SEHK:2342

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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. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

Stable Share Price: 2342's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.3%

2342

-8.3%

HK Communications

-2.8%

HK Market


1 Year Return

26.5%

2342

36.8%

HK Communications

-1.7%

HK Market

Return vs Industry: 2342 underperformed the Hong Kong Communications industry which returned 46.4% over the past year.

Return vs Market: 2342 exceeded the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

2342IndustryMarket
7 Day-5.3%-8.3%-2.8%
30 Day-9.5%-9.4%2.7%
90 Day-23.2%8.3%-0.4%
1 Year27.3%26.5%39.9%36.8%2.3%-1.7%
3 Year74.3%72.2%-11.7%-18.4%-8.7%-18.6%
5 Year97.1%88.7%95.0%67.7%13.7%-5.4%

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?

50.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 2342 (HK$2.48) is trading above our estimate of fair value (HK$0.5)

Significantly Below Fair Value: 2342 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 2342 is poor value based on its PE Ratio (50.5x) compared to the HK Communications industry average (17.1x).

PE vs Market: 2342 is poor value based on its PE Ratio (50.5x) compared to the Hong Kong market (10.9x).


Price to Earnings Growth Ratio

PEG Ratio: 2342 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 2342 is overvalued based on its PB Ratio (1.7x) compared to the HK Communications industry average (0.9x).


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?

57.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2342's forecast earnings growth (57.5% per year) is above the savings rate (1.6%).

Earnings vs Market: 2342's earnings (57.5% per year) are forecast to grow faster than the Hong Kong market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 2342's revenue (13.1% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 2342's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2342's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

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

-36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2342 has high quality earnings.

Growing Profit Margin: 2342 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 2342's earnings have declined by 36% per year over the past 5 years.

Accelerating Growth: 2342 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 2342 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (-13%).


Return on Equity

High ROE: 2342's Return on Equity (0.7%) is considered low.


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$8.0B) exceed its short term liabilities (HK$5.2B).

Long Term Liabilities: 2342's short term assets (HK$8.0B) exceed its long term liabilities (HK$1.1B).


Debt to Equity History and Analysis

Debt Level: 2342's debt to equity ratio (31.1%) is considered satisfactory.

Reducing Debt: 2342's debt to equity ratio has reduced from 43.2% to 31.1% over the past 5 years.

Debt Coverage: 2342's debt is well covered by operating cash flow (32.7%).

Interest Coverage: 2342's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet


Next Steps

Dividend

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

0.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2342's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 2342's dividend (0.97%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.97%).


Stability and Growth of Payments

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

Management

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

3.8yrs

Average management tenure


CEO

Tony Fok (63 yo)

no data

Tenure

HK$3,124,000

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 ($USD402.94K) is about average for companies of similar size in the Hong Kong market ($USD490.73K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tung Ling Fok
Chairman & MDno dataHK$3.12m25.93%
HK$ 1.7b
Yue Jun Zhang
Vice Chairmanno dataHK$2.27m8.42%
HK$ 559.2m
Hui Jun Xu
President & Executive Director2.17yrsHK$6.32m0.92%
HK$ 61.3m
Fei Fu Chang
Group CFO & Executive Director2.58yrsHK$4.93mno data
Bin Long Bu
Senior VP2.5yrsHK$3.40m0.087%
HK$ 5.8m
Xin Ru Huo
Executive Director1.58yrsHK$2.99mno data
Xue Feng Li
VP & GM of Audit & Legal Center3.5yrsno datano data
Hai Tao Zhou
General Manager of the Marketing Centerno datano datano data
Rui Bo Luo
VP & GM of Human Resource Administrative Centerno datano datano data
Sui Yang Chen
Senior Vice Presidentno datano datano data
Pui Sang Yeung
Senior Advisor to Chairman15.5yrsHK$3.98mno data
Ying Jie Di
Chief Technical Expert of Microwave RF Passive Accessories & Senior Research Supervisorno datano datano data

3.8yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 2342's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Tung Ling Fok
Chairman & MDno dataHK$3.12m25.93%
HK$ 1.7b
Yue Jun Zhang
Vice Chairmanno dataHK$2.27m8.42%
HK$ 559.2m
Hui Jun Xu
President & Executive Director2.17yrsHK$6.32m0.92%
HK$ 61.3m
Fei Fu Chang
Group CFO & Executive Director2.58yrsHK$4.93mno data
Bin Long Bu
Senior VP2.5yrsHK$3.40m0.087%
HK$ 5.8m
Xin Ru Huo
Executive Director1.58yrsHK$2.99mno data
Siu Ki Lau
Independent Non-Executive Director17.5yrsHK$291.00kno data
Yi Kum Ng
Independent Non-Executive Director1.58yrsHK$209.00kno data
Jin Tong Lin
Independent Non-Executive Director8.42yrsHK$291.00kno data
Tielong Wu
Non-Executive Director2.5yrsHK$2.77m0.068%
HK$ 4.5m
Hoi Wai Leung
Independent Non-Executive Director1.33yrsHK$120.00kno data

2.5yrs

Average Tenure

57yo

Average Age

Experienced Board: 2342's board of directors are not considered experienced ( 2.5 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11%.


Top Shareholders

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$6.642b
  • Shares outstanding: 2.71b
  • 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
2342SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 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 Analysis2020/10/30 12:39
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.