SEHK:1675

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Asiainfo Technologies

Executive Summary

Asiainfo Technologies Limited, an investment holding company, provides telecom software products and related services for the cable TV, postal, financial, telecom, energy, transportation, power grid, and automobile industries in the People’s Republic of China. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1675 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1675's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

1675

4.1%

HK Software

2.2%

HK Market


1 Year Return

6.2%

1675

167.4%

HK Software

7.2%

HK Market

Return vs Industry: 1675 underperformed the Hong Kong Software industry which returned 164.3% over the past year.

Return vs Market: 1675 underperformed the Hong Kong Market which returned 7.5% over the past year.


Shareholder returns

1675IndustryMarket
7 Day-0.6%4.1%2.2%
30 Day-7.1%17.8%8.4%
90 Day-9.5%43.7%15.6%
1 Year9.0%6.2%168.6%167.4%11.4%7.2%
3 Yearn/a224.9%221.3%-3.4%-13.5%
5 Yearn/a366.2%355.5%65.4%37.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1675 (HK$10.48) is trading below our estimate of fair value (HK$10.81)

Significantly Below Fair Value: 1675 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 1675 is good value based on its PE Ratio (11.2x) compared to the HK Software industry average (22.2x).

PE vs Market: 1675 is good value based on its PE Ratio (11.2x) compared to the Hong Kong market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: 1675 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1675 is overvalued based on its PB Ratio (1.6x) compared to the HK Software industry average (0.9x).


Next Steps

Future Growth

How is Asiainfo Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

17.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1675's forecast earnings growth (17.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 1675's earnings (17.8% per year) are forecast to grow slower than the Hong Kong market (21% per year).

High Growth Earnings: 1675's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1675's revenue (14.1% per year) is forecast to grow slower than the Hong Kong market (14.1% per year).

High Growth Revenue: 1675's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1675's Return on Equity is forecast to be low in 3 years time (13.1%).


Next Steps

Past Performance

How has Asiainfo Technologies performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1675 has high quality earnings.

Growing Profit Margin: 1675's current net profit margins (9.9%) are higher than last year (3.4%).


Past Earnings Growth Analysis

Earnings Trend: 1675's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: 1675's earnings growth over the past year (201.4%) exceeds its 5-year average (14.8% per year).

Earnings vs Industry: 1675 earnings growth over the past year (201.4%) exceeded the Software industry -7.4%.


Return on Equity

High ROE: 1675's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Asiainfo Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 1675's short term assets (CN¥4.9B) exceed its short term liabilities (CN¥3.4B).

Long Term Liabilities: 1675's short term assets (CN¥4.9B) exceed its long term liabilities (CN¥248.3M).


Debt to Equity History and Analysis

Debt Level: 1675's debt to equity ratio (21.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1675's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1675's debt is well covered by operating cash flow (84.3%).

Interest Coverage: 1675 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Asiainfo Technologies's current dividend yield, its reliability and sustainability?

2.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1675's dividend (2.58%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.13%).

High Dividend: 1675's dividend (2.58%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.66%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 1675's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1675's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.8%), 1675's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1675's dividends in 3 years are forecast to be well covered by earnings (37% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Nianshu Gao (57 yo)

4.5yrs

Tenure

Mr. Nianshu Gao serves as Deputy General Manager of data service department of China Mobile Communications Corporations (CMCC). Mr. Gao serves as Executive Director of Asiainfo Technologies Limited since A...


Leadership Team

NamePositionTenureCompensationOwnership
Suning Tian
Executive Chairmanno datano data9.78%
CN¥ 938.2m
Nianshu Gao
CEO & Executive Director4.5yrsno data0.51%
CN¥ 49.0m
Ying Huang
Senior VP & CFO3.75yrsno datano data
Ye Ouyang
Senior VP2.5yrsno datano data
Wu Chen
Senior VP and GM of the Public & Government Affairs Center0.67yrno datano data
Jianhua Ding
Executive Director7yrsno data1.39%
CN¥ 133.3m
Bin Liang
Senior VP & GM of the Business Division for China Mobile4yrsno datano data
Wing Sze Yu
Company Secretaryno datano datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: 1675's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Suning Tian
Executive Chairmanno datano data9.78%
CN¥ 938.2m
Nianshu Gao
CEO & Executive Director4.5yrsno data0.51%
CN¥ 49.0m
Jianhua Ding
Executive Director7yrsno data1.39%
CN¥ 133.3m
Yichen Zhang
Non-Executive Director2.58yrsno datano data
Qunyao Gao
Independent Non-Executive Director2.08yrsno datano data
Ming Ge
Independent Non-Executive Director2.08yrsno datano data
Yuesheng Xin
Non-Executive Director8.42yrsno datano data
Ya-Qin Zhang
Independent Non-Executive Director2.08yrsno datano data
Liyang Zhang
Non-Executive Director3yrsno datano data
Lin Yang
Non-Executive Director0.33yrno datano data
Ping Tao
Independent Non-Executive Director0.33yrno datano data
Hong Liu
Non-Executive Director0.33yrno datano data

2.1yrs

Average Tenure

56yo

Average Age

Experienced Board: 1675's board of directors are not considered experienced ( 2.1 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: 1675 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.1%.


Top Shareholders

Company Information

Asiainfo Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Asiainfo Technologies Limited
  • Ticker: 1675
  • Exchange: SEHK
  • Founded: 1993
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$9.597b
  • Shares outstanding: 915.77m
  • Website: https://www.asiainfo.com

Number of Employees


Location

  • Asiainfo Technologies Limited
  • AsiaInfo Plaza, Dong Qu
  • 10 Xibeiwang Dong Lu
  • Beijing
  • Beijing Province
  • 100193
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1675SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2018
51NDUSE (Dusseldorf Stock Exchange)YesOrdinary SharesDEEURDec 2018
1675SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDDec 2018

Biography

Asiainfo Technologies Limited, an investment holding company, provides telecom software products and related services for the cable TV, postal, financial, telecom, energy, transportation, power grid, and a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:09
End of Day Share Price2021/01/15 00:00
Earnings2020/06/30
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.