Putian Communication Group Limited, an investment holding company, produces and sells optical fiber cables, communication copper cables, and structured cabling system products under the Hanphy brand name in the People's Republic of China.
The last earnings update was 24 days ago.
Discounted Cash Flow Calculation for SEHK:1720 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Putian Communication Group
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:1720 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Putian Communication Group
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Putian Communication Group's
is considered below, and whether this is a fair price.
Price based on past earnings
Putian Communication Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Putian Communication Group's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Putian Communication Group 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.
Putian Communication Group's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
Putian Communication Group
has a total score of
5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Putian Communication Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Putian Communication Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Putian Communication Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Putian Communication Group'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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 3.5x debt.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
Ms. Wang Qiuping serves as the Chairlady and Chief Executive Officer of Putian Communication Group Limited and has been its Executive Director since August 19, 2016. Ms. Wang obtained a diploma in basic theory of Marxism from Jiangxi Normal University in December 1986.
Qiuping's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
Qiuping's remuneration is lower than average for companies of similar size in Hong Kong.
Chairlady & CEO
Yeung Fun Lai
CFO & Company Secretary
Chief Business Officer of Business Center
Board of Directors Tenure
Average tenure and age of the
Putian Communication Group
board of directors in years:
The average tenure for the Putian Communication Group board of directors is less than 3 years, this suggests a new board.
Introducing Putian Communication Group (HKG:1720), The Stock That Dropped 30% In The Last Year
Investors in Putian Communication Group Limited (HKG:1720) have tasted that bitter downside in the last year, as the share price dropped 30%. … Even though the Putian Communication Group share price is down over the year, its EPS actually improved. … Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted.
Could Putian Communication Group Limited's (HKG:1720) Investor Composition Influence The Stock Price?
The big shareholder groups in Putian Communication Group Limited (HKG:1720) have power over the company. … Putian Communication Group is a smaller company with a market capitalization of HK$2.8b, so it may still be flying under the radar of many institutional investors. … Check out our latest analysis for Putian Communication Group
If You Had Bought Putian Communication Group (HKG:1720) Stock A Year Ago, You Could Pocket A 56% Gain Today
For example, the Putian Communication Group Limited (HKG:1720) share price is up 56% in the last year, clearly besting than the market return of around -11% (not including dividends). … During the last year Putian Communication Group grew its earnings per share (EPS) by 23%. … It might be well worthwhile taking a look at our free report on Putian Communication Group's earnings, revenue and cash flow.
What Can We Make Of Putian Communication Group Limited’s (HKG:1720) High Return On Capital?
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
Why Putian Communication Group Limited (HKG:1720) Looks Like A Quality Company
To keep the lesson grounded in practicality, we'll use ROE to better understand Putian Communication Group Limited (HKG:1720). … Check out our latest analysis for Putian Communication Group? … Return on Equity = Net Profit ÷ Shareholders' Equity
Should You Be Tempted To Sell Putian Communication Group Limited (HKG:1720) Because Of Its P/E Ratio?
We'll show how you can use Putian Communication Group Limited's (HKG:1720) P/E ratio to inform your assessment of the investment opportunity. … Putian Communication Group has a P/E ratio of 29.62, based on the last twelve months. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)
What You Must Know About Putian Communication Group Limited's (HKG:1720) Financial Strength
Investors are always looking for growth in small-cap stocks like Putian Communication Group Limited (HKG:1720), with a market cap of HK$2.6b. … However, an important fact which most ignore is: how financially healthy is the business?
What Should Investors Know About Putian Communication Group Limited's (HKG:1720) Capital Returns?
and want to better understand how you can grow your money by investing in Putian Communication Group Limited (HKG:1720). … Putian Communication Group stock represents an ownership share in the company. … Thus, to understand how your money can grow by investing in Putian Communication Group, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Is Putian Communication Group Limited's (HKG:1720) 22% Better Than Average?
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 Putian Communication Group Limited (HKG:1720). … Our data shows Putian Communication Group has a return on equity of 22% for the last year.
Is Putian Communication Group Limited's (HKG:1720) Balance Sheet Strong Enough To Weather A Storm?
While small-cap stocks, such as Putian Communication Group Limited (HKG:1720) with its market cap of CN¥3.23b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.
Putian Communication Group Limited, an investment holding company, produces and sells optical fiber cables, communication copper cables, and structured cabling system products under the Hanphy brand name in the People's Republic of China. It serves telecommunication network operators, communication system solution providers, and construction contractors. The company was founded in 2001 and is based in Nanchang, China.
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