Companies Like Ming Yuan Cloud Group Holdings (HKG:909) Are In A Position To Invest In Growth

Simply Wall St.07-20

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring ...

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For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/software/hkg-909/ming-yuan-cloud-group-holdings-shares/news/companies-like-ming-yuan-cloud-group-holdings-hkg909-are-in-1\">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>Companies Like Ming Yuan Cloud Group Holdings (HKG:909) Are In A Position To Invest In Growth</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\">\nCompanies Like Ming Yuan Cloud Group Holdings (HKG:909) Are In A Position To Invest In Growth\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-20 06:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/software/hkg-909/ming-yuan-cloud-group-holdings-shares/news/companies-like-ming-yuan-cloud-group-holdings-hkg909-are-in-1><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>There's no doubt that money can be made by owning shares of unprofitable businesses.   For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/software/hkg-909/ming-yuan-cloud-group-holdings-shares/news/companies-like-ming-yuan-cloud-group-holdings-hkg909-are-in-1\">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":"BK1589","symbol_name":"北水核心资产","start_time":0,"source_url":"https://simplywall.st/stocks/hk/software/hkg-909/ming-yuan-cloud-group-holdings-shares/news/companies-like-ming-yuan-cloud-group-holdings-hkg909-are-in-1","article_id":"2452713263","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/8042000-choice1-main-header/1585186669041"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2452713263","pubTimestamp":1721428307,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1589":"北水核心资产","BK1518":"SaaS概念","BK1583":"高瓴概念","BK1117":"系统软件","00909":"明源云","BK1607":"新IT概念"},"translate_title":"明源云集团控股（HKG：909）等公司有能力投资增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00909":1},"content_text":"There's no doubt that money can be made by owning shares of unprofitable businesses.   For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed.   Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.  So should Ming Yuan Cloud Group Holdings (HKG:909) shareholders be worried about its cash burn?   For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow).  Let's start with an examination of the business' cash, relative to its cash burn.  Check out our latest analysis for Ming Yuan Cloud Group Holdings  Does Ming Yuan Cloud Group Holdings Have A Long Cash Runway?  A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate.   When Ming Yuan Cloud Group Holdings last reported its December 2023 balance sheet in April 2024, it had zero debt and cash worth CN¥4.3b.   In the last year, its cash burn was CN¥147m.   So it had a very long cash runway of many years from December 2023.     Even though this is but one measure of the company's cash burn, the thought of such a long cash runway warms our bellies in a comforting way.    Depicted below, you can see how its cash holdings have changed over time. SEHK:909 Debt to Equity History July 19th 2024 How Well Is Ming Yuan Cloud Group Holdings Growing? Ming Yuan Cloud Group Holdings managed to reduce its cash burn by 70% over the last twelve months, which suggests it's on the right flight path.    But it was a bit disconcerting to see operating revenue down 9.7% in that time.     On balance, we'd say the company is improving over time.     While the past is always worth studying, it is the future that matters most of all.  For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company.   How Hard Would It Be For Ming Yuan Cloud Group Holdings To Raise More Cash For Growth?  There's no doubt Ming Yuan Cloud Group Holdings seems to be in a fairly good position, when it comes to managing its cash burn, but even if it's only hypothetical, it's always worth asking how easily it could raise more money to fund growth.    Companies can raise capital through either debt or equity.  Many companies end up issuing new shares to fund future growth.  By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn.  Ming Yuan Cloud Group Holdings' cash burn of CN¥147m is about 4.3% of its CN¥3.4b market capitalisation.    Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan.   So, Should We Worry About Ming Yuan Cloud Group Holdings' Cash Burn?  As you can probably tell by now, we're not too worried about Ming Yuan Cloud Group Holdings' cash burn.  For example, we think its cash runway suggests that the company is on a good path.   Although its falling revenue does give us reason for pause, the other metrics we discussed in this article form a positive picture overall.     After taking into account the various metrics mentioned in this report, we're pretty comfortable with how the company is spending its cash, as it seems on track to meet its needs over the medium term.     Taking an in-depth view of risks, we've identified 3 warning signs for Ming Yuan Cloud Group Holdings that you should be aware of before investing.   Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts) Valuation is complex, but we're helping make it simple.Find out whether Ming Yuan Cloud Group Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the 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.Valuation is complex, but we're helping make it simple.Find out whether Ming Yuan Cloud Group Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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