SEHK:552

Stock Analysis Report

China Communications Services

Executive Summary

China Communications Services Corporation Limited provides telecommunications support services worldwide.

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.

Risks

  • China Communications Services has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-7.4%

552

-1.1%

HK Construction

-2.7%

HK Market


1 Year Return

-33.9%

552

-20.0%

HK Construction

-9.4%

HK Market

552 underperformed the Construction industry which returned -20% over the past year.

552 underperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

552IndustryMarket
7 Day-7.4%-1.1%-2.7%
30 Day-7.4%3.9%1.8%
90 Day-26.9%-13.4%-5.6%
1 Year-32.0%-33.9%-16.6%-20.0%-6.2%-9.4%
3 Year3.5%-6.3%-21.9%-29.9%14.3%2.7%
5 Year43.8%22.0%1.6%-13.9%16.7%-2.8%

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

1 week ago | Simply Wall St

Introducing China Communications Services (HKG:552), A Stock That Climbed 30% In The Last Five Years

Valuation

Is China Communications Services undervalued based on future cash flows and its price relative to the stock market?

0.4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

China Communications Services's share price is below the future cash flow value, but not at a moderate discount (< 20%).

China Communications Services's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

China Communications Services is good value based on earnings compared to the HK Construction industry average.

China Communications Services is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

China Communications Services is good value based on expected growth next year.


Price Based on Value of Assets

China Communications Services is good value based on assets compared to the HK Construction industry average.


Next Steps

Future Growth

How is China Communications Services expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

China Communications Services's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).

China Communications Services's earnings are expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).

China Communications Services's revenue growth is expected to exceed the Hong Kong market average.

China Communications Services's earnings growth is expected to exceed the Hong Kong market average.

China Communications Services's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

China Communications Services is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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


Past Earnings Growth Analysis

China Communications Services's year on year earnings growth rate has been positive over the past 5 years.

China Communications Services's 1-year earnings growth is less than its 5-year average (6.2% vs 7.2%)

China Communications Services's earnings growth has exceeded the HK Construction industry average in the past year (6.2% vs -12.9%).


Return on Equity

China Communications Services has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

China Communications Services used its assets less efficiently than the HK Construction industry average last year based on Return on Assets.


Return on Capital Employed

China Communications Services's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is China Communications Services's financial position?


Financial Position Analysis

China Communications Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

China Communications Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

China Communications Services's level of debt (1.4%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0.7% vs 1.4% today).

Debt is well covered by operating cash flow (646.3%, greater than 20% of total debt).

China Communications Services earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

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?

4.34%

Expected Dividend Yield


Dividend Yield and Payments Analysis

China Communications Services's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

China Communications Services's dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


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?

6.3yrs

Average management tenure


CEO

Furong Si (58yo)

5.8yrs

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

Furong's remuneration is lower than average for companies of similar size in Hong Kong.

Furong's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

6.3yrs

Average Tenure

49yo

Average Age

The average tenure for the China Communications Services management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.3yrs

Average Tenure

59.5yo

Average Age

The tenure for the China Communications Services board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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Ownership Breakdown


Management Team

  • Terence Chung (45yo)

    Company Secretary & Deputy CFO

    • Tenure: 0yrs
  • Yafan Xiao

    Chief Executive Officer of Hunan Communications Services Company Limited

    • Tenure: 12.4yrs
  • Zhiyong Zhang (54yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: CN¥477.00k
  • Dong Yan (47yo)

    Executive VP & Chief Risk Officer

    • Tenure: 6.3yrs
    • Compensation: CN¥998.00k
  • Yonghe Yang

    Chief Executive Officer of Fujian Communications Services Company Limited

    • Tenure: 12.5yrs
  • Biao Chen

    Chief Executive Officer of Jiangxi Communications Services Company Limited

    • Tenure: 12.4yrs
  • Chuguo Xu (55yo)

    Executive Vice President

    • Tenure: 5.2yrs
  • Shiping Liang (49yo)

    Executive Vice President

    • Tenure: 9.5yrs
  • Furong Si (58yo)

    President & Executive Director

    • Tenure: 5.8yrs
    • Compensation: CN¥1.13m
  • Xu Zhang (49yo)

    Executive VP

    • Tenure: 0.8yrs
    • Compensation: CN¥84.00k

Board Members

  • Xiaochu Wang (61yo)

    Honorary Chairman

    • Tenure: 11.4yrs
  • Li Zhengmao (57yo)

    Non-Executive Director

    • Tenure: 6.8yrs
  • Taishi Wu (71yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥150.00k
  • Zhiyong Zhang (54yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: CN¥477.00k
  • Fang Han (46yo)

    Chairperson of Supervisory Committee

    • Tenure: 3.8yrs
  • Tingjie Lyu (64yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥150.00k
  • Francis Siu (65yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: CN¥280.00k
  • Furong Si (58yo)

    President & Executive Director

    • Tenure: 5.8yrs
    • Compensation: CN¥1.13m
  • Linfei Liu (62yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: CN¥150.00k
  • Xu Zhang (49yo)

    Executive VP

    • Tenure: 0.8yrs
    • 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$31.167b
  • 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

Biography

China Communications Services Corporation Limited provides telecommunications support services worldwide. It offers telecommunications infrastructure services, including communications network consultation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/21 12:42
End of Day Share Price2019/09/20 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.