SEHK:1883

Stock Analysis Report

CITIC Telecom International Holdings

Executive Summary

CITIC Telecom International Holdings Limited, an investment holding company, provides telecommunications services worldwide.

Rewards

Trading at 64.3% below its fair value

Earnings are forecast to grow 5.91% per year

Earnings have grown 7% per year over the past 5 years

Pays a high and reliable dividend of 6.79%

Risk Analysis

Has a high level of debt



Snowflake Analysis

6 star dividend payer and good value.


Similar Companies

Share Price & News

How has CITIC Telecom International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1883 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.8%

1883

-0.9%

HK Telecom

1.7%

HK Market


1 Year Return

-3.4%

1883

-16.2%

HK Telecom

-2.9%

HK Market

Return vs Industry: 1883 exceeded the Hong Kong Telecom industry which returned -16.2% over the past year.

Return vs Market: 1883 matched the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

1883IndustryMarket
7 Day1.8%-0.9%1.7%
30 Day-2.4%-1.9%-4.2%
90 Day-2.1%3.8%4.6%
1 Year2.6%-3.4%-14.4%-16.2%0.7%-2.9%
3 Year33.3%10.2%-12.9%-18.6%15.3%3.6%
5 Year44.6%10.2%-34.1%-40.9%15.9%-3.5%

Price Volatility Vs. Market

How volatile is CITIC Telecom International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CITIC Telecom International Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1883 (HK$2.8) is trading below our estimate of fair value (HK$7.83)

Significantly Below Fair Value: 1883 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1883 is good value based on its PE Ratio (10.3x) compared to the Telecom industry average (16.4x).

PE vs Market: 1883 is poor value based on its PE Ratio (10.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1883 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 1883 is good value based on its PB Ratio (1.1x) compared to the HK Telecom industry average (1.3x).


Next Steps

Future Growth

How is CITIC Telecom International Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1883's forecast earnings growth (5.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 1883's earnings (5.9% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).

High Growth Earnings: 1883's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1883's revenue (5.7% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).

High Growth Revenue: 1883's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1883's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has CITIC Telecom International Holdings performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1883 has high quality earnings.

Growing Profit Margin: 1883's current net profit margins (10.9%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: 1883's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: 1883's earnings growth over the past year (6.3%) is below its 5-year average (7% per year).

Earnings vs Industry: 1883 earnings growth over the past year (6.3%) underperformed the Telecom industry 6.3%.


Return on Equity

High ROE: 1883's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CITIC Telecom International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 1883's short term assets (HK$3.2B) exceed its short term liabilities (HK$2.4B).

Long Term Liabilities: 1883's short term assets (HK$3.2B) do not cover its long term liabilities (HK$7.0B).


Debt to Equity History and Analysis

Debt Level: 1883's debt to equity ratio (72.6%) is considered high.

Reducing Debt: 1883's debt to equity ratio has reduced from 125.4% to 72.6% over the past 5 years.

Debt Coverage: 1883's debt is well covered by operating cash flow (30.8%).

Interest Coverage: 1883's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet

Inventory Level: 1883 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 1883's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is CITIC Telecom International Holdings's current dividend yield, its reliability and sustainability?

6.78%

Current Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%2.3%markettop25%6.3%industryaverage2.2%forecastin3Years7.4%

Current dividend yield vs market & industry

Notable Dividend: 1883's dividend (6.79%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 1883's dividend (6.79%) is in the top 25% of dividend payers in the Hong Kong market (6.34%)


Stability and Growth of Payments

Stable Dividend: 1883's dividends per share have been stable in the past 10 years.

Growing Dividend: 1883's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.2%), 1883's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1883's dividends in 3 years are forecast to be covered by earnings (67.5% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Tiger Lin (56yo)

5.1yrs

Tenure

HK$8,955,000

Compensation

Dr. Zhenhui Lin, also known as Tiger, has been Chief Executive Officer and Executive Director of CITIC Telecom International Holdings Limited since January 1, 2015. Dr. Lin is a professorate senior enginee ...


CEO Compensation Analysis

Compensation vs Market: Tiger's total compensation ($USD1.15M) is above average for companies of similar size in the Hong Kong market ($USD540.41K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yue Jiang Xin
Executive Chairman of the Board10.9yrsHK$9.59mno data
Zhenhui Lin
CEO & Executive Director5.1yrsHK$8.96mno data
Bing Li
CFO & Executive Director0.5yrsno data0.0031% HK$314.5k
Yuet Pun Cheung
Vice President2.9yrsno datano data
Ching Wa Wong
Vice President2.9yrsno datano data
Fuk Poon
Vice President2.9yrsno datano data
Frank Ip
Senior Vice President of Global Business & Partnership0.7yrsno datano data
Mun Wai Tso
Company Secretary0yrsno datano data
Kee Yuen
Senior Consultant5.1yrsHK$7.79mno data

2.9yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 1883's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yue Jiang Xin
Executive Chairman of the Board10.9yrsHK$9.59mno data
Zhenhui Lin
CEO & Executive Director5.1yrsHK$8.96mno data
Bing Li
CFO & Executive Director0.5yrsno data0.0031% HK$314.5k
Jifu Liu
Non-Executive Director9.3yrsHK$460.00kno data
Li Liu
Independent Non-Executive Director12.9yrsHK$340.00kno data
Yiping Fei
Non-Executive Director3.7yrsHK$230.00kno data
Yiu Kin Lam
Independent Non-Executive Director2.7yrsHK$432.00kno data
Xun Sheng Zuo
Independent Non-Executive Director5.8yrsHK$432.00kno data
Zhengjun Liu
Non-Executive Director0.5yrsno datano data

5.1yrs

Average Tenure

64yo

Average Age

Experienced Board: 1883's board of directors are considered experienced (5.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

CITIC Telecom International Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CITIC Telecom International Holdings Limited
  • Ticker: 1883
  • Exchange: SEHK
  • Founded: 1997
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: HK$10.246b
  • Shares outstanding: 3.66b
  • Website: https://www.citictel.com

Number of Employees


Location

  • CITIC Telecom International Holdings Limited
  • CITIC Telecom Tower
  • 25th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1883SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2007
B7ODB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2007
1883SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDApr 2007
CCTT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDApr 2007
1883SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDApr 2007

Biography

CITIC Telecom International Holdings Limited, an investment holding company, provides telecommunications services worldwide. The company provides carrier services, such as mobile roaming signaling SCCP, single IMSI multiple number, pre-paid roaming, mobile virtual network enabler, GMVNO, USSD, IP packet exchange, and SMS firewall; Internet services; and international voice services, including voice hubbing service in handling roaming service for mobile and fixed line operators and data roaming services for mobile operators; SMS services; datamall; big data; and Internet of Things services. It also offers enterprise solutions, including network connectivity, data center, cloud computing, information security, enterprise mobile services, and voice and information services; and Internet-based communication services, such as Communication Platform as a Service for handset manufacturers and OTT operators. In addition, the company builds the infrastructure and applications of Digital Macau; and provides communications services for local airports, entertainment facilities, and events, such as the Macau Grand Prix, as well as offers local and roaming communications services to individual customers. In addition, the company offers telecommunications leasing and technology, wired telecommunication, systems integration, and financing services. Further, it engages in property and equipment holding activities. The company was formerly known as CITIC 1616 Holdings Limited and changed its name to CITIC Telecom International Holdings Limited in 2010. CITIC Telecom International Holdings Limited was founded in 1997 and is headquartered in Kwai Chung, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:50
End of Day Share Price2020/02/14 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.