.


Top Shareholders

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
  • Market Cap: HK$757.375m
  • Shares outstanding: 518.75m
  • Website: https://www.megaincayman.com

Number of Employees


Location

  • MEGAIN Holding (Cayman) Co., Ltd.
  • Block A, No. 115 Huawei Road
  • 3rd Floor
  • Zhuhai
  • Guangdong Province
  • 519000
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 15:33
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.