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.

Risks

  • Yangtze Optical Fibre And Cable Limited has significant price volatility in the past 3 months.

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

-9.2%

SEHK:6869

-1.6%

HK Communications

0.7%

HK Market


1 Year Return

-44.6%

SEHK:6869

-17.0%

HK Communications

-5.3%

HK Market

6869 underperformed the Communications industry which returned -14.6% over the past year.

6869 underperformed the Market in Hong Kong which returned -3.3% over the past year.


Share holder returns

6869IndustryMarket
7 Day-9.2%-1.6%0.7%
30 Day4.6%2.1%4.9%
90 Day-15.9%-5.1%-3.7%
1 Year-42.0%-44.6%-14.0%-17.0%-1.8%-5.3%
3 Year9.4%2.5%6.5%-1.9%16.4%4.6%
5 Yearn/a-14.2%-26.9%18.0%-1.7%

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 based on future cash flows and its price relative to the stock market?

35%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Yangtze Optical Fibre And Cable Limited's share price is below the future cash flow value, and at a moderate discount (> 20%).

Yangtze Optical Fibre And Cable Limited's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Yangtze Optical Fibre And Cable Limited is good value based on earnings compared to the HK Communications industry average.

Yangtze Optical Fibre And Cable Limited is good value based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Yangtze Optical Fibre And Cable Limited is poor value based on expected growth next year.


Price Based on Value of Assets

Yangtze Optical Fibre And Cable Limited is good value based on assets compared to the HK Communications industry average.


Next Steps

Future Growth

How is Yangtze Optical Fibre And Cable Limited expected 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 Estimates


Future Annual Growth Analysis

Yangtze Optical Fibre And Cable Limited's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).

Yangtze Optical Fibre And Cable Limited's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).

Yangtze Optical Fibre And Cable Limited's revenue growth is positive but not above the Hong Kong market average.

Yangtze Optical Fibre And Cable Limited's earnings growth is positive but not above the Hong Kong market average.

Yangtze Optical Fibre And Cable Limited's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Yangtze Optical Fibre And Cable Limited is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Yangtze Optical Fibre And Cable Limited has delivered over 20% year on year earnings growth in the past 5 years.

Yangtze Optical Fibre And Cable Limited's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Yangtze Optical Fibre And Cable Limited's 1-year earnings growth is negative, it can't be compared to the HK Communications industry average.


Return on Equity

Yangtze Optical Fibre And Cable Limited has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Yangtze Optical Fibre And Cable Limited used its assets more efficiently than the HK Communications industry average last year based on Return on Assets.


Return on Capital Employed

Yangtze Optical Fibre And Cable Limited's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Yangtze Optical Fibre And Cable Limited is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Yangtze Optical Fibre And Cable Limited's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Yangtze Optical Fibre And Cable Limited's level of debt (20.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (122% vs 20.9% today).

Debt is not well covered by operating cash flow (16.2%, less than 20% of total debt).

Yangtze Optical Fibre And Cable Limited earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.3x debt.


Next Steps

Dividend

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

2.63%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Yangtze Optical Fibre And Cable Limited's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Yangtze Optical Fibre And Cable Limited's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Yangtze Optical Fibre And Cable Limited has not reported any payouts.

Unable to verify if Yangtze Optical Fibre And Cable Limited's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Yangtze Optical Fibre And Cable Limited has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).


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?

5.3yrs

Average management tenure


CEO

Dan Zhuang (49yo)

8yrs

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

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

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


Management Age and Tenure

5.3yrs

Average Tenure

50.5yo

Average Age

The average tenure for the Yangtze Optical Fibre And Cable Limited management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.0yrs

Average Tenure

56yo

Average Age

The tenure for the Yangtze Optical Fibre And Cable Limited board of directors is about average.


Insider Trading

Yangtze Optical Fibre And Cable Limited individual insiders have only sold shares 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: 8yrs
    • Compensation: CN¥5.40m
  • Jie Luo (53yo)

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

    • Tenure: 9.6yrs
  • 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: 0.4yrs
  • Xin Zheng (50yo)

    Chief Sales Officer & GM of the Sales Center

    • Tenure: 2.7yrs

Board Members

  • Ping Li (65yo)

    Independent Non Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥468.42k
  • Frank Dorjee (59yo)

    Vice Chairman

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

    Independent Non Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥468.42k
  • Maurice Ngai (57yo)

    Independent Non Executive Director

    • Tenure: 5yrs
    • Compensation: CN¥468.42k
  • Huili Zheng (60yo)

    Non Executive Director

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

    President & Executive Director

    • Tenure: 8yrs
    • Compensation: CN¥5.40m
  • Xiangfeng Xiong (55yo)

    Non Executive Director

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

    Vice Chairman

    • Tenure: 2.7yrs
    • Compensation: CN¥468.42k
  • Jie Ma (48yo)

    Chairman of the Board

    • Tenure: 2.7yrs
    • Compensation: CN¥468.42k
  • Wang Ruichun (43yo)

    Chairman of the Board of Supervisors

    • Tenure: 2.7yrs

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$20.953b
  • 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 Analysis2019/09/17 12:54
End of Day Share Price2019/09/17 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.