DB:COA1

Stock Analysis Report

Comba Telecom Systems Holdings

Executive Summary

Comba Telecom Systems Holdings Limited, an investment holding company, researches, develops, manufactures, and sells wireless telecommunications network system equipment and related engineering services.


Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

How has Comba Telecom Systems Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COA1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

COA1

-9.4%

DE Communications

-0.9%

DE Market


1 Year Return

34.1%

COA1

-3.6%

DE Communications

12.8%

DE Market

Return vs Industry: COA1 exceeded the German Communications industry which returned -3.6% over the past year.

Return vs Market: COA1 exceeded the German Market which returned 12.8% over the past year.


Shareholder returns

COA1IndustryMarket
7 Day0%-9.4%-0.9%
30 Day0.6%-8.3%-0.4%
90 Day73.8%-11.3%2.3%
1 Year34.9%34.1%-3.1%-3.6%16.3%12.8%
3 Year109.9%106.9%-7.8%-8.1%15.8%5.7%
5 Year120.2%108.8%83.0%82.6%19.7%3.3%

Price Volatility Vs. Market

How volatile is Comba Telecom Systems Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Comba Telecom Systems Holdings 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: COA1 (€0.36) is trading below our estimate of fair value (€4.45)

Significantly Below Fair Value: COA1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: COA1 is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: COA1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COA1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: COA1 is good value based on its PB Ratio (2.2x) compared to the DE Communications industry average (3.1x).


Next Steps

Future Growth

How is Comba Telecom Systems Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

80.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COA1 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: COA1 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: COA1's is expected to become profitable in the next 3 years.

Revenue vs Market: COA1's revenue (26% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: COA1's revenue (26% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COA1's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Comba Telecom Systems Holdings performed over the past 5 years?

-44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COA1 is currently unprofitable.

Growing Profit Margin: COA1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COA1 is unprofitable, and losses have increased over the past 5 years at a rate of -44.2% per year.

Accelerating Growth: Unable to compare COA1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COA1 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (31.6%).


Return on Equity

High ROE: COA1 has a negative Return on Equity (-4.32%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Comba Telecom Systems Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: COA1's short term assets (HK$8.7B) exceed its short term liabilities (HK$5.4B).

Long Term Liabilities: COA1's short term assets (HK$8.7B) exceed its long term liabilities (HK$2.0B).


Debt to Equity History and Analysis

Debt Level: COA1's debt to equity ratio (48.5%) is considered high.

Reducing Debt: COA1's debt to equity ratio has increased from 41.8% to 48.5% over the past 5 years.


Balance Sheet

Inventory Level: COA1 has a high level of physical assets or inventory.

Debt Coverage by Assets: COA1's debt is covered by short term assets (assets are 4.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: COA1 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: COA1 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Comba Telecom Systems Holdings's current dividend yield, its reliability and sustainability?

0.65%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.3%markettop25%3.6%industryaverage1.9%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: COA1's dividend (0.65%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: COA1's dividend (0.65%) is low compared to the top 25% of dividend payers in the German market (3.63%).


Stability and Growth of Payments

Stable Dividend: COA1 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: COA1 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: COA1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COA1'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?

3.1yrs

Average management tenure


CEO

Tony Fok (62yo)

HK$4,797,000

Compensation

Mr. Tung Ling Fok, also known as Tony, co-founded Comba Telecom Systems Holdings Ltd. in 1997 and serves as its Chairman and Managing Director. Previously, Mr. Fok served as the President of Comba Telecom  ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD615.97K) is below average for companies of similar size in the German market ($USD1.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tung Ling Fok
Chairman & MD0yrsHK$4.80m29.91% HK$268.5m
Yue Jun Zhang
Vice Chairman0yrsHK$5.42m10.1% HK$90.7m
Huijun Xu
President & Executive Director1.5yrsHK$3.89m0.41% HK$3.7m
Fei Fu Chang
Group CFO & Executive Director2yrsHK$5.09mno data
Pui Sang Yeung
Senior Advisor to Chairman14.8yrsHK$3.98mno data
Bin Long Bu
Senior VP1.8yrsHK$4.65m0.096% HK$858.4k
Xue Li
VP & GM of Audit & Legal Center2.8yrsno datano data
Rui Luo
VP & GM of Human Resource Center0yrsno datano data
Sui Chen
Senior Vice President0yrsno datano data
Ying Di
Chief Technical Expert of Microwave RF Passive Accessories & Senior Research Supervisor0yrsno datano data

3.1yrs

Average Tenure

50.5yo

Average Age

Experienced Management: COA1's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tung Ling Fok
Chairman & MD0yrsHK$4.80m29.91% HK$268.5m
Yue Jun Zhang
Vice Chairman0yrsHK$5.42m10.1% HK$90.7m
Huijun Xu
President & Executive Director1.5yrsHK$3.89m0.41% HK$3.7m
Fei Fu Chang
Group CFO & Executive Director2yrsHK$5.09mno data
Bin Long Bu
Senior VP1.8yrsHK$4.65m0.096% HK$858.4k
Xin Ru Huo
Executive Director0.9yrsno datano data
Siu Ki Lau
Independent Non-Executive Director16.8yrsHK$259.00kno data
Yi Kum Ng
Independent Non-Executive Director0.9yrsno datano data
Jin Tong Lin
Independent Non-Executive Director7.8yrsHK$259.00kno data
Tielong Wu
Non-Executive Director1.8yrsHK$3.19m0.075% HK$672.9k

1.8yrs

Average Tenure

58yo

Average Age

Experienced Board: COA1'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: COA1 insiders have only sold shares 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

Comba Telecom Systems Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Comba Telecom Systems Holdings Limited
  • Ticker: COA1
  • Exchange: DB
  • Founded: 1995
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$7.592b
  • Listing Market Cap: HK$897.522m
  • Shares outstanding: 2.46b
  • Website: https://www.comba-telecom.com

Number of Employees


Location

  • Comba Telecom Systems Holdings Limited
  • 611 East Wing
  • No. 8 Science Park West Avenue
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2342SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2003
COBJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2003
COA1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2003

Biography

Comba Telecom Systems Holdings Limited, an investment holding company, researches, develops, manufactures, and sells wireless telecommunications network system equipment and related engineering services. It operates through two segments, Wireless Telecommunications Network System Equipment and Telecommunication Services. The company offers base station and indoor antennas; RET systems; RF products, such as filters, combiners and couplers, smart bias tees, dummy loads, power splitters, and modular multiple operator combiners. It also provides wireless access products comprising small cell gateways, network management and polycell systems, and enterprise small cells; and wireless broadband solutions, including access points and controllers, CPEs, PoE switches, etc.; and core network and terminal devices to MMO, WISP, and enterprise customers. In addition, the company offers wireless enhancement products comprising RF repeaters; distributed antennas system (DAS) products; and CMS, OMT, and Mobile AppOMT software products. Further, it provides wireless transmission systems, including portable, vehicle, and shipboard antennas; and microwave transmission systems, comprising couplers, full outdoor and split systems, microwave antennas, and OMT for use in emergency mobile station, small cell, live video command, and maritime communication backhaul. Additionally, the company offers consultancy, DAS network design, drive test and benchmarking, maintenance, managed, network data analysis and optimization, and training services; and software technology and marketing, technical support, repair, trading, general, assembly, and related value-added services. It serves the airport, education, government and public safety, healthcare, hospitality, retail, stadium, and transportation industries in Mainland China, rest of Asia Pacific, the Americas, the European Union, the Middle East, and internationally. The company was founded in 1995 and is headquartered in Tai Po, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 22:20
End of Day Share Price2020/02/21 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.