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2342

Comba Telecom Systems Holdings SEHK:2342 Stock Report

Last Price

HK$1.31

Market Cap

HK$3.6b

7D

-10.3%

1Y

-34.5%

Updated

24 Sep, 2022

Data

Company Financials +
2342 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends0/6

2342 Stock Overview

Comba Telecom Systems Holdings Limited, an investment holding company, engages in research, development, manufacture, and sale of wireless telecommunications network system equipment and related engineering services.

Rewards

Earnings are forecast to grow 80.76% per year

Risk Analysis

No risks detected for 2342 from our risk checks.

Comba Telecom Systems Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Comba Telecom Systems Holdings
Historical stock prices
Current Share PriceHK$1.31
52 Week HighHK$2.33
52 Week LowHK$1.20
Beta0.56
1 Month Change-8.39%
3 Month Change-6.43%
1 Year Change-34.50%
3 Year Change-29.19%
5 Year Change-12.08%
Change since IPO51.02%

Recent News & Updates

Shareholder Returns

2342HK CommunicationsHK Market
7D-10.3%-5.7%-3.4%
1Y-34.5%-18.0%-25.0%

Return vs Industry: 2342 underperformed the Hong Kong Communications industry which returned -18% over the past year.

Return vs Market: 2342 underperformed the Hong Kong Market which returned -25% over the past year.

Price Volatility

Is 2342's price volatile compared to industry and market?
2342 volatility
2342 Average Weekly Movement5.4%
Communications Industry Average Movement7.8%
Market Average Movement6.3%
10% most volatile stocks in HK Market12.7%
10% least volatile stocks in HK Market3.1%

Stable Share Price: 2342 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2342's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19975,400Huijun Xuhttps://www.comba-telecom.com

Comba Telecom Systems Holdings Limited, an investment holding company, engages in research, development, manufacture, and sale of wireless telecommunications network system equipment and related engineering services. It operates through two segments, Wireless Telecommunications Network System Equipment and Services, and Operator Telecommunication Services. The company provides base station antennas and subsystems; network system products, including macro and small cells, and open RAN products, as well as related extended and in-depth coverage solutions; and software technology, technical support, value-added, and repairing services.

Comba Telecom Systems Holdings Fundamentals Summary

How do Comba Telecom Systems Holdings's earnings and revenue compare to its market cap?
2342 fundamental statistics
Market CapHK$3.62b
Earnings (TTM)-HK$412.82m
Revenue (TTM)HK$6.49b

0.6x

P/S Ratio

-8.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
2342 income statement (TTM)
RevenueHK$6.49b
Cost of RevenueHK$4.91b
Gross ProfitHK$1.59b
Other ExpensesHK$2.00b
Earnings-HK$412.82m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.15
Gross Margin24.47%
Net Profit Margin-6.36%
Debt/Equity Ratio47.9%

How did 2342 perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

-7%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 2342 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2342?

Other financial metrics that can be useful for relative valuation.

2342 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA-10.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 2342's PS Ratio compare to its peers?

2342 PS Ratio vs Peers
The above table shows the PS ratio for 2342 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average8x
1523 Plover Bay Technologies
4.2x20.2%HK$2.7b
1085 Hengxin Technology
0.7xn/aHK$1.7b
303 Vtech Holdings
0.7x5.5%HK$12.1b
8227 Xi'an Haitian Antenna Technologies
26.5xn/aHK$1.0b
2342 Comba Telecom Systems Holdings
0.6x5.1%HK$3.6b

Price-To-Sales vs Peers: 2342 is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (8x).


Price to Earnings Ratio vs Industry

How does 2342's PE Ratio compare vs other companies in the HK Communications Industry?

Price-To-Sales vs Industry: 2342 is expensive based on its Price-To-Sales Ratio (0.6x) compared to the Hong Kong Communications industry average (0.6x)


Price to Sales Ratio vs Fair Ratio

What is 2342's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2342 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: 2342 is expensive based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

What is the Fair Price of 2342 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2342 (HK$1.31) is trading above our estimate of fair value (HK$0.81)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


80.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2342 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 2342 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2342 is expected to become profitable in the next 3 years.

Revenue vs Market: 2342's revenue (5.1% per year) is forecast to grow slower than the Hong Kong market (9.7% per year).

High Growth Revenue: 2342's revenue (5.1% 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 (6.3%).


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Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-55.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 2342 is currently unprofitable.

Growing Profit Margin: 2342 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2342 is unprofitable, and losses have increased over the past 5 years at a rate of 55.2% 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 (-0.7%).


Return on Equity

High ROE: 2342 has a negative Return on Equity (-12.31%), as it is currently unprofitable.


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Financial Health

How is Comba Telecom Systems Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: 2342's short term assets (HK$8.1B) exceed its short term liabilities (HK$6.0B).

Long Term Liabilities: 2342's short term assets (HK$8.1B) exceed its long term liabilities (HK$1.3B).


Debt to Equity History and Analysis

Debt Level: 2342's net debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: 2342's debt to equity ratio has increased from 37.8% to 47.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 2342 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2342 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 32.6% per year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.53%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2342's dividend (1.53%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.96%).

High Dividend: 2342's dividend (1.53%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.57%).


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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

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


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Management

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

5.9yrs

Average management tenure


CEO

Huijun Xu (49 yo)

3.75yrs

Tenure

HK$8,917,000

Compensation

Mr. Huijun Xu has been an Executive Director of Comba Telecom Systems Holdings Ltd since August 23, 2018 and has been its President since December 7, 2018. Mr. Xu joined the Comba Group in August 2018. Mr....


CEO Compensation Analysis

Compensation vs Market: Huijun's total compensation ($USD1.14M) is above average for companies of similar size in the Hong Kong market ($USD422.37K).

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


Leadership Team

Experienced Management: 2342's management team is seasoned and experienced (5.9 years average tenure).


Board Members

Experienced Board: 2342's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 2342 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SEHK:2342 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
11 Jul 22BuyHK$1,293,284Binlong BuIndividual944,000HK$1.37
08 Jul 22BuyHK$295,920Binlong BuIndividual216,000HK$1.37
26 Apr 22BuyHK$18,415,040Huijun XuIndividual14,500,000HK$1.27
26 Apr 22BuyHK$1,270,003Binlong BuIndividual1,000,000HK$1.27
26 Apr 22BuyHK$18,415,040Fei Fu ChangIndividual14,500,000HK$1.27
26 Apr 22BuyHK$635,001Tielong WuIndividual500,000HK$1.27
26 Apr 22SellHK$18,415,040Tung Ling FokIndividual14,500,000HK$1.27

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 38.03% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
24.92%
Tung Ling Fok
688,479,468HK$901.9m-2.06%no data
8.26%
Yue Jun Zhang
228,225,410HK$299.0m0%no data
2.07%
The Vanguard Group, Inc.
57,268,041HK$75.0m0%no data
0.88%
BlackRock, Inc.
24,338,608HK$31.9m-0.34%no data
0.78%
Dimensional Fund Advisors LP
21,626,723HK$28.3m1.98%no data
0.4%
Huijun Xu
11,000,000HK$14.4m10%no data
0.17%
State Street Global Advisors, Inc.
4,732,964HK$6.2m-2.91%no data
0.16%
Binlong Bu
4,510,084HK$5.9m34.63%no data
0.085%
Tielong Wu
2,342,049HK$3.1m27.14%no data
0.082%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
2,276,312HK$3.0m0%no data
0.044%
Geode Capital Management, LLC
1,206,047HK$1.6m0%no data
0.036%
Credit Suisse Asset Management (Switzerland)
1,008,000HK$1.3m0%no data
0.036%
Fei Fu Chang
1,000,000HK$1.3m0%no data
0.028%
Handelsbanken Asset Management
760,000HK$995.6k0%no data
0.021%
UBS Asset Management
584,000HK$765.0k0%no data
0.016%
KLP Kapitalforvaltning AS
432,000HK$565.9k0%no data
0.011%
Northern Trust Global Investments
294,000HK$385.1k0%no data
0.01%
Mercer Global Investments Europe Limited
288,000HK$377.3k0%no data
0.0094%
Siu Ki Lau
260,000HK$340.6k0%no data
0.0033%
E Fund Management Co., Ltd.
91,700HK$120.1k9.56%no data
0.0033%
GWL Investment Management Ltd.
90,000HK$117.9k0%no data
0.0022%
Pictet Asset Management Limited
62,000HK$81.2k0%no data
0.00094%
Taikang Asset Management Co., Ltd.
26,000HK$34.1k0%no data
0.00065%
American Century Investment Management Inc
18,000HK$23.6k0%no data
0.00014%
Dacheng Fund Management Company Limited
4,000HK$5.2k0%no data

Company Information

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


Key Information

  • Name: Comba Telecom Systems Holdings Limited
  • Ticker: 2342
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: HK$3.620b
  • Shares outstanding: 2.76b
  • 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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.