China Ruyi Holdings (SEHK:136) Valuation After New Zero Coupon Convertible Bond Issue

Simply Wall St.

Feb 06

China Ruyi Holdings (SEHK:136) recently completed a HK$2.574b zero coupon convertible bond issue due January 2027, a funding move that could reshape its capital structure and future share base. See ...

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See ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-136/china-ruyi-holdings-shares/news/china-ruyi-holdings-sehk136-valuation-after-new-zero-coupon\">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>China Ruyi Holdings (SEHK:136) Valuation After New Zero Coupon Convertible Bond Issue</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\">\nChina Ruyi Holdings (SEHK:136) Valuation After New Zero Coupon Convertible Bond Issue\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-06 22:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/media/hkg-136/china-ruyi-holdings-shares/news/china-ruyi-holdings-sehk136-valuation-after-new-zero-coupon><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>China Ruyi Holdings (SEHK:136) recently completed a HK$2.574b zero coupon convertible bond issue due January 2027, a funding move that could reshape its capital structure and future share base. See ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/media/hkg-136/china-ruyi-holdings-shares/news/china-ruyi-holdings-sehk136-valuation-after-new-zero-coupon\">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":"BK1142","symbol_name":"互联网与直销零售","start_time":0,"source_url":"https://simplywall.st/stocks/hk/media/hkg-136/china-ruyi-holdings-shares/news/china-ruyi-holdings-sehk136-valuation-after-new-zero-coupon","article_id":"2609594339","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4422000-choice2-main-header/1585186866479"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/media/hkg-136/china-ruyi-holdings-shares/news/china-ruyi-holdings-sehk136-valuation-after-new-zero-coupon","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2609594339","pubTimestamp":1770386848,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"China Ruyi Holdings (SEHK:136) recently completed a HK$2.574b zero coupon convertible bond issue due January 2027, a funding move that could reshape its capital structure and future share base.\nSee our latest analysis for China Ruyi Holdings.\nThe new convertible bond comes after a weak stretch for the shares, with a 30 day share price return decline of 6.25% and a 1 year total shareholder return decline of 17.97%, adding to a much larger 79.85% total shareholder return decline over five...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1142":"互联网与直销零售","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK1590":"短视频概念股","BK1598":"恒大概念","BK1516":"腾讯概念","TMF":"3倍做多20年期以上国债ETF-Direxion","00136":"中国儒意","TLTW":"iShares 20+ Year Treasury Bond Buywrite Strategy ETF","BK1128":"电影和娱乐"},"translate_title":"中国儒意控股（联交所：136）发行新零息可换股债券后的估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"US7Y.BOND":1.5,"DCF":1,"US30Y.BOND":1.5,"00136":0.9,"US12M.BOND":1.5,"US10Y.BOND":1.5,"TMF":0.6,"US5Y.BOND":1.5,"US3Y.BOND":1.5,"US2Y.BOND":1.5,"TLTW":0.6,"US6M.BOND":1.5},"content_text":"China Ruyi Holdings (SEHK:136) recently completed a HK$2.574b zero coupon convertible bond issue due January 2027, a funding move that could reshape its capital structure and future share base. See our latest analysis for China Ruyi Holdings. The new convertible bond comes after a weak stretch for the shares, with a 30 day share price return decline of 6.25% and a 1 year total shareholder return decline of 17.97%, adding to a much larger 79.85% total shareholder return decline over five years. This signals that sentiment has been fading, despite a modest 3 year total shareholder return gain of 7.14%. If this funding move has you thinking about where else growth and capital markets access could matter, it may be worth scanning our list of 105 top founder-led companies to broaden your opportunity set. With the shares well below some valuation estimates and fresh capital coming in through the new convertible bond, you now have to ask yourself if China Ruyi is being undervalued or if the market already reflects its future growth. AdvertisementPreferred P/E of 27x: Is it justified? China Ruyi is trading on a P/E of 27x, and that price reflects a mix of stronger earnings growth, richer peer pricing, and a higher funding risk profile. The P/E ratio compares the current share price to earnings per share, so it effectively shows how much investors are paying today for each unit of current earnings. For a media and online streaming business like China Ruyi, where earnings and cash flows can be influenced by content performance and platform economics, that multiple often bakes in expectations about how sustainable current profits are and how quickly they might grow. On one side, the company has a track record and outlook that can support a premium to some benchmarks. Earnings have grown by 18.3% per year over the past five years, with 38.4% earnings growth in the past year and an acceleration versus that five year average. Forecasts point to earnings growth of 25.32% per year and revenue growth of 18.2% per year, both ahead of the wider Hong Kong market according to the data provided. Profit margins also shifted from 18% to 28.7%, and earnings are assessed as high quality. Analysts are in close agreement, see earnings rising faster than the market, and their price targets sit 98.8% above the current HK$2.1 share price, while the SWS DCF model points to a future cash flow value of HK$5.05 per share and the stock trading 58.4% below that estimate. On the other side, the 27x P/E looks rich compared to a fair P/E of 18.1x for the company itself and an industry average of 13.1x for Hong Kong Entertainment. That means the current multiple is above both the level some models suggest could be more in line with fundamentals and what the broader industry commands. In addition, return on equity is currently 5.6% and is forecast to reach 11.9% in three years, which is still described as low, and 100% of liabilities are funded from higher risk sources such as external borrowing. The stock has also lagged both the Hong Kong Entertainment industry, which returned 17.4% over the past year, and the wider Hong Kong market, which returned 28.7% over the same period. Against that backdrop, the P/E looks high compared to the industry and the estimated fair P/E, even as the company shows faster earnings growth and stronger recent profitability than many peers. For investors, the question is whether the combination of growth forecasts, wider margins, and DCF based valuation is enough to justify paying a premium multiple in a business that has underperformed on recent total returns and relies entirely on higher risk funding. Explore the SWS fair ratio for China Ruyi Holdings Result: Price to earnings of 27x (OVERVALUED) However, there are still clear risks, including the 79.85% five year total return decline and reliance on higher risk funding sources that could weigh on sentiment. Find out about the key risks to this China Ruyi Holdings narrative. Another view: DCF suggests a different story While the 27x P/E points to an expensive share price relative to the fair ratio of 18.1x and the 13.1x industry average, the SWS DCF model paints a different picture. On that basis, China Ruyi at HK$2.1 is assessed as undervalued versus an estimated HK$5.05 per share future cash flow value. That gap leaves you weighing two very different signals: a rich earnings multiple on one side and a large DCF discount on the other, and asking which set of assumptions you trust more for a media and streaming business where cash flows and sentiment can both shift. Look into how the SWS DCF model arrives at its fair value. 136 Discounted Cash Flow as at Feb 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out China Ruyi Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 237 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.  Build Your Own China Ruyi Holdings Narrative If you look at the numbers and reach a different conclusion, or simply prefer to test your own view, you can pull the same data into a fresh narrative in just a few minutes and Do it your way. A great starting point for your China Ruyi Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? If you are weighing up China Ruyi, it is worth widening your search so you are not relying on a single story or sector.  Spot potential bargains early and size them up against our screener containing 543 high quality undiscovered gems that pair strong fundamentals with lower market attention. Focus on quality at a sensible price by checking the 237 high quality undervalued stocks that screens for companies with solid cash flows and attractive valuations. Prioritise resilience by scanning our solid balance sheet and fundamentals stocks screener (389 results) so you are not left holding fragile names when conditions turn.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}