New Media Lab Limited's (HKG:1284) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?

Simply Wall St.

Nov 29

New Media Lab (HKG:1284) has had a great run on the share market with its stock up by a significant 11% over the last week. However, in this article, we decided to focus on its weak fundamentals, as...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/2587759581"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2587759581\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2587759581?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/4311000-choice1-main-header/1585186704841","is_english":true,"pubTime":"2025-11-29 06:59","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2587759581","market":"sg","top_or_hot":-1,"title":"New Media Lab Limited's (HKG:1284) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?","media":"Simply Wall St.","content":"<div>\n<p>New Media Lab (HKG:1284) has had a great run on the share market with its stock up by a significant 11% over the last week.   However, in this article, we decided to focus on its weak fundamentals, as...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-1284/new-media-lab-shares/news/new-media-lab-limiteds-hkg1284-stock-going-strong-but-fundam\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>New Media Lab Limited's (HKG:1284) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNew Media Lab Limited's (HKG:1284) Stock Going Strong But Fundamentals Look Weak: What Implications Could This Have On The Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-29 06:59 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/media/hkg-1284/new-media-lab-shares/news/new-media-lab-limiteds-hkg1284-stock-going-strong-but-fundam><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>New Media Lab (HKG:1284) has had a great run on the share market with its stock up by a significant 11% over the last week.   However, in this article, we decided to focus on its weak fundamentals, as...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-1284/new-media-lab-shares/news/new-media-lab-limiteds-hkg1284-stock-going-strong-but-fundam\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"01284","symbol_name":"新传企划","start_time":0,"source_url":"https://simplywall.st/stocks/hk/media/hkg-1284/new-media-lab-shares/news/new-media-lab-limiteds-hkg1284-stock-going-strong-but-fundam","article_id":"2587759581","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4311000-choice1-main-header/1585186704841"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/media/hkg-1284/new-media-lab-shares/news/new-media-lab-limiteds-hkg1284-stock-going-strong-but-fundam","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2587759581","pubTimestamp":1764370765,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"New Media Lab (HKG:1284) has had a great run on the share market with its stock up by a significant 11% over the last...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"01284":"新传企划","BK1137":"广告"},"translate_title":"新媒体实验室有限公司（HKG：1284）的股票走强，但基本面看起来疲软：这会对该股产生什么影响？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"01284":1.5},"content_text":"New Media Lab (HKG:1284) has had a great run on the share market with its stock up by a significant 11% over the last week.   However, in this article, we decided to focus on its weak fundamentals, as long-term financial performance of a business is what ultimately dictates market outcomes.      Particularly, we will be paying attention to New Media Lab's  ROE today.    Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  Simply put, it is used to assess the profitability of a company in relation to its equity capital. Trump has pledged to \"unleash\" American oil and gas and these 15 US stocks have developments that are poised to benefit.Advertisement How Is ROE Calculated?  ROE can be calculated by using the formula:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for New Media Lab is:6.6% = HK$12m ÷ HK$188m (Based on the trailing twelve months to June 2025). The 'return' is the income the business earned over the last year.  So, this means that for every HK$1 of its shareholder's investments, the company generates a profit of HK$0.07.  See our latest analysis for New Media Lab   What Has ROE Got To Do With Earnings Growth?  We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.  A Side By Side comparison of New Media Lab's Earnings Growth And 6.6% ROE  At first glance, New Media Lab's ROE doesn't look very promising.   However, its ROE is similar to the industry average of 7.7%, so we won't completely dismiss the company.   But New Media Lab saw a five year net income decline of 32% over the past five years.  Remember, the company's ROE is a bit low to begin with.  Therefore, the decline in earnings could also be the result of this.     Furthermore, even when compared to the industry, which has been shrinking its earnings at a rate of 22% over the last few years, we found that New Media Lab's performance is pretty disappointing, as it suggests that the company has been shrunk its earnings at a rate faster than the industry.   SEHK:1284 Past Earnings Growth November 28th 2025 Earnings growth is a huge factor in stock valuation.  The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in.   This then helps them determine if the stock is placed for a bright or bleak future.    What is 1284 worth today? The  intrinsic value infographic in our free research report  helps visualize whether 1284 is currently mispriced by the market.    Is New Media Lab Using Its Retained Earnings Effectively?    With a three-year median payout ratio as high as 155%,New Media Lab's shrinking earnings don't come as a surprise as the company is paying a dividend which is beyond its means.    Paying a dividend higher than reported profits is not a sustainable move.     You can see the 3 risks we have identified for New Media Lab by visiting our risks dashboard for free  on our platform here.   Only recently, New Media Lab stated paying a dividend. This likely means that the management might have concluded that its shareholders have a strong preference for dividends.     Summary    Overall, we would be extremely cautious before making any decision on New Media Lab.      Particularly, its ROE is a huge disappointment, not to mention its lack of proper reinvestment into the business. As a result its earnings growth has also been quite disappointing.       Up till now, we've only made a short study of the company's growth data.  You can do your own research on New Media Lab and see how it has performed in the past by looking at this FREE detailed graph of past earnings, revenue and cash flows. Valuation is complex, but we're here to simplify it.Discover if New Media Lab might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}