Telecom Service One Holdings
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 146 days ago. More info.
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3997 Share Price and Events
7 Day Returns
1 Year Returns
3997 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Telecom Service One Holdings (3997) | -6.1% | -8% | -19.3% | 14.4% | 1.8% | 10% |
| HK Commercial Services | -0.9% | -0.7% | 11.7% | -17.4% | -27.3% | -26.4% |
| HK Market | -0.9% | 1.7% | 10.8% | -6.3% | 27.3% | 20.1% |
1 Year Return vs Industry and Market
- 3997 outperformed the Commercial Services industry which returned -17.4% over the past year.
- 3997 outperformed the Market in Hong Kong which returned -6.3% over the past year.
Value
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.
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 | 7.5% |
| 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 | 6.7% |
| Commercial Services Unlevered Beta | Simply Wall St/ S&P Global | 0.74 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 25%) (0%)) |
0.822 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.82 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.822 * 6.65%) |
7.47% |
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 try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (HKD, Millions) | Source |
Present Value Discounted (@ 7.47%) |
|
|---|---|---|---|
| 2019 | 11.41 | Est @ -21.54% | 10.62 |
| 2020 | 9.76 | Est @ -14.48% | 8.45 |
| 2021 | 8.83 | Est @ -9.54% | 7.11 |
| 2022 | 8.29 | Est @ -6.07% | 6.22 |
| 2023 | 7.99 | Est @ -3.65% | 5.57 |
| 2024 | 7.83 | Est @ -1.95% | 5.08 |
| 2025 | 7.77 | Est @ -0.77% | 4.69 |
| 2026 | 7.78 | Est @ 0.06% | 4.37 |
| 2027 | 7.83 | Est @ 0.65% | 4.09 |
| 2028 | 7.91 | Est @ 1.05% | 3.85 |
| Present value of next 10 years cash flows | HK$60.05 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= HK$7.91 × (1 + 2%) ÷ (7.47% – 2%) |
HK$147.53 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= HK$147.53 ÷ (1 + 7.47%)10 |
HK$71.76 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= HK$60.05 + HK$71.76 |
HK$131.82 |
| Equity Value per Share (HKD) |
= Total value / Shares Outstanding
= HK$131.82 / 128.34 |
HK$1.03 |
| Calculation | Result | |
|---|---|---|
| Value per share (HKD) | From above. | HK$1.03 |
| Current discount | Discount to share price of
HK$2.30
= -1 x (HK$2.30 - HK$1.03) / HK$1.03 |
-123.9% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Telecom Service One Holdings is above its future cash flow value.
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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in HKD | HK$0.12 |
| SEHK:3997 Share Price ** | SEHK (2019-04-24) in HKD | HK$2.3 |
| Hong Kong Commercial Services Industry PE Ratio | Median Figure of 52 Publicly-Listed Commercial Services Companies | 14.17x |
| Hong Kong Market PE Ratio | Median Figure of 1,474 Publicly-Listed Companies | 12.13x |
* 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) = 2.3 ÷ 0.12 |
18.55x |
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?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 18.55x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts |
-3.6%per year |
| Hong Kong Commercial Services Industry PEG Ratio | Median Figure of 9 Publicly-Listed Commercial Services Companies | 0.63x |
| Hong Kong Market PEG Ratio | Median Figure of 463 Publicly-Listed Companies | 0.87x |
*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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in HKD | HK$0.77 |
| SEHK:3997 Share Price * | SEHK (2019-04-24) in HKD | HK$2.3 |
| Hong Kong Commercial Services Industry PB Ratio | Median Figure of 69 Publicly-Listed Commercial Services Companies | 1.39x |
| Hong Kong Market PB Ratio | Median Figure of 2,150 Publicly-Listed Companies | 1.02x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = SEHK:3997 Share Price ÷ Book Value per Share (both in HKD) = 2.3 ÷ 0.77 |
3x |
* 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.
Value checks
We assess Telecom Service One Holdings's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check) Telecom Service One Holdings has a total score of 0/6, 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
- 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!
Earnings growth vs Low Risk Savings
- 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
| Data Point | Source | Value (per year) |
|---|---|---|
| SEHK:3997 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts | -3.6% |
| Hong Kong Commercial Services Industry Earnings Growth Rate | Market Cap Weighted Average | 18.5% |
| Hong Kong Commercial Services Industry Revenue Growth Rate | Market Cap Weighted Average | 24.1% |
| Hong Kong Market Earnings Growth Rate | Market Cap Weighted Average | 11.7% |
| Hong Kong Market Revenue Growth Rate | Market Cap Weighted Average | 11.1% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (6 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (6 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 6 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.
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.
Future performance checks
We assess Telecom Service One Holdings's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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
Past Earnings growth analysis
- 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
All data from Telecom Service One Holdings Company Filings, last reported 6 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 |
*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).
Past performance checks
We assess Telecom Service One Holdings's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
- 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
Assets
Liabilities and shares
- 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.
All data from Telecom Service One Holdings Company Filings, last reported 6 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 |
- 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.
Financial health checks
We assess Telecom Service One Holdings's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Telecom Service One Holdings has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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
If you bought
HK$2,000 of
Telecom Service One Holdings
shares you are expected to receive
HK$87
in your first year as a dividend.
Dividend Amount
- Telecom Service One Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.96%).
- Telecom Service One Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.38%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 0 Analyst Estimates (S&P Global) | See Below |
| Hong Kong Commercial Services Industry Average Dividend Yield | Market Cap Weighted Average of 26 Stocks | 2.2% |
| Hong Kong Market Average Dividend Yield | Market Cap Weighted Average of 966 Stocks | 3.4% |
| Hong Kong Minimum Threshold Dividend Yield | 10th Percentile | 1.1% |
| Hong Kong Bottom 25% Dividend Yield | 25th Percentile | 2% |
| Hong Kong Top 25% Dividend Yield | 75th Percentile | 5.4% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in HK$) | Dividend per Share (annual) | Avg. No. Analysts |
|---|
| Date (Data in HK$) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-20 | 0.100 | 3.924 |
| 2018-07-25 | 0.100 | 3.208 |
| 2018-06-26 | 0.100 | 3.914 |
| 2018-02-12 | 0.080 | 3.579 |
| 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.
Income/ dividend checks
We assess Telecom Service One Holdings's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) Telecom Service One Holdings has a total score of 2/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | HK$340,000 |
| AGE | 50 |
| TENURE AS CEO | 4.7 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
CEO, Chief Compliance Officer & Executive Director
HK$340K
50
4.7 yrs
Wing Chong Yeung
Company Secretary
2.5 yrs
Board of Directors Tenure
Average tenure and age of the Telecom Service One Holdings board of directors in years:
- The tenure for the Telecom Service One Holdings board of directors is about average.
Board of Directors
King Cheung
Chairman
66
Sunny Cheung
CEO, Chief Compliance Officer & Executive Director
HK$340K
50
6.7 yrs
Ping Fong
Independent Non-Executive Director
HK$120K
67
6 yrs
Marisa Kwok
Independent Non-Executive Director
HK$120K
63
6 yrs
Tso Ka Yi
Independent Non-Executive Director
54
1.3 yrs
King Cheung
Non-Executive Director
59
6.7 yrs
Bobby Cheung
Non-Executive Director
59
6.7 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (HK$) | 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 | ||
Management checks
We assess Telecom Service One Holdings's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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 We Worry About Telecom Service One Holdings Limited's (HKG:3997) P/E Ratio?
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll look at Telecom Service One Holdings Limited's (HKG:3997) P/E ratio and reflect on what it tells us about the company's share price. … Telecom Service One Holdings has a P/E ratio of 19.76, based on the last twelve months.
Simply Wall St - – Full articleBefore You Buy Telecom Service One Holdings Limited (HKG:3997), Consider Its Volatility
The second type is the broader market volatility, which you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks on the market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.
Simply Wall St - – Full articleShould You Like Telecom Service One Holdings Limited’s (HKG:3997) High Return On Capital Employed?
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
Simply Wall St - – Full articleUpdate: Telecom Service One Holdings (HKG:3997) Stock Gained 39% In The Last Three Years
While Telecom Service One Holdings Limited (HKG:3997) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 15% in the last quarter. … However, it's unlikely many shareholders are elated with the share price gain of 39% over that time, given the rising market. … During the three years of share price growth, Telecom Service One Holdings actually saw its earnings per share (EPS) drop 11% per year.
Simply Wall St - – Full article4 Days Left To Cash In On Telecom Service One Holdings Limited (HKG:3997) Dividend
Telecom Service One Holdings Limited (HKG:3997) will be distributing its dividend of HK$0.01 per share on the 15 March 2019, and will start trading ex-dividend in 4 days time on the 05 March 2019. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Telecom Service One Holdings's latest financial data to analyse its dividend attributes. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?
Simply Wall St - – Full articleShould 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 - – Full articleCan 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 - – Full articleHave 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 - – Full articleShould 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 - – Full articleWhat 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 - – Full articleCompany Info
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$314,437,900 | |
| 128,342,000 | |
| Website: | http://www.tso.cc |
| Address: |
Telecom Service One Holdings Limited Riley House, Portion B of Unit 1806 and Unit 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
Industry
| Diversified Support Services | |
| Commercial Services |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/24 12:55 |
| End of day share price update: | 2019/04/24 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.
