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O-Net Technologies (Group)

SEHK:877
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
877
SEHK
HK$3B
Market Cap
  1. Home
  2. HK
  3. Tech
Company description

O-Net Technologies (Group) Limited, an investment holding company, designs, manufactures, and sells optical networking subcomponents, components, modules, and subsystems for high-speed telecommunications and data communications systems. The last earnings update was 21 days ago. More info.


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877 Share Price and Events
7 Day Returns
-6.6%
SEHK:877
-6.6%
HK Communications
-2.5%
HK Market
1 Year Returns
-24.7%
SEHK:877
-29.8%
HK Communications
-15.9%
HK Market
877 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
O-Net Technologies (Group) (877) -6.6% -7.9% -15.7% -24.7% 47.8% 88.6%
HK Communications -6.6% -14.4% -16.1% -29.8% 18.8% -3%
HK Market -2.5% -8.6% -3.6% -15.9% 25.4% 7.8%
1 Year Return vs Industry and Market
  • 877 outperformed the Communications industry which returned -29.8% over the past year.
  • 877 underperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
877
Industry
5yr Volatility vs Market
Related Companies

877 Value

 Is O-Net Technologies (Group) 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 O-Net Technologies (Group) 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 O-Net Technologies (Group).

SEHK:877 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
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:877
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.082 (1 + (1- 25%) (15.82%))
1.141
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.14
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.141 * 5.96%)
8.8%

Discounted Cash Flow Calculation for SEHK:877 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for O-Net Technologies (Group) 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:877 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.8%)
2019 88.45 Analyst x2 81.29
2020 63.75 Analyst x2 53.85
2021 49.68 Est @ -22.07% 38.57
2022 42.30 Est @ -14.85% 30.19
2023 38.16 Est @ -9.79% 25.03
2024 35.77 Est @ -6.25% 21.56
2025 34.42 Est @ -3.78% 19.07
2026 33.72 Est @ -2.04% 17.17
2027 33.44 Est @ -0.83% 15.65
2028 33.44 Est @ 0.02% 14.39
Present value of next 10 years cash flows HK$316.77
SEHK:877 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$33.44 × (1 + 2%) ÷ (8.8% – 2%)
HK$501.75
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$501.75 ÷ (1 + 8.8%)10
HK$215.83
SEHK:877 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$316.77 + HK$215.83
HK$532.60
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$532.60 / 772.66
HK$0.69
SEHK:877 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.69
Current discount Discount to share price of HK$3.96
= -1 x (HK$3.96 - HK$0.69) / HK$0.69
-474.5%

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

  • The current share price of O-Net Technologies (Group) is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 O-Net Technologies (Group)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are O-Net Technologies (Group)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:877 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.35
SEHK:877 Share Price ** SEHK (2019-05-20) in HKD HK$3.96
Hong Kong Communications Industry PE Ratio Median Figure of 14 Publicly-Listed Communications Companies 11.47x
Hong Kong Market PE Ratio Median Figure of 1,476 Publicly-Listed Companies 11.17x

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

** Primary Listing of O-Net Technologies (Group).

SEHK:877 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:877 Share Price ÷ EPS (both in HKD)

= 3.96 ÷ 0.35

11.33x

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

  • O-Net Technologies (Group) is good value based on earnings compared to the HK Communications industry average.
  • O-Net Technologies (Group) is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does O-Net Technologies (Group)'s expected growth come at a high price?
Raw Data
SEHK:877 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
17.7%per year
Asia Communications Industry PEG Ratio Median Figure of 9 Publicly-Listed Communications Companies 0.83x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:877 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.33x ÷ 17.7%

0.64x

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

  • O-Net Technologies (Group) is good value based on expected growth next year.
Price based on value of assets
What value do investors place on O-Net Technologies (Group)'s assets?
Raw Data
SEHK:877 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$3.22
SEHK:877 Share Price * SEHK (2019-05-20) in HKD HK$3.96
Hong Kong Communications Industry PB Ratio Median Figure of 25 Publicly-Listed Communications Companies 1.11x
Hong Kong Market PB Ratio Median Figure of 2,155 Publicly-Listed Companies 0.97x
SEHK:877 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:877 Share Price ÷ Book Value per Share (both in HKD)

= 3.96 ÷ 3.22

1.23x

* Primary Listing of O-Net Technologies (Group).

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

  • O-Net Technologies (Group) is overvalued based on assets compared to the HK Communications industry average.
X
Value checks
We assess O-Net Technologies (Group)'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. O-Net Technologies (Group) has a total score of 2/6, 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.

877 Future Performance

 How is O-Net Technologies (Group) expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

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
17.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is O-Net Technologies (Group) expected to grow at an attractive rate?
  • O-Net Technologies (Group)'s earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • O-Net Technologies (Group)'s earnings growth is expected to exceed the Hong Kong market average.
  • O-Net Technologies (Group)'s revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:877 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:877 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 17.7%
SEHK:877 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 20.7%
Hong Kong Communications Industry Earnings Growth Rate Market Cap Weighted Average 7.1%
Hong Kong Communications Industry Revenue Growth Rate Market Cap Weighted Average 8.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.4%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*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:877 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:877 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 3,808 203 372 3
2019-12-31 3,038 228 301 3
SEHK:877 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,516 310 262
2018-09-30 2,439 258 254
2018-06-30 2,362 206 247
2018-03-31 2,198 93 228
2017-12-31 2,035 -20 209
2017-09-30 1,884 -92 184
2017-06-30 1,733 -164 159
2017-03-31 1,666 -112 145
2016-12-31 1,598 -60 131
2016-09-30 1,480 94 116
2016-06-30 1,361 247 102
2016-03-31 1,248 188 92

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • O-Net Technologies (Group)'s earnings are expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).
  • O-Net Technologies (Group)'s revenue is expected to grow significantly at over 20% yearly.
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:877 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from O-Net Technologies (Group) Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:877 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.46 0.46 0.46 1.00
2019-12-31 0.38 0.38 0.38 1.00
SEHK:877 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.35
2018-09-30 0.33
2018-06-30 0.32
2018-03-31 0.30
2017-12-31 0.28
2017-09-30 0.25
2017-06-30 0.22
2017-03-31 0.20
2016-12-31 0.18
2016-09-30 0.17
2016-06-30 0.15
2016-03-31 0.13

*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.
  • O-Net Technologies (Group) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess O-Net Technologies (Group)'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.
O-Net Technologies (Group) has a total score of 4/6, 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.

877 Past Performance

  How has O-Net Technologies (Group) 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 O-Net Technologies (Group)'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.
  • O-Net Technologies (Group) has delivered over 20% year on year earnings growth in the past 5 years.
  • O-Net Technologies (Group)'s 1-year earnings growth is less than its 5-year average (25.3% vs 41.6%)
  • O-Net Technologies (Group)'s earnings growth has exceeded the HK Communications industry average in the past year (25.3% vs 8.5%).
Earnings and Revenue History
O-Net Technologies (Group)'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 O-Net Technologies (Group) Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:877 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,516.42 261.79 294.61 247.55
2018-09-30 2,439.14 254.40 288.94 247.13
2018-06-30 2,361.85 247.02 283.27 246.70
2018-03-31 2,198.47 227.94 268.27 238.76
2017-12-31 2,035.09 208.87 253.28 230.82
2017-09-30 1,884.06 184.08 256.59 226.33
2017-06-30 1,733.04 159.30 259.90 221.84
2017-03-31 1,665.68 144.95 250.40 204.82
2016-12-31 1,598.32 130.60 240.91 187.81
2016-09-30 1,479.73 116.15 219.41 168.98
2016-06-30 1,361.13 101.69 197.91 150.16
2016-03-31 1,248.31 92.11 190.69 142.62
2015-12-31 1,135.50 82.54 183.47 135.08
2015-09-30 1,043.56 71.98 169.34 125.59
2015-06-30 951.62 61.43 155.21 116.10
2015-03-31 891.45 52.39 149.40 111.03
2014-12-31 831.28 43.34 143.59 105.95
2014-09-30 818.16 43.65 141.69 102.88
2014-06-30 805.04 43.96 139.78 99.82
2014-03-31 733.27 28.67 134.11 94.40
2013-12-31 661.50 13.38 128.45 88.98
2013-09-30 639.92 22.59 128.76 87.09
2013-06-30 618.35 31.81 129.07 85.21
2013-03-31 672.86 64.81 129.78 79.17
2012-12-31 727.37 97.81 130.50 73.14
2012-09-30 728.71 112.50 128.11 65.80
2012-06-30 730.04 127.19 125.72 58.46

*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.
  • O-Net Technologies (Group) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • O-Net Technologies (Group) used its assets more efficiently than the HK Communications industry average last year based on Return on Assets.
  • O-Net Technologies (Group) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess O-Net Technologies (Group)'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.
O-Net Technologies (Group) has a total score of 4/6, 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.

877 Health

 How is O-Net Technologies (Group)'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 O-Net Technologies (Group)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • O-Net Technologies (Group) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • O-Net Technologies (Group)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of O-Net Technologies (Group)'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 3.8x 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 O-Net Technologies (Group) Company Filings, last reported 4 months ago.

SEHK:877 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,247.46 487.77 366.48
2018-09-30 2,247.46 487.77 366.48
2018-06-30 2,134.84 556.90 559.92
2018-03-31 2,134.84 556.90 559.92
2017-12-31 2,033.10 653.67 342.06
2017-09-30 2,033.10 653.67 342.06
2017-06-30 1,777.12 654.64 324.89
2017-03-31 1,777.12 654.64 324.89
2016-12-31 1,428.70 713.38 197.73
2016-09-30 1,428.70 713.38 197.73
2016-06-30 1,364.13 101.80 304.11
2016-03-31 1,364.13 101.80 304.11
2015-12-31 1,334.83 74.43 169.72
2015-09-30 1,334.83 74.43 169.72
2015-06-30 1,351.47 28.67 113.52
2015-03-31 1,351.47 28.67 113.52
2014-12-31 1,321.48 0.00 170.93
2014-09-30 1,321.48 0.00 170.93
2014-06-30 1,347.34 0.00 262.19
2014-03-31 1,347.34 0.00 262.19
2013-12-31 1,374.06 0.00 437.49
2013-09-30 1,374.06 0.00 437.49
2013-06-30 1,346.11 0.00 501.54
2013-03-31 1,346.11 0.00 501.54
2012-12-31 1,388.67 0.00 634.17
2012-09-30 1,388.67 0.00 634.17
2012-06-30 1,348.26 60.81 755.35
  • O-Net Technologies (Group)'s level of debt (21.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 21.7% today).
  • Debt is well covered by operating cash flow (63.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.9x coverage).
X
Financial health checks
We assess O-Net Technologies (Group)'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. O-Net Technologies (Group) has a total score of 5/6, 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.

877 Dividends

 What is O-Net Technologies (Group)'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
0.51%
Current annual income from O-Net Technologies (Group) dividends. Estimated to be 1.17% next year.
If you bought HK$2,000 of O-Net Technologies (Group) shares you are expected to receive HK$10 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?
  • O-Net Technologies (Group)'s pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • O-Net Technologies (Group)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.72%).
Upcoming dividend payment

Purchase O-Net Technologies (Group) before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:877 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 3 Analyst Estimates (S&P Global) See Below
Hong Kong Communications Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.6%
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 5.7%

Industry and Market average data is calculated daily.

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

SEHK:877 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.05 2.00
2019-12-31 0.04 2.00
SEHK:877 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-03-19 0.020 0.458
2014-09-29 0.000 0.000
2014-08-20 0.000 0.000
2014-04-29 0.000 0.000
2014-03-18 0.000 0.000
2013-03-11 0.030 1.736
2012-03-13 0.030 1.556

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

  • O-Net Technologies (Group) is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.
  • O-Net Technologies (Group) is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of O-Net Technologies (Group)'s earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of O-Net Technologies (Group)'s dividends as it is not paying a notable one for Hong Kong.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (9.7x coverage).
X
Income/ dividend checks
We assess O-Net Technologies (Group)'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 O-Net Technologies (Group) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. O-Net Technologies (Group) has a total score of 1/6, see the detailed checks below.


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

877 Management

 What is the CEO of O-Net Technologies (Group)'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
Qinglin Na
COMPENSATION HK$4,672,000
AGE 51
TENURE AS CEO 17.3 years
CEO Bio

Mr. Qinglin Na has been the Chief Executive Officer of O-Net Technologies (Group) Limited since January 2002. Mr. Na is a Co-Owner of Mandarin Venture Partners Limited. He serves as the President of 3SP Technologies S.A.S. He has been an Executive Director of O-Net Technologies (Group) Limited (formerly O-Net Communications (Group) Ltd.) since November 12, 2009. He is responsible for O-Net Communications's overall corporate strategy, management team development and daily operations since that time. He was engaged in investment banking work at Salomon Brothers Inc., from 1995 to 1997. He was engaged in investment banking work at Salomon Smith Barney as Vice President of Investment Bank in Asia-Pacific and Australian regions from 1997 to 2000. He was a Management Cooperation Partner at Mingda Risk Investment Company since 2000, which he co-founded in 2000. He has been the Chairman of the Board of O-Net Technologies (Group) Limited since October 7, 2016 and served as its Co-Chairman of the Board until since November 12, 2009 October 7, 2016. Mr. Na co-founded and became the co-managing partner of Mandarin Venture Partners Limited in 2000. He worked at the Hong Kong Office of Salomon Smith Barney from 1997 to 2000. He worked at the New York office of Salomon Brothers Inc. from 1995 to 1997. During his time at Salomon Brothers Inc., Mr. Na specialized in corporate finance for the Asia Pacific region. Mr. Na did not hold any directorship in other listed public companies in the past three years. He serves as a Director of 3SP Technologies S.A.S. He serves as a Director of each of O-Net Communications (Shenzhen) Limited, O-Net Communications (Hong Kong) Limited and O-Net Communications Holdings Limited, all are subsidiaries of O-Net Communications. Mr. Na has been a Director of each of Butterfly Technology (Shenzhen) Limited and Butterfly Technology (Hong Kong) Limited since 21 May 2008 and 30 May 2008 respectively. He served as a Director of Konka Group Co.,Ltd. since September 2005. Mr. Na obtained a Master’s degree in Business Administration from Owen Management School of Vanderbilt University in 1995 and a Bachelor’s degree in International Economics from Peking University in 1989. He completed his MBA from University of Utah.

CEO Compensation
  • Qinglin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Qinglin's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the O-Net Technologies (Group) management team in years:

2.6
Average Tenure
55
Average Age
  • The tenure for the O-Net Technologies (Group) management team is about average.
Management Team

Qinglin Na

TITLE
Chairman of the Board & CEO
COMPENSATION
HK$5M
AGE
51
TENURE
17.3 yrs

Wang Kevin Haigeng

TITLE
Vice President of Finance
AGE
34
TENURE
0.3 yrs

Yi-Cheng Liu

TITLE
Vice President of Global Operations
AGE
55
TENURE
2.2 yrs

Steven Tan

TITLE
Vice President of Sales
AGE
48
TENURE
3 yrs

Aihua Yu

TITLE
Group Chief Scientist
AGE
60
TENURE
2.2 yrs

Jiaxi Kan

TITLE
Group Chief Scientist
AGE
75
TENURE
3.2 yrs

Fotis Konstantinidis

TITLE
Chief Executive Officer of ITF Technologies Inc
AGE
59
TENURE
4.3 yrs

Kam Fai Tse

TITLE
Company Secretary
AGE
55
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the O-Net Technologies (Group) board of directors in years:

9.1
Average Tenure
51
Average Age
  • The tenure for the O-Net Technologies (Group) board of directors is about average.
Board of Directors

Xinping Deng

TITLE
Independent Non-Executive Director
COMPENSATION
HK$287K
AGE
51
TENURE
9.1 yrs

Qinglin Na

TITLE
Chairman of the Board & CEO
COMPENSATION
HK$5M
AGE
51
TENURE
2.6 yrs

Alan Ong

TITLE
Independent Non-Executive Director
COMPENSATION
HK$287K
AGE
48
TENURE
9.1 yrs

Bin Huang

TITLE
Non Executive Director
COMPENSATION
HK$144K
AGE
57
TENURE
9.5 yrs

Zhujiang Chen

TITLE
Non-Executive Director
COMPENSATION
HK$144K
AGE
51
TENURE
9.5 yrs

Wei Zhao

TITLE
Independent Non-Executive Director
COMPENSATION
HK$358K
AGE
53
TENURE
6.8 yrs

Shangyun Mo

TITLE
Non-Executive Director
AGE
51
TENURE
1.3 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$) Value (HK$)
12. Oct 18 Buy Guangxin Li Individual 12. Oct 18 12. Oct 18 291,000 HK$3.20 HK$931,200
X
Management checks
We assess O-Net Technologies (Group)'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. O-Net Technologies (Group) 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.

877 News

Simply Wall St News

With 25% Earnings Growth, Did O-Net Technologies (Group) Limited (HKG:877) Outperform The Industry?

Assessing O-Net Technologies (Group) Limited's (HKG:877) performance as a company requires looking at more than just a years' earnings data. … Below, I will run you through a simple sense check to build perspective on how O-Net Technologies (Group) is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its communications industry peers. … View our latest analysis for O-Net Technologies (Group) How Did 877's Recent Performance Stack Up Against Its Past?

Simply Wall St -

Here's Why I Think O-Net Technologies (Group) (HKG:877) Might Deserve Your Attention Today

How Quickly Is O-Net Technologies (Group) Increasing Earnings Per Share. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … While O-Net Technologies (Group) did well to grow revenue over the last year, EBIT margins were dampened at the same time.

Simply Wall St -

Don't Sell O-Net Technologies (Group) Limited (HKG:877) Before You Read This

We'll apply a basic P/E ratio analysis to O-Net Technologies (Group) Limited's (HKG:877), to help you decide if the stock is worth further research. … What is O-Net Technologies (Group)'s P/E ratio? … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

How Much Are O-Net Technologies (Group) Limited (HKG:877) Insiders Spending On Buying Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in O-Net Technologies (Group) Limited (HKG:877). … The Last 12 Months Of Insider Transactions At O-Net Technologies (Group).

Simply Wall St -

Is O-Net Technologies (Group) Limited (HKG:877) A Cash Cow?

I will take you through O-Net Technologies (Group)’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash O-Net Technologies (Group) has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations. … I will be analysing O-Net Technologies (Group)’s FCF by looking at its FCF yield and its operating cash flow growth.

Simply Wall St -

Does O-Net Technologies (Group) Limited (HKG:877) Have A Volatile Share Price?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Introducing O-Net Technologies (Group) (HKG:877), A Stock That Climbed 83% In The Last Three Years

Just take a look at O-Net Technologies (Group) Limited (HKG:877), which is up 83%, over three years, soundly beating the market return of 29% (not including dividends). … During three years of share price growth, O-Net Technologies (Group) achieved compound earnings per share growth of 52% per year. … It might be well worthwhile taking a look at our free report on O-Net Technologies (Group)'s earnings, revenue and cash flow.

Simply Wall St -

Why O-Net Technologies (Group) Limited (HKG:877) Could Be Worth Watching

O-Net Technologies (Group) Limited (HKG:877), which is in the communications business, and is based in China,. … As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Let’s examine O-Net Technologies (Group)’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Is O-Net Technologies (Group) Limited (HKG:877) Overpaying Its CEO?

Qinglin Na has been the CEO of O-Net Technologies (Group) Limited (HKG:877) since 2002. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Qinglin Na's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is O-Net Technologies (Group) Limited (HKG:877) Worth HK$3.97 Based On Intrinsic Value?

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF) … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model.

Simply Wall St -

877 Company Info

Description

O-Net Technologies (Group) Limited, an investment holding company, designs, manufactures, and sells optical networking subcomponents, components, modules, and subsystems for high-speed telecommunications and data communications systems. The company offers power management products, such as power attenuators, EDFAs, EDFA components, and VMUX; transmission products for use in fiber optic networks that transmit and receive optical signals; wavelength management products, including thin-filter wavelength division multiplexers, optical add/drop modules, and interleavers; signal conditioning and monitoring products comprising tap-PD arrays, and TDC devices and modules; and fiber to the home products, cable television products, and subcomponent products. It also designs, develops, and manufactures automation equipment, including winding machines, visual equipment, robotics applications, TFT, automatic assembly and inspection line, PCB automatic wire welding, and home appliances automatic safety testing equipment, as well as e-cigarette equipment and components. In addition, the company develops touch-screen technology. It serves customers in the People’s Republic of China, Europe, North America, and other Asian countries. The company was formerly known as O-Net Communications (Group) Limited and changed its name to O-Net Technologies (Group) Limited in January 2016. O-Net Technologies (Group) Limited was founded in 2000 and is headquartered in Shenzhen, the People’s Republic of China. The company is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange.

Details
Name: O-Net Technologies (Group) Limited
877
Exchange: SEHK
Founded: 2000
HK$3,082,894,407
772,655,240
Website: http://www.o-netcom.com
Address: O-Net Technologies (Group) Limited
#35 Cuijing Road,
Pingshan New District,
Shenzhen,
Guangdong Province, 518118,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 877 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 29. Apr 2010
OTCPK ONTZ.F Ordinary Shares Pink Sheets LLC US USD 29. Apr 2010
OTCPK ONET.Y UNSPONSORD ADR Pink Sheets LLC US USD 20. Mar 2012
Number of employees
Current staff
Staff numbers
5,196
O-Net Technologies (Group) employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 12:54
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/04/24
Last earnings filing: 2019/04/29
Last earnings reported: 2018/12/31
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.