ASX:RTE

Stock Analysis Report

Executive Summary

Retech Technology Co., Limited, an investment holding company, provides technology solutions to corporate customers, vocational schools, and training providers in Mainland China and Hong Kong.


Snowflake Analysis

Exceptional growth potential and undervalued.

Share Price & News

How has Retech Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RTE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

RTE

17.0%

AU Consumer Services

1.5%

AU Market


1 Year Return

-1.2%

RTE

11.5%

AU Consumer Services

15.6%

AU Market

Return vs Industry: RTE underperformed the Australian Consumer Services industry which returned 14.6% over the past year.

Return vs Market: RTE underperformed the Australian Market which returned 16.1% over the past year.


Shareholder returns

RTEIndustryMarket
7 Day1.2%17.0%1.5%
30 Day3.8%3.9%0.4%
90 Day3.8%12.4%4.1%
1 Year-1.2%-1.2%14.4%11.5%20.6%15.6%
3 Yearn/a24.8%12.8%37.1%18.7%
5 Yearn/a-27.5%-40.0%50.9%17.1%

Price Volatility Vs. Market

How volatile is Retech Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Retech Technology undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RTE (A$0.42) is trading below our estimate of fair value (A$3.46)

Significantly Below Fair Value: RTE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RTE is good value based on its PE Ratio (9.3x) compared to the Consumer Services industry average (20.6x).

PE vs Market: RTE is good value based on its PE Ratio (9.3x) compared to the Australian market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: RTE is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: RTE is overvalued based on its PB Ratio (1.8x) compared to the AU Consumer Services industry average (1.8x).


Next Steps

Future Growth

How is Retech Technology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

31.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RTE's forecast earnings growth (31.1% per year) is above the savings rate (1.1%).

Earnings vs Market: RTE's earnings (31.1% per year) are forecast to grow faster than the Australian market (9.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RTE's revenue (26.4% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: RTE's revenue (26.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RTE's Return on Equity is forecast to be high in 3 years time (23.8%)


Next Steps

Past Performance

How has Retech Technology performed over the past 5 years?

34.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTE has high quality earnings.

Growing Profit Margin: RTE's current net profit margins (32.6%) are lower than last year (39.3%).


Past Earnings Growth Analysis

Earnings Trend: RTE's earnings have grown significantly by 34.6% per year over the past 5 years.

Accelerating Growth: RTE's earnings growth over the past year (8.7%) is below its 5-year average (34.6% per year).

Earnings vs Industry: RTE earnings growth over the past year (8.7%) exceeded the Consumer Services industry 0.6%.


Return on Equity

High ROE: RTE's Return on Equity (20.1%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Retech Technology's financial position?


Financial Position Analysis

Short Term Liabilities: RTE's short term assets (CN¥340.5M) exceed its short term liabilities (CN¥71.7M).

Long Term Liabilities: RTE's short term assets (CN¥340.5M) exceed its long term liabilities (CN¥38.7M).


Debt to Equity History and Analysis

Debt Level: RTE's debt to equity ratio (16.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if RTE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RTE's debt is well covered by operating cash flow (165%).

Interest Coverage: RTE earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RTE has a low level of unsold assets or inventory.

Debt Coverage by Assets: RTE's debt is covered by short term assets (assets are 8.6x debt).


Next Steps

Dividend

What is Retech Technology's current dividend yield, its reliability and sustainability?

1.88%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage2.2%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RTE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RTE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RTE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RTE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RTE's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average board tenure


CEO

Cheng Liu 0

0

Mr. Cheng Liu serves as the Chief Executive Officer of ReTech Technology Co., Limited. Mr. Liu is responsible for company operations and management and the execution of resolutions of the Board at Retech,  ...


Board Members

NamePositionTenureCompensationOwnership
Shungang Ai
Co-Chairman & President0yrsno datano data
Qing Liu
Non-Executive Director3.2yrsno datano data
Ross Kenneth Benson
Non-Executive Director1.9yrsno datano data
Ern Lee Cheng
Co-Chairman0yrsno data4.13% CN¥4.0m
Jiuping Lu
Non-Executive Director2.8yrsno datano data
Kang Li
Non-Executive & Non-Independent Director1.5yrsno datano data
Lapto Yau
Non-Executive Independent Director0.4yrsno datano data

1.9yrs

Average Tenure

Experienced Board: RTE's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

Retech Technology Co., Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Retech Technology Co., Limited
  • Ticker: RTE
  • Exchange: ASX
  • Founded: 2016
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$96.659m
  • Shares outstanding: 232.91m
  • Website: https://www.retech-rte.com

Number of Employees


Location

  • Retech Technology Co., Limited
  • Hutchison House
  • 18th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTEASX (Australian Securities Exchange)YesChess Depositary Interests 1:1AUAUDJun 2017

Biography

Retech Technology Co., Limited, an investment holding company, provides technology solutions to corporate customers, vocational schools, and training providers in Mainland China and Hong Kong. The company also develops E-Learning platforms and E-Courseware, which enables its clients to deliver their offline training content online through various channels or devices, such as the Internet, mobile, and social media platforms. It also provides consultancy services; and software licensing services. The company was incorporated in 2016 and is headquartered in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 10:48
End of Day Share Price2020/02/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.