SEHK:2342

Stock Analysis Report

Comba Telecom Systems Holdings

Executive Summary

Comba Telecom Systems Holdings Limited, an investment holding company, researches, develops, manufactures, and sells wireless telecommunications network system equipment and related engineering services.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Comba Telecom Systems Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

2342

-1.7%

HK Communications

0.9%

HK Market


1 Year Return

67.0%

2342

-13.2%

HK Communications

0.6%

HK Market

Return vs Industry: 2342 exceeded the Hong Kong Communications industry which returned -13.2% over the past year.

Return vs Market: 2342 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

2342IndustryMarket
7 Day0%-1.7%0.9%
30 Day-4.2%-8.3%0.4%
90 Day2.8%-6.9%-5.5%
1 Year68.0%67.0%-10.0%-13.2%4.2%0.6%
3 Year18.3%16.7%-5.0%-12.4%15.5%3.9%
5 Year-18.5%-22.5%-23.5%-20.3%19.9%-0.1%

Price Volatility Vs. Market

How volatile is Comba Telecom Systems Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Comba Telecom Systems 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

Undervalued: 2342 (HK$1.82) is trading below our estimate of fair value (HK$29.07)

Significantly Undervalued: 2342 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2342 is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: 2342 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate 2342's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2342 is overvalued based on its PB Ratio (1.3x) compared to the HK Communications industry average (1.1x).


Next Steps

Future Growth

How is Comba Telecom Systems Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

80.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2342 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 2342 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 2342 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 2342's revenue (24.6% per year) is forecast to grow faster than the Hong Kong market (10.2% per year).

High Growth Revenue: 2342's revenue (24.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 2342's Return on Equity is forecast to be low in 3 years time (10.1%).


Next Steps

Past Performance

How has Comba Telecom Systems Holdings performed over the past 5 years?

-44.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 2342 is unprofitable, and losses have increased over the past 5 years at a rate of -44.2% per year.

Accelerating Growth: Unable to compare 2342's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2342 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-14.9%).


Return on Equity

High ROE: 2342 has a negative Return on Equity (-4.32%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 2342 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 2342 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Comba Telecom Systems Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2342's short term assets (HK$8.7B) exceeds its short term liabilities (HK$5.4B)

Long Term Liabilities: 2342's short term assets (8.7B) exceeds its long term liabilities (2.0B)


Debt to Equity History and Analysis

Debt Level: 2342's debt to equity ratio (48.5%) is considered high

Reducing Debt: 2342's debt to equity ratio has increased from 41.8% to 48.5% over the past 5 years.

Debt Coverage: 2342's debt is well covered by operating cash flow (60.2%).

Interest Coverage: Insufficient data to determine if 2342's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 2342 has a high level of physical assets or inventory.

Debt Coverage by Assets: 2342's debt is covered by short term assets (assets are 4.605850x debt).


Next Steps

Dividend

What is Comba Telecom Systems Holdings's current dividend yield, its reliability and sustainability?

1.10%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.3%markettop25%6.3%industryaverage3.5%forecastin3Years2.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 2342's dividend (1.1%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 2342's dividend (1.1%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.25%).

Stable Dividend: 2342 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2342 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2342 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2342's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

  • Explore strong dividend paying companies in the Tech industry.

Management

What is the CEO of Comba Telecom Systems Holdings's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Tony Fok (62yo)

0yrs

Tenure

HK$4,797,000

Compensation

Mr. Tung Ling Fok, also known as Tony, co-founded Comba Telecom Systems Holdings Ltd. in 1997 and serves as its Chairman and Managing Director. Previously, Mr. Fok served as the President of Comba Telecom  ...


CEO Compensation Analysis

Compensation vs. Market: Tony's total compensation ($USD611.69K) is about average for companies of similar size in the Hong Kong market ($USD298.58K).

Compensation vs Earnings: Tony's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.5yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 2342's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

1.5yrs

Average Tenure

58yo

Average Age

Experienced Board: 2342's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyHK$957,60126 Jun 19
Bin Long Bu
EntityIndividual
Role
Member of the Board of Directors
Senior VP
Shares560,000
Max PriceHK$1.71
BuyHK$605,50024 Jun 19
Bin Long Bu
EntityIndividual
Role
Member of the Board of Directors
Senior VP
Shares350,000
Max PriceHK$1.73
BuyHK$443,75021 Jun 19
Fei Fu Chang
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Executive Director
Shares250,000
Max PriceHK$1.77
BuyHK$345,00020 Jun 19
Fei Fu Chang
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Executive Director
Shares200,000
Max PriceHK$1.73
BuyHK$3,480,00801 Feb 19
Bin Long Bu
EntityIndividual
Role
Member of the Board of Directors
Senior VP
Shares2,000,000
Max PriceHK$1.74
BuyHK$3,480,00801 Feb 19
Fei Fu Chang
EntityIndividual
Role
Member of the Board of Directors
Group CFO & Executive Director
Shares2,000,000
Max PriceHK$1.74
SellHK$121,765,46301 Feb 19
Tung Ling Fok
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares69,980,000
Max PriceHK$1.74
BuyHK$2,784,00618 Jan 19
Tie Long Wu
EntityIndividual
Role
Member of the Board of Directors
Senior VP
Shares1,600,000
Max PriceHK$1.74
BuyHK$8,700,01918 Jan 19
Huijun Xu
EntityIndividual
Role
Member of the Board of Directors
President & Executive Director
Shares5,000,000
Max PriceHK$1.74

Ownership Breakdown


Management Team

  • Tony Fok (62yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: HK$4.80m
  • Yue Jun Zhang (60yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$5.42m
  • Sui Chen (55yo)

    Senior Vice President

    • Tenure: 0yrs
  • Huijun Xu (46yo)

    President & Executive Director

    • Tenure: 1.2yrs
    • Compensation: HK$3.89m
  • Simon Yeung (46yo)

    Senior Advisor to Chairman

    • Tenure: 1.4yrs
    • Compensation: HK$3.98m
  • Bin Long Bu (56yo)

    Senior VP

    • Tenure: 1.5yrs
    • Compensation: HK$4.65m
  • Ken Chang (44yo)

    Group CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: HK$5.09m
  • Xue Li (46yo)

    VP & GM of Audit & Legal Center

    • Tenure: 2.5yrs
  • Rui Luo (44yo)

    VP & GM of Human Resource Center

    • Tenure: 0yrs
  • Tie Long Wu (55yo)

    Senior VP

    • Tenure: 1.5yrs
    • Compensation: HK$3.19m

Board Members

  • Kevin Lau (61yo)

    Independent Non-Executive Director

    • Tenure: 16.5yrs
    • Compensation: HK$259.00k
  • Tony Fok (62yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: HK$4.80m
  • Yue Jun Zhang (60yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: HK$5.42m
  • Huijun Xu (46yo)

    President & Executive Director

    • Tenure: 1.2yrs
    • Compensation: HK$3.89m
  • Bin Long Bu (56yo)

    Senior VP

    • Tenure: 1.5yrs
    • Compensation: HK$4.65m
  • Estella Ng (62yo)

    Independent Non-Executive Director

    • Tenure: 0.6yrs
  • Ken Chang (44yo)

    Group CFO & Executive Director

    • Tenure: 1.7yrs
    • Compensation: HK$5.09m
  • Jin Tong Lin (73yo)

    Independent Non-Executive Director

    • Tenure: 7.4yrs
    • Compensation: HK$259.00k
  • Tie Long Wu (55yo)

    Senior VP

    • Tenure: 1.5yrs
    • Compensation: HK$3.19m
  • Hoi Leung (38yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs

Company Information

Comba Telecom Systems Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Comba Telecom Systems Holdings Limited
  • Ticker: 2342
  • Exchange: SEHK
  • Founded: 1995
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$4.445b
  • Shares outstanding: 2.44b
  • Website: https://www.comba-telecom.com

Number of Employees


Location

  • Comba Telecom Systems Holdings Limited
  • 611 East Wing
  • No. 8 Science Park West Avenue
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2342SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2003
COBJ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2003
COA1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2003

Biography

Comba Telecom Systems Holdings Limited, an investment holding company, researches, develops, manufactures, and sells wireless telecommunications network system equipment and related engineering services. I ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:38
End of Day Share Price2019/10/18 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.