Asiainfo Technologies (SEHK:1675) - Share price, News & Analysis

Q: What is the Fair Price of 1675 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1675 (HK$13.6) is trading below our estimate of [[fair value]] (HK$20)

1675 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

1675 Stock Overview

Rewards

Trading at 32% below our estimate of its fair value

Earnings are forecast to grow 12.45% per year

Earnings grew by 18.7% over the past year

Risk Analysis

Unstable dividend track record

Asiainfo Technologies Competitors

Inspur International

SEHK:596

HK$3.2b

Founder Holdings

SEHK:418

HK$731.8m

BII Railway Transportation Technology Holdings

SEHK:1522

HK$775.9m

Sinosoft Technology Group

SEHK:1297

HK$660.1m

Price History & Performance

Summary of all time highs, changes and price drops for Asiainfo Technologies
Historical stock prices
Current Share Price	HK$13.60
52 Week High	HK$15.68
52 Week Low	HK$10.78
Beta	0.059
1 Month Change	3.03%
3 Month Change	-2.86%
1 Year Change	3.82%
3 Year Change	81.33%
5 Year Change	n/a
Change since IPO	35.73%

Recent News & Updates

Jun 10

Is Asiainfo Technologies Limited (HKG:1675) Trading At A 32% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Asiainfo Technologies...

May 11

Asiainfo Technologies (HKG:1675) Is Experiencing Growth In Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Shareholder Returns

	1675	HK Software	HK Market
7D	-0.9%	0.8%	2.1%
1Y	3.8%	-52.0%	-23.3%

Return vs Industry: 1675 exceeded the Hong Kong Software industry which returned -52% over the past year.

Return vs Market: 1675 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 1675's price volatile compared to industry and market?
1675 volatility
1675 Average Weekly Movement	3.6%
Software Industry Average Movement	8.6%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 1675 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1675's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	13,332	Nianshu Gao	https://www.asiainfo.com

Asiainfo Technologies Limited, an investment holding company, offers telecom software products and related services for the telecom, postal, transportation, government affairs, finance, and energy industries in the People’s Republic of China. Its software product portfolio includes AISWare billing, bigdata, customer relationship management, AiDO, intelligent operation, Internet of Things, artificial intelligence platform, AsiaInfo infrastructure foundations, 5G network intelligence, RPA, and AIOps. The company also offers deployment services, including demand analysis, project design and planning, software development and sourcing, system installation and launch, and trial operation and acceptance services; and operation and maintenance services.

Asiainfo Technologies Fundamentals Summary

How do Asiainfo Technologies's earnings and revenue compare to its market cap?
1675 fundamental statistics
Market Cap	CN¥10.76b
Earnings (TTM)	CN¥785.73m
Revenue (TTM)	CN¥6.89b

13.7x

P/E Ratio

1.6x

P/S Ratio

Is 1675 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1675 income statement (TTM)
Revenue	CN¥6.89b
Cost of Revenue	CN¥4.25b
Gross Profit	CN¥2.65b
Other Expenses	CN¥1.86b
Earnings	CN¥785.73m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.85
Gross Margin	38.37%
Net Profit Margin	11.40%
Debt/Equity Ratio	0%

How did 1675 perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

40%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1675 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1675?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1675. This is calculated by dividing 1675's market cap by their current preferred multiple.
What is 1675's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥10.76b

1675 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	9.6x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 1675's PE Ratio compare to its peers?

1675 PE Ratio vs Peers

The above table shows the PE ratio for 1675 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.4x
596 Inspur International	49x	19.7%	HK$3.2b
418 Founder Holdings	16.8x	n/a	HK$731.8m
1522 BII Railway Transportation Technology Holdings	4.1x	n/a	HK$775.9m
1297 Sinosoft Technology Group	35.6x	n/a	HK$660.1m
1675 Asiainfo Technologies	13.7x	12.4%	HK$12.6b

Forward PE

Price-To-Earnings vs Peers: 1675 is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (26.4x).

Price to Earnings Ratio vs Industry

How does 1675's PE Ratio compare vs other companies in the Asian Software Industry?

Price-To-Earnings vs Industry: 1675 is expensive based on its Price-To-Earnings Ratio (13.7x) compared to the Hong Kong Software industry average (11.1x)

Price to Earnings Ratio vs Fair Ratio

What is 1675's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1675 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.7x
Fair PE Ratio	19.1x

Price-To-Earnings vs Fair Ratio: 1675 is good value based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).

Share Price vs Fair Value

What is the Fair Price of 1675 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1675 (HK$13.6) is trading below our estimate of fair value (HK$20)

Significantly Below Fair Value: 1675 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 1675 is poor value based on its PEG Ratio (1.1x)

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Future Growth

How is Asiainfo Technologies forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1675's forecast earnings growth (12.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 1675's earnings (12.4% per year) are forecast to grow slower than the Hong Kong market (17% per year).

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

Revenue vs Market: 1675's revenue (10.8% per year) is forecast to grow faster than the Hong Kong market (10.3% per year).

High Growth Revenue: 1675's revenue (10.8% 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 (15.3%).

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Past Performance

How has Asiainfo Technologies performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

30.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1675 has high quality earnings.

Growing Profit Margin: 1675's current net profit margins (11.4%) are higher than last year (11%).

Past Earnings Growth Analysis

Earnings Trend: 1675's earnings have grown significantly by 30.1% per year over the past 5 years.

Accelerating Growth: 1675's earnings growth over the past year (18.7%) is below its 5-year average (30.1% per year).

Earnings vs Industry: 1675 earnings growth over the past year (18.7%) exceeded the Software industry -4.2%.

Return on Equity

High ROE: 1675's Return on Equity (12.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Asiainfo Technologies's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1675's short term assets (CN¥6.5B) exceed its short term liabilities (CN¥3.1B).

Long Term Liabilities: 1675's short term assets (CN¥6.5B) exceed its long term liabilities (CN¥244.4M).

Debt to Equity History and Analysis

Debt Level: 1675 is debt free.

Reducing Debt: 1675 has no debt compared to 5 years ago when its debt to equity ratio was 88.1%.

Debt Coverage: 1675 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1675 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.90%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1675's dividend (2.9%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 1675's dividend (2.9%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1675 has been paying a dividend for less than 10 years.

Growing Dividend: 1675's dividend payments have increased, but the company has only paid a dividend for 2 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.7%), 1675's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (48.3%), 1675's dividend payments are well covered by cash flows.

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Management

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

5.2yrs

Average management tenure

CEO

Nianshu Gao (58 yo)

5.92yrs

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

Experienced Management: 1675's management team is seasoned and experienced (5.2 years average tenure).

Board Members

Experienced Board: 1675's board of directors are considered experienced (3.5 years average tenure).

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.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31