SEHK:1617

Stock Analysis Report

Nanfang Communication Holdings

Executive Summary

Nanfang Communication Holdings Limited, investment holding company, manufactures and sells optical fiber cables in the People’s Republic of China.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Nanfang Communication Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1617's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

1617

2.4%

HK Communications

7.4%

HK Market


1 Year Return

-29.4%

1617

-18.8%

HK Communications

-22.7%

HK Market

Return vs Industry: 1617 underperformed the Hong Kong Communications industry which returned -18.8% over the past year.

Return vs Market: 1617 underperformed the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

1617IndustryMarket
7 Day0%2.4%7.4%
30 Day-9.4%-16.8%-11.2%
90 Day-27.5%-16.3%-17.3%
1 Year-28.3%-29.4%-16.6%-18.8%-19.9%-22.7%
3 Year91.8%82.3%-9.9%-17.1%-5.3%-14.8%
5 Yearn/a6.7%-7.5%-8.7%-23.4%

Price Volatility Vs. Market

How volatile is Nanfang Communication Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nanfang Communication 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: 1617 (HK$3.19) is trading below our estimate of fair value (HK$22.89)

Significantly Below Fair Value: 1617 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1617 is poor value based on its PE Ratio (25.9x) compared to the Communications industry average (15.1x).

PE vs Market: 1617 is poor value based on its PE Ratio (25.9x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1617's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1617 is overvalued based on its PB Ratio (3.9x) compared to the HK Communications industry average (0.9x).


Next Steps

Future Growth

How is Nanfang Communication Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.6%

Forecasted Tech 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 Nanfang Communication 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 Nanfang Communication Holdings performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1617 has high quality earnings.

Growing Profit Margin: 1617's current net profit margins (14.9%) are lower than last year (16.9%).


Past Earnings Growth Analysis

Earnings Trend: 1617's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: 1617's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1617 had negative earnings growth (-17.6%) over the past year, making it difficult to compare to the Communications industry average (-17.6%).


Return on Equity

High ROE: 1617's Return on Equity (15.2%) is considered low.


Next Steps

Financial Health

How is Nanfang Communication Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1617's short term assets (CN¥1.4B) exceed its short term liabilities (CN¥860.8M).

Long Term Liabilities: 1617's short term assets (CN¥1.4B) exceed its long term liabilities (CN¥23.5M).


Debt to Equity History and Analysis

Debt Level: 1617's debt to equity ratio (49.1%) is considered high.

Reducing Debt: 1617's debt to equity ratio has reduced from 112.9% to 49.1% over the past 5 years.

Debt Coverage: 1617's debt is well covered by operating cash flow (62.3%).

Interest Coverage: 1617's interest payments on its debt are well covered by EBIT (349.3x coverage).


Balance Sheet

Inventory Level: 1617 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1617's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

What is Nanfang Communication Holdings's current dividend yield, its reliability and sustainability?

2.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1617's dividend (2.14%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 1617's dividend (2.14%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1617 has been paying a dividend for less than 10 years.

Growing Dividend: 1617's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), 1617's dividend 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

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

3.8yrs

Average management tenure


CEO

Ming Shi (48yo)

no data

Tenure

CN¥2,176,000

Compensation

Mr. Ming Shi serves as the Chief Executive Officer of Nanfang Communication Holdings Ltd. Mr. Shi served as a General Manager of Nanfang Communication in June 2007. Mr. Shi is responsible for overseeing ov ...


CEO Compensation Analysis

Compensation vs Market: Ming's total compensation ($USD306.53K) is about average for companies of similar size in the Hong Kong market ($USD335.42K).

Compensation vs Earnings: Ming's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ming Shi
CEO & Executive Directorno dataCN¥2.18mno data
Rumin Yu
Executive Director3.83yrsCN¥631.00kno data
Ruping Yu
Executive Director3.83yrsCN¥758.00kno data
Moon Fong Lo
Finance Manager & Company Secretary3.67yrsno datano data
Xiaolei Zhu
General Manager of Sales4yrsno datano data
Zhengou Huang
Head of Production Management Centre & Deputy GM4yrsno datano data
Chunlan Dong
Head of Supply Chain Management Centre4yrsno datano data

3.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 1617's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ming Shi
CEO & Executive Directorno dataCN¥2.18mno data
Rumin Yu
Executive Director3.83yrsCN¥631.00kno data
Ruping Yu
Executive Director3.83yrsCN¥758.00kno data
Kai Wing Chan
Independent Non-Executive Director3.25yrsCN¥162.00kno data
Chi Keung Lam
Independent Non-Executive Director3.25yrsCN¥162.00kno data
Jinlai Yu
Chairmanno dataCN¥265.00kno data
Wing Kuen Wu
Independent Non-Executive Director3.25yrsCN¥183.00kno data

3.5yrs

Average Tenure

49yo

Average Age

Experienced Board: 1617'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.


Ownership Breakdown

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


Top Shareholders

Company Information

Nanfang Communication Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nanfang Communication Holdings Limited
  • Ticker: 1617
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$3.573b
  • Shares outstanding: 1.12b
  • Website: https://www.jsnfgroup.com

Number of Employees


Location

  • Nanfang Communication Holdings Limited
  • 1 Cencun Road
  • Luoyang Town
  • Changzhou
  • Jiangsu Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1617SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2016

Biography

Nanfang Communication Holdings Limited, investment holding company, manufactures and sells optical fiber cables in the People’s Republic of China. The company is also involved in the research and development of communication devices and accessories; and the provision of technology consultation and transfer of technology. Its customers primarily include national and regional telecommunications network operators and telecommunications supporting services providers. The company was founded in 2005 and is headquartered in Changzhou, the People’s Republic of China. Nanfang Communication Holdings Limited is a subsidiary of Pacific Mind Development Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 14:13
End of Day Share Price2020/03/30 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.