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.


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

3.6%

552

0.7%

HK Construction

2.9%

HK Market


1 Year Return

-28.6%

552

-19.2%

HK Construction

0.7%

HK Market

Return vs Industry: 552 underperformed the Hong Kong Construction industry which returned -19.2% over the past year.

Return vs Market: 552 underperformed the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

552IndustryMarket
7 Day3.6%0.7%2.9%
30 Day-4.5%-5.7%-2.5%
90 Day-18.7%-11.8%-5.4%
1 Year-26.6%-28.6%-15.8%-19.2%4.4%0.7%
3 Year3.0%-6.6%-23.7%-32.1%17.0%5.2%
5 Year53.7%30.3%0.4%-14.6%20.2%0.2%

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?

9.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 552 (HK$4.64) is trading above our estimate of fair value (HK$4.52)

Significantly Undervalued: 552 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 552 is good value based on its PE Ratio (9.6x) compared to the Construction industry average (10.2x).

PE vs Market: 552 is good value based on its PE Ratio (9.6x) compared to the Hong Kong market (10.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: 552 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 552 is good value based on its PB Ratio (0.9x) 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 10 analysts?

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 552's forecast earnings growth (13.5% per year) is above the savings rate (2%).

Earnings vs Market: 552's earnings (13.5% per year) are forecast to grow faster than the Hong Kong market (11.1% per year).

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

Revenue vs Market: 552's revenue (13.2% per year) is forecast to grow faster than the Hong Kong market (10.1% per year).

High Growth Revenue: 552's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 552's Return on Equity is forecast to be low in 3 years time (10.1%).


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

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 -12.8%.


Return on Equity

High ROE: 552's Return on Equity (8.9%) is considered low.


Return on Assets

ROA vs Industry: 552's Return on Assets is below or equal to the Construction industry average last year.


Return on Capital Employed

ROCE Improving: 552's Return on Capital Employed has declined over the past 3 years.


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) exceeds its short term liabilities (CN¥49.8B)

Long Term Liabilities: 552's short term assets (72.6B) exceeds its long term liabilities (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 152.592070x debt).


Next Steps

Dividend

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

3.60%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.2%markettop25%6.3%industryaverage4.6%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 552's dividend (3.6%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 552's dividend (3.6%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.29%).

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 (33.6% 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?

6.3yrs

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

Compensation vs. Market: Furong's total compensation ($USD158.72K) is about average for companies of similar size in the Hong Kong market ($USD494.49K).

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


Management Age and Tenure

6.3yrs

Average Tenure

49yo

Average Age

Experienced Management: 552's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 552's board of directors are considered experienced (4.3 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

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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: 12.5yrs
  • Zhiyong Zhang (54yo)

    Chairman

    • Tenure: 1.6yrs
    • 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: 12.6yrs
  • Biao Chen

    Chief Executive Officer of Jiangxi Communications Services Company Limited

    • Tenure: 12.5yrs
  • Chuguo Xu (55yo)

    Executive Vice President

    • Tenure: 5.3yrs
  • Shiping Liang (49yo)

    Executive Vice President

    • Tenure: 9.6yrs
  • 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: 11.5yrs
  • Li Zhengmao (57yo)

    Non-Executive Director

    • Tenure: 6.9yrs
  • Taishi Wu (71yo)

    Independent Non-Executive Director

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

    Chairman

    • Tenure: 1.6yrs
    • 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$32.206b
  • 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 Analysis2019/10/14 12:41
End of Day Share Price2019/10/14 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.