SEHK:1675

Stock Analysis Report

Asiainfo Technologies

Executive Summary

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


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.4%

1675

0.3%

HK Software

1.1%

HK Market


1 Year Return

10.3%

1675

-0.04%

HK Software

-21.6%

HK Market

Return vs Industry: 1675 exceeded the Hong Kong Software industry which returned -0% over the past year.

Return vs Market: 1675 exceeded the Hong Kong Market which returned -21.6% over the past year.


Shareholder returns

1675IndustryMarket
7 Day6.4%0.3%1.1%
30 Day-4.3%-8.3%-10.2%
90 Day13.3%19.5%-16.1%
1 Year10.3%10.3%0.2%-0.04%-18.8%-21.6%
3 Yearn/a32.8%31.4%-3.1%-12.8%
5 Yearn/a-9.5%-13.6%-13.5%-27.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1675 (HK$10.2) is trading below our estimate of fair value (HK$25.14)

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


Price To Earnings Ratio

PE vs Industry: 1675 is poor value based on its PE Ratio (16.5x) compared to the Software industry average (15.3x).

PE vs Market: 1675 is poor value based on its PE Ratio (16.5x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1675 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 1675 is overvalued based on its PB Ratio (1.7x) compared to the HK Software industry average (1x).


Next Steps

Future Growth

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

24.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1675's forecast earnings growth (24.2% per year) is above the savings rate (1.6%).

Earnings vs Market: 1675's earnings (24.2% per year) are forecast to grow faster than the Hong Kong market (11.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1675's revenue (11.3% per year) is forecast to grow faster than the Hong Kong market (10% per year).

High Growth Revenue: 1675's revenue (11.3% 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 (17%).


Next Steps

Past Performance

How has Asiainfo Technologies performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1675 has high quality earnings.

Growing Profit Margin: 1675's current net profit margins (7.1%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: 1675's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: 1675's earnings growth over the past year (99%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: 1675 earnings growth over the past year (99%) exceeded the Software industry 15%.


Return on Equity

High ROE: 1675's Return on Equity (10.5%) 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¥4.7B) exceed its short term liabilities (CN¥3.5B).

Long Term Liabilities: 1675's short term assets (CN¥4.7B) exceed its long term liabilities (CN¥162.4M).


Debt to Equity History and Analysis

Debt Level: 1675's debt to equity ratio (15.2%) 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 (91.9%).

Interest Coverage: 1675's interest payments on its debt are well covered by EBIT (85.4x coverage).


Balance Sheet

Inventory Level: 1675 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1675's debt is covered by short term assets (assets are 7.9x debt).


Next Steps

Dividend

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

3.53%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1675's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1675's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1675's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1675's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1675's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Nianshu Gao (56yo)

3.75s

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. He ser ...


Leadership Team

NamePositionTenureCompensationOwnership
Suning Tian
Chairmanno datano data14.09% CN¥1.0b
Nianshu Gao
CEO & Executive Director3.75yrsno datano data
Ying Huang
Senior VP & CFO3yrsno datano data
Ye Ouyang
VP, CTO & Head of Product Research and Development Center1.75yrsno datano data
Jianhua Ding
Executive Director1.83yrsno data1.74% CN¥129.9m
Wu Chen
Senior VP & GM of Business Development and Government Affairs Center5.17yrsno datano data
Bin Liang
Senior VP & GM of the Business Division for China Mobile1.25yrsno datano data
Wing Yu
Company Secretaryno datano datano data
Qiongxiu He
Joint Company Secretary1.42yrsno datano data

2.4yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 1675's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Suning Tian
Chairmanno datano data14.09% CN¥1.0b
Nianshu Gao
CEO & Executive Director3.75yrsno datano data
Jianhua Ding
Executive Director1.83yrsno data1.74% CN¥129.9m
Yichen Zhang
Non-Executive Director1.83yrsno datano data
Qunyao Gao
Independent Non-executive Director1.33yrsno datano data
Ming Ge
Independent Non-Executive Director1.33yrsno datano data
Yuesheng Xin
Non-Executive Director1.83yrsno datano data
Ya-Qin Zhang
Independent Non-Executive Director1.33yrsno datano data
Liyang Zhang
Non-Executive Director1.83yrsno datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Board: 1675's board of directors are not considered experienced ( 1.8 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.1%.


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$7.449b
  • Shares outstanding: 728.86m
  • Website: https://www.asiainfo.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1675SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2018

Biography

Asiainfo Technologies Limited, an investment holding company, provides telecom software products and related services for the cable TV, postal, financial, power grid, and automobile industries in the People’s Republic of China. It operates through Software Business and Network Security Business segments. The company 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. The company also provides data-driven operation services; and other services, including system integration services, business consulting services, and corporate training services, as well as sales of third-party hardware and software. In addition, it offers network security related software products and services. The company was founded in 1993 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 13:13
End of Day Share Price2020/04/03 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.