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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.
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% |
Below are the data sources, inputs and calculation used to determine the intrinsic value for Telecom Service One Holdings.
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.
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.
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 |
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 |
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 |
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 .
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.
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 >
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 >
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 |
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 >
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.
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 |
Date (Data in HKD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
---|
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.
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.
Date (Data in HKD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
---|
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.
How has Telecom Service One Holdings performed over the past 5 years?
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.
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.
How is Telecom Service One Holdings's financial health and their level of debt?
All data from Telecom Service One Holdings Company Filings, last reported 4 months ago.
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 |
What is Telecom Service One Holdings's current dividend yield, its reliability and sustainability?
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.
Date (Data in HK$) | Dividend per Share (annual) | Avg. No. Analysts |
---|
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 >
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.
Average tenure and age of the Telecom Service One Holdings board of directors in years:
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 |
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 - – Full articleA 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 - – Full articleSo 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 - – Full articleTo 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 - – Full articleThe 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 - – Full articleVolatility 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 - – Full articleand 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 - – Full articleWhen 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 - – Full articleTo 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 - – Full articleIf 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 - – Full article
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.
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 |
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 |
Diversified Support Services | |
Commercial Services |
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.