SEHK:1720

Stock Analysis Report

Putian Communication Group

Executive Summary

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.


Snowflake Analysis

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1720's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

1720

-0.3%

HK Communications

-3.2%

HK Market


1 Year Return

-56.3%

1720

-13.2%

HK Communications

-10.2%

HK Market

Return vs Industry: 1720 underperformed the Hong Kong Communications industry which returned -12.4% over the past year.

Return vs Market: 1720 underperformed the Hong Kong Market which returned -7.6% over the past year.


Shareholder returns

1720IndustryMarket
7 Day-7.9%-0.3%-3.2%
30 Day-17.9%-4.5%-3.3%
90 Day-28.9%11.1%0.2%
1 Year-56.3%-56.3%-11.0%-13.2%-6.9%-10.2%
3 Yearn/a16.4%7.1%11.7%0.4%
5 Yearn/a9.2%-7.0%11.1%-7.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Putian Communication Group undervalued compared to its fair value and its price relative to the market?

18.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1720's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1720's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1720 is poor value based on its PE Ratio (18.2x) compared to the Communications industry average (13.4x).

PE vs Market: 1720 is poor value based on its PE Ratio (18.2x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1720's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1720 is overvalued based on its PB Ratio (3x) compared to the HK Communications industry average (1x).


Next Steps

Future Growth

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

19.4%

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 Putian Communication Group 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 Putian Communication Group performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1720 has high quality earnings.

Growing Profit Margin: 1720's current net profit margins (9.4%) are lower than last year (10.8%).


Past Earnings Growth Analysis

Earnings Trend: 1720's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: 1720's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1720 had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Communications industry average (-9.3%).


Return on Equity

High ROE: 1720's Return on Equity (16.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Putian Communication Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1720's short term assets (CN¥532.9M) exceed its short term liabilities (CN¥166.0M).

Long Term Liabilities: 1720's short term assets (CN¥532.9M) exceed its long term liabilities (CN¥138.1M).


Debt to Equity History and Analysis

Debt Level: 1720's debt to equity ratio (45%) is considered high.

Reducing Debt: Insufficient data to determine if 1720's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1720's debt is not well covered by operating cash flow (19.8%).

Interest Coverage: 1720's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet

Inventory Level: 1720 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1720's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

What is Putian Communication Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%6.4%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1720's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1720's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1720's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1720'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 1720'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?

2.3yrs

Average board tenure


CEO

Qiuping Wang (55yo)

CN¥1,832,000

Compensation

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 th ...


CEO Compensation Analysis

Compensation vs Market: Qiuping's total compensation ($USD260.65K) is about average for companies of similar size in the Hong Kong market ($USD290.18K).

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


Board Members

NamePositionTenureCompensationOwnership
Qiuping Wang
Chairlady & CEO0yrsCN¥1.83m37.13% CN¥526.8m
Xiaobao Zhao
Executive Director2.8yrsCN¥1.84m32.63% CN¥462.9m
Moge Zhao
Executive Director2.8yrsCN¥884.00kno data
Shing Yan Cheng
Independent Non Executive Director2.3yrsCN¥120.00kno data
Guodong Liu
Independent Non Executive Director2.3yrsCN¥120.00kno data
Haidong Xie
Independent Non Executive Director2.3yrsCN¥120.00kno data
Xuefeng Jiang
Non-Executive Director0.3yrsno datano data

2.3yrs

Average Tenure

44yo

Average Age

Experienced Board: 1720's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 9.7%.


Top Shareholders

Company Information

Putian Communication Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Putian Communication Group Limited
  • Ticker: 1720
  • Exchange: SEHK
  • Founded: 2001
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$1.419b
  • Shares outstanding: 1.10b
  • Website: https://www.potel-group.com

Number of Employees


Location

  • Putian Communication Group Limited
  • No. 8899 ChangDong Avenue
  • Hi-tech Development Zone
  • Nanchang
  • Jiangxi Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1720SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon SharesHKHKDNov 2017
5PUBST (Boerse-Stuttgart)YesCommon SharesDEEURNov 2017

Biography

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 company offers its optical fiber cables and communication copper cables to telecommunications network operators for network construction and maintenance applications. Its structured cabling system products include optical and copper jumper wires; and connection and distribution components, such as distribution frames, wiring closets, and data and audio modules and faceplates. The company was founded in 2001 and is based in Nanchang, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 13:15
End of Day Share Price2020/02/25 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.