SEHK:8071

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China Netcom Technology Holdings

Executive Summary

China Netcom Technology Holdings Limited, an investment holding company, provides financial technology services in the People’s Republic of China. More Details


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

How has China Netcom Technology Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8071 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: 8071's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

-3.2%

8071

14.0%

HK Software

3.5%

HK Market


1 Year Return

3.4%

8071

221.0%

HK Software

15.1%

HK Market

Return vs Industry: 8071 underperformed the Hong Kong Software industry which returned 221% over the past year.

Return vs Market: 8071 underperformed the Hong Kong Market which returned 15.1% over the past year.


Shareholder returns

8071IndustryMarket
7 Day-3.2%14.0%3.5%
30 Day0%36.1%12.7%
90 Day11.1%72.2%18.1%
1 Year3.4%3.4%222.5%221.0%19.7%15.1%
3 Year-81.7%-81.7%258.8%254.8%-5.1%-15.1%
5 Year-63.4%-63.4%398.0%386.4%65.1%37.0%

Long-Term Price Volatility Vs. Market

How volatile is China Netcom Technology Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Netcom Technology Holdings 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: 8071 (HK$0.03) is trading below our estimate of fair value (HK$0.1)

Significantly Below Fair Value: 8071 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8071 is unprofitable, so we can't compare its PE Ratio to the HK Software industry average.

PE vs Market: 8071 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8071's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8071 is overvalued based on its PB Ratio (3.5x) compared to the HK Software industry average (0.9x).


Next Steps

Future Growth

How is China Netcom Technology Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

32.6%

Forecasted Software 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 China Netcom Technology Holdings 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 China Netcom Technology Holdings performed over the past 5 years?

42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8071 is currently unprofitable.

Growing Profit Margin: 8071 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8071 is unprofitable, but has reduced losses over the past 5 years at a rate of 42.9% per year.

Accelerating Growth: Unable to compare 8071's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8071 is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (-7.4%).


Return on Equity

High ROE: 8071 has a negative Return on Equity (-102.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is China Netcom Technology Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8071's short term assets (HK$81.9M) exceed its short term liabilities (HK$46.9M).

Long Term Liabilities: 8071's short term assets (HK$81.9M) exceed its long term liabilities (HK$10.3M).


Debt to Equity History and Analysis

Debt Level: 8071's debt to equity ratio (39.9%) is considered satisfactory.

Reducing Debt: 8071's debt to equity ratio has reduced from 100.9% to 39.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 8071 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 8071 is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39.2% per year.


Next Steps

Dividend

What is China Netcom Technology Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8071's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8071's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8071's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8071'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 8071'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?

5.5yrs

Average management tenure


CEO

China Netcom Technology Holdings has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Haitao Sun
Executive Chairman3.42yrsHK$378.00kno data
Ke Zhao
Compliance Officer & Executive Director3.42yrsHK$516.00kno data
Yu Hon Lam
Company Secretary & Financial Controller3yrsno datano data
Zhi Wei Lin
Chief Technology Officerno datano datano data
Shi Kui Gao
Director of Business Development7.58yrsHK$30.00kno data
Hang Tat Lee
Deputy Financial Controller17.83yrsno datano data

5.5yrs

Average Tenure

45yo

Average Age

Experienced Management: 8071's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Haitao Sun
Executive Chairman3.42yrsHK$378.00kno data
Ke Zhao
Compliance Officer & Executive Director3.42yrsHK$516.00kno data
Bo Wu
Independent Non-Executive Director3.42yrsHK$150.00kno data
Tat Chi Yu
Independent Non- Executive Director3.42yrsHK$150.00kno data
Ke Song
Independent Non-Executive Director3.42yrsHK$150.00kno data

3.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 8071's board of directors are considered experienced (3.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

China Netcom Technology Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Netcom Technology Holdings Limited
  • Ticker: 8071
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$140.581m
  • Shares outstanding: 4.69b
  • Website: https://www.chinanetcomtech.com

Number of Employees


Location

  • China Netcom Technology Holdings Limited
  • Tower One, Lippo Centre
  • 10th Floor
  • Hong Kong
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8071SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2001

Biography

China Netcom Technology Holdings Limited, an investment holding company, provides financial technology services in the People’s Republic of China. It operates through Financial Technology Services Business...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 10:02
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
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.