SEHK:1883

Stock Analysis Report

CITIC Telecom International Holdings

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.0%

SEHK:1883

2.4%

HK Telecom

2.5%

HK Market


1 Year Return

16.9%

SEHK:1883

11.0%

HK Telecom

-3.9%

HK Market

1883 outperformed the Telecom industry which returned 11% over the past year.

1883 outperformed the Market in Hong Kong which returned -3.9% over the past year.


Share holder returns

1883IndustryMarket
7 Day-2.0%2.4%2.5%
30 Day-7.2%4.0%7.6%
90 Day2.4%-1.8%0.8%
1 Year24.2%16.9%13.5%11.0%-0.4%-3.9%
3 Year23.0%1.7%2.8%-4.3%19.6%7.6%
5 Year26.5%-3.6%-18.8%-27.7%17.7%-1.7%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

CITIC Telecom International Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

CITIC Telecom International Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

CITIC Telecom International Holdings is good value based on earnings compared to the HK Telecom industry average.

CITIC Telecom International Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

CITIC Telecom International Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

CITIC Telecom International Holdings is good value based on assets compared to the HK Telecom industry average.


Next Steps

Future Growth

How is CITIC Telecom International Holdings expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

CITIC Telecom International Holdings's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

CITIC Telecom International Holdings's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).

CITIC Telecom International Holdings's revenue growth is positive but not above the Hong Kong market average.

CITIC Telecom International Holdings's earnings growth is positive but not above the Hong Kong market average.

CITIC Telecom International Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

CITIC Telecom International Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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


Past Earnings Growth Analysis

CITIC Telecom International Holdings's year on year earnings growth rate has been positive over the past 5 years.

CITIC Telecom International Holdings's 1-year earnings growth is less than its 5-year average (6.3% vs 7%)

CITIC Telecom International Holdings's earnings growth has exceeded the HK Telecom industry average in the past year (6.3% vs 3.8%).


Return on Equity

CITIC Telecom International Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

CITIC Telecom International Holdings used its assets more efficiently than the HK Telecom industry average last year based on Return on Assets.


Return on Capital Employed

CITIC Telecom International Holdings has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is CITIC Telecom International Holdings's financial position?


Financial Position Analysis

CITIC Telecom International Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

CITIC Telecom International Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

CITIC Telecom International Holdings's level of debt (72.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (125.4% vs 72.6% today).

Debt is well covered by operating cash flow (30.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.6x coverage).


Balance Sheet

Low level of unsold assets.

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?

7.00%

Expected Dividend Yield


Dividend Yield and Payments Analysis

CITIC Telecom International Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.19%).

CITIC Telecom International Holdings's dividend is above the markets top 25% of dividend payers in Hong Kong (6.06%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of CITIC Telecom International Holdings's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average management tenure


CEO

Tiger Lin (56yo)

4.7yrs

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

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

Tiger's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

56.5yo

Average Age

The tenure for the CITIC Telecom International Holdings management team is about average.


Board Age and Tenure

4.7yrs

Average Tenure

64yo

Average Age

The tenure for the CITIC Telecom International Holdings board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellHK$3,115,72403 May 19
Tin Chan
EntityIndividual
Shares962,000
Max PriceHK$3.24
SellHK$3,677,32303 May 19
Tin Chan
EntityIndividual
Shares1,110,000
Max PriceHK$3.31
SellHK$3,772,09319 Dec 18
FIL Limited
EntityCompany
Shares1,286,000
Max PriceHK$2.93
SellHK$3,892,87630 Oct 18
FIL Limited
EntityCompany
Shares1,520,000
Max PriceHK$2.56

Ownership Breakdown


Management Team

  • Norman Yuen (70yo)

    Senior Consultant

    • Tenure: 4.7yrs
    • Compensation: HK$7.79m
  • Stephen Ho (60yo)

    Vice President

    • Tenure: 2.5yrs
  • Alice Tso (57yo)

    Company Secretary

    • Tenure: 0yrs
  • Sutton Cheung (46yo)

    Vice President

    • Tenure: 2.5yrs
  • Esmond Li (57yo)

    CFO & Executive Director

    • Tenure: 0.08yrs
  • Vandy Poon (53yo)

    Vice President

    • Tenure: 2.5yrs
  • Brook Wong (44yo)

    Vice President

    • Tenure: 2.5yrs
  • Tiger Lin (56yo)

    CEO & Executive Director

    • Tenure: 4.7yrs
    • Compensation: HK$8.96m
  • Frank Ip

    Senior Vice President of Global Business & Partnership

    • Tenure: 0.3yrs

Board Members

  • Jifu Liu (75yo)

    Non-Executive Director

    • Tenure: 8.8yrs
    • Compensation: HK$460.00k
  • Li Liu (78yo)

    Independent Non-Executive Director

    • Tenure: 12.5yrs
    • Compensation: HK$340.00k
  • Yue Xin (71yo)

    Chairman

    • Tenure: 10.5yrs
    • Compensation: HK$9.59m
  • Esmond Li (57yo)

    CFO & Executive Director

    • Tenure: 0.08yrs
  • Yiping Fei (55yo)

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: HK$230.00k
  • Yiu Kin Lam (64yo)

    Independent Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$432.00k
  • Xun Sheng Zuo (68yo)

    Independent Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: HK$432.00k
  • Tiger Lin (56yo)

    CEO & Executive Director

    • Tenure: 4.7yrs
    • Compensation: HK$8.96m
  • Zhengjun Liu (53yo)

    Non-Executive Director

    • Tenure: 0.08yrs

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$10.897b
  • 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, si ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:46
End of Day Share Price2019/09/13 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.