SEHK:552

Stock Analysis Report

China Communications Services

Executive Summary

China Communications Services Corporation Limited provides telecommunications support services worldwide.


Snowflake Analysis

Flawless 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

4.0%

552

-0.8%

HK Construction

0.2%

HK Market


1 Year Return

-11.7%

552

-34.8%

HK Construction

-22.0%

HK Market

Return vs Industry: 552 exceeded the Hong Kong Construction industry which returned -35.2% over the past year.

Return vs Market: 552 exceeded the Hong Kong Market which returned -22% over the past year.


Shareholder returns

552IndustryMarket
7 Day4.0%-0.8%0.2%
30 Day-8.6%-11.8%-10.6%
90 Day0.9%-17.8%-15.8%
1 Year-9.1%-11.7%-31.4%-34.8%-19.1%-22.0%
3 Year30.3%18.1%-47.0%-52.6%-3.7%-13.4%
5 Year61.9%37.2%-55.9%-62.3%-15.2%-28.8%

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

Valuation

Is China Communications Services undervalued compared to its fair value and its price relative to the market?

11.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 552 (HK$5.75) is trading above our estimate of fair value (HK$3.56)

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 (12x) compared to the Construction industry average (7.9x).

PE vs Market: 552 is poor value based on its PE Ratio (12x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 552 is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: 552 is overvalued based on its PB Ratio (1.1x) compared to the HK Construction industry average (0.8x).


Next Steps

Future Growth

How is China Communications Services forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 552's forecast earnings growth (7.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 552's earnings (7.4% per year) are forecast to grow slower than the Hong Kong market (11.6% per year).

High Growth Earnings: 552's earnings are forecast to grow, but not significantly.

Revenue vs Market: 552's revenue (8.5% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 552's revenue (8.5% 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 (11.3%).


Next Steps

Past Performance

How has China Communications Services performed over the past 5 years?

7.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 552 has high quality earnings.

Growing Profit Margin: 552's current net profit margins (2.6%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: 552's earnings have grown by 7.3% per year over the past 5 years.

Accelerating Growth: 552's earnings growth over the past year (5.1%) is below its 5-year average (7.3% per year).

Earnings vs Industry: 552 earnings growth over the past year (5.1%) exceeded the Construction industry -2.5%.


Return on Equity

High ROE: 552's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is China Communications Services's financial position?


Financial Position Analysis

Short Term Liabilities: 552's short term assets (CN¥73.3B) exceed its short term liabilities (CN¥50.7B).

Long Term Liabilities: 552's short term assets (CN¥73.3B) exceed its long term liabilities (CN¥1.8B).


Debt to Equity History and Analysis

Debt Level: 552's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: 552's debt to equity ratio has reduced from 3.8% to 1.5% over the past 5 years.

Debt Coverage: 552's debt is well covered by operating cash flow (941.2%).

Interest Coverage: 552's interest payments on its debt are well covered by EBIT (49.6x coverage).


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 143.3x debt).


Next Steps

Dividend

What is China Communications Services's current dividend yield, its reliability and sustainability?

3.01%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 552's dividend (3.01%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.6%).

High Dividend: 552's dividend (3.01%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.27%).


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 (28.6%), 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 (31.9% payout ratio).


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

Furong Si (58yo)

6.33s

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 ($USD158.66K) is below average for companies of similar size in the Hong Kong market ($USD670.57K).

Compensation vs Earnings: Furong's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Furong Si
President & Executive Director6.33yrsCN¥1.13mno data
Xu Zhang
Executive VP1.33yrsCN¥84.00kno data
Zhiyong Zhang
Chairman2.08yrsCN¥477.00kno data
Wai Cheung Chung
Company Secretary & Deputy CFOno datano datano data
Dong Yan
Executive VP & Chief Risk Officer6.83yrsCN¥998.00kno data
Chuguo Xu
Executive Vice President5.75yrsno datano data
Shiping Liang
Executive Vice President10.08yrsno datano data
Yonghe Yang
Chief Executive Officer of Fujian Communications Services Company Limited13.08yrsno datano data
Biao Chen
Chief Executive Officer of Jiangxi Communications Services Company Limited13yrsno datano data
Yafan Xiao
Chief Executive Officer of Hunan Communications Services Company Limited13yrsno datano data

6.8yrs

Average Tenure

49yo

Average Age

Experienced Management: 552's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Furong Si
President & Executive Director6.33yrsCN¥1.13mno data
Xu Zhang
Executive VP1.33yrsCN¥84.00kno data
Zhiyong Zhang
Chairman2.08yrsCN¥477.00kno data
Xiaochu Wang
Honorary Chairman12yrsno datano data
Taishi Wu
Independent Non-Executive Director4.83yrsCN¥150.00kno data
Liancheng Hai
Independent Supervisor13.67yrsCN¥75.00kno data
Fang Han
Chairperson of Supervisory Committee4.33yrsno datano data
Tingjie Lv
Independent Non-Executive Director4.83yrsCN¥150.00kno data
Wai Keung Siu
Independent Non-Executive Director7.83yrsCN¥280.00kno data
Linfei Liu
Independent Non-Executive Director3.83yrsCN¥150.00kno data

4.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 552's board of directors are considered experienced (4.8 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

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$39.825b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
552SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2006
CMWDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2006
CUCS.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2006
552SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2006
552SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2006
CUCS.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 12:48
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.