DB:1YO

Stock Analysis Report

Yangtze Optical Fibre And Cable Limited

Executive Summary

Yangtze Optical Fibre And Cable Joint Stock Limited Company manufactures and sells optical fiber and cable products in the People’s Republic of China and internationally.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Yangtze Optical Fibre And Cable Limited's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1YO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

1YO

-3.2%

DE Communications

-0.6%

DE Market


1 Year Return

-29.2%

1YO

-42.4%

DE Communications

-20.9%

DE Market

Return vs Industry: 1YO exceeded the German Communications industry which returned -42.3% over the past year.

Return vs Market: 1YO underperformed the German Market which returned -20.9% over the past year.


Shareholder returns

1YOIndustryMarket
7 Day1.9%-3.2%-0.6%
30 Day-15.4%-17.2%-18.6%
90 Day-5.7%-34.5%-26.2%
1 Year-28.0%-29.2%-42.1%-42.4%-18.6%-20.9%
3 Year-4.7%-10.8%-39.3%-39.5%-19.0%-25.8%
5 Year73.7%55.5%2.3%2.0%-21.2%-31.8%

Price Volatility Vs. Market

How volatile is Yangtze Optical Fibre And Cable Limited's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Yangtze Optical Fibre And Cable Limited undervalued compared to its fair value and its price relative to the market?

32.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1YO (€1.65) is trading below our estimate of fair value (€2.45)

Significantly Below Fair Value: 1YO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1YO is good value based on its PE Ratio (12.7x) compared to the Communications industry average (14.8x).

PE vs Market: 1YO is good value based on its PE Ratio (12.7x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: 1YO is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: 1YO is good value based on its PB Ratio (1.2x) compared to the DE Communications industry average (2.3x).


Next Steps

Future Growth

How is Yangtze Optical Fibre And Cable Limited forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1YO's forecast earnings growth (6.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1YO's earnings (6.3% per year) are forecast to grow slower than the German market (14.1% per year).

High Growth Earnings: 1YO's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1YO's revenue (4.7% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: 1YO's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1YO's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

How has Yangtze Optical Fibre And Cable Limited performed over the past 5 years?

19.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1YO has high quality earnings.

Growing Profit Margin: 1YO's current net profit margins (10.3%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: 1YO's earnings have grown by 19.4% per year over the past 5 years.

Accelerating Growth: 1YO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1YO had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Communications industry average (21.9%).


Return on Equity

High ROE: 1YO's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Yangtze Optical Fibre And Cable Limited's financial position?


Financial Position Analysis

Short Term Liabilities: 1YO's short term assets (CN¥7.9B) exceed its short term liabilities (CN¥3.8B).

Long Term Liabilities: 1YO's short term assets (CN¥7.9B) exceed its long term liabilities (CN¥1.1B).


Debt to Equity History and Analysis

Debt Level: 1YO's debt to equity ratio (10.3%) is considered satisfactory.

Reducing Debt: 1YO's debt to equity ratio has reduced from 85.3% to 10.3% over the past 5 years.

Debt Coverage: 1YO's debt is well covered by operating cash flow (91.1%).

Interest Coverage: 1YO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1YO has a high level of physical assets or inventory.

Debt Coverage by Assets: 1YO's debt is covered by short term assets (assets are 8.5x debt).


Next Steps

Dividend

What is Yangtze Optical Fibre And Cable Limited's current dividend yield, its reliability and sustainability?

2.24%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1YO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1YO'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 1YO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1YO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1YO is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1YO's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Dan Zhuang (49yo)

8.58s

Tenure

CN¥5,404,693

Compensation

Mr. Dan Zhuang has been the President of Yangtze Optical Fibre and Cable Joint Stock Limited Company since September 2011 and has been its Executive Director since January 24, 2017. Mr. Dan served as Chief ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD762.23K) is below average for companies of similar size in the German market ($USD3.30M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dan Zhuang
President & Executive Director8.58yrsCN¥5.40m0.31% CN¥7.2m
Guanning Liang
CFO, GM of the Financial Centerno dataCN¥1.91mno data
Jie Luo
CTO, GM of R&D center and Director of State Key Laboratory10.17yrsCN¥1.91mno data
Zhikang Jiang
Chief Marketing & Strategic Officer0.25yrCN¥1.90mno data
Xin Zheng
Chief Sales Officer & GM of the Sales Center3.25yrsCN¥2.01mno data
Rongrong Zhou
Human Resources Directorno dataCN¥1.79mno data
Yee Man Choy
Company Secretary1yrno datano data

5.9yrs

Average Tenure

50yo

Average Age

Experienced Management: 1YO's management team is seasoned and experienced (5.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dan Zhuang
President & Executive Director8.58yrsCN¥5.40m0.31% CN¥7.2m
Zhikang Jiang
Chief Marketing & Strategic Officer0.25yrCN¥1.90mno data
Ping Li
Chairman of The Board of Supervisors0.25yrCN¥468.42kno data
Frank Dorjee
Non-Executive Director9.25yrsCN¥468.42k0.095% CN¥2.2m
Xiangfeng Xiong
Non Executive Director6.33yrsCN¥468.42k0.093% CN¥2.2m
Philippe Claude Vanhille
Vice Chairman3.25yrsCN¥468.42kno data
Jie Ma
Chairman of the Board3.25yrsCN¥468.42kno data
Bingsheng Teng
Independent Non-Executive Director0.25yrno datano data
Deming Liu
Independent Non-Executive Director0.25yrno datano data
Wei Song
Independent Non-Executive Director0.25yrno datano data

1.8yrs

Average Tenure

55yo

Average Age

Experienced Board: 1YO's board of directors are not considered experienced ( 1.8 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: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.


Top Shareholders

Company Information

Yangtze Optical Fibre And Cable Joint Stock Limited Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yangtze Optical Fibre And Cable Joint Stock Limited Company
  • Ticker: 1YO
  • Exchange: DB
  • Founded: 1988
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$19.307b
  • Listing Market Cap: HK$2.308b
  • Shares outstanding: 755.91m
  • Website: https://www.yofc.com

Number of Employees


Location

  • Yangtze Optical Fibre And Cable Joint Stock Limited Company
  • No. 9 Guanggu Avenue
  • East Lake High-tech Development Zone
  • Wuhan
  • Hubei Province
  • 430073
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6869SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2014
1YODB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2014
6869SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2014
YZOF.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2014
6869SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2014
601869SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJul 2018
601869XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJul 2018

Biography

Yangtze Optical Fibre And Cable Joint Stock Limited Company manufactures and sells optical fiber and cable products in the People’s Republic of China and internationally. The company operates through Optical Fibres and Optical Fibre Preforms, and Optical Fibre Cables segments. It offers products, such as communication optical fibers, cable products, specialty fibers, integrated cabling, optical distribution frames, optical transceivers, coaxial cables, and cable manufacturing equipment. The company provides copper wire and related products; integrated wiring systems; germanium tetrachloride; technical development consulting services for computer hardware and software and ancillary equipment; vapor; and chemicals, as well as trades in raw materials. In addition, it offers solutions to telecom operators, cloud and data centers, government, smart campus, railway transportation, education, power grids, and consumer electronics. Further, the company sells submarine cables, optical cables, and other power cables and their accessories; and installs cables, accessories, and systems related to various submarine projects. Yangtze Optical Fibre And Cable Joint Stock Limited Company was founded in 1988 and is headquartered in Wuhan, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 21:53
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.