SEHK:8083

Stock Analysis Report

Executive Summary

China Youzan Limited, an investment holding company, provides third party payment and related consultancy services in the People’s Republic of China.


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8083's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.5%

8083

8.1%

HK Software

7.4%

HK Market


1 Year Return

20.3%

8083

4.2%

HK Software

-22.7%

HK Market

Return vs Industry: 8083 exceeded the Hong Kong Software industry which returned 4.2% over the past year.

Return vs Market: 8083 exceeded the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

8083IndustryMarket
7 Day8.5%8.1%7.4%
30 Day-2.5%-2.9%-11.2%
90 Day55.6%20.0%-17.3%
1 Year20.3%20.3%4.5%4.2%-19.9%-22.7%
3 Year35.1%35.1%31.1%29.7%-5.3%-14.8%
5 Year0%0%5.5%0.1%-8.7%-23.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.98x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8083's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8083's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8083 is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: 8083 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8083's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8083 is overvalued based on its PB Ratio (3x) compared to the HK Software industry average (1x).


Next Steps

Future Growth

How is China Youzan forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

84.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8083 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 8083 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 8083 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 8083's revenue (48.8% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 8083's revenue (48.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 8083's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has China Youzan performed over the past 5 years?

-37.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8083 is currently unprofitable.

Growing Profit Margin: 8083 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8083 is unprofitable, and losses have increased over the past 5 years at a rate of -37.2% per year.

Accelerating Growth: Unable to compare 8083's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8083 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (11.7%).


Return on Equity

High ROE: 8083 has a negative Return on Equity (-23.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is China Youzan's financial position?


Financial Position Analysis

Short Term Liabilities: 8083's short term assets (CN¥6.3B) exceed its short term liabilities (CN¥6.1B).

Long Term Liabilities: 8083's short term assets (CN¥6.3B) exceed its long term liabilities (CN¥492.9M).


Debt to Equity History and Analysis

Debt Level: 8083's debt to equity ratio (5.2%) is considered satisfactory.

Reducing Debt: 8083's debt to equity ratio has increased from 0.1% to 5.2% over the past 5 years.


Balance Sheet

Inventory Level: 8083 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8083's debt is covered by short term assets (assets are 31.5x 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: Insufficient data to determine if 8083 has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 8083 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8083's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8083'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 8083's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8083'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 8083'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?

1.8yrs

Average management tenure


CEO

Ning Zhu (36yo)

1.83s

Tenure

CN¥3,018,416

Compensation

Mr. Ning Zhu is an Executive Director and Chief Executive Officer of China Innovationpay Group Limited since May 4, 2018. Mr. Zhu serves as Co-Owner at Youzan Teamwork Inc. Mr. Zhu is the founder and the c ...


CEO Compensation Analysis

Compensation vs Market: Ning's total compensation ($USD389.27K) is about average for companies of similar size in the Hong Kong market ($USD469.46K).

Compensation vs Earnings: Insufficient data to compare Ning's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Guisen Guan
Chairman & Compliance Officerno dataCN¥2.71m2.66% CN¥329.3m
Ning Zhu
CEO & Executive Director1.83yrsCN¥3.02m9.31% CN¥1.2b
Chunmeng Cao
Executive Director & President7.67yrsCN¥2.87m0.44% CN¥53.9m
Tao Yu
CFO & Executive Director1.83yrsCN¥2.55mno data
Xiaotian Yan
Chief Investment Officer & Executive Director5.25yrsCN¥2.33m0.14% CN¥17.3m
Yusong Cui
CTO & Executive Director1.83yrsCN¥2.80m1.56% CN¥193.5m
Hangyan Ying
Chief Service Officer & Executive Director1.83yrsCN¥2.58mno data
Fang Huan
Chief Operating Officerno datano datano data
Yu Guan
Chief Marketing Officerno datano datano data
Yahong Guo
Chief Talent Officerno datano datano data

1.8yrs

Average Tenure

38yo

Average Age

Experienced Management: 8083's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Guisen Guan
Chairman & Compliance Officerno dataCN¥2.71m2.66% CN¥329.3m
Ning Zhu
CEO & Executive Director1.83yrsCN¥3.02m9.31% CN¥1.2b
Chunmeng Cao
Executive Director & President7.67yrsCN¥2.87m0.44% CN¥53.9m
Tao Yu
CFO & Executive Director1.83yrsCN¥2.55mno data
Xiaotian Yan
Chief Investment Officer & Executive Director5.25yrsCN¥2.33m0.14% CN¥17.3m
Yusong Cui
CTO & Executive Director1.83yrsCN¥2.80m1.56% CN¥193.5m
Hangyan Ying
Chief Service Officer & Executive Director1.83yrsCN¥2.58mno data
Bin Xia
Chief Economic Consultant & Member of the Strategic Advisory Committee4.67yrsno datano data
Chi Wah Fong
Independent Non-Executive Director6.25yrsCN¥291.00k0.0065% CN¥800.5k
Tinghuan Liu
Honorable Chairman8.42yrsno datano data

4.7yrs

Average Tenure

51yo

Average Age

Experienced Board: 8083's board of directors are considered experienced (4.7 years average tenure).


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 51.6%.


Top Shareholders

Company Information

China Youzan Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Youzan Limited
  • Ticker: 8083
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$12.373b
  • Shares outstanding: 15.47b
  • Website: https://www.chinayouzan.com

Number of Employees


Location

  • China Youzan Limited
  • The Center
  • Unit 2708, 27th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8083SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2000

Biography

China Youzan Limited, an investment holding company, provides third party payment and related consultancy services in the People’s Republic of China. It operates through four segments: General Trading, Third Party Payment Services, Onecomm, and Merchant Service. The company provides Internet payment, cross-border Renminbi payment, and prepaid card services; and third party payment management services, as well as sells integrated smart point of sales devices. In addition, it offers merchant services, such as e-commerce Software as a Service (SaaS) platform, store SaaS, distribution, advertising, value-added, and PaaS cloud services. Further, it trades watches and other goods; and information system maintenance and development services. The company was formerly known as China Innovationpay Group Limited and changed its name to China Youzan Limited in May 2018. China Youzan Limited was incorporated in 1999 and is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:52
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.