This week, the capital market is hot, and many investors have made a lot of money, but only one has fallen against the trend and hit a new low since its listing.
On February 23, Feitian Yundong (06610hk）**4.82%, a cumulative decline of more than 40% this week, "5 consecutive negatives", the company currently closed 079 Hong Kong dollars shares, the market value is only 14HK$3 billion.
The company was listed in October 2022, with the halo of "the first share of the metaverse" in Hong Kong stocks, which is quite sought after by institutions, and the stock price has doubled in just one month. However, more than a year later, the company has fallen more than 80% from its 2022 stock price high, and has even accelerated in recent days**, with investors "voting with their feet".
The weakness in the share price may be related to the company's "kicking" out of the Hang Seng Composite Index. Previously, Feitian Cloud was included in the constituent stocks of the Hang Seng Composite Index, which will officially take effect on March 13, 2023. However, less than a year later, Hang Seng Indexes Company announced that it would remove the company, effective March 4, 2024.
Founded in 2008, Feitian Yundong Group's main business was game development and publishing, and its representative works include mobile games such as "God of Drag Racing" and "Battlefield Gun God". Perhaps due to the fierce competition in the game industry, the company has taken a different path since 2015 and transformed to VR AR content services, and officially completed the transformation in 2019.
In 2021, the concept of the metaverse exploded, and Feitianyun became a hot spot, announcing that it would build a metaverse ecosystem. In October of that year, the company held a strategic conference with the theme of "Yuan Qi" in Beijing, and released the "Feitian Metaverse Platform".
In terms of performance, the company will achieve revenue of 106.6 billion yuan (RMB), a significant increase of 79 percent over the previous year1%, and the net profit attributable to the parent company was 23.7 billion yuan, a significant increase of 237 year-on-year24%, the first annual report after listing is gratifying.
In the first half of 2023, Feitian Cloud will achieve revenue of 59.9 billion yuan, a year-on-year increase of 266%, and the net profit attributable to the parent company was 11.6 billion yuan, a year-on-year increase of about 412%。
The performance is not bad at first glance, and the company's current dynamic P/E ratio is only 488 times, why is the stock price still so weak and hitting a new low?
In fact, aside from the coat of "Metaverse", Feitian Cloud is actually an advertising and marketing company, in layman's terms, it is to advertise in the form of AR AR, and then help its customers to place, and then charge customers according to monitoring data such as marketing effects.
At present, the company's business mainly includes three parts, namely: AR VR marketing services, AR VR content, and AR VR SaaS. Among them, AR VR marketing services accounted for more than 70% of the revenue, and the first two businesses accounted for more than 95% of the total revenue.
What's more, the company's "element content" is not so high. Feitian Yundong once said in a high-profile manner that it would use AR VR technology to create an immersive, highly open, and freely experienced virtual world. However, more than two years have passed, and the "Feitian Metaverse Platform" is still in internal debugging, and the specific time for opening to the outside world is still uncertain.
The company's strategy is attractive, but it lacks corresponding products and performance, and many investors question the company's "creating a metaverse in PPT". Since 2023, the AI industry has been surging, and the technology giants' enthusiasm for the layout of artificial intelligence far exceeds that of the metaverse.
However, some institutions expressed optimism that in 2024, with the advent of Apple's MR equipment, the demand for content will usher in a period of growth, among them, game XR may be an important trend, and Feitian Yundong has previously laid out live-action interactive film and television games, if the penetration rate of XR terminal devices can continue to increase in the future, the company may "get a piece of the pie" on the content side.
It is worth mentioning that since October 2023, the company has frequently increased its holdings from major shareholder Li Yanhao; In November, the company also announced its intention to repurchase up to HK$70 million in shares in the open market. All kinds of signals indicate that the management seems to be quite confident about the future development.
The impact of being excluded from the Hang Seng Composite Index will not be too long, and whether the company's products and services can withstand the test of the market and have future imagination is the key to the direction of Feitian Yundong's stock price.
Author: Flying Fish.
Hotspot Engine Program