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Transtech Optelecom Science Holdings

SEHK:8465
Snowflake Description

Undervalued with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8465
SEHK
HK$317M
Market Cap
  1. Home
  2. HK
  3. Tech
Company description

Transtech Optelecom Science Holdings Limited, an investment holding company, manufactures and sells optical fiber cables for use in the telecommunications industry. The last earnings update was 19 days ago. More info.


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8465 Share Price and Events
7 Day Returns
-3.9%
SEHK:8465
-4.1%
HK Communications
-2.4%
HK Market
1 Year Returns
-54.1%
SEHK:8465
-31.2%
HK Communications
-16.5%
HK Market
8465 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Transtech Optelecom Science Holdings (8465) -3.9% -9.6% -17% -54.1% - -
HK Communications -4.1% -18.7% -24.6% -31.2% 15.5% -9.6%
HK Market -2.4% -10.2% -8.1% -16.5% 19.3% 4.8%
1 Year Return vs Industry and Market
  • 8465 underperformed the Communications industry which returned -31.2% over the past year.
  • 8465 underperformed the Market in Hong Kong which returned -16.5% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

Value

 Is Transtech Optelecom Science Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Transtech Optelecom Science Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Transtech Optelecom Science Holdings.

SEHK:8465 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:8465
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.076 (1 + (1- 25%) (5.69%))
1.082
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.082 * 6.65%)
9.2%

Discounted Cash Flow Calculation for SEHK:8465 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Transtech Optelecom Science Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:8465 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.2%)
2019 108.99 Est @ 6.34% 99.81
2020 114.48 Est @ 5.04% 96.01
2021 119.21 Est @ 4.13% 91.55
2022 123.37 Est @ 3.49% 86.77
2023 127.13 Est @ 3.04% 81.88
2024 130.60 Est @ 2.73% 77.03
2025 133.88 Est @ 2.51% 72.32
2026 137.04 Est @ 2.36% 67.79
2027 140.13 Est @ 2.25% 63.48
2028 143.18 Est @ 2.18% 59.40
Present value of next 10 years cash flows HK$796.03
SEHK:8465 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$143.18 × (1 + 2%) ÷ (9.2% – 2%)
HK$2,030.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$2,030.04 ÷ (1 + 9.2%)10
HK$842.13
SEHK:8465 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$796.03 + HK$842.13
HK$1,638.16
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$1,638.16 / 260.00
HK$6.3
SEHK:8465 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$6.30
Current discount Discount to share price of HK$1.22
= -1 x (HK$1.22 - HK$6.30) / HK$6.30
80.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Transtech Optelecom Science Holdings is available for.
Intrinsic value
>50%
Share price is HK$1.22 vs Future cash flow value of HK$6.3
Current Discount Checks
For Transtech Optelecom Science Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Transtech Optelecom Science Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Transtech Optelecom Science Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Transtech Optelecom Science Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Transtech Optelecom Science Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:8465 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in HKD HK$0.23
SEHK:8465 Share Price ** SEHK (2019-05-24) in HKD HK$1.22
Hong Kong Communications Industry PE Ratio Median Figure of 14 Publicly-Listed Communications Companies 12.03x
Hong Kong Market PE Ratio Median Figure of 1,478 Publicly-Listed Companies 10.99x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Transtech Optelecom Science Holdings.

SEHK:8465 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:8465 Share Price ÷ EPS (both in HKD)

= 1.22 ÷ 0.23

5.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Transtech Optelecom Science Holdings is good value based on earnings compared to the HK Communications industry average.
  • Transtech Optelecom Science Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Transtech Optelecom Science Holdings's expected growth come at a high price?
Raw Data
SEHK:8465 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
12.9%per year
Asia Communications Industry PEG Ratio Median Figure of 9 Publicly-Listed Communications Companies 0.84x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Transtech Optelecom Science Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Transtech Optelecom Science Holdings's assets?
Raw Data
SEHK:8465 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in HKD HK$2.43
SEHK:8465 Share Price * SEHK (2019-05-24) in HKD HK$1.22
Hong Kong Communications Industry PB Ratio Median Figure of 25 Publicly-Listed Communications Companies 1.11x
Hong Kong Market PB Ratio Median Figure of 2,157 Publicly-Listed Companies 0.94x
SEHK:8465 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:8465 Share Price ÷ Book Value per Share (both in HKD)

= 1.22 ÷ 2.43

0.5x

* Primary Listing of Transtech Optelecom Science Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Transtech Optelecom Science Holdings is good value based on assets compared to the HK Communications industry average.
X
Value checks
We assess Transtech Optelecom Science Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Transtech Optelecom Science Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Transtech Optelecom Science Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Transtech Optelecom Science Holdings, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Transtech Optelecom Science Holdings expected to grow at an attractive rate?
  • Transtech Optelecom Science Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Transtech Optelecom Science Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • Unable to compare Transtech Optelecom Science Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:8465 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:8465 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 12.9%
Hong Kong Communications Industry Earnings Growth Rate Market Cap Weighted Average 6.9%
Hong Kong Communications Industry Revenue Growth Rate Market Cap Weighted Average 8.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.1%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:8465 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:8465 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:8465 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-03-31 468 59
2018-12-31 510 -39 80
2018-09-30 504 94
2018-06-30 534 76 105
2018-03-31 561 115
2017-12-31 557 185 104
2017-09-30 604 99
2017-06-30 598 141 89
2017-03-31 584 74
2016-12-31 600 35 64

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Transtech Optelecom Science Holdings's earnings are expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Transtech Optelecom Science Holdings is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:8465 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Transtech Optelecom Science Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8465 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:8465 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-03-31 0.23
2018-12-31 0.31
2018-09-30 0.36
2018-06-30 0.41
2018-03-31 0.48
2017-12-31 0.47
2017-09-30 0.48
2017-06-30 0.46
2017-03-31 0.38
2016-12-31 0.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Transtech Optelecom Science Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Transtech Optelecom Science Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Transtech Optelecom Science Holdings has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Transtech Optelecom Science Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Transtech Optelecom Science Holdings's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Transtech Optelecom Science Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Transtech Optelecom Science Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Transtech Optelecom Science Holdings's 1-year earnings growth is negative, it can't be compared to the HK Communications industry average.
Earnings and Revenue History
Transtech Optelecom Science Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Transtech Optelecom Science Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8465 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 467.61 58.77 35.41
2018-12-31 510.08 79.56 36.46
2018-09-30 504.08 93.74 37.17
2018-06-30 534.00 104.79 38.24
2018-03-31 561.39 114.94 37.93
2017-12-31 556.54 104.35 35.56
2017-09-30 603.79 99.31 33.80
2017-06-30 597.86 89.49 28.42
2017-03-31 583.59 74.41 26.21
2016-12-31 599.77 63.92 25.28
2015-12-31 395.52 -0.39 30.84

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Transtech Optelecom Science Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Transtech Optelecom Science Holdings used its assets less efficiently than the HK Communications industry average last year based on Return on Assets.
  • Transtech Optelecom Science Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Transtech Optelecom Science Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Transtech Optelecom Science Holdings has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Transtech Optelecom Science Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Transtech Optelecom Science Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Transtech Optelecom Science Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Transtech Optelecom Science Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Transtech Optelecom Science Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 29.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Transtech Optelecom Science Holdings Company Filings, last reported 1 month ago.

SEHK:8465 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 631.00 18.04 187.01
2018-12-31 631.00 18.04 187.01
2018-09-30 605.20 19.33 258.30
2018-06-30 605.20 19.33 258.30
2018-03-31 551.18 0.90 279.55
2017-12-31 551.18 0.90 279.55
2017-09-30
2017-06-30 391.07 27.78 92.42
2017-03-31 328.76 59.38 58.57
2016-12-31 328.76 59.38 58.57
2015-12-31 262.36 93.01 50.71
  • Transtech Optelecom Science Holdings's level of debt (2.9%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Transtech Optelecom Science Holdings's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Transtech Optelecom Science Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Transtech Optelecom Science Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Transtech Optelecom Science Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Transtech Optelecom Science Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Transtech Optelecom Science Holdings dividends.
If you bought HK$2,000 of Transtech Optelecom Science Holdings shares you are expected to receive HK$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Transtech Optelecom Science Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Transtech Optelecom Science Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:8465 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Communications Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:8465 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Transtech Optelecom Science Holdings has not reported any payouts.
  • Unable to verify if Transtech Optelecom Science Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Transtech Optelecom Science Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Transtech Optelecom Science Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Transtech Optelecom Science Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Transtech Optelecom Science Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Transtech Optelecom Science Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Transtech Optelecom Science Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xingfu He
COMPENSATION HK$4,500,000
AGE 58
TENURE AS CEO 2.7 years
CEO Bio

Mr. Xingfu He has been the Chief Executive Officer and compaliance officer at Transtech Optelecom Science Holdings Limited since September 06, 2016 and also serves as its Executive Director. Mr. He joined Transtech Optelecom Group in April 2003 and served as general manager of Transtech and is responsible for managing the daily operations and business development of Group. Mr. He is the president of Futong Group (Hong Kong) and a director of Futong HK. Mr. He has approximately 34 years of experience in optical communication industry. Prior to joining Futong China Group in 2001, Mr. He was engineer of the research department of the No. 46 Research Institute of China Electronics Technology Group Corporation (formally known as No. 46 Research Institute of Mechanical Electronics Department from August 1982 to April 1989, where he mainly engaged in the research on the production technologies for optical fibres preforms and the drawing technologies of optical fibres. From January 1989 to June 1997, Mr. He was the head (manager) of the optical fibre factory of Shenzhen Guangtong Development Company Limited and mainly managed the day-to-day operations and production technology of the optical fibre factory. From July 1997 to December 1998, Mr. He was the person in charge of technology for the Shenzhen SDGI Optical Fibre Co. Ltd. Shenzhen SDGI Optical Fibre Co. Ltd is principally engaged in the manufacturing and sales of optical fibres. Subsequently from February 1999 to March 2001, Mr. He was the Area Sales Manager of Fiber Optic Product Line, Cables and Components Sector of Alcatel China Limited Shanghai Representative Office ( ) and was mainly responsible for overseeing the sales operations of optical fibre products in the PRC. Alcatel China Company Limited is principally engaged in providing optics, voice and data communication systems for enterprises to mobile terminals. Mr. He also acted as the director of the FTTH Council Asia Pacific from May 2012 to May 2016 and also served as its Vice President and director from May 2015 to May 2016. Mr. He obtained the qualification of Senior Engineer from Science and Technology Bureau of Guangdong Province April 1994 and a bachelor degree in electronic material science from University of Electronic Science and Technology of China (formally known as Chengdu Institute of Radio Engineering in July 1982.

CEO Compensation
  • Xingfu's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Xingfu's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team

Guoqiang Hu

TITLE
Chairman of the Board
COMPENSATION
HK$600K
AGE
55

Xingfu He

TITLE
CEO, Compliance Officer & Executive Director
COMPENSATION
HK$5M
AGE
58
TENURE
2.7 yrs

Jinhua Pan

TITLE
Executive Director
COMPENSATION
HK$560K
AGE
53

Muzhong Xu

TITLE
Executive Director
COMPENSATION
HK$672K
AGE
51

Jiangping Yu

TITLE
Executive Director
COMPENSATION
HK$800K
AGE
54

Cheuk Wai Ho

TITLE
CFO & Company Secretary
AGE
56
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Transtech Optelecom Science Holdings board of directors in years:

2.3
Average Tenure
54.5
Average Age
  • The average tenure for the Transtech Optelecom Science Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Guoqiang Hu

TITLE
Chairman of the Board
COMPENSATION
HK$600K
AGE
55
TENURE
2.7 yrs

Xingfu He

TITLE
CEO, Compliance Officer & Executive Director
COMPENSATION
HK$5M
AGE
58
TENURE
2.7 yrs

Jinhua Pan

TITLE
Executive Director
COMPENSATION
HK$560K
AGE
53
TENURE
2.7 yrs

Muzhong Xu

TITLE
Executive Director
COMPENSATION
HK$672K
AGE
51
TENURE
2.7 yrs

Jiangping Yu

TITLE
Executive Director
COMPENSATION
HK$800K
AGE
54
TENURE
0.8 yrs

Chew Kuan Leong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$240K
AGE
41
TENURE
1.9 yrs

Siu Hang Lau

TITLE
Independent Non-Executive Director
COMPENSATION
HK$240K
AGE
61
TENURE
1.9 yrs

Wei Li

TITLE
Independent Non-Executive Director
COMPENSATION
HK$240K
AGE
63
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Transtech Optelecom Science Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Transtech Optelecom Science Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Transtech Optelecom Science Holdings Limited’s (HKG:8465) ROCE Reflect Well On The Business?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Transtech Optelecom Science Holdings: 0.12 = HK$78m ÷ (HK$718m - HK$84m) (Based on the trailing twelve months to March 2019.) Therefore, Transtech Optelecom Science Holdings has an ROCE of 12%. … Do Transtech Optelecom Science Holdings's Current Liabilities Skew Its ROCE? … Transtech Optelecom Science Holdings has total assets of HK$718m and current liabilities of HK$84m.

Simply Wall St -

Does Transtech Optelecom Science Holdings Limited's (HKG:8465) P/E Ratio Signal A Buying Opportunity?

We'll show how you can use Transtech Optelecom Science Holdings Limited's (HKG:8465) P/E ratio to inform your assessment of the investment opportunity. … Transtech Optelecom Science Holdings has a price to earnings ratio of 4.51, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Transtech Optelecom Science Holdings Limited (HKG:8465) Creating Value For Shareholders?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

With An ROE Of 17.31%, Has Transtech Optelecom Science Holdings Limited's (HKG:8465) Management Done Well?

and want to begin learning the link between company’s fundamentals and stock market performance. … Transtech Optelecom Science Holdings Limited (HKG:8465) delivered an ROE of 17.31% over the past 12 months, which is an impressive feat relative to its industry average of 8.78% during the same period. … View our latest analysis for Transtech Optelecom Science Holdings

Simply Wall St -

A Holistic Look At Transtech Optelecom Science Holdings Limited (HKG:8465)

Attractive stocks have exceptional fundamentals. … In the case of Transtech Optelecom Science Holdings Limited (HKG:8465), there's. … report on Transtech Optelecom Science Holdings here

Simply Wall St -

Three Stocks Trading At A Massive Discount

Companies with shares trading at a market price below what they are actually worth, such as Transtech Optelecom Science Holdings and Sihuan Pharmaceutical Holdings Group, are deemed undervalued. … SEHK:8465 PE PEG Gauge Mar 30th 18 Sihuan Pharmaceutical Holdings Group Ltd. … (SEHK:460) Sihuan Pharmaceutical Holdings Group Ltd., an investment holding company, engages in the research and development, manufacture, and sale of pharmaceutical products in the People’s Republic of China.

Simply Wall St -

Company Info

Description

Transtech Optelecom Science Holdings Limited, an investment holding company, manufactures and sells optical fiber cables for use in the telecommunications industry. It also designs and manufactures specialty optical fiber cables, including rodent resistant, flame-retardant, and non-metallic optical fiber cables. In addition, the company offers optical fibers; and optical cable cores and other related products, such as power cables and other auxiliary products. It has operations in the People's Republic of China, Thailand, Vietnam, Singapore, Laos, the Philippines, Burma, and internationally. The company was founded in 2003 and is headquartered in Tai Po, Hong Kong. Transtech Optelecom Science Holdings Limited is a subsidiary of Futong Group Co., Ltd.

Details
Name: Transtech Optelecom Science Holdings Limited
8465
Exchange: SEHK
Founded: 2003
HK$317,200,000
260,000,000
Website: http://transtechoptel.com
Address: Transtech Optelecom Science Holdings Limited
No. 3 Dai Kwai Street,
Tai Po Industrial Estate,
Tai Po,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 8465 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 20. Jul 2017
Number of employees
Current staff
Staff numbers
251
Transtech Optelecom Science Holdings employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 13:04
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/03/28
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.