Takung Art

US: TKAT

$9.1m market cap

$0.81 last close

Based in Hong Kong, Takung Art Company provides a secure and easy way for art collectors and investors to acquire shared ownership in Asian and other fine art – including paintings, calligraphy, jewellery and precious gems – and participate in the booming international art market without fear of price manipulation and forgery.

Investment summary

Takung’s H118 results show good progress in the number of new listings, with accompanying fees up 137% on the comparative period. Patterns in commission revenue reflect the previously announced shift in emphasis towards the retail market. In light of the disruption to online transactions in China as a result of contagion from problems in peer-to-peer lending, management has decided to pause new listings for Q3 and possibly beyond, with some associated internal restructuring. We have reduced our FY18 and FY19 forecasts accordingly. The group had $10.2m of net cash at the period end, giving it plenty of resource to ride out short-term volatility.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 19.1 9.8 9.5 65.53 1.2 N/A
2017A 12.9 (0.3) (1.1) (14.72) N/A N/A
2018E 12.5 (2.0) (2.8) (18.41) N/A N/A
2019E 13.5 (0.6) (1.3) (8.68) N/A N/A
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 8.2
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 18.9 1.2 (65.5)
Relative* 10.2 2.5 (64.1)
52-week high/low US$2.4/US$0.6
*% relative to local index
Key management
Leslie Chow CFO

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