Executive Summary
Newborn Town Inc., an investment holding company, operates as a mobile app developer and mobile advertising platform services provider based on AI technologies worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and slightly overvalued.
Share Price & News
How has Newborn Town's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 9911's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.0%
9911
7.1%
HK Software
5.3%
HK Market
1 Year Return
n/a
9911
3.7%
HK Software
-20.4%
HK Market
Return vs Industry: Insufficient data to determine how 9911 performed against the Hong Kong Software industry.
Return vs Market: Insufficient data to determine how 9911 performed against the Hong Kong Market.
Shareholder returns
| 9911 | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.0% | 7.1% | 5.3% |
| 30 Day | -32.8% | -1.4% | -8.5% |
| 90 Day | -37.5% | 21.9% | -14.7% |
| 1 Year | n/a | 4.0%3.7% | -17.6%-20.4% |
| 3 Year | n/a | 31.6%30.2% | -2.5%-12.3% |
| 5 Year | n/a | 5.9%0.7% | -5.7%-20.9% |
Price Volatility Vs. Market
How volatile is Newborn Town's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Newborn Town 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: 9911 (HK$1.72) is trading below our estimate of fair value (HK$33.29)
Significantly Below Fair Value: 9911 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 9911 is poor value based on its PE Ratio (19.2x) compared to the Software industry average (16.6x).
PE vs Market: 9911 is poor value based on its PE Ratio (19.2x) compared to the Hong Kong market (9.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 9911's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 9911 is overvalued based on its PB Ratio (2x) compared to the HK Software industry average (1x).
Next Steps
Future Growth
How is Newborn Town forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
48.9%
Forecasted Software 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 Newborn Town 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
- Examine Newborn Town's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Newborn Town competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
Past Performance
How has Newborn Town performed over the past 5 years?
14.5%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: 9911 has high quality earnings.
Growing Profit Margin: 9911's current net profit margins (17.6%) are lower than last year (21.6%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if 9911's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: Insufficient data to compare 9911's past year earnings growth to its 5-year average.
Earnings vs Industry: 9911 earnings growth over the past year (14.5%) exceeded the Software industry 10.8%.
Return on Equity
High ROE: 9911's Return on Equity (10.8%) is considered low.
Next Steps
Financial Health
How is Newborn Town's financial position?
Financial Position Analysis
Short Term Liabilities: 9911's short term assets (CN¥574.2M) exceed its short term liabilities (CN¥131.0M).
Long Term Liabilities: 9911's short term assets (CN¥574.2M) exceed its long term liabilities (CN¥12.0M).
Debt to Equity History and Analysis
Debt Level: 9911's debt to equity ratio (0.01%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if 9911's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: 9911's debt is well covered by operating cash flow (365666.7%).
Interest Coverage: 9911's interest payments on its debt are well covered by EBIT (559.8x coverage).
Balance Sheet
Inventory Level: 9911 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 9911's debt is covered by short term assets (assets are 11963.4x debt).
Next Steps
Dividend
What is Newborn Town's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 9911's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate 9911'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 9911's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 9911'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 9911'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?
0.3yrs
Average board tenure
CEO
Chunhe Liu (34yo)
no data
Tenure
Mr. Chunhe Liu serves as Executive Chairman and Chief Executive Officer at Newborn Town Inc. and has been its Executive Director since September 12, 2018. He is the founder of Newborn Town Inc. and joined ...
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & CEO | no data | no data | 6.73% CN¥122.5m | |
| CFO & Executive Director | 0.83yr | no data | no data | |
| COO & Executive Director | 0.83yr | no data | 2.1% CN¥38.3m | |
| Independent Non-Executive Director | 0.33yr | no data | no data | |
| Independent Non-Executive Director | 0.33yr | no data | no data | |
| Independent Non-Executive Director | 0.33yr | no data | no data |
0.3yrs
Average Tenure
34yo
Average Age
Experienced Board: 9911's board of directors are not considered experienced ( 0.3 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: 9911 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: 9911 only recently listed within the past 12 months, with total shares outstanding growing by -3.7% in the past year..
Top Shareholders
Company Information
Newborn Town Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Newborn Town Inc.
- Ticker: 9911
- Exchange: SEHK
- Founded: 2011
- Industry: Application Software
- Sector: Software
- Market Cap: HK$1.820b
- Shares outstanding: 1.00b
- Website: https://www.newborntown.com
Number of Employees
Location
- Newborn Town Inc.
- Tower A, CEC Development Building
- 12th Floor
- Beijing
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 9911 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Dec 2019 |
Biography
Newborn Town Inc., an investment holding company, operates as a mobile app developer and mobile advertising platform services provider based on AI technologies worldwide. Its products include Solo X product matrix that contains user system, fitness, media and entertainment, and games sub-matrices; and Solo Math, a programmatic mobile advertising platform that provides mobile traffic acquisition services to advertisers. The company was founded in 2011 and is headquartered in Beijing, the People’s Republic of China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/01 13:13 |
| End of Day Share Price | 2020/04/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.