SEHK:46

Stock Analysis Report

Computer And Technologies Holdings

Executive Summary

Computer And Technologies Holdings Limited, an investment holding company, provides information technology (IT) solutions for enterprises, multinational corporations, and government organizations primarily in Hong Kong and Mainland China.

Snowflake

Fundamentals

Flawless balance sheet with proven track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 46 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

46

-1.0%

HK IT

-1.9%

HK Market


1 Year Return

12.6%

46

-3.3%

HK IT

1.1%

HK Market

Return vs Industry: 46 exceeded the Hong Kong IT industry which returned -3.3% over the past year.

Return vs Market: 46 exceeded the Hong Kong Market which returned 1.1% over the past year.


Shareholder returns

46IndustryMarket
7 Day-2.4%-1.0%-1.9%
30 Day-0.3%1.5%1.7%
90 Day-5.8%11.5%7.0%
1 Year19.5%12.6%-1.7%-3.3%4.7%1.1%
3 Year44.1%18.4%-6.5%-10.9%22.6%10.3%
5 Year75.6%30.4%37.8%22.6%19.8%-0.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Computer And Technologies Holdings undervalued compared to its fair value and its price relative to the market?

8.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 46 (HK$3.22) is trading below our estimate of fair value (HK$3.51)

Significantly Below Fair Value: 46 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 46 is good value based on its PE Ratio (11.9x) compared to the IT industry average (12x).

PE vs Market: 46 is poor value based on its PE Ratio (11.9x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 46's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 46 is overvalued based on its PB Ratio (1.7x) compared to the HK IT industry average (1x).


Next Steps

Future Growth

How is Computer And Technologies Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 46's forecast earnings growth (1.9% per year) is below the savings rate (2%).

Earnings vs Market: 46's earnings (1.9% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 46's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 46's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 46's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 46's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Computer And Technologies Holdings performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 46 has high quality earnings.

Growing Profit Margin: 46's current net profit margins (23.4%) are higher than last year (23.2%).


Past Earnings Growth Analysis

Earnings Trend: 46's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: 46's earnings growth over the past year (8%) is below its 5-year average (8% per year).

Earnings vs Industry: 46 earnings growth over the past year (8%) exceeded the IT industry -4.3%.


Return on Equity

High ROE: 46's Return on Equity (13.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Computer And Technologies Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 46's short term assets (HK$357.6M) exceeds its short term liabilities (HK$147.2M)

Long Term Liabilities: 46's short term assets (357.6M) exceeds its long term liabilities (20.7M)


Debt to Equity History and Analysis

Debt Level: 46 is debt free.

Reducing Debt: 46 has not had any debt for past 5 years.

Debt Coverage: 46 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 46 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 46 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 46's debt is covered by short term assets.


Next Steps

Dividend

What is Computer And Technologies Holdings's current dividend yield, its reliability and sustainability?

7.45%

Current Dividend Yield


Dividend Yield vs Market

company7.5%marketbottom25%2.2%markettop25%6.3%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 46's dividend (7.45%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 46's dividend (7.45%) is in the top 25% of dividend payers in the Hong Kong market (6.29%)


Stability and Growth of Payments

Stable Dividend: 46's dividend payments have been volatile in the past 10 years.

Growing Dividend: 46's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.8%), 46's 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

What is the CEO of Computer And Technologies Holdings's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Derek Cheung (55yo)

3.6yrs

Tenure

HK$3,077,000

Compensation

Mr. Wai Lam Cheung, also known as Derek, has been Chief Executive Officer of Computer & Technologies Holdings Ltd. since April 1, 2016. Mr. Cheung served as Deputy Chief Executive Officer of Computer & Te ...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD393.18K) is above average for companies of similar size in the Hong Kong market ($USD216.21K).

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


Management Age and Tenure

2.7yrs

Average Tenure

54yo

Average Age

Experienced Management: 46's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

15.3yrs

Average Tenure

58yo

Average Age

Experienced Board: 46's board of directors are seasoned and experienced ( 15.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyHK$508,21927 Mar 19
David Webb
EntityIndividual
Shares142,000
Max PriceHK$3.58
BuyHK$1,808,10131 Dec 18
Cheung Ng
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares630,000
Max PriceHK$2.87

Ownership Breakdown

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


Management Team

  • Steve Yeung (53yo)

    Senior VP of Corporate Development & Application Software Business Unit

    • Tenure: 0yrs
  • Sunny Leung (58yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$320.00k
  • Cheung Ng (57yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: HK$3.87m
  • Derek Cheung (55yo)

    CEO & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$3.08m
  • Kelvin Ng (45yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$2.39m
  • Erik Kwok (40yo)

    Chief Technology Officer

    • Tenure: 1.8yrs
  • William Poon

    Group’s Deputy Chief Executive Officer

    • Tenure: 0.6yrs

Board Members

  • Stephen Ting (65yo)

    Independent Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: HK$162.00k
  • Sunny Leung (58yo)

    Executive Director

    • Tenure: 0yrs
    • Compensation: HK$320.00k
  • Matthew Lee (59yo)

    Independent Non-Executive Director

    • Tenure: 21.8yrs
    • Compensation: HK$158.00k
  • Cheung Ng (57yo)

    Founder & Chairman

    • Tenure: 0yrs
    • Compensation: HK$3.87m
  • Albert Ha (70yo)

    Independent Non-Executive Director

    • Tenure: 21.8yrs
    • Compensation: HK$158.00k
  • Derek Cheung (55yo)

    CEO & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$3.08m
  • Kelvin Ng (45yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 3.6yrs
    • Compensation: HK$2.39m

Company Information

Computer And Technologies Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Computer And Technologies Holdings Limited
  • Ticker: 46
  • Exchange: SEHK
  • Founded: 1991
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$815.827m
  • Shares outstanding: 249.49m
  • Website: https://www.ctil.com

Number of Employees


Location

  • Computer And Technologies Holdings Limited
  • Cyberport 2
  • Level 10
  • Hong kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
46SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1998
CVBDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1998

Biography

Computer And Technologies Holdings Limited, an investment holding company, provides information technology (IT) solutions for enterprises, multinational corporations, and government organizations primarily ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 12:35
End of Day Share Price2019/11/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.