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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Exceptional growth potential with solid track record.
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 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 16% a week.
Volatility Over Time: 9911's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.
Market Performance
7 Day Return
1.7%
9911
4.1%
HK Software
2.2%
HK Market
1 Year Return
-30.6%
9911
167.4%
HK Software
7.2%
HK Market
Return vs Industry: 9911 underperformed the Hong Kong Software industry which returned 164.3% over the past year.
Return vs Market: 9911 underperformed the Hong Kong Market which returned 7.5% over the past year.
Shareholder returns
| 9911 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 4.1% | 2.2% |
| 30 Day | -6.9% | 17.8% | 8.4% |
| 90 Day | 12.9% | 43.7% | 15.6% |
| 1 Year | -30.6%-30.6% | 168.6%167.4% | 11.4%7.2% |
| 3 Year | n/a | 224.9%221.3% | -3.4%-13.5% |
| 5 Year | n/a | 366.2%355.5% | 65.4%37.4% |
Long-Term 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
2 weeks ago | Simply Wall St
How Much Did Newborn Town's(HKG:9911) Shareholders Earn From Share Price Movements Over The Last Year?1 month ago | Simply Wall St
Do Insiders Own Lots Of Shares In Newborn Town Inc. (HKG:9911)?2 months ago | Simply Wall St
Have Insiders Been Selling Newborn Town Inc. (HKG:9911) Shares This Year?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$1.75) is trading below our estimate of fair value (HK$15.84)
Significantly Below Fair Value: 9911 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 9911 is good value based on its PE Ratio (22x) compared to the HK Software industry average (22.2x).
PE vs Market: 9911 is poor value based on its PE Ratio (22x) compared to the Hong Kong market (11.5x).
Price to Earnings Growth Ratio
PEG Ratio: 9911 is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: 9911 is overvalued based on its PB Ratio (2.2x) compared to the HK Software industry average (0.9x).
Next Steps
Future Growth
How is Newborn Town forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
65.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 9911's forecast earnings growth (65.2% per year) is above the savings rate (1.5%).
Earnings vs Market: 9911's earnings (65.2% per year) are forecast to grow faster than the Hong Kong market (21% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 9911's revenue (54% per year) is forecast to grow faster than the Hong Kong market (14.1% per year).
High Growth Revenue: 9911's revenue (54% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 9911's Return on Equity is forecast to be high in 3 years time (26.8%)
Next Steps
Past Performance
How has Newborn Town performed over the past 5 years?
15.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 9911 has high quality earnings.
Growing Profit Margin: 9911's current net profit margins (16.9%) are higher than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: 9911's earnings have grown by 15.1% per year over the past 5 years.
Accelerating Growth: 9911's earnings growth over the past year (56.5%) exceeds its 5-year average (15.1% per year).
Earnings vs Industry: 9911 earnings growth over the past year (56.5%) exceeded the Software industry -7.4%.
Return on Equity
High ROE: 9911's Return on Equity (6.5%) 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¥631.0M) exceed its short term liabilities (CN¥170.2M).
Long Term Liabilities: 9911's short term assets (CN¥631.0M) exceed its long term liabilities (CN¥75.7M).
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 (150627.8%).
Interest Coverage: 9911 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Newborn Town 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 recent payouts.
High Dividend: Unable to evaluate 9911's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?
1.1yrs
Average board tenure
CEO
Chunhe Liu (34 yo)
no data
Tenure
CN¥424,000
Compensation
Mr. Chunhe Liu (formerly known as Liu Zhonghua) 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...
CEO Compensation Analysis
Compensation vs Market: Chunhe's total compensation ($USD65.44K) is below average for companies of similar size in the Hong Kong market ($USD305.97K).
Compensation vs Earnings: Chunhe's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-Founder | no data | CN¥424.00k | 23.41% CN¥ 409.2m | |
| Co-Founder | 1.58yrs | CN¥803.66k | 7.32% CN¥ 128.0m | |
| CFO & Executive Director | 1.58yrs | CN¥1.25m | 2.29% CN¥ 40.0m | |
| Independent Non-Executive Director | 1.08yrs | CN¥7.00k | no data | |
| Independent Non-Executive Director | 1.08yrs | CN¥7.00k | no data | |
| Independent Non-Executive Director | 1.08yrs | CN¥7.00k | no data |
1.1yrs
Average Tenure
34.5yo
Average Age
Experienced Board: 9911's board of directors are not considered experienced ( 1.1 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted 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$1.748b
- Shares outstanding: 998.85m
- Website: https://www.newborntown.com
Number of Employees
Location
- Newborn Town Inc.
- Tower A, CEC Development Building
- 12th Floor
- Beijing
- Beijing Province
- 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, produ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 10:23 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/06/30 |
| 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.