SEHK:1620

Stock Analysis Report

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Executive Summary

Cteh Inc., an investment holding company, provides travel services in Canada and the United States.


Snowflake Analysis

Flawless balance sheet unattractive dividend payer.

Share Price & News

How has Cteh's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1620 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

1620

2.6%

HK Hospitality

4.1%

HK Market


1 Year Return

-20.3%

1620

-14.0%

HK Hospitality

-4.7%

HK Market

Return vs Industry: 1620 underperformed the Hong Kong Hospitality industry which returned -14% over the past year.

Return vs Market: 1620 underperformed the Hong Kong Market which returned -4.7% over the past year.


Shareholder returns

1620IndustryMarket
7 Day0%2.6%4.1%
30 Day-4.7%-5.2%4.2%
90 Day-14.8%18.9%11.7%
1 Year-18.0%-20.3%-12.1%-14.0%-1.2%-4.7%
3 Yearn/a-6.7%-14.1%7.7%-3.5%
5 Yearn/a8.4%-6.8%7.2%-10.1%

Price Volatility Vs. Market

How volatile is Cteh's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cteh undervalued compared to its fair value and its price relative to the market?

20.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1620 (HK$0.18) is trading above our estimate of fair value (HK$0.06)

Significantly Below Fair Value: 1620 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1620 is poor value based on its PE Ratio (20.5x) compared to the Hospitality industry average (15.9x).

PE vs Market: 1620 is poor value based on its PE Ratio (20.5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1620's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1620 is overvalued based on its PB Ratio (1.1x) compared to the HK Hospitality industry average (0.9x).


Next Steps

Future Growth

How is Cteh forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.8%

Forecasted Consumer Services industry annual growth in earnings


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

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


Next Steps

Past Performance

How has Cteh performed over the past 5 years?

-29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1620 has a high level of non-cash earnings.

Growing Profit Margin: 1620's current net profit margins (9.6%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: 1620's earnings have declined by -29.8% per year over the past 5 years.

Accelerating Growth: 1620's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1620 had negative earnings growth (-3.1%) over the past year, making it difficult to compare to the Hospitality industry average (-15.7%).


Return on Equity

High ROE: 1620's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Cteh's financial position?


Financial Position Analysis

Short Term Liabilities: 1620's short term assets (HK$201.8M) exceed its short term liabilities (HK$79.4M).

Long Term Liabilities: 1620's short term assets (HK$201.8M) exceed its long term liabilities (HK$6.0M).


Debt to Equity History and Analysis

Debt Level: 1620 is debt free.

Reducing Debt: 1620 had no debt 5 years ago.

Debt Coverage: 1620 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1620 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Cteh current dividend yield, its reliability and sustainability?

2.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1620's dividend (2.93%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.35%).

High Dividend: 1620's dividend (2.93%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.69%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1620's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1620's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.3%), 1620's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Annie Shuk (58yo)

2.17yrs

Tenure

HK$2,830,000

Compensation

Ms. Fong Tsu Shuk, also known as Annie, has been Chief Executive Officer at Cteh Inc. since May 07, 2018 and has been its Executive Director since August 18, 2017. She serves as President of Cteh Inc. and  ...


CEO Compensation Analysis

Compensation vs Market: Annie's total compensation ($USD365.16K) is above average for companies of similar size in the Hong Kong market ($USD226.42K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fong Tsang Pik
Chairperson2.17yrsHK$2.54mno data
Fong Tsu Shuk
CEO, President & Executive Director2.17yrsHK$2.83mno data
Fai Chiu Kin
Chief Financial Officer3.33yrsno datano data
Yu Chow Kai
Company Secretary2.83yrsno datano data

2.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: 1620's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fong Tsang Pik
Chairperson2.17yrsHK$2.54mno data
Fong Tsu Shuk
CEO, President & Executive Director2.17yrsHK$2.83mno data
Kwok Chun Chu
Non- Executive Director2.92yrsHK$480.00k7.5% HK$16.6m
Michael Ricco
Independent Non-Executive Director2.17yrsHK$150.00kno data
Yeung Yuk-Yee
Independent Non-Executive Director2.17yrsHK$150.00kno data
Yuen Lau Sik
Independent Non-Executive Director2.17yrsHK$240.00kno data

2.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 1620's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Cteh Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cteh Inc.
  • Ticker: 1620
  • Exchange: SEHK
  • Founded: 1976
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: HK$220.800m
  • Shares outstanding: 1.20b
  • Website: https://www.toureast.com

Number of Employees


Location

  • Cteh Inc.
  • 15 Kern Road
  • North York
  • Toronto
  • Ontario
  • M3B 1S9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1620SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2018

Biography

Cteh Inc., an investment holding company, provides travel services in Canada and the United States. The company operates through three segments: Air Ticket Distribution, Travel Business Process Management, and Travel Products and Services. The Air Ticket Distribution segment distributes air tickets to travel agents and travelers; and issue air tickets directly on behalf of contracted airlines. The Travel Business Process Management segment provides mid-office and back-office support services comprising air ticket transaction processing, customer contact, BSP/ARC settlement and reconciliation, software development, travel licensing, compliance, and other administrative services to travel agents. The Travel Products and Services Segment designs, develops, and sells package tours, as well as travel products and services to travel agents and travelers in Asia, Europe, the Middle East, North America, and South America. The company was founded in 1976 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 12:51
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.