Financials GungHo Online Entertainment, Inc.

Equities

3765

JP3235900002

Internet Services

Market Closed - Japan Exchange Other stock markets 02:00:00 2024-04-26 am EDT			5-day change	1st Jan Change
2,324 ^JPY	+2.61%		+6.00%	-1.19%

Mar. 18	GungHo Online Entertainment, Inc.(TSE:3765) dropped from FTSE All-World Index	CI
Mar. 13	Tranche Update on GungHo Online Entertainment, Inc.'s Equity Buyback Plan announced on February 14, 2024.	CI

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	161,398	156,657	154,860	131,951	140,840	136,687	-	-
Enterprise Value (EV) ¹	68,389	54,546	38,905	5,232	807.2	4,687	-11,313	-27,313
P/E ratio	8.98 x	9.62 x	7.58 x	6.98 x	8.62 x	11.2 x	11 x	21.3 x
Yield	1.3%	1.3%	2.32%	1.41%	1.28%	1.33%	1.26%	1.17%
Capitalization / Revenue	1.59 x	1.58 x	1.48 x	1.25 x	1.12 x	1.18 x	1.19 x	1.24 x
EV / Revenue	0.67 x	0.55 x	0.37 x	0.05 x	0.01 x	0.04 x	-0.1 x	-0.25 x
EV / EBITDA	2.33 x	1.7 x	1.16 x	0.18 x	0.03 x	0.18 x	-0.42 x	-1.19 x
EV / FCF	4.14 x	3.07 x	2.13 x	0.33 x	0.04 x	0.46 x	-0.81 x	-7.14 x
FCF Yield	24.2%	32.5%	46.9%	303%	2,465%	219%	-124%	-14%
Price to Book	1.9 x	1.62 x	1.54 x	1.13 x	1.11 x	1.06 x	0.97 x	0.99 x
Nbr of stocks (in thousands)	69,688	67,876	59,838	61,891	59,894	58,828	-	-
Reference price ²	2,316	2,308	2,588	2,132	2,352	2,324	2,324	2,324
Announcement Date	2/13/20	2/16/21	2/14/22	2/14/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	101,392	98,844	104,626	105,505	125,315	116,044	115,045	110,207
EBITDA ¹	29,303	32,107	33,473	28,423	28,705	25,433	27,094	23,013
EBIT ¹	28,349	30,157	32,802	27,649	27,880	21,438	22,147	13,756
Operating Margin	27.96%	30.51%	31.35%	26.21%	22.25%	18.47%	19.25%	12.48%
Earnings before Tax (EBT) ¹	27,677	26,849	36,705	28,937	29,729	26,613	24,266	23,362
Net income ¹	18,146	16,369	22,883	19,022	16,433	12,368	12,640	6,520
Net margin	17.9%	16.56%	21.87%	18.03%	13.11%	10.66%	10.99%	5.92%
EPS ²	258.0	239.9	341.4	305.6	272.6	207.1	211.0	108.8
Free Cash Flow ¹	16,525	17,742	18,239	15,865	19,897	10,267	14,000	3,827
FCF margin	16.3%	17.95%	17.43%	15.04%	15.88%	8.85%	12.17%	3.47%
FCF Conversion (EBITDA)	56.39%	55.26%	54.49%	55.82%	69.32%	40.37%	51.67%	16.63%
FCF Conversion (Net income)	91.07%	108.39%	79.71%	83.4%	121.08%	83.01%	110.76%	58.7%
Dividend per Share ²	30.00	30.00	60.00	30.00	30.00	30.95	29.33	27.20
Announcement Date	2/13/20	2/16/21	2/14/22	2/14/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2020 S1	2021 S1	2021 Q3	2021 Q4	2022 Q1	2022 Q2	2022 S1	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 S1	2024 Q3	2024 Q4
Net sales ¹	42,189	51,036	28,142	25,448	23,954	22,681	46,635	25,836	33,034	30,722	36,949	67,671	30,178	27,466	28,214	33,257	67,900	28,733	26,562
EBITDA ¹	-	-	-	-	-	-	-	-	-	-	-	-	-	-	6,000	9,000	15,100	6,000	4,300
EBIT ¹	12,345	17,225	9,133	6,444	7,507	5,735	13,242	6,656	7,751	8,483	8,580	17,063	6,497	4,320	5,274	7,322	14,700	4,082	2,671
Operating Margin	29.26%	33.75%	32.45%	25.32%	31.34%	25.29%	28.39%	25.76%	23.46%	27.61%	23.22%	25.21%	21.53%	15.73%	18.69%	22.02%	21.65%	14.21%	10.06%
Earnings before Tax (EBT) ¹	12,425	20,806	9,313	-	7,909	-	14,403	7,304	-	8,828	-	18,056	6,870	4,803	6,300	9,200	15,500	6,400	4,600
Net income ¹	7,981	13,278	5,254	4,351	4,822	3,862	8,684	4,251	6,087	5,150	5,025	10,175	3,484	2,774	3,043	4,300	7,700	1,472	742
Net margin	18.92%	26.02%	18.67%	17.1%	20.13%	17.03%	18.62%	16.45%	18.43%	16.76%	13.6%	15.04%	11.54%	10.1%	10.79%	12.93%	11.34%	5.12%	2.79%
EPS ²	116.4	195.7	78.38	67.39	76.17	-	138.7	68.69	-	83.78	-	167.8	58.39	46.51	49.00	79.20	129.4	54.90	39.60
Dividend per Share	-	-	-	-	-	-	-	-	-	-	-	-	-	30.00	-	-	-	-	-
Announcement Date	8/7/20	8/13/21	11/12/21	2/14/22	5/13/22	8/10/22	8/10/22	11/14/22	2/14/23	5/11/23	8/9/23	8/9/23	11/13/23	2/14/24	-	-	-	-	-

¹JPY in Million²JPY

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	-	-	-	-
Net Cash position ¹	93,009	102,111	115,955	126,719	140,033	132,000	148,000	164,000
Leverage (Debt/EBITDA)	-	-	-	-	-	-	-	-
Free Cash Flow ¹	16,525	17,742	18,239	15,865	19,897	10,267	14,000	3,827
ROE (net income / shareholders' equity)	22.9%	18%	22.4%	16.9%	13.4%	9.5%	8.9%	4.7%
ROA (Net income/ Total Assets)	28.5%	26.6%	26.2%	20.2%	18.3%	8.2%	8.5%	5.2%
Assets ¹	63,740	61,587	87,502	94,221	89,784	150,829	148,703	125,385
Book Value Per Share ²	1,219	1,422	1,682	1,894	2,128	2,191	2,406	2,357
Cash Flow per Share ²	272.0	278.0	351.0	321.0	293.0	166.0	224.0	68.90
Capex ¹	3,838	2,639	676	431	617	443	465	488
Capex / Sales	3.79%	2.67%	0.65%	0.41%	0.49%	0.38%	0.4%	0.44%
Announcement Date	2/13/20	2/16/21	2/14/22	2/14/23	2/14/24	-	-	-

¹JPY in Million²JPY

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for GungHo Online Entertainment, Inc.

Trading Rating

Investor Rating

ESG Refinitiv

D+

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

2,324 JPY

Average target price

2,500 JPY

Spread / Average Target

+7.60%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Internet Gaming

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GUNGHO ONLINE ENTERTAINMENT, INC.	-1.19%	868M
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37 INTERACTIVE ENTERTAINMENT NETWORK TECHNOLOGY GROUP CO., LTD.	-9.89%	5.04B
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ZHEJIANG CENTURY HUATONG GROUP CO.,LTD	-14.73%	4.15B
NETMARBLE CORPORATION	-4.48%	3.17B
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Internet Gaming