SEHK:6869

Stock Analysis Report

Yangtze Optical Fibre And Cable Limited

Executive Summary

Yangtze Optical Fibre And Cable Joint Stock Limited Company manufactures and sells optical fiber and cable products in the People’s Republic of China and internationally.

Snowflake

Fundamentals

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has Yangtze Optical Fibre And Cable Limited's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.4%

6869

-1.3%

HK Communications

3.1%

HK Market


1 Year Return

-37.8%

6869

-13.5%

HK Communications

0.5%

HK Market

Return vs Industry: 6869 underperformed the Hong Kong Communications industry which returned -13.5% over the past year.

Return vs Market: 6869 underperformed the Hong Kong Market which returned 0.5% over the past year.


Shareholder returns

6869IndustryMarket
7 Day-1.4%-1.3%3.1%
30 Day-5.4%-8.2%-1.8%
90 Day-13.3%-9.0%-4.8%
1 Year-35.0%-37.8%-10.3%-13.5%4.1%0.5%
3 Year-9.4%-15.1%-5.6%-13.0%15.8%4.2%
5 Yearn/a-9.8%-21.0%18.9%-0.9%

Price Volatility Vs. Market

How volatile is Yangtze Optical Fibre And Cable Limited's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Yangtze Optical Fibre And Cable Limited undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 6869 (HK$12.56) is trading below our estimate of fair value (HK$20.26)

Significantly Undervalued: 6869 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 6869 is good value based on its PE Ratio (7.6x) compared to the Communications industry average (13.1x).

PE vs Market: 6869 is good value based on its PE Ratio (7.6x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: 6869 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 6869 is good value based on its PB Ratio (1x) compared to the HK Communications industry average (1.1x).


Next Steps

Future Growth

How is Yangtze Optical Fibre And Cable Limited forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6869's forecast earnings growth (6.2% per year) is above the savings rate (2%).

Earnings vs Market: 6869's earnings (6.2% per year) are forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Earnings: 6869's earnings are forecast to grow, but not significantly.

Revenue vs Market: 6869's revenue (4.5% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 6869's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 6869's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has Yangtze Optical Fibre And Cable Limited performed over the past 5 years?

26.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 6869's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: 6869's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6869 had negative earnings growth (-26.3%) over the past year, making it difficult to compare to the Communications industry average (-14.9%).


Return on Equity

High ROE: 6869's Return on Equity (12.8%) is considered low.


Return on Assets

ROA vs Industry: 6869 has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: 6869's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Yangtze Optical Fibre And Cable Limited's financial position?


Financial Position Analysis

Short Term Liabilities: 6869's short term assets (CN¥7.6B) exceeds its short term liabilities (CN¥3.9B)

Long Term Liabilities: 6869's short term assets (7.6B) exceeds its long term liabilities (893.3M)


Debt to Equity History and Analysis

Debt Level: 6869's debt to equity ratio (20.9%) is considered satisfactory

Reducing Debt: 6869's debt to equity ratio has reduced from 122% to 20.9% over the past 5 years.

Debt Coverage: 6869's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: 6869 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 6869 has a high level of physical assets or inventory.

Debt Coverage by Assets: 6869's debt is covered by short term assets (assets are 4.262060x debt).


Next Steps

Dividend

What is Yangtze Optical Fibre And Cable Limited's current dividend yield, its reliability and sustainability?

2.85%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage3.6%forecastin3Years2.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 6869's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6869's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 6869's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6869's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 6869 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 6869's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of Yangtze Optical Fibre And Cable Limited's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Dan Zhuang (49yo)

8.1yrs

Tenure

CN¥5,404,693

Compensation

Mr. Zhuang Dan has been the President of Yangtze Optical Fibre And Cable Joint Stock Limited Company since September 2011. Mr. Dan served as Chief Financial Officer of Yangtze Optical Fibre and Cable Co.,  ...


CEO Compensation Analysis

Compensation vs. Market: Dan's total compensation ($USD761.95K) is about average for companies of similar size in the Hong Kong market ($USD489.22K).

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


Management Age and Tenure

5.4yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 6869's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

56yo

Average Age

Experienced Board: 6869's board of directors are considered experienced (5.1 years average tenure).


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

BuyCN¥5,849,79510 Sep 19
Capital Research and Management Company
EntityCompany
Shares423,000
Max PriceCN¥13.83
SellCN¥695,20020 Jun 19
Frank Dorjee
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares44,000
Max PriceCN¥15.80
SellCN¥61,113,83706 Apr 19
Capital Research and Management Company
EntityCompany
Shares2,855,000
Max PriceCN¥21.41
SellCN¥2,484,00026 Dec 18
Frank Dorjee
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares120,000
Max PriceCN¥20.70
BuyCN¥3,141,12126 Oct 18
Capital Research and Management Company
EntityCompany
Shares150,000
Max PriceCN¥20.94

Ownership Breakdown


Management Team

  • Frank Dorjee (59yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: CN¥468.42k
  • Dan Zhuang (49yo)

    President & Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥5.40m
  • Jie Luo (53yo)

    CTO, GM of R&D center and Director of State Key Laboratory

    • Tenure: 9.7yrs
  • Paul Liang (39yo)

    CFO, GM of the Financial Center

    • Tenure: 0yrs
  • Rongrong Zhou (50yo)

    Human Resources Director

    • Tenure: 0yrs
  • Zhikang Jiang (57yo)

    Chief Marketing & Strategic Officer and GM of the Manufacturing Center

    • Tenure: 0yrs
  • Yee Man Choy (51yo)

    Company Secretary

    • Tenure: 0.5yrs
  • Xin Zheng (50yo)

    Chief Sales Officer & GM of the Sales Center

    • Tenure: 2.8yrs

Board Members

  • Ping Li (65yo)

    Independent Non Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥468.42k
  • Frank Dorjee (59yo)

    Vice Chairman

    • Tenure: 0yrs
    • Compensation: CN¥468.42k
  • Simon Ip (70yo)

    Independent Non Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥468.42k
  • Maurice Ngai (57yo)

    Independent Non Executive Director

    • Tenure: 5.1yrs
    • Compensation: CN¥468.42k
  • Huili Zheng (60yo)

    Non Executive Director

    • Tenure: 5.8yrs
    • Compensation: CN¥1.95m
  • Dan Zhuang (49yo)

    President & Executive Director

    • Tenure: 8.1yrs
    • Compensation: CN¥5.40m
  • Xiangfeng Xiong (55yo)

    Non Executive Director

    • Tenure: 5.8yrs
    • Compensation: CN¥468.42k
  • Philippe Claude Vanhille (55yo)

    Vice Chairman

    • Tenure: 2.8yrs
    • Compensation: CN¥468.42k
  • Jie Ma (48yo)

    Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: CN¥468.42k
  • Wang Ruichun (43yo)

    Chairman of the Board of Supervisors

    • Tenure: 2.8yrs

Company Information

Yangtze Optical Fibre And Cable Joint Stock Limited Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yangtze Optical Fibre And Cable Joint Stock Limited Company
  • Ticker: 6869
  • Exchange: SEHK
  • Founded: 1988
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$19.230b
  • Shares outstanding: 757.91m
  • Website: https://www.yofc.com

Number of Employees


Location

  • Yangtze Optical Fibre And Cable Joint Stock Limited Company
  • No. 9 Guanggu Avenue
  • East Lake High-tech Development Zone
  • Wuhan
  • Hubei Province
  • 430073
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6869SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDDec 2014
1YODB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURDec 2014
6869SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2014
YZOF.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDDec 2014
6869SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDDec 2014
601869SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYJul 2018
601869XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYJul 2018

Biography

Yangtze Optical Fibre And Cable Joint Stock Limited Company manufactures and sells optical fiber and cable products in the People’s Republic of China and internationally. The company operates through Optic ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 12:52
End of Day Share Price2019/10/17 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.