SEHK:679

Stock Analysis Report

Asia Tele-Net and Technology

Executive Summary

Asia Tele-Net and Technology Corporation Limited, an investment holding company, designs, manufactures, and sells electroplating machinery and other industrial machinery.

Rewards

PE ratio (5.1x) is below the Hong Kong market (10.3x)

Risk Analysis

Large one-off items impacting financial results

Does not have a meaningful market cap (HK$640M)



Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Asia Tele-Net and Technology's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 679 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

679

4.5%

HK Machinery

3.5%

HK Market


1 Year Return

36.4%

679

33.6%

HK Machinery

2.3%

HK Market

Return vs Industry: 679 exceeded the Hong Kong Machinery industry which returned 33.6% over the past year.

Return vs Market: 679 exceeded the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

679IndustryMarket
7 Day2.0%4.5%3.5%
30 Day7.1%7.5%3.1%
90 Day0.7%10.4%1.1%
1 Year36.4%36.4%37.5%33.6%6.0%2.3%
3 Year29.3%29.3%72.7%61.6%25.4%12.7%
5 Year100.0%100.0%54.4%41.0%23.0%2.4%

Price Volatility Vs. Market

How volatile is Asia Tele-Net and Technology's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Asia Tele-Net and Technology undervalued compared to its fair value and its price relative to the market?

5.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 679's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 679's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 679 is good value based on its PE Ratio (5.1x) compared to the Machinery industry average (10.4x).

PE vs Market: 679 is good value based on its PE Ratio (5.1x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 679's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 679 is good value based on its PB Ratio (0.5x) compared to the HK Machinery industry average (1.1x).


Next Steps

Future Growth

How is Asia Tele-Net and Technology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.5%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Asia Tele-Net and Technology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Asia Tele-Net and Technology performed over the past 5 years?

22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 679 has a large one-off gain of HK$56.4M impacting its June 30 2019 financial results.

Growing Profit Margin: 679's current net profit margins (34.9%) are higher than last year (31.5%).


Past Earnings Growth Analysis

Earnings Trend: 679's earnings have grown significantly by 22.2% per year over the past 5 years.

Accelerating Growth: 679's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 679 had negative earnings growth (-18.7%) over the past year, making it difficult to compare to the Machinery industry average (7.3%).


Return on Equity

High ROE: 679's Return on Equity (9.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Asia Tele-Net and Technology's financial position?


Financial Position Analysis

Short Term Liabilities: 679's short term assets (HK$1.3B) exceed its short term liabilities (HK$196.7M).

Long Term Liabilities: 679's short term assets (HK$1.3B) exceed its long term liabilities (HK$459.5M).


Debt to Equity History and Analysis

Debt Level: 679 is debt free.

Reducing Debt: 679 had no debt 5 years ago.

Debt Coverage: 679 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 679 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 679 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 679's debt is covered by short term assets.


Next Steps

Dividend

What is Asia Tele-Net and Technology's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.2%markettop25%6.2%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 679's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 679's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 679's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 679's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 679's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Asia Tele-Net and Technology's salary, the management and board of directors tenure and is there insider trading?

14.8yrs

Average board tenure


CEO

Wilfred Lam (55yo)

0yrs

Tenure

HK$3,618,000

Compensation

Mr. Kwok Hing Lam, also known as Wilfred, J.P., FHKIoD MH., serves as Chief Executive and Managing Director of Asia Tele-Net & Technology Corp. Ltd. Mr. Lam has been an Executive Director of Hoifu Energy G ...


CEO Compensation Analysis

Compensation vs Market: Wilfred's total compensation ($USD464.18K) is above average for companies of similar size in the Hong Kong market ($USD226.94K).

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


Board Age and Tenure

14.8yrs

Average Tenure

58yo

Average Age

Experienced Board: 679's board of directors are seasoned and experienced ( 14.8 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

BuyHK$32,40019 Dec 18
J&A Investment Limited
EntityCompany
Shares30,000
Max PriceHK$1.08
BuyHK$1,462,19718 Dec 18
J&A Investment Limited
EntityCompany
Shares1,370,000
Max PriceHK$1.07

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Kwok Lun Nam (60yo)

    Deputy Chairman

    • Tenure: 14.8yrs
    • Compensation: HK$3.62m
  • Wilfred Lam (55yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: HK$3.62m
  • Ada Yung (53yo)

    Deputy GM & Company Secretary

    • Tenure: 3.8yrs

Board Members

  • Alan Kwan (56yo)

    Independent Non-Executive Director

    • Tenure: 14.7yrs
    • Compensation: HK$98.00k
  • David Ng (58yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: HK$98.00k
  • Kwok Lun Nam (60yo)

    Deputy Chairman

    • Tenure: 14.8yrs
    • Compensation: HK$3.62m
  • Wilfred Lam (55yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: HK$3.62m
  • Kin Wai Cheung (63yo)

    Independent Non-Executive Director

    • Tenure: 0yrs
    • Compensation: HK$98.00k

Company Information

Asia Tele-Net and Technology Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asia Tele-Net and Technology Corporation Limited
  • Ticker: 679
  • Exchange: SEHK
  • Founded: 1966
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: HK$639.695m
  • Shares outstanding: 426.46m
  • Website: https://www.asia-tnt.com

Number of Employees


Location

  • Asia Tele-Net and Technology Corporation Limited
  • 11 Dai Hei Street
  • Tai Po Industrial Estate
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
679SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
DKCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992

Biography

Asia Tele-Net and Technology Corporation Limited, an investment holding company, designs, manufactures, and sells electroplating machinery and other industrial machinery. It also provides installation and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 12:32
End of Day Share Price2019/12/13 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.