SEHK:9911

Stock Analysis Report

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.


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

9911IndustryMarket
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 Yearn/a4.0%3.7%-17.6%-20.4%
3 Yearn/a31.6%30.2%-2.5%-12.3%
5 Yearn/a5.9%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

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

NamePositionTenureCompensationOwnership
Chunhe Liu
Executive Chairman & CEOno datano data6.73% CN¥122.5m
Kui Wang
CFO & Executive Director0.83yrno datano data
Ping Li
COO & Executive Director0.83yrno data2.1% CN¥38.3m
Rong Liu
Independent Non-Executive Director0.33yrno datano data
Shujin Chi
Independent Non-Executive Director0.33yrno datano data
Xiya Pan
Independent Non-Executive Director0.33yrno datano 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 13:13
End of Day Share Price2020/04/01 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.