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Telecom Service One Holdings

SEHK:3997
Snowflake Description

Flawless balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3997
SEHK
HK$359M
Market Cap
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Last updated 2019/02/18 13:01
Company description

Telecom Service One Holdings Limited, an investment holding company, provides repair and refurbishment services for mobile phones and consumer electronic devices in Hong Kong, the People’s Republic of China, and Macau. The last earnings update was 81 days ago. More info.

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3997 Share Price and Events
7 Day Returns
0%
SEHK:3997
-0.3%
HK Commercial Services
-0.1%
HK Market
1 Year Returns
40.7%
SEHK:3997
-20.2%
HK Commercial Services
-12.6%
HK Market
3997 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Telecom Service One Holdings (3997) 0% -2.1% -11.7% 40.7% 49.7% -1.8%
HK Commercial Services -0.3% 5.2% 8.4% -20.2% -16.3% -28.3%
HK Market -0.1% 3.7% 4.1% -12.6% 32.1% 13%
1 Year Return vs Industry and Market
  • 3997 outperformed the Commercial Services industry which returned -20.2% over the past year.
  • 3997 outperformed the Market in Hong Kong which returned -12.6% over the past year.
Price Volatility
3997
Industry
5yr Volatility vs Market

Value

 Is Telecom Service One Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Telecom Service One Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Telecom Service One Holdings.

SEHK:3997 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:3997
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 8%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.874 (1 + (1- 25%) (0%)) 		0.874
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.87
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.874 * 8%) 		8.99%

Discounted Cash Flow Calculation for SEHK:3997 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Telecom Service One Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:3997 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (HKD, Millions) 74.16 73.35 72.55 71.76 70.97
Source Est @ -1.09% Est @ -1.09% Est @ -1.09% Est @ -1.09% Est @ -1.09%
Present Value
Discounted (@ 8.99%) 		68.04 61.74 56.03 50.85 46.14
Present value of next 5 years cash flows HK$282.80
SEHK:3997 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= HK$70.97 × (1 + 2%) ÷ (8.99% – 2%) 		HK$1,035.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= HK$1,035.55 ÷ (1 + 8.99%)5 		HK$673.22
SEHK:3997 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= HK$282.80 + HK$673.22 		HK$956.02
Equity Value per Share
(HKD)		 = Total value / Shares Outstanding
= HK$956.02 / 128.32 		HK$7.45
SEHK:3997 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$7.45
Current discount Discount to share price of HK$2.80
= -1 x (HK$2.80 - HK$7.45) / HK$7.45 		62.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Telecom Service One Holdings is available for.
Intrinsic value
>50%
Share price is HK$2.8 vs Future cash flow value of HK$7.45
Current Discount Checks
For Telecom Service One Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Telecom Service One Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Telecom Service One Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Telecom Service One Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Telecom Service One Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:3997 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in HKD HK$0.12
SEHK:3997 Share Price ** SEHK (2019-02-15) in HKD HK$2.8
Hong Kong Commercial Services Industry PE Ratio Median Figure of 47 Publicly-Listed Commercial Services Companies 12.76x
Hong Kong Market PE Ratio Median Figure of 1,481 Publicly-Listed Companies 10.52x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Telecom Service One Holdings.

SEHK:3997 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:3997 Share Price ÷ EPS (both in HKD)

= 2.8 ÷ 0.12

 22.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telecom Service One Holdings is overvalued based on earnings compared to the HK Commercial Services industry average.
  • Telecom Service One Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Telecom Service One Holdings's expected growth come at a high price?
Raw Data
SEHK:3997 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 22.59x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts		 -4.2%per year
Hong Kong Commercial Services Industry PEG Ratio Median Figure of 8 Publicly-Listed Commercial Services Companies 0.57x
Hong Kong Market PEG Ratio Median Figure of 465 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Telecom Service One Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Telecom Service One Holdings's assets?
Raw Data
SEHK:3997 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in HKD HK$0.77
SEHK:3997 Share Price * SEHK (2019-02-15) in HKD HK$2.8
Hong Kong Commercial Services Industry PB Ratio Median Figure of 65 Publicly-Listed Commercial Services Companies 1.37x
Hong Kong Market PB Ratio Median Figure of 2,118 Publicly-Listed Companies 0.96x
SEHK:3997 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:3997 Share Price ÷ Book Value per Share (both in HKD)

= 2.8 ÷ 0.77

 3.65x

* Primary Listing of Telecom Service One Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telecom Service One Holdings is overvalued based on assets compared to the HK Commercial Services industry average.
X
Value checks
We assess Telecom Service One Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
    5. Telecom Service One Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Telecom Service One Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Telecom Service One Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Telecom Service One Holdings expected to grow at an attractive rate?
  • Telecom Service One Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2%.
Growth vs Market Checks
  • Telecom Service One Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Hong Kong market average.
  • Unable to compare Telecom Service One Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:3997 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:3997 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -4.2%
Hong Kong Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 18.4%
Hong Kong Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 26.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:3997 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:3997 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:3997 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-09-30 82 15 16
2018-06-30 90 21
2018-03-31 99 33 25
2017-12-31 105 29
2017-09-30 111 38 28
2017-06-30 112 26
2017-03-31 105 24 23
2016-12-31 106 21
2016-09-30 108 33 20
2016-06-30 111 20
2016-03-31 122 25 22
2015-12-31 126 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Telecom Service One Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Telecom Service One Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:3997 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Telecom Service One Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3997 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:3997 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-09-30 0.12
2018-06-30 0.16
2018-03-31 0.20
2017-12-31 0.23
2017-09-30 0.22
2017-06-30 0.21
2017-03-31 0.19
2016-12-31 0.17
2016-09-30 0.17
2016-06-30 0.17
2016-03-31 0.19
2015-12-31 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Telecom Service One Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Telecom Service One Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Telecom Service One Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Telecom Service One Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Telecom Service One Holdings's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Telecom Service One Holdings's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Telecom Service One Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Telecom Service One Holdings's 1-year earnings growth is negative, it can't be compared to the HK Commercial Services industry average.
Earnings and Revenue History
Telecom Service One Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Telecom Service One Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:3997 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 82.30 15.89 16.67
2018-06-30 89.60 20.59 16.08
2018-03-31 99.30 25.27 15.91
2017-12-31 105.42 28.90 13.49
2017-09-30 110.64 28.04 11.50
2017-06-30 111.51 26.32 15.87
2017-03-31 105.45 22.65 14.87
2016-12-31 106.00 20.56 15.86
2016-09-30 107.94 20.26 18.60
2016-06-30 111.32 19.94 15.00
2016-03-31 122.49 22.38 15.28
2015-12-31 126.08 20.28 15.73
2015-09-30 129.78 20.82 17.55
2015-06-30 131.18 23.03 16.72
2015-03-31 126.42 24.48 16.32
2014-12-31 118.91 24.89 14.96
2014-09-30 109.04 22.54 12.49
2014-06-30 101.89 18.95 11.08
2014-03-31 94.29 14.35 13.21
2013-12-31 91.50 10.63 14.45
2013-09-30 85.20 9.76 14.07
2013-06-30 80.10 2.81 19.01
2013-03-31 78.51 1.41 19.20
2012-03-31 69.58 14.08 7.12

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Telecom Service One Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Telecom Service One Holdings used its assets more efficiently than the HK Commercial Services industry average last year based on Return on Assets.
  • Telecom Service One Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Telecom Service One Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Telecom Service One Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Telecom Service One Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Telecom Service One Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Telecom Service One Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Telecom Service One Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Telecom Service One Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Telecom Service One Holdings has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Telecom Service One Holdings Company Filings, last reported 4 months ago.

SEHK:3997 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 98.41 0.00 91.40
2018-06-30 98.41 0.00 91.40
2018-03-31 103.06 0.00 83.33
2017-12-31 96.54 0.00 21.88
2017-09-30 96.54 0.00 21.88
2017-06-30 83.86 1.34 32.39
2017-03-31 83.86 1.34 38.18
2016-12-31
2016-09-30 56.28 5.28 8.96
2016-06-30 54.13 18.60 16.91
2016-03-31 54.13 18.60 16.91
2015-12-31
2015-09-30 48.04 19.49 2.00
2015-06-30 55.14 16.09 14.27
2015-03-31 55.14 16.09 14.27
2014-12-31
2014-09-30 56.60 13.75 13.51
2014-06-30 72.63 0.00 33.88
2014-03-31 72.63 0.00 33.88
2013-12-31
2013-09-30 64.99 5.00 9.77
2013-06-30 33.24 5.00 5.32
2013-03-31 33.24 5.00 5.32
2012-03-31 21.93 6.82 2.56
  • Telecom Service One Holdings has no debt.
  • Telecom Service One Holdings has no debt compared to 5 years ago when it was 7.6%.
  • Telecom Service One Holdings has no debt, it does not need to be covered by operating cash flow.
  • Telecom Service One Holdings has no debt, therefore coverage of interest payments is not a concern.
Show me more healthy companies in the Commercial Services industry
X
Financial health checks
We assess Telecom Service One Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Telecom Service One Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Telecom Service One Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
7.14%
Current annual income from Telecom Service One Holdings dividends.
If you bought HK$2,000 of Telecom Service One Holdings shares you are expected to receive HK$143 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Telecom Service One Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.01%).
  • Telecom Service One Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (5.54%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:3997 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 916 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:3997 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
SEHK:3997 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2018-07-25 0.200 6.399
2018-06-26 0.200 7.827
2018-02-12 0.080 3.583
2018-02-06 0.080 4.063
2017-11-13 0.080 3.828
2017-11-07 0.080 3.657
2017-08-10 0.040 1.876
2017-08-08 0.040 1.917
2017-06-29 0.000 0.000
2017-06-26 0.000 0.000
2017-02-13 0.000 0.000
2017-02-07 0.000 0.000
2016-11-11 0.000 0.000
2016-11-08 0.000 0.000
2016-06-27 0.100 4.504
2016-06-22 0.100 4.125
2015-06-29 0.300 15.312
2015-06-23 0.300 10.168
2015-02-09 0.200 8.221
2014-11-10 0.200 12.702
2014-06-26 0.250 16.204
2014-06-16 0.250 13.684

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telecom Service One Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Telecom Service One Holdings has only been paying a dividend for 5 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Telecom Service One Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Telecom Service One Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Telecom Service One Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Telecom Service One Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Telecom Service One Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sunny Cheung
COMPENSATION HK$340,000
AGE 50
TENURE AS CEO 4.5 years
CEO Bio

Mr. King Fung Cheung, also known as Sunny, serves as the Chief Executive Officer of Telecom Digital Holdings Limited since September 8, 2015 and serves its Compliance Officer. Mr. Cheung joined Telecom Digital Holdings Limited in 1990. Mr. Cheung has been the Chief Executive Officer of Telecom Service One Holdings Limited since August 11, 2014. He serves as the Chief Compliance Officer of Telecom Service One Holdings Limited and has been an Executive Director since August 3, 2012. Mr. Cheung is primarily responsible for managing the Group's relationship with the customers and exploring new business opportunities for Telecom Service One Holdings. Mr. Cheung joined Telecom Digital Group in 1991 and is an Executive Director of Telecom Digital Group, responsible for overseeing the areas of finance and operation, management information system and technical support of Telecom Digital Group. He was appointed as a Director of Telecom Digital Holdings Limited since November 2002, re-designated as an Executive Director in March 2014. Mr. Cheung has been a Member of the Board of Directors at TSO since June 1999. He is a committee member of Chinese People Political Consultative Conference of Guangdong Province. He is a committee member of the Chinese People Political Consultative Conference of Guangzhou City. Mr. Cheung graduated from the University of Western Ontario in Canada with a bachelor's degree in administrative and commercial studies in October 1990.

CEO Compensation
  • Sunny's compensation has been consistent with company performance over the past year.
  • Sunny's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team

Sunny Cheung

TITLE
CEO, Chief Compliance Officer & Executive Director
COMPENSATION
HK$340K
AGE
50
TENURE
4.5 yrs

Wing Chong Yeung

TITLE
Company Secretary
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Telecom Service One Holdings board of directors in years:

6.2
Average Tenure
59
Average Age
  • The tenure for the Telecom Service One Holdings board of directors is about average.
Board of Directors

King Cheung

TITLE
Chairman
AGE
66

Sunny Cheung

TITLE
CEO, Chief Compliance Officer & Executive Director
COMPENSATION
HK$340K
AGE
50
TENURE
6.5 yrs

Ping Fong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
67
TENURE
5.8 yrs

Marisa Kwok

TITLE
Independent Non-Executive Director
COMPENSATION
HK$120K
AGE
63
TENURE
5.8 yrs

Tso Ka Yi

TITLE
Independent Non-Executive Director
AGE
54
TENURE
1.1 yrs

King Cheung

TITLE
Non-Executive Director
AGE
59
TENURE
6.5 yrs

Bobby Cheung

TITLE
Non-Executive Director
AGE
59
TENURE
6.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
24. Jul 18 Buy King Cheung Individual 19. Jul 18 19. Jul 18 118,000 HK$2.52 HK$297,278
06. Jul 18 Buy King Cheung Individual 03. Jul 18 03. Jul 18 240,000 HK$2.51 HK$601,921
04. Jul 18 Buy King Cheung Individual 28. Jun 18 28. Jun 18 126,000 HK$2.55 HK$321,766
03. Jul 18 Buy King Cheung Individual 27. Jun 18 27. Jun 18 146,000 HK$2.49 HK$363,277
06. Jul 18 Buy King Cheung Individual 04. Jul 18 04. Jul 18 192,000 HK$2.53 HK$486,585
04. Jul 18 Buy King Cheung Individual 29. Jun 18 29. Jun 18 46,000 HK$2.60 HK$119,600
06. Apr 18 Buy King Cheung Individual 03. Apr 18 03. Apr 18 26,000 HK$2.11 HK$54,860
09. Apr 18 Buy King Cheung Individual 04. Apr 18 04. Apr 18 100,000 HK$2.11 HK$211,000
03. Apr 18 Buy King Cheung Individual 27. Mar 18 27. Mar 18 466,000 HK$2.43 HK$1,134,012
03. Apr 18 Buy King Cheung Individual 27. Mar 18 27. Mar 18 28,000 HK$2.40 HK$67,200
03. Apr 18 Buy King Cheung Individual 27. Mar 18 27. Mar 18 314,000 HK$2.45 HK$768,390
03. Apr 18 Buy King Cheung Individual 27. Mar 18 27. Mar 18 314,000 HK$2.42 HK$761,104
03. Apr 18 Buy King Cheung Individual 28. Mar 18 28. Mar 18 100,000 HK$2.27 HK$227,000
03. Apr 18 Buy King Cheung Individual 28. Mar 18 28. Mar 18 64,000 HK$2.34 HK$149,498
04. Apr 18 Buy King Cheung Individual 29. Mar 18 29. Mar 18 56,000 HK$2.23 HK$124,701
04. Apr 18 Buy King Cheung Individual 29. Mar 18 29. Mar 18 50,000 HK$2.20 HK$110,000
09. Mar 18 Buy King Cheung Individual 06. Mar 18 06. Mar 18 102,000 HK$2.21 HK$225,420
X
Management checks
We assess Telecom Service One Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Telecom Service One Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should Telecom Service One Holdings Limited (HKG:3997) Be Part Of Your Portfolio?

Historically, Telecom Service One Holdings Limited (HKG:3997) has paid dividends to shareholders, and these days it yields 7.1%. … Let's dig deeper into whether Telecom Service One Holdings should have a place in your portfolio. … See our latest analysis for Telecom Service One Holdings

Simply Wall St - –

Can We See Significant Insider Ownership On The Telecom Service One Holdings Limited (HKG:3997) Share Register?

A look at the shareholders of Telecom Service One Holdings Limited (HKG:3997) can tell us which group is most powerful. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Telecom Service One Holdings is a smaller company with a market capitalization of HK$364m, so it may still be flying under the radar of many institutional investors.

Simply Wall St - –

Have Insiders Been Buying Telecom Service One Holdings Limited (HKG:3997) Shares?

So before you buy or sell Telecom Service One Holdings Limited (HKG:3997), you may well want to know whether insiders have been buying or selling. … It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. … The Last 12 Months Of Insider Transactions At Telecom Service One Holdings.

Simply Wall St - –

Should You Be Excited About Telecom Service One Holdings Limited's (HKG:3997) 16% Return On Equity?

To keep the lesson grounded in practicality, we'll use ROE to better understand Telecom Service One Holdings Limited (HKG:3997). … Our data shows Telecom Service One Holdings has a return on equity of 16% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - –

What You Must Know About Telecom Service One Holdings Limited's (HKG:3997) Financial Strength

The direct benefit for Telecom Service One Holdings Limited (HKG:3997), which sports a zero-debt capital structure, to include debt in its capital structure is the reduced cost of capital. … However, the trade-off is 3997 will have to adhere to stricter debt covenants and have less financial flexibility. … Does 3997's growth rate justify its decision for financial flexibility over lower cost of capital.

Simply Wall St - –

Before You Buy Telecom Service One Holdings Limited (HKG:3997), Consider Its Volatility

Volatility is considered to be a measure of risk in modern finance theory. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St - –

What Should Investors Know About Telecom Service One Holdings Limited's (HKG:3997) Return On Capital?

and looking to gauge the potential return on investment in Telecom Service One Holdings Limited (HKG:3997). … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Telecom Service One Holdings’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St - –

Does Telecom Service One Holdings Limited's (HKG:3997) 12% Earnings Growth Reflect The Long-Term Trend?

When Telecom Service One Holdings Limited's (HKG:3997) announced its latest earnings (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Telecom Service One Holdings's average earnings over the past couple of years, and its industry performance. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 20%, indicating the rate at which 3997 is growing has slowed down

Simply Wall St - –

What Does Telecom Service One Holdings Limited's (HKG:3997) P/E Ratio Tell You?

To keep it practical, we'll show how Telecom Service One Holdings Limited's (HKG:3997) P/E ratio could help you assess the value on offer. … Telecom Service One Holdings has a price to earnings ratio of 16.73, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St - –

Does Telecom Service One Holdings Limited (HKG:3997) Fall With The Market?

If you're interested in Telecom Service One Holdings Limited (HKG:3997), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St - –

Company Info

Map
Description

Telecom Service One Holdings Limited, an investment holding company, provides repair and refurbishment services for mobile phones and consumer electronic devices in Hong Kong, the People’s Republic of China, and Macau. The company also sells related consumer electronic device products and mobile phone accessories. It serves manufacturers of mobile phones and personal electronic products, telecommunication service providers, and services companies. The company was founded in 1987 and is headquartered in Kwai Chung, Hong Kong. Telecom Service One Holdings Limited is a subsidiary of East-Asia Pacific Limited.

Details
Name: Telecom Service One Holdings Limited
3997
Exchange: SEHK
Founded: 1987
HK$359,301,600
128,322,000
Website: http://www.tso.cc
Address: Telecom Service One Holdings Limited
Riley House,
Units 1805-1807,
Kwai Chung,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 3997 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 30. May 2013
Number of employees
Current staff
Staff numbers
114
Telecom Service One Holdings employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 13:01
End of day share price update: 2019/02/15 00:00
Last estimates confirmation: 2017/06/29
Last earnings filing: 2018/11/29
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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