SEHK:877

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O-Net Technologies (Group)

Executive Summary

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. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has O-Net Technologies (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 877 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

877

3.1%

HK Communications

1.5%

HK Market


1 Year Return

48.4%

877

51.6%

HK Communications

1.4%

HK Market

Return vs Industry: 877 exceeded the Hong Kong Communications industry which returned 45.2% over the past year.

Return vs Market: 877 exceeded the Hong Kong Market which returned 0.7% over the past year.


Shareholder returns

877IndustryMarket
7 Day0.5%3.1%1.5%
30 Day2.6%16.0%-1.7%
90 Day23.9%47.7%3.6%
1 Year48.4%48.4%55.0%51.6%5.4%1.4%
3 Year22.6%22.0%-0.4%-8.0%-4.3%-14.6%
5 Year295.8%293.8%125.1%92.5%24.7%3.7%

Price Volatility Vs. Market

How volatile is O-Net Technologies (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is O-Net Technologies (Group) undervalued compared to its fair value and its price relative to the market?

63.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 877 (HK$6.38) is trading above our estimate of fair value (HK$0.78)

Significantly Below Fair Value: 877 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 877 is poor value based on its PE Ratio (63.4x) compared to the HK Communications industry average (15.1x).

PE vs Market: 877 is poor value based on its PE Ratio (63.4x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 877 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 877 is overvalued based on its PB Ratio (2.1x) compared to the HK Communications industry average (1x).


Next Steps

Future Growth

How is O-Net Technologies (Group) forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 877's forecast earnings growth (37.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 877's earnings (37.7% per year) are forecast to grow faster than the Hong Kong market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 877's revenue (18.6% per year) is forecast to grow faster than the Hong Kong market (13.2% per year).

High Growth Revenue: 877's revenue (18.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 877's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has O-Net Technologies (Group) performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 877 has a large one-off loss of HK$33.2M impacting its June 30 2020 financial results.

Growing Profit Margin: 877's current net profit margins (2.9%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: 877's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: 877's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 877 had negative earnings growth (-66.9%) over the past year, making it difficult to compare to the Communications industry average (-13%).


Return on Equity

High ROE: 877's Return on Equity (3%) is considered low.


Next Steps

Financial Health

How is O-Net Technologies (Group)'s financial position?


Financial Position Analysis

Short Term Liabilities: 877's short term assets (HK$2.3B) exceed its short term liabilities (HK$1.4B).

Long Term Liabilities: 877's short term assets (HK$2.3B) exceed its long term liabilities (HK$78.3M).


Debt to Equity History and Analysis

Debt Level: 877's debt to equity ratio (28.2%) is considered satisfactory.

Reducing Debt: 877's debt to equity ratio has increased from 2.2% to 28.2% over the past 5 years.

Debt Coverage: 877's debt is not well covered by operating cash flow (16.4%).

Interest Coverage: 877's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

What is O-Net Technologies (Group) current dividend yield, its reliability and sustainability?

0.77%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 877's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 877's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 877's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 877's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 877 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 877'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?

3.5yrs

Average management tenure


CEO

Qinglin Na (53 yo)

18.67yrs

Tenure

HK$6,844,000

Compensation

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 Te ...


CEO Compensation Analysis

Compensation vs Market: Qinglin's total compensation ($USD883.09K) is above average for companies of similar size in the Hong Kong market ($USD463.84K).

Compensation vs Earnings: Qinglin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Qinglin Na
Chairman of the Board & CEO18.67yrsHK$6.84m0.65%
HK$ 33.4m
Wang Haigeng
Vice President of Finance & Business Development1.67yrsno datano data
Yi-Cheng Liu
Vice President of Global Operations3.5yrsno datano data
Boon Thong Tan
Vice President of Sales4.33yrsno datano data
Aihua Yu
Group Chief Scientist3.5yrsno datano data
Fotis Konstantinidis
Chief Executive Officer of ITF Technologies Inc5.67yrsno datano data
Kam Fai Tse
Company Secretary1.67yrsno datano data

3.5yrs

Average Tenure

57yo

Average Age

Experienced Management: 877's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Qinglin Na
Chairman of the Board & CEO18.67yrsHK$6.84m0.65%
HK$ 33.4m
Chor Wei Ong
Independent Non-Executive Director10.42yrsHK$268.00k0.063%
HK$ 3.2m
Bin Huang
Non Executive Director10.83yrsHK$134.00kno data
Wei Zhao
Independent Non-Executive Director8.08yrsHK$275.00k0.063%
HK$ 3.2m
Zhujiang Chen
Non-Executive Director10.83yrsHK$134.00kno data
Xinping Deng
Independent Non-Executive Director10.42yrsHK$268.00k0.063%
HK$ 3.2m
Shangyun Mo
Non-Executive Director2.67yrsHK$134.00kno data

10.4yrs

Average Tenure

53yo

Average Age

Experienced Board: 877's board of directors are seasoned and experienced ( 10.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

O-Net Technologies (Group) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: O-Net Technologies (Group) Limited
  • Ticker: 877
  • Exchange: SEHK
  • Founded: 2000
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$5.097b
  • Shares outstanding: 798.91m
  • Website: https://www.o-netcom.com

Number of Employees


Location

  • O-Net Technologies (Group) Limited
  • 35 Cuijing Road
  • Pingshan District
  • Shenzhen
  • Guangdong Province
  • 518118
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
877SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2010
ONTZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2010
ONET.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2012

Biography

O-Net Technologies (Group) Limited, an investment holding company, designs, manufactures, and sells optical networking subcomponents, components, modules, and subsystems for high-speed telecommunications a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:12
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.