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Retech Technology

ASX:RTE
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RTE
ASX
A$93M
Market Cap
  1. Home
  2. AU
  3. Consumer Services
Company description

Retech Technology Co., Limited, an investment holding company, provides technology solutions to large companies, vocational and training schools and providers, and government and social organizations in the People’s Republic of China. The last earnings update was 88 days ago. More info.


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RTE Share Price and Events
7 Day Returns
0%
ASX:RTE
-1.3%
AU Consumer Services
2.1%
AU Market
1 Year Returns
-1.2%
ASX:RTE
32.2%
AU Consumer Services
5.6%
AU Market
RTE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Retech Technology (RTE) 0% -2.4% -8% -1.2% - -
AU Consumer Services -1.3% 3.8% 13.6% 32.2% 9.2% -14.7%
AU Market 2.1% 3.3% 8.4% 5.6% 27.8% 15.1%
1 Year Return vs Industry and Market
  • RTE underperformed the Consumer Services industry which returned 32.2% over the past year.
  • RTE underperformed the Market in Australia which returned 5.6% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Retech Technology undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Retech Technology to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Retech Technology.

ASX:RTE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:RTE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6.7%
Consumer Services Unlevered Beta Simply Wall St/ S&P Global 0.76
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.764 (1 + (1- 25%) (7.04%))
0.869
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.869 * 6.65%)
8.09%

Discounted Cash Flow Calculation for ASX:RTE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Retech Technology is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:RTE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.09%)
2019 67.25 Est @ 20.33% 62.22
2020 77.29 Est @ 14.92% 66.15
2021 85.90 Est @ 11.14% 68.02
2022 93.19 Est @ 8.49% 68.27
2023 99.38 Est @ 6.64% 67.36
2024 104.68 Est @ 5.34% 65.64
2025 109.32 Est @ 4.43% 63.42
2026 113.47 Est @ 3.8% 60.90
2027 117.27 Est @ 3.35% 58.23
2028 120.84 Est @ 3.04% 55.51
Present value of next 10 years cash flows CN¥635.74
ASX:RTE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥120.84 × (1 + 2.31%) ÷ (8.09% – 2.31%)
CN¥2,140.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥2,140.06 ÷ (1 + 8.09%)10
CN¥983.12
ASX:RTE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥635.74 + CN¥983.12
CN¥1,618.86
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥1,618.86 / 230.75
CN¥7.02
ASX:RTE Discount to Share Price
Calculation Result
Exchange Rate CNY/AUD
(Reporting currency to currency of ASX:RTE)
0.209
Value per Share
(AUD)
= Value per Share in CNY x Exchange Rate (CNY/AUD)
= CN¥7.02 x 0.209
A$1.46
Value per share (AUD) From above. A$1.46
Current discount Discount to share price of A$0.41
= -1 x (A$0.41 - A$1.46) / A$1.46
72.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Retech Technology is available for.
Intrinsic value
>50%
Share price is A$0.41 vs Future cash flow value of A$1.46
Current Discount Checks
For Retech Technology to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Retech Technology's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Retech Technology's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Retech Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Retech Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:RTE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.21
ASX:RTE Share Price ** ASX (2019-06-17) in AUD A$0.41
ASX:RTE Share Price converted to CNY reporting currency Exchange rate (AUD/ CNY) 4.792 CN¥1.94
Australia Consumer Services Industry PE Ratio Median Figure of 11 Publicly-Listed Consumer Services Companies 18.6x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Retech Technology.

ASX:RTE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:RTE Share Price ÷ EPS (both in CNY)

= 1.94 ÷ 0.21

9.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Retech Technology is good value based on earnings compared to the AU Consumer Services industry average.
  • Retech Technology is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Retech Technology's expected growth come at a high price?
Raw Data
ASX:RTE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
8.4%per year
Australia Consumer Services Industry PEG Ratio Median Figure of 7 Publicly-Listed Consumer Services Companies 1.33x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Retech Technology, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Retech Technology's assets?
Raw Data
ASX:RTE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥0.99
ASX:RTE Share Price * ASX (2019-06-17) in AUD A$0.41
ASX:RTE Share Price converted to CNY reporting currency Exchange rate (AUD/ CNY) 4.792 CN¥1.94
Australia Consumer Services Industry PB Ratio Median Figure of 19 Publicly-Listed Consumer Services Companies 2.03x
Australia Market PB Ratio Median Figure of 1,689 Publicly-Listed Companies 1.64x
ASX:RTE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:RTE Share Price ÷ Book Value per Share (both in CNY)

= 1.94 ÷ 0.99

1.96x

* Primary Listing of Retech Technology.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Retech Technology is good value based on assets compared to the AU Consumer Services industry average.
X
Value checks
We assess Retech Technology's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Services industry average (and greater than 0)? (1 check)
  5. Retech Technology has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Retech Technology expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Retech Technology, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Retech Technology expected to grow at an attractive rate?
  • Retech Technology's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Retech Technology's earnings growth is expected to exceed the Australia market average.
  • Unable to compare Retech Technology's revenue growth to the Australia market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
ASX:RTE Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:RTE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 8.4%
Australia Consumer Services Industry Earnings Growth Rate Market Cap Weighted Average 20.2%
Australia Consumer Services Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:RTE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:RTE Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 131 56 49
2018-09-30 122 36 47
2018-06-30 113 15 44
2018-03-31 108 14 42
2017-12-31 104 13 39
2017-06-30 94 23
2017-03-31 74 17
2016-12-31 67 36 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Retech Technology's earnings are expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Retech Technology is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:RTE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Retech Technology Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RTE Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.21
2018-09-30 0.21
2018-06-30 0.20
2018-03-31 0.19
2017-12-31 0.19
2017-06-30 0.13
2017-03-31 0.08
2016-12-31 0.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Retech Technology will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Retech Technology's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Retech Technology has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Retech Technology performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Retech Technology's growth in the last year to its industry (Consumer Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Retech Technology has delivered over 20% year on year earnings growth in the past 5 years.
  • Retech Technology's 1-year earnings growth is less than its 5-year average (27.2% vs 37.3%)
  • Retech Technology's earnings growth has exceeded the AU Consumer Services industry average in the past year (27.2% vs -1.5%).
Earnings and Revenue History
Retech Technology's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Retech Technology Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:RTE Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 130.50 49.23 31.91
2018-09-30 121.62 46.77 28.67
2018-06-30 112.75 44.32 25.42
2018-03-31 108.47 41.51 24.95
2017-12-31 104.20 38.69 24.48
2017-06-30 93.93 23.05 29.30
2017-03-31 73.88 17.17 23.96
2016-12-31 66.82 15.57 20.74
2015-12-31 32.73 17.03 10.91
2014-12-31 15.61 4.23 9.56
2013-12-31 9.19 1.89 8.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Retech Technology has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Retech Technology used its assets more efficiently than the AU Consumer Services industry average last year based on Return on Assets.
  • Unable to establish if Retech Technology improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Retech Technology's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Retech Technology has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Retech Technology's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Retech Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Retech Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Retech Technology's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Retech Technology's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 9.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Retech Technology Company Filings, last reported 5 months ago.

ASX:RTE Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 226.59 31.54 158.69
2018-09-30 226.59 31.54 158.69
2018-06-30 194.93 42.46 86.73
2018-03-31 194.93 42.46 86.73
2017-12-31 178.29 33.63 106.26
2017-06-30 118.06 0.00 82.41
2017-03-31 118.06 0.00 82.41
2016-12-31 23.91 1.49 4.65
2015-12-31
2014-12-31
2013-12-31
  • Retech Technology's level of debt (13.9%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Retech Technology's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (178.5%, greater than 20% of total debt).
  • Retech Technology earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Retech Technology's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Retech Technology has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Retech Technology dividends.
If you bought A$2,000 of Retech Technology shares you are expected to receive A$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Retech Technology's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Retech Technology's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:RTE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Australia Consumer Services Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.2%
Australia Market Average Dividend Yield Market Cap Weighted Average of 416 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Retech Technology has not reported any payouts.
  • Unable to verify if Retech Technology's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Retech Technology's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Retech Technology has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Retech Technology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Retech Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Retech Technology has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Retech Technology's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Cheng Liu
CEO Bio

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, including: comprehensively developing, organising and implementing corporate strategy and targets; participating in Board meetings and reporting business operation status to the Board, managing and supervising the signing of business contracts with clients, developing and enhancing corporate culture and team building, preparing proposals for the appointment of senior managers for the approval of the Board (if necessary), and company daily operation and management. He has more than 10 years of experience and specializes in sales, marketing, business management and strategic management. In 2000, Mr. Liu co-founded Nanjing Siluo Information Technology Co., Ltd. and served as its Sales and Marketing Director. Since 2010, he served as General Manager of Shanghai Retech Information Technology Co., Ltd, where he was responsible for strategy development and implementation. He is the Committee Member of Youth Federation in Jiangsu Province and the youth entrepreneurship mentor of Youth Business China. He holds a Master degree in Business Management from Nanjing University of Posts and Telecommunications.

CEO Compensation
  • Insufficient data for Cheng to compare compensation growth.
  • Insufficient data for Cheng to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team

Shungang Ai

TITLE
Co-Chairman & President

Cheng Liu

TITLE
Chief Executive Officer

Yan Lin

TITLE
Chief Financial Officer

Ji Hui

TITLE
Company Secretary
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure of the Retech Technology board of directors in years:

1.3
Average Tenure
  • The average tenure for the Retech Technology board of directors is less than 3 years, this suggests a new board.
Board of Directors

Calvin Cheng

TITLE
Co-Chairman

Shungang Ai

TITLE
Co-Chairman & President

Qing Liu

TITLE
Non-Executive Director
TENURE
2.5 yrs

Ross Kenneth Benson

TITLE
Non-Executive Director
AGE
53
TENURE
1.3 yrs

Jiuping Lu

TITLE
Non-Executive Director
TENURE
2.1 yrs

Kang Li

TITLE
Non-Executive & Independent Director
TENURE
0.8 yrs

Guo Li

TITLE
Representative Non-Executive Director
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
26. Sep 18 Sell Retech Investment Group Co.,Ltd Company 24. Sep 18 24. Sep 18 -10,079,450 A$0.41 A$-4,142,631
X
Management checks
We assess Retech Technology's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Retech Technology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholder Owns Most Retech Technology Co., Limited (ASX:RTE) Stock?

View our latest analysis for Retech Technology ASX:RTE Ownership Summary, June 18th 2019 What Does The Institutional Ownership Tell Us About Retech Technology? … Insider Ownership Of Retech Technology The definition of company insiders can be subjective, and does vary between jurisdictions. … Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual.

Simply Wall St -

Why You Should Like Retech Technology Co., Limited’s (ASX:RTE) ROCE

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Retech Technology: 0.20 = CN¥50m ÷ (CN¥307m - CN¥49m) (Based on the trailing twelve months to December 2018.) Therefore, Retech Technology has an ROCE of 20%. … Retech Technology's Current Liabilities And Their Impact On Its ROCE Current liabilities include invoices, such as supplier payments, short-term debt, or a tax bill, that need to be paid within 12 months. … The Bottom Line On Retech Technology's ROCE This is good to see, and with a sound ROCE, Retech Technology could be worth a closer look.

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Is Retech Technology Co., Limited (ASX:RTE) Potentially Underrated?

I've been keeping an eye on Retech Technology Co., Limited (ASX:RTE) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe RTE has a lot to offer. … company with a

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What You Should Know About Retech Technology Co., Limited's (ASX:RTE) Financial Strength

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Understanding the company's financial health becomes. … The following basic checks can help you get a picture of the company's balance sheet strength.

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Retech Technology Co., Limited (ASX:RTE) Earns Among The Best Returns In Its Industry

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

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Should You Be Impressed By Retech Technology Co., Limited's (ASX:RTE) ROE?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every A$1 worth of shareholders' equity, it generated A$0.22 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Does Retech Technology Co Limited (ASX:RTE) Have A Good P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Retech Technology has a price to earnings ratio of 9.93, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

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How Financially Strong Is Retech Technology Co Limited (ASX:RTE)?

While small-cap stocks, such as Retech Technology Co Limited (ASX:RTE) with its market cap of AU$92.30m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is

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Is ReTech Technology Co Limited (ASX:RTE) A Financially Sound Company?

With this growth in debt, RTE's cash and short-term investments stands at CN¥159.60M for investing into the business. … On top of this, RTE has produced CN¥13.19M in operating cash flow during the same period of time, resulting in an operating cash to total debt ratio of 39.21%, meaning that RTE’s current level of operating cash is high enough to cover debt. … Next Steps: RTE’s high cash coverage and low debt levels indicate its ability to utilise its borrowings efficiently in order to generate ample cash flow.

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Future Outlook Of The Service Industry And ReTech Technology Co Limited (ASX:RTE)

This rate is larger than the growth rate of the Australian stock market as a whole. … Given the lack of analyst consensus in RTE’s outlook, we could potentially assume the stock’s growth rate broadly follows its consumer services industry peers. … ASX:RTE PE PEG Gauge Nov 22nd 17 The consumer services sector's PE is currently hovering around 21x, relatively similar to the rest of the Australian stock market PE of 17x.

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Company Info

Description

Retech Technology Co., Limited, an investment holding company, provides technology solutions to large companies, vocational and training schools and providers, and government and social organizations in the People’s Republic of China. It 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. The company also provides consultancy services; and software licensing services. It serves customers through various business channels comprising E-Learning Solutions, E-Training Partnership, and E-Course Direct. The company was incorporated in 2016 and is based in Central, Hong Kong. Retech Technology Co., Limited is a subsidiary of Retech Investment Group Co., Ltd.

Details
Name: Retech Technology Co., Limited
RTE
Exchange: ASX
Founded: 2016
A$93,454,132
230,750,944
Website: http://www.retech-rte.com
Address: Retech Technology Co., Limited
1309, Prince's Building,
13th Floor,
Central,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX RTE Chess Depositary Interests 1:1 Australian Securities Exchange AU AUD 22. Jun 2017
Number of employees
Current staff
Staff numbers
257
Retech Technology employees.
Industry
Education Services
Consumer Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 10:38
End of day share price update: 2019/06/17 00:00
Last earnings filing: 2019/03/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.