ASX:RTE

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Retech Technology Co., Limited, an investment holding company, provides technology solutions to corporate customers, vocational schools, and training providers in the People’s Republic of China, Hong Kong, and Australia. More Details


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.

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: Insufficient data to determine RTE's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine RTE's volatility change over the past year.


Market Performance


7 Day Return

-4.5%

RTE

-5.6%

AU Consumer Services

-1.1%

AU Market


1 Year Return

-22.0%

RTE

10.2%

AU Consumer Services

1.7%

AU Market

Return vs Industry: RTE underperformed the Australian Consumer Services industry which returned 10.2% over the past year.

Return vs Market: RTE underperformed the Australian Market which returned 1.7% over the past year.


Shareholder returns

RTEIndustryMarket
7 Day-4.5%-5.6%-1.1%
30 Day0%15.8%10.8%
90 Day-7.2%18.2%8.1%
1 Year-22.0%-22.0%13.7%10.2%5.2%1.7%
3 Year-19.0%-20.0%30.0%15.7%24.1%8.7%
5 Yearn/a90.8%54.5%58.8%26.5%

Long-Term 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?

6.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RTE (A$0.32) is trading above our estimate of fair value (A$0.11)

Significantly Below Fair Value: RTE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RTE is good value based on its PE Ratio (7x) compared to the AU Consumer Services industry average (28.1x).

PE vs Market: RTE is good value based on its PE Ratio (7x) compared to the Australian market (22.5x).


Price to Earnings Growth Ratio

PEG Ratio: RTE is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: RTE is good value based on its PB Ratio (1.2x) 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?

29.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RTE's forecast earnings growth (29% per year) is above the savings rate (2.3%).

Earnings vs Market: RTE's earnings (29% per year) are forecast to grow faster than the Australian market (17.9% per year).

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

Revenue vs Market: RTE's revenue (27.8% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: RTE's revenue (27.8% 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 (22.7%)


Next Steps

Past Performance

How has Retech Technology performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RTE has a high level of non-cash earnings.

Growing Profit Margin: RTE's current net profit margins (31.3%) are lower than last year (32.6%).


Past Earnings Growth Analysis

Earnings Trend: RTE's earnings have grown significantly by 25.3% per year over the past 5 years.

Accelerating Growth: RTE's earnings growth over the past year (7.7%) is below its 5-year average (25.3% per year).

Earnings vs Industry: RTE earnings growth over the past year (7.7%) exceeded the Consumer Services industry -18.5%.


Return on Equity

High ROE: RTE's Return on Equity (14.5%) is considered low.


Next Steps

Financial Health

How is Retech Technology's financial position?


Financial Position Analysis

Short Term Liabilities: RTE's short term assets (CN¥318.2M) exceed its short term liabilities (CN¥90.3M).

Long Term Liabilities: RTE's short term assets (CN¥318.2M) exceed its long term liabilities (CN¥67.1M).


Debt to Equity History and Analysis

Debt Level: RTE's debt to equity ratio (19.8%) 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 (53.3%).

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


Balance Sheet


Next Steps

Dividend

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

2.49%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

2.8yrs

Average board tenure


CEO

Cheng Liu

no data

Tenure

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 & Presidentno dataCN¥80.00kno data
Qing Liu
Independent Non-Executive Director4yrsCN¥80.00kno data
Ross Kenneth Benson
Independent Non-Executive Director2.75yrsCN¥288.26kno data
Ern Lee Cheng
Co-Chairmanno dataCN¥480.43k3.9%
CN¥ 2.9m
Jiuping Lu
Independent Non-Executive Director3.58yrsCN¥70.00kno data
Kang Li
Non-Executive & Non-Independent Director2.33yrsCN¥70.00kno data
Lapto Yau
Non-Executive Independent Director1.25yrsCN¥70.00kno data

2.8yrs

Average Tenure

Experienced Board: RTE's board of directors are not considered experienced ( 2.8 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: RTE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$74.532m
  • Shares outstanding: 232.91m
  • Website: https://www.retech-rte.com

Number of Employees


Location

  • Retech Technology Co., Limited
  • O.T.B. Building
  • 6th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RTEASX (Australian Securities Exchange)YesChess Depositary Interests 1:1AUAUDJun 2017
RTECHIA (Chi-X Australia)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 the People’s Republic of China, Hong Kong,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 07:07
End of Day Share Price2020/11/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.