Sky-Mobi Is Undervalued And Poised To Pop
Thu, Jun. 23, 3:00 PM
Tue, May 24, 4:00 PM
- App and game publisher Sky-mobi (NASDAQ:MOBI) is off 1.1% today after Q1 earnings where revenues slid from the prior year and profits tumbled.
- Revenue fell 64% to 83.7M yuan; revenue from the smartphone business made up 97.6% of total, vs. 94.1% of total last year.
- Sales were "impacted by even tighter control measures on payment transactions implemented by the mobile carriers in the weeks surrounding China’s annual consumer rights day on March 15," says CEO Michael Tao Song. Cost base also went up as it worked to motivate, attract and retain employees, he said.
- Revenue breakout: Single-player games, 67.6M yuan (down 14.5%); Multiplayer games, 13M yuan (up 2.4%); other, 3.2M yuan (down 50%).
- ARPU for single-player games rose to 11.3 yuan from Q4's 10.3; ARPU for multiplayer games was 147.6 yuan, down from Q4's 173.6.
- Press Release
Tue, May 24, 7:32 AM
Mon, Feb. 29, 6:48 AM
- Sky-mobi (NASDAQ:MOBI): Q4 EPS of $0.12
- Revenue of RMB98.1M (-52.1% Y/Y)
Nov. 16, 2015, 8:42 AM
- Following a Q3 in which revenue fell 46% Y/Y, Sky-mobi (NASDAQ:MOBI) expects its sales to continue being impacted by tighter payment security measures implemented by Chinese mobile carriers (also discussed in prior earnings reports) in Q4. The company also has "low visibility" into when these measures could be lifted in 2016.
- Top-line performance: Carrier policies led Q3 smartphone-related revenue (now 96% of total revenue) to fall 39% Y/Y to RMB108.9M ($17.1M). $13.3M in revenue was produced from single-player games, $2.4M from multi-player games, and $2.2M from other sources.
- Metrics: Single-player game ARPU fell to RMB8.7 from RMB10.2 in Q2. Multi-player game ARPU rose to RMB162.4 from RMB156.9. Average monthly active users for the Maoapo mobile app/gaming platform fell 1.9% Q/Q and rose 10.8% Y/Y to 37.3M.
- Financials: Gross margin fell to 16.4% fro 17.5% a year ago. Keeping EPS positive: Operating expenses fell 28% Y/Y to RMB23.9M ($3.8M). Sky-mobi ended Q3 with $70.8M in cash/term deposits, and no debt. Its current market cap is $76.1M.
- Shares have fallen to $2.71 premarket.
- Q3 results, PR
Nov. 16, 2015, 6:46 AM
- Sky-mobi (NASDAQ:MOBI): Q3 EPS of RMB0.07.
- Revenue of RMB113.26M (-46.4% Y/Y).
Aug. 24, 2015, 12:46 PM
Aug. 24, 2015, 11:19 AM
- Sky-mobi (NASDAQ:MOBI) uses its Q2 report to state Q3 revenue is expected to be "significantly lower than that of the second quarter," due to measures taken by Chinese mobile carriers to tighten payment security/add payment verification steps. The company also warned about this trend in May.
- Thanks to carrier policy changes, smartphone-related revenue (94.4% of total revenue) totaled RMB154.9M ($25M) in Q2, up from RMB132.5M a year ago but down from RMB219.3M in Q1. Gross margin was 20.6%, flat Q/Q but down 480 bps Y/Y. Operating expenses rose 40% Y/Y to RMB45.5M ($7.3M).
- In an attempt to boost growth, Sky-mobi plans to publish up to 10 overseas smartphone games in China by year's end. The company has also "initiated a series of cost-cutting measures, including streamlining our operations and employee base and divesting certain businesses that do not offer strong future growth potential," such as its Mopin Technology unit (formed a partnership with China Unicom last year).
- Sky-mobi ended Q2 with $79.7M in cash and term deposits. The company's current market cap is just $74.3M.
- Q2 results, PR
Aug. 24, 2015, 6:03 AM
- Sky-mobi (NASDAQ:MOBI): Q2 EPS of -RMB0.01
- Revenue of RMB164.14M (-3.6% Y/Y)
Jul. 9, 2015, 11:25 AM
- With local regulators continuing to scramble to halt plunging equity prices - among other things, investors with 5%+ stakes have been barred from selling shares for 6 months - Chinese markets reversed course last night. Shanghai rose 5.8%, Shenzhen rose 3.8%, and Hong Kong rose 4.5%. The Nasdaq is currently up 1.2%.
- Not surprisingly, U.S.-traded Chinese tech firms are flying higher. Big gainers include Sina (SINA +13.6%), Sohu (SOHU +11.1%), JD.com (JD +8.1%), Vipshop (VIPS +8.3%), Qunar (QUNR +9%), ChinaCache (CCIH +14.1%), Renren (RENN +9.5%), Wowo (WOWO +11.9%), Leju (LEJU +9.1%), China Mobile Games (CMGE +8.3%), Xunlei (XNET +9.7%), Sky-mobi (MOBI +9%), and eLong (LONG +18.1%).
- Also up strongly (previously covered): Qihoo, 21Vianet, E-House, Youku, Baozun, NQ Mobile, Weibo, Cheetah Mobile, Jumei, and Momo. In addition, YY and Dangdang are rallying after becoming the latest Chinese companies to receive going-private offers.
- The Guggenheim China Tech ETF (NYSEARCA:CQQQ) is now up 19% from a Wednesday low of $30.09; it's still down 22% from a May peak of $45.74.
- ETFs: KWEB, QQQC, EMQQ
- Two days ago: Chinese tech stocks crater; many names down over 10%
Jul. 6, 2015, 11:01 AM
- The Shanghai exchange rose 2.4% overnight following a Greek rejection of austerity measures and the unveiling by Chinese brokerages of a government-endorsed plan to buy at least RMB120B ($19.3B) worth of shares to prop up nosediving equity prices. However, Shenzhen fell 2.7% and Hong Kong fell 3.7%, with small-cap names especially hard-hit.
- U.S.-traded Chinese Web/mobile names are seeing heavy losses (CQQQ -7.8%), with small/mid-cap firms unsurprisingly bearing the brunt of the damage. Major decliners include Sina (SINA -8.8%), Weibo (WB -11.6%), YY (YY -7.3%), Sohu (SOHU -9.1%), Changyou (CYOU -11.8%), Youku (YOKU -12.3%), Jumei (JMEI -8.2%), Xunlei (XNET -8.7%), SouFun (SFUN -9.3%), Leju (LEJU -7.6%), E-House (EJ -6.9%), Sky-mobi (MOBI -9.4%), NQ Mobile (NQ -6.3%), 500.com (WBAI -11.6%), Momo (MOMO -6%), and Dangdang (DANG -6.7%).
- The NYT observes $2.7T in value has evaporated from Chinese equities since local markets peaked on June 12. The paper also notes individual investors own over 80% of Chinese stocks, and that Chinese investors respectively own 112M and 142M accounts on the Shanghai and Shenzhen exchanges, with each exchange seeing ~20M account openings this spring.
- ETFs: KWEB, QQQC, EMQQ
Jun. 30, 2015, 11:00 AM
- Hit hard in recent weeks as the Shanghai and Shenzhen exchanges posted bear market-caliber declines following a massive run-up, Chinese Web/mobile stocks are bouncing today (CQQQ +2.7%) after Beijing drafted rules allowing its state pension funds to invest up to 30% of their net asset value in equities, a move that could lead up to $97B to flow into stocks. Shanghai and Shenzhen respectively posted 5.5% and 4.8% overnight gains.
- Major gainers include Sky-mobi (MOBI +6.8%), Jumei (JMEI +5.8%), Baozun (BZUN +4.6%), LightInTheBox (LITB +4.9%), Autohome (ATHM +5%), iDreamSky (DSKY +3.9%), ChinaCache (CCIH +3.2%), SouFun (SFUN +3.6%), and Leju (LEJU +3.5%). The Nasdaq is up 0.4%.
- ETFs: KWEB, QQQC, EMQQ
Jun. 19, 2015, 1:06 PM
- The Shanghai and Shenzhen exchanges have continued a recent correction by respectively falling 6.4% and 5.9%. On a 12-month basis, the indices remain up 121% and 164%.
- Major U.S.-traded Chinese decliners include YY (YY -6.8%), Vipshop (VIPS -5.4%), Bitauto (BITA -7%), Sky-mobi (MOBI -6.8%), NQ Mobile (NQ -6.1%), ChinaCache (CCIH -4.7%), and LightInTheBox (LITB -3.9%). SouFun is also off after its CEO suggested in a local interview his company isn't going private.
- ETFs: CQQQ, KWEB, QQQC, EMQQ
- 2 days ago: Chinese Internet stocks jump after Qihoo's buyout offer, overseas rally
- 4 days ago: Chinese Internet stocks hit hard as Shanghai, Shenzhen correct
Jun. 15, 2015, 9:14 AM
Jun. 12, 2015, 12:43 PM
- The Nasdaq is down 0.6% and the S&P 0.7%, but one wouldn't guess that from looking at the performance of U.S.-traded Chinese Web/mobile stocks (CQQQ +1.1%), which are continuing a torrid 2015.
- Sky-mobi (MOBI +14.7%) and Xunlei (XNET +12.2%) top the list of major gainers. Others include YY (YY +4.8%), Vipshop (VIPS +4.6%), Cheetah Mobile (CMCM +6.7%), SouFun (SFUN +4.9%), Leju (LEJU +6.3%), iDreamSky (DSKY +6.4%), and Jumei (JMEI +4.1%).
- Today's gains come after the Shanghai composite rose 0.9% overnight, and the Shenzhen index rose 1.3%. Bubble fears for Chinese exchanges are easy to find.
- ETFs: KWEB, QQQC
- Two days ago: Chinese Internet and solar stocks up strongly
Jun. 10, 2015, 2:38 PM
- The Nasdaq is up 1.4% and the S&P 1.3%, and Chinese and Internet solar names aren't missing out on the fun. The Guggenheim China Tech ETF (CQQQ +0.9%) is up 20% YTD, as is the Guggenheim Solar ETF (TAN +2.2%).
- The gains come even though the Shanghai exchange fell fractionally overnight, following news MSCI is delaying (but not abandoning) plans to include Chinese A-shares in its global benchmark index. The more volatile (some argue frothier) Shenzhen index rose 2%.
- Major Internet gainers include ChinaCache (CCIH +20.2%), YY (YY +5.1%), NQ Mobile (NQ +6.3%), Bitauto (BITA +4.4%), Autohome (ATHM +6.1%), Sky-mobi (MOBI +6.4%), 51job (JOBS +10.9%), Xunlei (XNET +11.3%), Leju (LEJU +6.4%),and KongZhong (KONG +6.8%). Earlier today, Renren and 21Vianet joined the ranks of Chinese tech firms to announce they've received going-private offers, and LightInTheBox disclosed a major investment from shoe retailer Aokang.
- Solar gainers include Trina (TSL +3.7%), JinkoSolar (JKS +3.2%), ReneSola (SOL +3.8%), Daqo (DQ +3.3%), and China-exposed Canadian Solar (CSIQ +3.8%). U.S. peers First Solar and SunPower are also doing well after setting IPO pricing for their solar project YieldCo.
- Last Friday: Chinese Internet stocks surge as Shanghai tops 5K
Sky-mobi Ltd. is engaged in mobile application business. It operates an application store which offers browsing, downloading and other application and content such as games, music and books. The company operates through Mobile Application Store sole segment. The company was founded by Tao Song... More
Industry: Diversified Communication Services