SEHK:6033

Stock Analysis Report

Telecom Digital Holdings

Executive Summary

Telecom Digital Holdings Limited, an investment holding company, engages in the telecommunications and related businesses in Hong Kong and Macau.


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6033 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

6033

-0.4%

HK Electronic

-0.6%

HK Market


1 Year Return

-8.1%

6033

-10.2%

HK Electronic

-7.6%

HK Market

Return vs Industry: 6033 exceeded the Hong Kong Electronic industry which returned -10.2% over the past year.

Return vs Market: 6033 matched the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

6033IndustryMarket
7 Day0.4%-0.4%-0.6%
30 Day-2.6%-5.8%-1.2%
90 Day-3.7%2.7%3.0%
1 Year-1.2%-8.1%-7.5%-10.2%-4.2%-7.6%
3 Year-5.6%-23.1%-0.6%-8.6%12.9%1.5%
5 Year142.1%79.3%75.9%52.7%13.1%-5.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Telecom Digital 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

Below Fair Value: 6033 (HK$2.6) is trading below our estimate of fair value (HK$5.73)

Significantly Below Fair Value: 6033 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6033 is poor value based on its PE Ratio (9.1x) compared to the Electronic industry average (9.1x).

PE vs Market: 6033 is good value based on its PE Ratio (9.1x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6033's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6033 is overvalued based on its PB Ratio (3x) compared to the HK Electronic industry average (0.9x).


Next Steps

Future Growth

How is Telecom Digital Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.6%

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 Telecom Digital Holdings 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 Telecom Digital Holdings performed over the past 5 years?

10.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6033 has high quality earnings.

Growing Profit Margin: 6033's current net profit margins (9.5%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: 6033's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: 6033's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6033 had negative earnings growth (-11.5%) over the past year, making it difficult to compare to the Electronic industry average (-11.5%).


Return on Equity

High ROE: 6033's Return on Equity (32.2%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Telecom Digital Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 6033's short term assets (HK$207.5M) do not cover its short term liabilities (HK$315.0M).

Long Term Liabilities: 6033's short term assets (HK$207.5M) exceed its long term liabilities (HK$28.3M).


Debt to Equity History and Analysis

Debt Level: 6033's debt to equity ratio (51.5%) is considered high.

Reducing Debt: 6033's debt to equity ratio has reduced from 202.8% to 51.5% over the past 5 years.

Debt Coverage: 6033's debt is well covered by operating cash flow (102.9%).

Interest Coverage: 6033's interest payments on its debt are well covered by EBIT (18.4x coverage).


Balance Sheet

Inventory Level: 6033 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6033's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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

4.61%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 23 2020Ex Dividend DateFeb 26 2020Dividend Pay DateMar 06 20209 days from Ex DividendBuy in the next 2 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 6033's dividend (4.62%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 6033's dividend (4.62%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).


Stability and Growth of Payments

Stable Dividend: 6033 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6033's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (73.3%), 6033's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Sunny Cheung (51yo)

4.4yrs

Tenure

HK$1,633,000

Compensation

Mr. King Fung Cheung, also known as Sunny, serves as the Chief Executive Officer of Telecom Digital Holdings Limited since September 8, 2015 and serves its Compliance Officer. Mr. Cheung joined Telecom Dig ...


CEO Compensation Analysis

Compensation vs Market: Sunny's total compensation ($USD209.69K) is about average for companies of similar size in the Hong Kong market ($USD225.23K).

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


Leadership Team

NamePositionTenureCompensationOwnership
King Shek Cheung
Chairman5.9yrsHK$1.63m5.09% HK$53.4m
King Fung Cheung
CEO, Compliance Officer & Executive Director4.4yrsHK$1.63m5.05% HK$53.0m
Ngan Chu Mok
Executive Director5.9yrsHK$615.00k0.0074% HK$78.0k
Wai Man Wong
Senior MIS Manager and Executive Director5.9yrsHK$814.00k0.0074% HK$78.0k
King Shan Cheung
Executive Director17.3yrsHK$1.63m5.08% HK$53.3m
King Chuen Cheung
Executive Director17.3yrsHK$1.63m5.09% HK$53.5m
Wing Tsz Lee
Chief Financial Officer6.4yrsno datano data
Wong Yu On
Company Secretary3.5yrsno datano data

4.4yrs

Average Tenure

60yo

Average Age

Experienced Management: 6033's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
King Shek Cheung
Chairman5.9yrsHK$1.63m5.09% HK$53.4m
King Fung Cheung
CEO, Compliance Officer & Executive Director4.4yrsHK$1.63m5.05% HK$53.0m
Ngan Chu Mok
Executive Director5.9yrsHK$615.00k0.0074% HK$78.0k
Wai Man Wong
Senior MIS Manager and Executive Director5.9yrsHK$814.00k0.0074% HK$78.0k
King Shan Cheung
Executive Director17.3yrsHK$1.63m5.08% HK$53.3m
King Chuen Cheung
Executive Director17.3yrsHK$1.63m5.09% HK$53.5m
Yu Lung Lam
Independent Non-Executive Director5.8yrsHK$120.00kno data
Yuk Ming Chan
Independent Non-Executive Director0.3yrsno datano data
Lau Hing Wah
Independent Non-Executive Director2.8yrsHK$120.00kno data

5.9yrs

Average Tenure

60yo

Average Age

Experienced Board: 6033's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 6033 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Telecom Digital Holdings Limited
  • Ticker: 6033
  • Exchange: SEHK
  • Founded: 1974
  • Industry: Technology Distributors
  • Sector: Tech
  • Market Cap: HK$1.050b
  • Shares outstanding: 403.75m
  • Website: https://www.tdhl.cc

Number of Employees


Location

  • Telecom Digital Holdings Limited
  • YHC Tower
  • 19th Floor
  • Kowloon Bay
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6033SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2014

Biography

Telecom Digital Holdings Limited, an investment holding company, engages in the telecommunications and related businesses in Hong Kong and Macau. The company operates through four segments: Retail Business, Distribution Business, Paging and Other Telecommunications Services, and Operation Services. The Retail Business segment sells mobile phones and other consumer goods, as well as provides related services. The Distribution Business segment distributes mobiles phones; and offers related services. The Paging and Other Telecommunications Services segment sells pagers and Mango devices, as well as provides paging, maintenance, and two-way wireless data services. The Operation Services segment is involved in the provision of operation services. The company also provides installation, maintenance, and management services for paging transmission stations; technical support services; and management consultancy and professional services. In addition, it is involved in e-commerce business; and invests in properties. As of March 31, 2019, it operated 80 retail shops. The company was founded in 1974 and is headquartered in Kowloon Bay, Hong Kong. Telecom Digital Holdings Limited is a subsidiary of Cheung Family Trust. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 13:24
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.