SEHK:9911

Stock Analysis Report

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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


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

9911IndustryMarket
7 Day1.7%4.1%2.2%
30 Day-6.9%17.8%8.4%
90 Day12.9%43.7%15.6%
1 Year-30.6%-30.6%168.6%167.4%11.4%7.2%
3 Yearn/a224.9%221.3%-3.4%-13.5%
5 Yearn/a366.2%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

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

NamePositionTenureCompensationOwnership
Chunhe Liu
Co-Founderno dataCN¥424.00k23.41%
CN¥ 409.2m
Ping Li
Co-Founder1.58yrsCN¥803.66k7.32%
CN¥ 128.0m
Kui Wang
CFO & Executive Director1.58yrsCN¥1.25m2.29%
CN¥ 40.0m
Rong Liu
Independent Non-Executive Director1.08yrsCN¥7.00kno data
Shujin Chi
Independent Non-Executive Director1.08yrsCN¥7.00kno data
Xiya Pan
Independent Non-Executive Director1.08yrsCN¥7.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9911SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:23
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
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.