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 with proven track record.


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

-2.8%

1883

1.4%

HK Telecom

2.2%

HK Market


1 Year Return

15.2%

1883

9.7%

HK Telecom

-1.3%

HK Market

Return vs Industry: 1883 exceeded the Hong Kong Telecom industry which returned 9.7% over the past year.

Return vs Market: 1883 exceeded the Hong Kong Market which returned -1.3% over the past year.


Share holder returns

1883IndustryMarket
7 Day-2.8%1.4%2.2%
30 Day-6.0%-1.5%-2.9%
90 Day-18.4%-6.1%-5.8%
1 Year22.5%15.2%12.2%9.7%2.3%-1.3%
3 Year23.1%1.8%-2.9%-9.4%15.6%3.9%
5 Year25.4%-4.4%-12.7%-22.3%20.1%0.06%

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

Undervalued: 1883 (HK$2.8) is trading below our estimate of fair value (HK$6.57)

Significantly Undervalued: 1883 is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: 1883 is good value based on its PE Ratio (10.3x) compared to the Telecom industry average (12.5x).

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


Price Based on Expected Growth

Low PEG Ratio: 1883 is poor value based on its PEG Ratio (1.5x)


Price Based on Value of Assets

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


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

Earnings vs Savings Rate: 1883's forecast earnings growth (6.8% per year) is above the savings rate (2%).

Earnings vs Market: 1883's earnings (6.8% per year) are forecast to grow slower than the Hong Kong market (11.2% per year).

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

Revenue vs Market: 1883's revenue (4.8% per year) is forecast to grow slower than the Hong Kong market (10.1% per year).

High Growth Revenue: 1883's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: 1883's Return on Equity is forecast to be low in 3 years time (11.8%).


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

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%) exceeded the Telecom industry 3.8%.


Return on Equity

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


Return on Assets

ROA vs Industry: 1883 has a higher Return on Assets than the Telecom industry average last year.


Return on Capital Employed

ROCE Improving: 1883 has improved its Return on Capital Employed over the past 3 years.


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) exceeds its short term liabilities (HK$2.4B)

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

7.45%

Expected Dividend Yield


Dividend Yield vs Market

company6.8%marketbottom25%2.3%markettop25%6.3%industryaverage4.1%forecastin3Years7.4%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: 1883's dividend (6.79%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 1883's dividend (6.79%) is in the top 25% of dividend payers in the Hong Kong market (6.35%)

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

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

2.6yrs

Average management tenure


CEO

Tiger Lin (56yo)

4.8yrs

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 ($USD1.14M) is about average for companies of similar size in the Hong Kong market ($USD492.11K).

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


Management Age and Tenure

2.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 1883's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

64yo

Average Age

Experienced Board: 1883's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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: 4.8yrs
    • Compensation: HK$7.79m
  • Stephen Ho (60yo)

    Vice President

    • Tenure: 2.6yrs
  • Alice Tso (57yo)

    Company Secretary

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

    Vice President

    • Tenure: 2.6yrs
  • Esmond Li (57yo)

    CFO & Executive Director

    • Tenure: 0.2yrs
  • Vandy Poon (53yo)

    Vice President

    • Tenure: 2.6yrs
  • Brook Wong (44yo)

    Vice President

    • Tenure: 2.6yrs
  • Tiger Lin (56yo)

    CEO & Executive Director

    • Tenure: 4.8yrs
    • 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: 8.9yrs
    • Compensation: HK$460.00k
  • Li Liu (78yo)

    Independent Non-Executive Director

    • Tenure: 12.6yrs
    • Compensation: HK$340.00k
  • Yue Xin (71yo)

    Chairman

    • Tenure: 10.6yrs
    • Compensation: HK$9.59m
  • Esmond Li (57yo)

    CFO & Executive Director

    • Tenure: 0.2yrs
  • 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: 5.5yrs
    • Compensation: HK$432.00k
  • Tiger Lin (56yo)

    CEO & Executive Director

    • Tenure: 4.8yrs
    • Compensation: HK$8.96m
  • Zhengjun Liu (53yo)

    Non-Executive Director

    • Tenure: 0.2yrs

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$10.129b
  • 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
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 Analysis2019/10/14 12:41
End of Day Share Price2019/10/14 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.

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