SEHK:877

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

8.0%

877

0.3%

HK Communications

-2.7%

HK Market


1 Year Return

-3.6%

877

-20.0%

HK Communications

-9.4%

HK Market

877 outperformed the Communications industry which returned -20% over the past year.

877 outperformed the Market in Hong Kong which returned -9.4% over the past year.


Share holder returns

877IndustryMarket
7 Day8.0%0.3%-2.7%
30 Day14.1%3.0%1.8%
90 Day2.6%-0.6%-5.6%
1 Year-3.1%-3.6%-17.1%-20.0%-6.2%-9.4%
3 Year7.5%7.0%10.0%1.3%14.3%2.7%
5 Year99.2%98.2%-12.4%-25.3%16.7%-2.8%

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

1 month ago | Simply Wall St

Is O-Net Technologies (Group) Limited (HKG:877) A Volatile Stock?

Valuation

Is O-Net Technologies (Group) undervalued based on future cash flows and its price relative to the stock market?

13.83x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

O-Net Technologies (Group)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

O-Net Technologies (Group)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

O-Net Technologies (Group) is overvalued 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

O-Net Technologies (Group) is good value based on expected growth next year.


Price Based on Value of Assets

O-Net Technologies (Group) is overvalued based on assets compared to the HK Communications industry average.


Next Steps

Future Growth

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

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

O-Net Technologies (Group)'s revenue is expected to grow by 14.4% yearly, however this is not considered high growth (20% yearly).

O-Net Technologies (Group)'s earnings are expected to grow by 16.5% yearly, however this is not considered high growth (20% yearly).

O-Net Technologies (Group)'s revenue growth is expected to exceed the Hong Kong market average.

O-Net Technologies (Group)'s earnings growth is expected to exceed the Hong Kong market average.

O-Net Technologies (Group)'s earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if O-Net Technologies (Group) will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

35.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 negative, it can't be compared to the 5-year average.

O-Net Technologies (Group)'s 1-year earnings growth is negative, it can't be compared to the HK Communications industry average.


Return on Equity

O-Net Technologies (Group) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

O-Net Technologies (Group) used its assets less efficiently than the HK Communications industry average last year based on Return on Assets.


Return on Capital Employed

O-Net Technologies (Group) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

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.


Debt to Equity History and Analysis

O-Net Technologies (Group)'s level of debt (23.6%) compared to net worth is satisfactory (less than 40%).

Unable to establish if O-Net Technologies (Group)'s debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (33.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.8x debt.


Next Steps

Dividend

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

0.64%

Expected Dividend Yield


Dividend Yield and Payments Analysis

O-Net Technologies (Group)'s pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.21%).

O-Net Technologies (Group)'s dividend is below the markets top 25% of dividend payers in Hong Kong (6.16%).

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

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

No need to calculate the sustainability of O-Net Technologies (Group)'s dividends in 3 years as they are not expected to pay a notable one for Hong Kong.


Next Steps

Management

What is the CEO of O-Net Technologies (Group)'s salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Qinglin Na (52yo)

17.7yrs

Tenure

HK$15,358,000

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

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

Qinglin's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

56yo

Average Age

The tenure for the O-Net Technologies (Group) management team is about average.


Board Age and Tenure

9.4yrs

Average Tenure

52yo

Average Age

The tenure for the O-Net Technologies (Group) board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$931,20012 Oct 18
Guangxin Li
EntityIndividual
Shares291,000
Max PriceHK$3.20

Ownership Breakdown


Management Team

  • Kam Fai Tse (56yo)

    Company Secretary

    • Tenure: 0.7yrs
  • Qinglin Na (52yo)

    Chairman of the Board & CEO

    • Tenure: 17.7yrs
    • Compensation: HK$15.36m
  • Steven Tan (49yo)

    Vice President of Sales

    • Tenure: 3.3yrs
  • Aihua Yu (61yo)

    Group Chief Scientist

    • Tenure: 2.5yrs
  • Fotis Konstantinidis (60yo)

    Chief Executive Officer of ITF Technologies Inc

    • Tenure: 4.7yrs
  • Jiaxi Kan (76yo)

    Group Chief Scientist

    • Tenure: 3.5yrs
  • Yi-Cheng Liu (56yo)

    Vice President of Global Operations

    • Tenure: 2.5yrs
  • Wang Kevin Haigeng (35yo)

    Vice President of Finance

    • Tenure: 0.7yrs

Board Members

  • Alan Ong (49yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: HK$274.00k
  • Qinglin Na (52yo)

    Chairman of the Board & CEO

    • Tenure: 17.7yrs
    • Compensation: HK$15.36m
  • Bin Huang (58yo)

    Non Executive Director

    • Tenure: 9.8yrs
    • Compensation: HK$137.00k
  • Wei Zhao (54yo)

    Independent Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: HK$309.00k
  • Zhujiang Chen (52yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: HK$137.00k
  • Xinping Deng (52yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: HK$274.00k
  • Shangyun Mo (52yo)

    Non-Executive Director

    • Tenure: 1.7yrs
    • Compensation: HK$134.00k

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$3.414b
  • Shares outstanding: 793.85m
  • Website: https://www.o-netcom.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
877SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 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 Analysis2019/09/21 12:43
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.