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
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.
7 Day Return
1 Year Return
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.
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
5 days ago | Simply Wall StHKBN (HKG:1310) May Have Issues Allocating Its Capital
2 weeks ago | Simply Wall StHow Much Of HKBN Ltd. (HKG:1310) Do Institutions Own?
1 month ago | Simply Wall StIs HKBN Ltd. (HKG:1310) Trading At A 48% Discount?
Is HKBN undervalued compared to its fair value and its price relative to the market?
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).
How is HKBN forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
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%).
How has HKBN performed over the past 5 years?
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.
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$11.6B).
Debt to Equity History and Analysis
Debt Level: 1310's debt to equity ratio (189.7%) is considered high.
Reducing Debt: 1310's debt to equity ratio has reduced from 210.7% to 189.7% over the past 5 years.
Debt Coverage: 1310's debt is not well covered by operating cash flow (19.3%).
Interest Coverage: 1310's interest payments on its debt are not well covered by EBIT (1.6x coverage).
What is HKBN current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1310's dividend (6.83%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.95%).
High Dividend: 1310's dividend (6.83%) is in the top 25% of dividend payers in the Hong Kong market (5.99%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 1310 has been paying a dividend for less than 10 years.
Growing Dividend: 1310's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (7477.9%), 1310's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1310's dividends in 3 years are not forecast to be well covered by earnings (134.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
NiQ Lai (50 yo)
Mr. Ni Quiaque Lai, also known as NiQ, has been the Group Chief Executive Officer of HKBN Ltd. since September 1, 2018. He is a Co-Owner of HKBN Ltd. Mr. Lai served as Chief Operating Officer of HKBN Ltd. ...
CEO Compensation Analysis
Compensation vs Market: NiQ's total compensation ($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.
Experienced Management: 1310's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: 1310's board of directors are considered experienced (4.5 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
HKBN Ltd.'s company bio, employee growth, exchange listings and data sources
- 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
- HKBN Ltd.
- Trans Asia Centre
- 12th Floor
- Kwai Chung
- New Territories
- Hong Kong
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/10 10:52|
|End of Day Share Price||2021/05/10 00:00|
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.