SEHK:2013

Stock Analysis Report

Executive Summary

Weimob Inc., an investment holding company, provides cloud-based commerce and marketing solutions in China.

Rewards

Trading at 22.1% below its fair value

Revenue is forecast to grow 29.27% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -1.2% per year for the next 3 years

High level of non-cash earnings

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2013's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

2013

8.1%

HK Software

7.4%

HK Market


1 Year Return

21.5%

2013

4.2%

HK Software

-22.7%

HK Market

Return vs Industry: 2013 exceeded the Hong Kong Software industry which returned 5% over the past year.

Return vs Market: 2013 exceeded the Hong Kong Market which returned -20.3% over the past year.


Shareholder returns

2013IndustryMarket
7 Day-0.8%8.1%7.4%
30 Day2.3%-2.9%-11.2%
90 Day44.8%20.0%-17.3%
1 Year21.5%21.5%4.5%4.2%-19.9%-22.7%
3 Yearn/a31.1%29.7%-5.3%-14.8%
5 Yearn/a5.5%0.1%-8.7%-23.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2013 (HK$4.85) is trading below our estimate of fair value (HK$6.23)

Significantly Below Fair Value: 2013 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2013 is poor value based on its PE Ratio (29.1x) compared to the Software industry average (15.6x).

PE vs Market: 2013 is poor value based on its PE Ratio (29.1x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 2013's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 2013 is overvalued based on its PB Ratio (4.9x) compared to the HK Software industry average (1.1x).


Next Steps

Future Growth

How is Weimob forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2013's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: 2013's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: 2013's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 2013's revenue (29.3% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 2013's revenue (29.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2013's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Weimob performed over the past 5 years?

-11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2013 has a high level of non-cash earnings.

Growing Profit Margin: 2013 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 2013 has become profitable over the past 5 years, growing earnings by -11.1% per year.

Accelerating Growth: 2013 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 2013 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (11.7%).


Return on Equity

High ROE: 2013's Return on Equity (15.6%) is considered low.


Next Steps

Financial Health

How is Weimob's financial position?


Financial Position Analysis

Short Term Liabilities: 2013's short term assets (CN¥2.9B) exceed its short term liabilities (CN¥1.2B).

Long Term Liabilities: 2013's short term assets (CN¥2.9B) exceed its long term liabilities (CN¥140.3M).


Debt to Equity History and Analysis

Debt Level: 2013's debt to equity ratio (15.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2013's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 2013 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2013's debt is covered by short term assets (assets are 9.5x 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: 2013 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 2013 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2013's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2013'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 2013's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2013'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 2013'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?

CN¥606k

CEO Compensation


CEO

Taoyong Sun (31yo)

no data

Tenure

CN¥606,000

Compensation

Mr. Taoyong Sun is the Founder of Weimob Inc. Mr. Sun currently serves as the Chairman of the Board, executive Director and the Chief Executive Officer of Weimob Inc. Mr. Sun serves as Founder and Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Taoyong's total compensation ($USD85.40K) is below average for companies of similar size in the Hong Kong market ($USD445.47K).

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


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 been substantially diluted in the past year, with total shares outstanding growing by 199%.


Top Shareholders

Company Information

Weimob Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Weimob Inc.
  • Ticker: 2013
  • Exchange: SEHK
  • Founded: 2013
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$10.990b
  • Shares outstanding: 2.24b
  • Website: https://www.weimob.com

Number of Employees


Location

  • Weimob Inc.
  • Weimob Building
  • No. 258, Changjiang Road
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2013SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 2019
36WDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2019
2013SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 2019

Biography

Weimob Inc., an investment holding company, provides cloud-based commerce and marketing solutions in China. It operates through two segments, SaaS Products and Targeted Marketing Service. The company offers software as a service products, such as Commerce Cloud products that enable merchants to establish integrated online and offline digital operations, and empower them to drive increased engagement, conversion, revenue, and loyalty from their customers; Marketing Cloud products that provide merchants digital tools to target audiences and optimize online marketing activities, including advertisement creation and budget allocation; and Sales Cloud that helps merchants to enhance their customer acquisition capabilities and achieve higher sales efficiently. It also provides Weimob Cloud platform, a platform as a service for third-party developers to design, build, and implement enterprise-grade custom applications. The company was founded in 2013 and is headquartered in Shanghai, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:31
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.