APT Satellite Holdings (SEHK:1045) - Share price, News & Analysis

Q: What is the Fair Price of 1045 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

1045 (HK$2.12) is trading below our estimate of [[fair value]] (HK$12.93)

1045 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	5/6

1045 Stock Overview

Rewards

Trading at 83.6% below our estimate of its fair value

Risk Analysis

Earnings have declined by 17.6% per year over past 5 years

Unstable dividend track record

APT Satellite Holdings Competitors

CITIC Telecom International Holdings

SEHK:1883

HK$9.9b

SmarTone Telecommunications Holdings

SEHK:315

HK$4.6b

Thaicom

SET:THCOM

฿10.1b

HKBN

SEHK:1310

HK$11.3b

Price History & Performance

Summary of all time highs, changes and price drops for APT Satellite Holdings
Historical stock prices
Current Share Price	HK$2.12
52 Week High	HK$2.64
52 Week Low	HK$1.90
Beta	0.57
1 Month Change	-0.47%
3 Month Change	-8.62%
1 Year Change	-9.79%
3 Year Change	-22.91%
5 Year Change	-42.39%
Change since IPO	-61.84%

Shareholder Returns

	1045	HK Telecom	HK Market
7D	2.4%	0.7%	0.2%
1Y	-9.8%	-5.7%	-21.9%

Return vs Industry: 1045 underperformed the Hong Kong Telecom industry which returned -5.7% over the past year.

Return vs Market: 1045 exceeded the Hong Kong Market which returned -21.9% over the past year.

Price Volatility

Is 1045's price volatile compared to industry and market?
1045 volatility
1045 Average Weekly Movement	3.4%
Telecom Industry Average Movement	2.9%
Market Average Movement	6.6%
10% most volatile stocks in HK Market	12.8%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 1045 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1045's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	110	Hongbin Wang	https://www.apstar.com

APT Satellite Holdings Limited, an investment holding company, maintains, operates, and provides satellite transponder capacity and related services, satellite-based broadcasting and telecommunications services, and other services. It offers a range of C-band and Ku-band transponder leasing services to its broadcast and telecommunication customers; satellite TV broadcasting and multi channel per carrier broadcast platforms services; and teleport and network services, including hub-based and single channel per carrier services. The company also provides data center services that comprise rack leasing, server and equipment hosting, cloud management, IP gateway transit, and customized managed services; offers OTT services.

APT Satellite Holdings Fundamentals Summary

How do APT Satellite Holdings's earnings and revenue compare to its market cap?
1045 fundamental statistics
Market Cap	HK$1.99b
Earnings (TTM)	HK$263.38m
Revenue (TTM)	HK$927.81m

7.5x

P/E Ratio

2.1x

P/S Ratio

Is 1045 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
1045 income statement (TTM)
Revenue	HK$927.81m
Cost of Revenue	HK$481.41m
Gross Profit	HK$446.40m
Other Expenses	HK$183.01m
Earnings	HK$263.38m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 23, 2022

Earnings per share (EPS)	0.28
Gross Margin	48.11%
Net Profit Margin	28.39%
Debt/Equity Ratio	0%

How did 1045 perform over the long term?

See historical performance and comparison

Dividends

11.6%

Current Dividend Yield

86%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 1045 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1045?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 1045. This is calculated by dividing 1045's market cap by their current preferred multiple.
What is 1045's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$1.99b

1045 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	1.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 1045's PE Ratio compare to its peers?

1045 PE Ratio vs Peers

The above table shows the PE ratio for 1045 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.9x
1883 CITIC Telecom International Holdings	9.2x	5.4%	HK$9.9b
315 SmarTone Telecommunications Holdings	10.7x	7.6%	HK$4.6b
THCOM Thaicom	23.4x	-3.9%	฿10.1b
1310 HKBN	24.3x	24.0%	HK$11.3b
1045 APT Satellite Holdings	7.5x	n/a	HK$2.0b

Price-To-Earnings vs Peers: 1045 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (16.9x).

Price to Earnings Ratio vs Industry

How does 1045's PE Ratio compare vs other companies in the Asian Telecom Industry?

Price-To-Earnings vs Industry: 1045 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the Hong Kong Telecom industry average (13.2x)

Price to Earnings Ratio vs Fair Ratio

What is 1045's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1045 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1045's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 1045 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1045 (HK$2.12) is trading below our estimate of fair value (HK$12.93)

Significantly Below Fair Value: 1045 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

How is APT Satellite Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.1%

Forecasted Telecom 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 APT Satellite 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.

Discover growth companies

Examine whether APT Satellite Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
APT Satellite Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has APT Satellite Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-17.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1045 has high quality earnings.

Growing Profit Margin: 1045's current net profit margins (28.4%) are higher than last year (26%).

Past Earnings Growth Analysis

Earnings Trend: 1045's earnings have declined by 17.6% per year over the past 5 years.

Accelerating Growth: 1045's earnings growth over the past year (13.8%) exceeds its 5-year average (-17.6% per year).

Earnings vs Industry: 1045 earnings growth over the past year (13.8%) underperformed the Telecom industry 15.1%.

Return on Equity

High ROE: 1045's Return on Equity (4.3%) is considered low.

Discover strong past performing companies

Financial Health

How is APT Satellite Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1045's short term assets (HK$1.5B) exceed its short term liabilities (HK$229.9M).

Long Term Liabilities: 1045's short term assets (HK$1.5B) exceed its long term liabilities (HK$931.3M).

Debt to Equity History and Analysis

Debt Level: 1045 is debt free.

Reducing Debt: 1045 has no debt compared to 5 years ago when its debt to equity ratio was 12%.

Debt Coverage: 1045 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 1045 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Discover healthy companies

Dividend

What is APT Satellite Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

11.56%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 1045's dividend (11.56%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.84%).

High Dividend: 1045's dividend (11.56%) is in the top 25% of dividend payers in the Hong Kong market (8.38%)

Stability and Growth of Payments

Stable Dividend: 1045's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1045's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (86.4%), 1045's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (38%), 1045's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

11.1yrs

Average management tenure

CEO

Hongbin Wang (53 yo)

0.42

Tenure

Mr. Hongbin Wang is President and Executive Director of APT Satellite Holdings Limited from March 30, 2022. He has experience in satellite communication industry. Mr. Wang is currently a Deputy General Man...

Leadership Team

Experienced Management: 1045's management team is seasoned and experienced (11.1 years average tenure).

Board Members

Experienced Board: 1045's board of directors are considered experienced (9.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31