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

High growth potential with mediocre balance sheet.

Risks

  • Comba Telecom Systems Holdings is covered by less than 3 analysts.

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

-1.1%

2342

0.3%

HK Communications

-2.7%

HK Market


1 Year Return

50.4%

2342

-20.2%

HK Communications

-9.4%

HK Market

2342 outperformed the Communications industry which returned -20.2% over the past year.

2342 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

2342IndustryMarket
7 Day-1.1%0.3%-2.7%
30 Day7.6%8.7%2.0%
90 Day9.5%-1.5%-5.8%
1 Year51.3%50.4%-17.2%-20.2%-6.1%-9.4%
3 Year49.5%47.5%9.7%1.1%14.3%2.7%
5 Year-5.6%-10.3%-13.6%-26.5%16.7%-2.8%

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

1 month ago | Simply Wall St

How Should Investors Feel About Comba Telecom Systems Holdings Limited's (HKG:2342) CEO Pay?

Valuation

Is Comba Telecom Systems Holdings undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Comba Telecom Systems Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Comba Telecom Systems Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Comba Telecom Systems Holdings is loss making, we can't compare its value to the HK Communications industry average.

Comba Telecom Systems Holdings is loss making, we can't compare the value of its earnings to the Hong Kong market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Comba Telecom Systems Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Comba Telecom Systems Holdings is overvalued based on assets compared to the HK Communications industry average.


Next Steps

Future Growth

How is Comba Telecom Systems Holdings expected 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 Estimates


Future Annual Growth Analysis

Comba Telecom Systems Holdings's revenue is expected to grow significantly at over 20% yearly.

Comba Telecom Systems Holdings's earnings are expected to grow significantly at over 20% yearly.

Comba Telecom Systems Holdings's revenue growth is expected to exceed the Hong Kong market average.

Comba Telecom Systems Holdings's earnings growth is expected to exceed the Hong Kong market average.

Comba Telecom Systems Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Comba Telecom Systems Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Comba Telecom Systems Holdings does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Comba Telecom Systems Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Comba Telecom Systems Holdings's 1-year growth to the HK Communications industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Comba Telecom Systems Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Comba Telecom Systems Holdings has efficiently used its assets last year compared to the HK Communications industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Comba Telecom Systems Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Comba Telecom Systems Holdings's financial position?


Financial Position Analysis

Comba Telecom Systems Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Comba Telecom Systems Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Comba Telecom Systems Holdings's level of debt (48.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (41.8% vs 48.5% today).

Debt is well covered by operating cash flow (60.2%, greater than 20% of total debt).

Unable to confirm if the interest payments on Comba Telecom Systems Holdings's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.6x debt.


Next Steps

Dividend

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

1.98%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Comba Telecom Systems Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

Comba Telecom Systems Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.17%).

Comba Telecom Systems Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.

Comba Telecom Systems Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Comba Telecom Systems Holdings's dividends as it is not paying a notable one for Hong Kong.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.1x coverage).


Next Steps

Management

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

2.4yrs

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

Tony's remuneration is higher than average for companies of similar size in Hong Kong.

Tony's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.4yrs

Average Tenure

50.5yo

Average Age

The tenure for the Comba Telecom Systems Holdings management team is about average.


Board Age and Tenure

1.4yrs

Average Tenure

58yo

Average Age

The average tenure for the Comba Telecom Systems Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Comba Telecom Systems Holdings individual insiders 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
SellHK$121,765,46301 Feb 19
Tung Ling Fok
EntityIndividual
Role
Chief Executive Officer
Chairman & MD
Shares69,980,000
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
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$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
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

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: 1.1yrs
    • Compensation: HK$3.89m
  • Simon Yeung (46yo)

    Senior Advisor to Chairman

    • Tenure: 1.3yrs
    • Compensation: HK$3.98m
  • Bin Long Bu (56yo)

    Senior VP

    • Tenure: 1.4yrs
    • Compensation: HK$4.65m
  • Ken Chang (44yo)

    Group CFO & Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$5.09m
  • Xue Li (46yo)

    VP & GM of Audit & Legal Center

    • Tenure: 2.4yrs
  • Rui Luo (44yo)

    VP & GM of Human Resource Center

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

    Senior VP

    • Tenure: 1.4yrs
    • Compensation: HK$3.19m

Board Members

  • Kevin Lau (61yo)

    Independent Non-Executive Director

    • Tenure: 16.4yrs
    • 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: 1.1yrs
    • Compensation: HK$3.89m
  • Bin Long Bu (56yo)

    Senior VP

    • Tenure: 1.4yrs
    • Compensation: HK$4.65m
  • Estella Ng (62yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Ken Chang (44yo)

    Group CFO & Executive Director

    • Tenure: 1.6yrs
    • Compensation: HK$5.09m
  • Jin Tong Lin (73yo)

    Independent Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: HK$259.00k
  • Tie Long Wu (55yo)

    Senior VP

    • Tenure: 1.4yrs
    • 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$4.517b
  • 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 Analysis2019/09/23 12:40
End of Day Share Price2019/09/23 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.