China Communications Services
Market Cap
HK$40.9b
Last Updated
2020/01/28 12:50 UTC
Data Sources
Company Financials +
Executive Summary
China Communications Services Corporation Limited provides telecommunications support services worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has China Communications Services's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 552 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.5%
552
-2.7%
HK Construction
-3.4%
HK Market
1 Year Return
-18.6%
552
-19.7%
HK Construction
-0.4%
HK Market
Return vs Industry: 552 exceeded the Hong Kong Construction industry which returned -19.8% over the past year.
Return vs Market: 552 underperformed the Hong Kong Market which returned 6.4% over the past year.
Shareholder returns
| 552 | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.5% | -2.7% | -3.4% |
| 30 Day | 6.9% | -2.0% | -1.2% |
| 90 Day | 24.4% | -0.6% | 3.7% |
| 1 Year | -16.3%-18.6% | -15.8%-19.7% | 3.3%-0.4% |
| 3 Year | 23.3%11.7% | -29.4%-37.1% | 20.4%8.2% |
| 5 Year | 99.7%69.3% | -17.6%-29.8% | 19.6%-0.4% |
Price Volatility Vs. Market
How volatile is China Communications Services's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does China Communications Services (HKG:552) Have A Healthy Balance Sheet?2 weeks ago | Simply Wall St
Estimating The Fair Value Of China Communications Services Corporation Limited (HKG:552)1 month ago | Simply Wall St
Should China Communications Services (HKG:552) Be Disappointed With Their 47% Profit?Valuation
Is China Communications Services undervalued compared to its fair value and its price relative to the market?
12.1x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 552 (HK$5.56) is trading above our estimate of fair value (HK$4.87)
Significantly Below Fair Value: 552 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 552 is poor value based on its PE Ratio (11.3x) compared to the Construction industry average (9.9x).
PE vs Market: 552 is poor value based on its PE Ratio (11.3x) compared to the Hong Kong market (10.5x).
Price to Earnings Growth Ratio
PEG Ratio: 552 is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: 552 is overvalued based on its PB Ratio (1.1x) compared to the HK Construction industry average (1.1x).
Next Steps
Future Growth
How is China Communications Services forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
5.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 552's forecast earnings growth (5.8% per year) is above the savings rate (1.6%).
Earnings vs Market: 552's earnings (5.8% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).
High Growth Earnings: 552's earnings are forecast to grow, but not significantly.
Revenue vs Market: 552's revenue (11.7% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).
High Growth Revenue: 552's revenue (11.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 552's Return on Equity is forecast to be low in 3 years time (9.9%).
Next Steps
Past Performance
How has China Communications Services performed over the past 5 years?
7.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 552 has high quality earnings.
Growing Profit Margin: 552's current net profit margins (2.7%) are lower than last year (2.8%).
Past Earnings Growth Analysis
Earnings Trend: 552's earnings have grown by 7.2% per year over the past 5 years.
Accelerating Growth: 552's earnings growth over the past year (6.2%) is below its 5-year average (7.2% per year).
Earnings vs Industry: 552 earnings growth over the past year (6.2%) exceeded the Construction industry -12.3%.
Return on Equity
High ROE: 552's Return on Equity (8.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is China Communications Services's financial position?
Financial Position Analysis
Short Term Liabilities: 552's short term assets (CN¥72.6B) exceed its short term liabilities (CN¥49.8B).
Long Term Liabilities: 552's short term assets (CN¥72.6B) exceed its long term liabilities (CN¥2.2B).
Debt to Equity History and Analysis
Debt Level: 552's debt to equity ratio (1.4%) is considered satisfactory.
Reducing Debt: 552's debt to equity ratio has increased from 0.7% to 1.4% over the past 5 years.
Debt Coverage: 552's debt is well covered by operating cash flow (646.3%).
Interest Coverage: 552 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 552 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 552's debt is covered by short term assets (assets are 152.6x debt).
Next Steps
Dividend
What is China Communications Services's current dividend yield, its reliability and sustainability?
2.86%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 552's dividend (3.06%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.17%).
High Dividend: 552's dividend (3.06%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.02%).
Stability and Growth of Payments
Stable Dividend: 552's dividend payments have been volatile in the past 10 years.
Growing Dividend: 552's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.9%), 552's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 552's dividends in 3 years are forecast to be well covered by earnings (34.2% payout ratio).
Next Steps
Management
What is the CEO of China Communications Services's salary, the management and board of directors tenure and is there insider trading?
6.6yrs
Average management tenure
CEO
Furong Si (58yo)
6.1yrs
Tenure
CN¥1,125,000
Compensation
Mr. Furong Si has been the President of China Communications Services Corporation Limited since December 19, 2013. Mr. Si serves as the Managing Director of the Sideline Industrial Management Department of ...
CEO Compensation Analysis
Compensation vs Market: Furong's total compensation ($USD163.29K) is below average for companies of similar size in the Hong Kong market ($USD547.05K).
Compensation vs Earnings: Furong's compensation has increased by more than 20% in the past year.
Management Age and Tenure
6.6yrs
Average Tenure
49yo
Average Age
Experienced Management: 552's management team is seasoned and experienced (6.6 years average tenure).
Board Age and Tenure
4.6yrs
Average Tenure
59.5yo
Average Age
Experienced Board: 552's board of directors are considered experienced (4.6 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Company |
| Shares | 1,000,316 |
| Max Price | HK$5.54 |
| Entity | Company |
| Shares | 1,904,000 |
| Max Price | HK$5.24 |
| Entity | Company |
| Shares | 2,800,000 |
| Max Price | HK$5.16 |
| Entity | Company |
| Shares | 2,460,000 |
| Max Price | HK$5.11 |
| Entity | Company |
| Shares | 1,172,000 |
| Max Price | HK$4.45 |
| Entity | Company |
| Shares | 1,310,000 |
| Max Price | HK$4.39 |
| Entity | Company |
| Shares | 2,387,978 |
| Max Price | HK$5.02 |
| Entity | Company |
| Shares | 5,156,420 |
| Max Price | HK$4.95 |
| Entity | Company |
| Shares | 2,938,000 |
| Max Price | HK$4.96 |
| Entity | Company |
| Shares | 277,982 |
| Max Price | HK$5.13 |
| Entity | Company |
| Shares | 654,000 |
| Max Price | HK$5.52 |
| Entity | Company |
| Shares | 2,156,032 |
| Max Price | HK$5.67 |
| Entity | Company |
| Shares | 1,878,315 |
| Max Price | HK$5.59 |
| Entity | Company |
| Shares | 10,198,000 |
| Max Price | HK$5.71 |
| Entity | Company |
| Shares | 2,764,010 |
| Max Price | HK$8.37 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Terence Chung (45yo)
Company Secretary & Deputy CFO
Yafan Xiao
Chief Executive Officer of Hunan Communications Services Company Limited
- Tenure: 12.8yrs
Zhiyong Zhang (54yo)
Chairman
- Tenure: 1.8yrs
- Compensation: CN¥477.00k
Dong Yan (47yo)
Executive VP & Chief Risk Officer
- Tenure: 6.6yrs
- Compensation: CN¥998.00k
Yonghe Yang
Chief Executive Officer of Fujian Communications Services Company Limited
- Tenure: 12.8yrs
Biao Chen
Chief Executive Officer of Jiangxi Communications Services Company Limited
- Tenure: 12.8yrs
Chuguo Xu (55yo)
Executive Vice President
- Tenure: 5.5yrs
Shiping Liang (49yo)
Executive Vice President
- Tenure: 9.8yrs
Furong Si (58yo)
President & Executive Director
- Tenure: 6.1yrs
- Compensation: CN¥1.13m
Xu Zhang (49yo)
Executive VP
- Tenure: 1.1yrs
- Compensation: CN¥84.00k
Board Members
Xiaochu Wang (61yo)
Honorary Chairman
- Tenure: 11.8yrs
Li Zhengmao (57yo)
Non-Executive Director
- Tenure: 7.2yrs
Taishi Wu (71yo)
Independent Non-Executive Director
- Tenure: 4.6yrs
- Compensation: CN¥150.00k
Zhiyong Zhang (54yo)
Chairman
- Tenure: 1.8yrs
- Compensation: CN¥477.00k
Fang Han (46yo)
Chairperson of Supervisory Committee
- Tenure: 4.1yrs
Tingjie Lv (64yo)
Independent Non-Executive Director
- Tenure: 4.6yrs
- Compensation: CN¥150.00k
Francis Siu (65yo)
Independent Non-Executive Director
- Tenure: 7.6yrs
- Compensation: CN¥280.00k
Furong Si (58yo)
President & Executive Director
- Tenure: 6.1yrs
- Compensation: CN¥1.13m
Linfei Liu (62yo)
Independent Non-Executive Director
- Tenure: 3.6yrs
- Compensation: CN¥150.00k
Xu Zhang (49yo)
Executive VP
- Tenure: 1.1yrs
- Compensation: CN¥84.00k
Company Information
China Communications Services Corporation Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Communications Services Corporation Limited
- Ticker: 552
- Exchange: SEHK
- Founded: 2006
- Industry: Construction and Engineering
- Sector: Capital Goods
- Market Cap: HK$40.933b
- Shares outstanding: 6.93b
- Website: https://www.chinaccs.com.hk
Number of Employees
Location
- China Communications Services Corporation Limited
- No. 19 Chaoyangmen Beidajie
- 13th Floor
- Beijing
- 100010
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 552 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Dec 2006 |
| CMW | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Dec 2006 |
| CUCS.F | OTCPK (Pink Sheets LLC) | Yes | Foreign Shares-Foreign Listed | US | USD | Dec 2006 |
| 552 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Dec 2006 |
| 552 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Dec 2006 |
| CUCS.Y | OTCPK (Pink Sheets LLC) | ADR | US | USD | Oct 2008 |
Biography
China Communications Services Corporation Limited provides telecommunications support services worldwide. It offers telecommunications infrastructure services, including communications network consultation, planning, design, engineering, construction, and supervision for fixed-line, mobile, broadband networks, and supporting systems; construction services of ancillary communications networks; and integrated solutions for informatization, as well as smart solutions for intelligentization of industries. The company also provides business process outsourcing services comprising network maintenance services that include fiber optic and electric cables, mobile base stations, network equipment, and terminals; general facilities management services for customers data centers, cloud computing bases, commercial and residential buildings, high-speed railway stations, airports, etc.; warehousing, logistics, procurement agency, distribution wholesaling, and import and export agency services; and telecommunications and informatization equipment, non-telecommunications equipment, and terminals distribution services, as well as operates distribution stores under the ZhongTongFu brand that sells and repairs terminals, and provides telecom operators’ agency services. In addition, it offers applications, content, and other services, such as system integration, software development and system support, value-added, and other services. Further, the company provides submarine cable installation and other related services. It serves telecommunications operators; non-telecom operator customers, such as government agencies, financial institutions, broadcasting and television enterprises, construction enterprises, and transportation and power sectors; and corporates and other enterprises. The company was founded in 2006 and is based in Beijing, China. China Communications Services Corporation Limited is a subsidiary of China Telecommunications Corporation.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/28 12:50 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.