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Nanfang Communication Holdings

SEHK:1617
Snowflake Description

Flawless balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1617
SEHK
HK$5B
Market Cap
  1. Home
  2. HK
  3. Tech
Company description

Nanfang Communication Holdings Limited, investment holding company, manufactures and sells optical fiber cables in the People’s Republic of China. The last earnings update was 23 days ago. More info.


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1617 Share Price and Events
7 Day Returns
0.7%
SEHK:1617
-6.6%
HK Communications
-2.5%
HK Market
1 Year Returns
-2.5%
SEHK:1617
-29.8%
HK Communications
-15.9%
HK Market
1617 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Nanfang Communication Holdings (1617) 0.7% -9.9% -13.5% -2.5% - -
HK Communications -6.6% -14.4% -12.8% -29.8% 18.8% -3%
HK Market -2.5% -8.6% -2.1% -15.9% 25.4% 7.8%
1 Year Return vs Industry and Market
  • 1617 outperformed the Communications industry which returned -29.8% over the past year.
  • 1617 outperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
1617
Industry
5yr Volatility vs Market

Value

 Is Nanfang Communication Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Nanfang Communication Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Nanfang Communication Holdings.

SEHK:1617 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:1617
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 25%) (7.63%))
1.088
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.088 * 5.96%)
8.49%

Discounted Cash Flow Calculation for SEHK:1617 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Nanfang Communication Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:1617 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.49%)
2019 134.20 Est @ 79.69% 123.70
2020 209.88 Est @ 56.39% 178.32
2021 293.98 Est @ 40.07% 230.22
2022 378.21 Est @ 28.65% 273.01
2023 456.33 Est @ 20.66% 303.63
2024 525.05 Est @ 15.06% 322.02
2025 583.56 Est @ 11.14% 329.89
2026 632.59 Est @ 8.4% 329.63
2027 673.59 Est @ 6.48% 323.53
2028 708.20 Est @ 5.14% 313.53
Present value of next 10 years cash flows CN¥2,727.48
SEHK:1617 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥708.20 × (1 + 2%) ÷ (8.49% – 2%)
CN¥11,136.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥11,136.89 ÷ (1 + 8.49%)10
CN¥4,930.48
SEHK:1617 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥2,727.48 + CN¥4,930.48
CN¥7,657.96
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥7,657.96 / 1,120.00
CN¥6.84
SEHK:1617 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:1617)
1.135
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥6.84 x 1.135
HK$7.76
Value per share (HKD) From above. HK$7.76
Current discount Discount to share price of HK$4.29
= -1 x (HK$4.29 - HK$7.76) / HK$7.76
44.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Nanfang Communication Holdings is available for.
Intrinsic value
45%
Share price is HK$4.29 vs Future cash flow value of HK$7.76
Current Discount Checks
For Nanfang Communication Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Nanfang Communication Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Nanfang Communication Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Nanfang Communication Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Nanfang Communication Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:1617 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.13
SEHK:1617 Share Price ** SEHK (2019-05-17) in HKD HK$4.29
SEHK:1617 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥3.78
Hong Kong Communications Industry PE Ratio Median Figure of 14 Publicly-Listed Communications Companies 11.47x
Hong Kong Market PE Ratio Median Figure of 1,476 Publicly-Listed Companies 11.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Nanfang Communication Holdings.

SEHK:1617 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:1617 Share Price ÷ EPS (both in CNY)

= 3.78 ÷ 0.13

29.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nanfang Communication Holdings is overvalued based on earnings compared to the HK Communications industry average.
  • Nanfang Communication Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Nanfang Communication Holdings's expected growth come at a high price?
Raw Data
SEHK:1617 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 29.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Asia Communications Industry PEG Ratio Median Figure of 9 Publicly-Listed Communications Companies 0.83x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Nanfang Communication Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Nanfang Communication Holdings's assets?
Raw Data
SEHK:1617 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥0.76
SEHK:1617 Share Price * SEHK (2019-05-17) in HKD HK$4.29
SEHK:1617 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.881 CN¥3.78
Hong Kong Communications Industry PB Ratio Median Figure of 25 Publicly-Listed Communications Companies 1.11x
Hong Kong Market PB Ratio Median Figure of 2,155 Publicly-Listed Companies 0.97x
SEHK:1617 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:1617 Share Price ÷ Book Value per Share (both in CNY)

= 3.78 ÷ 0.76

4.98x

* Primary Listing of Nanfang Communication Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Nanfang Communication Holdings is overvalued based on assets compared to the HK Communications industry average.
X
Value checks
We assess Nanfang Communication Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Nanfang Communication Holdings has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected Communications industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Nanfang Communication Holdings expected to grow at an attractive rate?
  • Unable to compare Nanfang Communication Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Nanfang Communication Holdings's earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare Nanfang Communication Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:1617 Future Growth Rates Data Sources
Data Point Source Value (per year)
Hong Kong Communications Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Hong Kong Communications Industry Revenue Growth Rate Market Cap Weighted Average 8.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:1617 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:1617 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2019-12-31
SEHK:1617 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 900 105 141
2018-09-30 905 35 147
2018-06-30 909 -35 153
2018-03-31 905 -7 142
2017-12-31 901 21 130
2017-09-30 869 9 117
2017-06-30 837 -3 103
2017-03-31 821 15 102
2016-12-31 806 34 100

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Nanfang Communication Holdings is high growth as no earnings estimate data is available.
  • Unable to determine if Nanfang Communication Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:1617 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Nanfang Communication Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1617 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2019-12-31 0.31 0.31 0.31 1.00
SEHK:1617 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.13
2018-09-30 0.13
2018-06-30 0.14
2018-03-31 0.13
2017-12-31 0.12
2017-09-30 0.11
2017-06-30 0.10
2017-03-31 0.11
2016-12-31 0.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Nanfang Communication Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Nanfang Communication Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Nanfang Communication Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Nanfang Communication Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Nanfang Communication Holdings's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Nanfang Communication Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Nanfang Communication Holdings's 1-year earnings growth is less than its 5-year average (8.5% vs 28.5%)
  • Nanfang Communication Holdings's earnings growth has not exceeded the HK Communications industry average in the past year (8.5% vs 8.5%).
Earnings and Revenue History
Nanfang Communication Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Nanfang Communication Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:1617 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 900.30 141.43 55.47 45.71
2018-09-30 904.75 147.41 54.91 41.83
2018-06-30 909.21 153.40 55.74 37.95
2018-03-31 905.27 141.86 53.94 37.96
2017-12-31 901.33 130.33 50.76 37.98
2017-09-30 869.14 116.81 46.60 34.27
2017-06-30 836.96 103.29 42.44 30.56
2017-03-31 821.44 101.66 39.42 28.96
2016-12-31 805.92 100.03 36.40 27.36
2015-12-31 612.64 72.15 25.46 20.10
2014-12-31 380.61 23.49 17.52 12.22
2013-12-31 265.16 14.58 15.41 7.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Nanfang Communication Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Nanfang Communication Holdings used its assets more efficiently than the HK Communications industry average last year based on Return on Assets.
  • Nanfang Communication Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Nanfang Communication Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Nanfang Communication Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Nanfang Communication Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Nanfang Communication Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Nanfang Communication Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Nanfang Communication Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Nanfang Communication Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Nanfang Communication Holdings Company Filings, last reported 4 months ago.

SEHK:1617 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 850.38 323.01 403.30
2018-09-30 850.38 323.01 403.30
2018-06-30 777.65 278.29 314.68
2018-03-31 777.65 278.29 314.68
2017-12-31 781.36 180.98 393.29
2017-09-30 781.36 180.98 393.29
2017-06-30 695.46 247.59 366.52
2017-03-31 695.46 247.59 366.52
2016-12-31 677.85 314.15 438.77
2015-12-31 331.35 368.08 190.87
2014-12-31 264.19 334.13 81.61
2013-12-31 240.70 236.22 105.33
  • Nanfang Communication Holdings's level of debt (38%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (98.2% vs 38% today).
  • Debt is well covered by operating cash flow (32.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 115.4x coverage).
X
Financial health checks
We assess Nanfang Communication Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Nanfang Communication Holdings has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.65%
Current annual income from Nanfang Communication Holdings dividends.
If you bought HK$2,000 of Nanfang Communication Holdings shares you are expected to receive HK$33 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Nanfang Communication Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Nanfang Communication Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
Upcoming dividend payment

Purchase Nanfang Communication Holdings before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:1617 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Communications Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:1617 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2019-12-31
SEHK:1617 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.063 1.663
2019-03-26 0.063 1.561
2018-04-26 0.061 1.566
2017-04-27 0.022 0.980

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Nanfang Communication Holdings has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Nanfang Communication Holdings only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Nanfang Communication Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Nanfang Communication Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Nanfang Communication Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Nanfang Communication Holdings has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Nanfang Communication Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ming Shi
COMPENSATION CN¥1,607,000
AGE 47
CEO Bio

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 overall management and operations, investment strategies and business development. Mr. Shi serves as a Director of Century Planet, Nanfang Hong Kong, Changzhou Delong, Yingke and Nanfang Optic. Mr. Shi has over 15 years of experience in enterprise management and his working experience is set forth in the table below. He worked in Energy exploration, drilling and exploitation business at Yizheng Chemical Fibre Company Limited from 1996 to 1999. Mr. Shi served as a Branch Manager of Nanjing Office at Metso Minerals (Tianjin) International Trading Company Limited from 1999 to 2001 and responsible for developing marketing plans and monitoring its implementation in Mining, Construction and Power Generation Business. Mr. Shi served as Chief Representative of Nanjing Office at General Electric (China) Co., Ltd from 2001 to 2004 and responsible for the business development, planning of marketing and product development strategies. Mr. Shi served as an Assistant Vice President of Business Development at Siemens Limited China from 2004 to 2007. He served as a Director since May 10, 2016 and designated as an Executive Director since June 22, 2016 at Nanfang Communication Holdings Ltd. Mr. Shi received Industry Outstanding Contribution Award from Communication Cable and Fibre Optic Cable Professional Committee of CACE in 2011. Mr. Shi serves as Director at Century Planet Limited , Nanfang Communication Group Limited, MacroSmart Investment Limited, Jiangsu Yingke Communication Technology Company Limited and Nanfang Optic. Mr. Shi had worked in a number of well-known PRC corporations and multinational corporations and has over 15 years of experience in enterprise management. He was awarded “Innovative Individual in Telecommunications Industry in the PRC by CCTIME.com in 2015 and the “National May Day Brand Construction Award – Leading Person in 2016 China Brand Innovation Forum and National May Day Brand Construction Award Electing activities in May 2016. Mr. Shi is a qualified senior operating Manager. Mr. Shi has been admitted to the Doctoral of Professional Studies in Business program at the Gabelli School of Business in the Fordham University, the United States. Mr. Shi holds a Bachelor Degree in Chemical Engineering from Jiangsu Institute of Petrochemical Technology (currently known as Changzhou University) in July 1994 and a Bachelor Degree in Industrial Foreign Trade from Nanjing University of Science and Technology in July 1996.

CEO Compensation
  • Ming's compensation has increased by more than 20% in the past year.
  • Ming's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Nanfang Communication Holdings management team in years:

3
Average Tenure
47
Average Age
  • The tenure for the Nanfang Communication Holdings management team is about average.
Management Team

Ming Shi

TITLE
CEO & Executive Director
COMPENSATION
CN¥2M
AGE
47

Rumin Yu

TITLE
Executive Director
COMPENSATION
CN¥799K
AGE
41
TENURE
2.9 yrs

Ruping Yu

TITLE
Executive Director
COMPENSATION
CN¥579K
AGE
43
TENURE
2.9 yrs

Moon Fong Lo

TITLE
Finance Manager & Company Secretary
AGE
42
TENURE
2.9 yrs

Xiaolei Zhu

TITLE
General Manager of Sales
AGE
50
TENURE
3.2 yrs

Zhengou Huang

TITLE
Head of Production Management Centre & Deputy GM
AGE
57
TENURE
3.2 yrs

Chunlan Dong

TITLE
Head of Supply Chain Management Centre
AGE
47
TENURE
3.2 yrs
Board of Directors Tenure

Average tenure and age of the Nanfang Communication Holdings board of directors in years:

2.8
Average Tenure
48
Average Age
  • The average tenure for the Nanfang Communication Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jinlai Yu

TITLE
Chairman
COMPENSATION
CN¥269K
AGE
70

Ming Shi

TITLE
CEO & Executive Director
COMPENSATION
CN¥2M
AGE
47
TENURE
3 yrs

Rumin Yu

TITLE
Executive Director
COMPENSATION
CN¥799K
AGE
41
TENURE
3 yrs

Ruping Yu

TITLE
Executive Director
COMPENSATION
CN¥579K
AGE
43
TENURE
3 yrs

Wing Kuen Wu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥187K
AGE
61
TENURE
2.5 yrs

Chi Keung Lam

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥167K
AGE
48
TENURE
2.5 yrs

Kai Wing Chan

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥167K
AGE
57
TENURE
2.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
12. Mar 19 Buy ICBC International Asset Management Limited Company 11. Mar 19 11. Mar 19 500,000 HK$5.08 HK$2,539,549
X
Management checks
We assess Nanfang Communication Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Nanfang Communication Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholder Appears On The Nanfang Communication Holdings Limited's (HKG:1617) Shareholder Register?

The big shareholder groups in Nanfang Communication Holdings Limited (HKG:1617) have power over the company. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Nanfang Communication Holdings is not a large company by global standards.

Simply Wall St -

Is Nanfang Communication Holdings Limited's (HKG:1617) Balance Sheet A Threat To Its Future?

Investors are always looking for growth in small-cap stocks like Nanfang Communication Holdings Limited (HKG:1617), with a market cap of HK$5.7b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Should You Be Excited About Nanfang Communication Holdings Limited's (HKG:1617) 20% Return On Equity?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Nanfang Communication Holdings Limited (HKG:1617). … Our data shows Nanfang Communication Holdings has a return on equity of 20% for the last year.

Simply Wall St -

What Are Analysts Saying About Nanfang Communication Holdings Limited's (HKG:1617) Growth?

Looking at Nanfang Communication Holdings Limited's (HKG:1617) earnings update in June 2018, … analyst consensus outlook appear vastly optimistic, … with a bottom line expansion of more than 100% in the upcoming year,

Simply Wall St -

Should You Be Tempted To Sell Nanfang Communication Holdings Limited (HKG:1617) Because Of Its P/E Ratio?

Nanfang Communication Holdings has a price to earnings ratio of 31.94, based on the last twelve months. … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) … P/E of 31.94 = CN¥4.37 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.14

Simply Wall St -

What Can We Make Of Nanfang Communication Holdings Limited’s (HKG:1617) High Return On Capital?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Does Nanfang Communication Holdings Limited (HKG:1617) Have A Place In Your Dividend Stock Portfolio?

In the last few years Nanfang Communication Holdings Limited (HKG:1617) has paid a dividend to shareholders. … Let's dig deeper into whether Nanfang Communication Holdings should have a place in your portfolio. … Check out our latest analysis for Nanfang Communication Holdings

Simply Wall St -

Nanfang Communication Holdings Limited (HKG:1617): Time For A Financial Health Check

While small-cap stocks, such as Nanfang Communication Holdings Limited (HKG:1617) with its market cap of HK$5.6b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

Is Nanfang Communication Holdings Limited's (HKG:1617) 20% Better Than Average?

By way of learning-by-doing, we'll look at ROE to gain a better understanding Nanfang Communication Holdings Limited (HKG:1617). … Our data shows Nanfang Communication Holdings has a return on equity of 20% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

A Spotlight On Nanfang Communication Holdings Limited's (HKG:1617) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … is a company with great financial health as well as a.

Simply Wall St -

Company Info

Description

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.

Details
Name: Nanfang Communication Holdings Limited
1617
Exchange: SEHK
Founded: 2005
HK$4,804,800,000
1,120,000,000
Website: http://www.jsnfgroup.com
Address: Nanfang Communication Holdings Limited
1 Cencun Road,
Luoyang Town,
Changzhou,
Jiangsu Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 1617 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 12. Dec 2016
Number of employees
Current staff
Staff numbers
440
Nanfang Communication Holdings employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/19 13:12
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/02
Last earnings filing: 2019/04/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.