SEHK:8465

Stock Analysis Report

Transtech Optelecom Science Holdings

Executive Summary

Transtech Optelecom Science Holdings Limited, an investment holding company, manufactures and sells optical fiber cables for use in the telecommunications industry.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Transtech Optelecom Science Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8465 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

8465

-1.1%

HK Communications

-2.7%

HK Market


1 Year Return

-36.6%

8465

-8.3%

HK Communications

-8.5%

HK Market

Return vs Industry: 8465 underperformed the Hong Kong Communications industry which returned -9.7% over the past year.

Return vs Market: 8465 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

8465IndustryMarket
7 Day0%-1.1%-2.7%
30 Day3.4%-4.4%-3.1%
90 Day9.8%12.9%2.4%
1 Year-36.6%-36.6%-5.9%-8.3%-5.2%-8.5%
3 Yearn/a16.4%7.1%12.0%0.7%
5 Yearn/a10.4%-6.2%14.1%-4.7%

Price Volatility Vs. Market

How volatile is Transtech Optelecom Science Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Transtech Optelecom Science Holdings undervalued compared to its fair value and its price relative to the market?

7.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 8465's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 8465's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 8465 is good value based on its PE Ratio (7.7x) compared to the Communications industry average (14.1x).

PE vs Market: 8465 is good value based on its PE Ratio (7.7x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8465's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8465 is good value based on its PB Ratio (0.4x) compared to the HK Communications industry average (1x).


Next Steps

Future Growth

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

19.2%

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

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8465 has high quality earnings.

Growing Profit Margin: 8465's current net profit margins (8.4%) are lower than last year (18.6%).


Past Earnings Growth Analysis

Earnings Trend: 8465's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: 8465's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 8465 had negative earnings growth (-67.8%) over the past year, making it difficult to compare to the Communications industry average (-9.3%).


Return on Equity

High ROE: 8465's Return on Equity (4.5%) is considered low.


Next Steps

Financial Health

How is Transtech Optelecom Science Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8465's short term assets (HK$516.3M) exceed its short term liabilities (HK$65.8M).

Long Term Liabilities: 8465's short term assets (HK$516.3M) exceed its long term liabilities (HK$16.7M).


Debt to Equity History and Analysis

Debt Level: 8465 is debt free.

Reducing Debt: 8465 had no debt 5 years ago.

Debt Coverage: 8465 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8465 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 8465 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 8465's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8465's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8465's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 8465's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8465's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8465's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

3.0yrs

Average board tenure


CEO

Xingfu He (59yo)

3.4yrs

Tenure

HK$1,740,000

Compensation

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  ...


CEO Compensation Analysis

Compensation vs Market: Xingfu's total compensation ($USD223.25K) is about average for companies of similar size in the Hong Kong market ($USD225.00K).

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


Board Members

NamePositionTenureCompensationOwnership
Guoqiang Hu
Chairman of the Board3.4yrsHK$600.00kno data
Xingfu He
CEO, Compliance Officer & Executive Director3.4yrsHK$1.74mno data
Jinhua Pan
Executive Director3.4yrsHK$560.00kno data
Muzhong Xu
Executive Director3.4yrsHK$672.00kno data
Jiangping Yu
Executive Director1.6yrsHK$800.00kno data
Wei Li
Independent Non-Executive Director2.7yrsHK$240.00kno data
Chew Kuan Leong
Independent Non-Executive Director2.7yrsHK$240.00kno data
Siu Hang Lau
Independent Non-Executive Director2.7yrsHK$240.00kno data

3.0yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 8465's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

Transtech Optelecom Science Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Transtech Optelecom Science Holdings Limited
  • Ticker: 8465
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$234.000m
  • Shares outstanding: 260.00m
  • Website: https://transtechoptel.com

Number of Employees


Location

  • Transtech Optelecom Science Holdings Limited
  • No. 3 Dai Kwai Street
  • Tai Po Industrial Estate
  • Tai Po
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8465SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2017

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:02
End of Day Share Price2020/02/26 00:00
Earnings2019/09/30
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.