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Market Cap

HK$15.0b

Last Updated

2021/05/10 10:52 UTC

Data Sources

Company Financials +

Executive Summary

HKBN Ltd., an investment holding company, provides fixed telecommunications network, international telecommunications, and mobile services to residential and enterprise customers primarily in Hong Kong. More Details


Snowflake Analysis

Moderate growth potential and slightly overvalued.

Share Price & News

How has HKBN's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1310 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 1310's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.7%

1310

1.7%

HK Telecom

-0.5%

HK Market


1 Year Return

-17.8%

1310

-13.3%

HK Telecom

25.4%

HK Market

Return vs Industry: 1310 underperformed the Hong Kong Telecom industry which returned -13.3% over the past year.

Return vs Market: 1310 underperformed the Hong Kong Market which returned 25.4% over the past year.


Shareholder returns

1310IndustryMarket
7 Day-0.7%1.7%-0.5%
30 Day-4.7%2.1%-0.9%
90 Day-0.7%10.5%-3.2%
1 Year-12.9%-17.8%-10.1%-13.3%30.2%25.4%
3 Year21.1%5.7%-26.0%-33.3%3.0%-7.9%
5 Year69.3%34.2%-16.3%-28.4%61.6%34.1%

Long-Term Price Volatility Vs. Market

How volatile is HKBN's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is HKBN undervalued compared to its fair value and its price relative to the market?

42.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1310 (HK$11.42) is trading below our estimate of fair value (HK$19.97)

Significantly Below Fair Value: 1310 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1310 is poor value based on its PE Ratio (1109.1x) compared to the HK Telecom industry average (11.1x).

PE vs Market: 1310 is poor value based on its PE Ratio (1109.1x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1310 is poor value based on its PEG Ratio (20.6x)


Price to Book Ratio

PB vs Industry: 1310 is overvalued based on its PB Ratio (2.5x) compared to the HK Telecom industry average (1.1x).


Future Growth

How is HKBN forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

53.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1310's forecast earnings growth (53.8% per year) is above the savings rate (1.5%).

Earnings vs Market: 1310's earnings (53.8% per year) are forecast to grow faster than the Hong Kong market (17% per year).

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

Revenue vs Market: 1310's revenue (6.5% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 1310's revenue (6.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1310's Return on Equity is forecast to be low in 3 years time (16%).


Past Performance

How has HKBN performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1310 has a large one-off loss of HK$171.1M impacting its February 28 2021 financial results.

Growing Profit Margin: 1310's current net profit margins (0.1%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: 1310's earnings have declined by 14% per year over the past 5 years.

Accelerating Growth: 1310's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1310 had negative earnings growth (-90.8%) over the past year, making it difficult to compare to the Telecom industry average (2.1%).


Return on Equity

High ROE: 1310's Return on Equity (0.2%) is considered low.


Financial Health

How is HKBN's financial position?


Financial Position Analysis

Short Term Liabilities: 1310's short term assets (HK$3.3B) do not cover its short term liabilities (HK$4.4B).

Long Term Liabilities: 1310's short term assets (HK$3.3B) do not cover its long term liabilities (HK$11.6B).


Debt to Equity History and Analysis

Debt Level: 1310's debt to equity ratio (189.7%) is considered high.

Reducing Debt: 1310's debt to equity ratio has reduced from 210.7% to 189.7% over the past 5 years.

Debt Coverage: 1310's debt is not well covered by operating cash flow (19.3%).

Interest Coverage: 1310's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Dividend

What is HKBN current dividend yield, its reliability and sustainability?

6.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1310's dividend (6.83%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).

High Dividend: 1310's dividend (6.83%) is in the top 25% of dividend payers in the Hong Kong market (5.99%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1310 has been paying a dividend for less than 10 years.

Growing Dividend: 1310's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (7477.9%), 1310's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1310's dividends in 3 years are not forecast to be well covered by earnings (134.6% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

NiQ Lai (50 yo)

2.67yrs

Tenure

HK$8,052,000

Compensation

Mr. Ni Quiaque Lai, also known as NiQ, has been the Group Chief Executive Officer of HKBN Ltd. since September 1, 2018. He is a Co-Owner of HKBN Ltd. Mr. Lai served as Chief Operating Officer of HKBN Ltd. ...


CEO Compensation Analysis

Compensation vs Market: NiQ's total compensation ($USD1.04M) is above average for companies of similar size in the Hong Kong market ($USD605.03K).

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


Leadership Team

Experienced Management: 1310's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1310's board of directors are considered experienced (4.5 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

HKBN Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HKBN Ltd.
  • Ticker: 1310
  • Exchange: SEHK
  • Founded: 1992
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$15.031b
  • Shares outstanding: 1.31b
  • Website: https://www.hkbn.net

Number of Employees


Location

  • HKBN Ltd.
  • Trans Asia Centre
  • 12th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings


Biography

HKBN Ltd., an investment holding company, provides fixed telecommunications network, international telecommunications, and mobile services to residential and enterprise customers primarily in Hong Kong. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 10:52
End of Day Share Price2021/05/10 00:00
Earnings2021/02/28
Annual Earnings2020/08/31


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.