SZSC:315

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SmarTone Telecommunications Holdings

Executive Summary

SmarTone Telecommunications Holdings Limited, an investment holding company, provides mobile telecommunication services in Hong Kong and Macau.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has SmarTone Telecommunications Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 315 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

315

4.1%

HK Wireless Telecom

7.2%

HK Market


1 Year Return

-42.3%

315

-1.4%

HK Wireless Telecom

-0.5%

HK Market

Return vs Industry: 315 underperformed the Hong Kong Wireless Telecom industry which returned -1% over the past year.

Return vs Market: 315 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

315IndustryMarket
7 Day2.4%4.1%7.2%
30 Day1.7%3.0%6.6%
90 Day-14.5%3.5%13.2%
1 Year-39.0%-42.3%2.4%-1.4%3.6%-0.5%
3 Year-51.3%-58.1%8.2%-4.1%9.5%-2.2%
5 Yearn/a5.2%-11.9%9.6%-8.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is SmarTone Telecommunications 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: 315 (HK$4.25) is trading below our estimate of fair value (HK$14.15)

Significantly Below Fair Value: 315 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 315 is good value based on its PE Ratio (8.4x) compared to the Wireless Telecom industry average (14x).

PE vs Market: 315 is good value based on its PE Ratio (8.4x) compared to the Hong Kong market (10.5x).


Price to Earnings Growth Ratio

PEG Ratio: 315's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 315 is good value based on its PB Ratio (0.9x) compared to the XA Wireless Telecom industry average (1.9x).


Next Steps

Future Growth

How is SmarTone Telecommunications Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 315's earnings are forecast to decline over the next 3 years (-11.9% per year).

Earnings vs Market: 315's earnings are forecast to decline over the next 3 years (-11.9% per year).

High Growth Earnings: 315's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 315's revenue (0.5% per year) is forecast to grow slower than the Hong Kong market (10.8% per year).

High Growth Revenue: 315's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 315's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has SmarTone Telecommunications Holdings performed over the past 5 years?

-8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 315 has high quality earnings.

Growing Profit Margin: 315's current net profit margins (7.6%) are higher than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 315's earnings have declined by -8.7% per year over the past 5 years.

Accelerating Growth: 315's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 315 had negative earnings growth (-8.8%) over the past year, making it difficult to compare to the Wireless Telecom industry average (1.6%).


Return on Equity

High ROE: 315's Return on Equity (10.8%) is considered low.


Next Steps

Financial Health

How is SmarTone Telecommunications Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 315's short term assets (HK$3.9B) exceed its short term liabilities (HK$3.0B).

Long Term Liabilities: 315's short term assets (HK$3.9B) exceed its long term liabilities (HK$2.5B).


Debt to Equity History and Analysis

Debt Level: 315's debt to equity ratio (43.9%) is considered high.

Reducing Debt: 315's debt to equity ratio has reduced from 83.4% to 43.9% over the past 5 years.

Debt Coverage: 315's debt is well covered by operating cash flow (86.7%).

Interest Coverage: 315's interest payments on its debt are well covered by EBIT (30.6x coverage).


Balance Sheet


Next Steps

Dividend

What is SmarTone Telecommunications Holdings's current dividend yield, its reliability and sustainability?

9.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 315's dividend (9.18%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 315's dividend (9.18%) is in the top 25% of dividend payers in the Hong Kong market (6.54%)


Stability and Growth of Payments

Stable Dividend: 315's dividend payments have been volatile in the past 10 years.

Growing Dividend: 315's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.5%), 315's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 315's dividends in 3 years are forecast to be covered by earnings (66.5% payout ratio).


Next Steps

Management

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

8.8yrs

Average management tenure


CEO

Anna Yip (50yo)

4.08yrs

Tenure

HK$10,419,000

Compensation

Ms. Anna Yip has been Chief Executive Officer and Executive Director of SmarTone Mobile Communications Limited since June 2016. Ms. Yip has been the Chief Executive Officer and Executive Director at SmarTo ...


CEO Compensation Analysis

Compensation vs Market: Anna's total compensation ($USD1.34M) is above average for companies of similar size in the Hong Kong market ($USD513.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anna Yip
CEO & Executive Director4.08yrsHK$10.42m0.28% HK$13.2m
Kai-Lung Chan
CFO & Executive Director23.75yrsHK$7.81m0.0059% HK$279.0k
Kam-Kun Chau
CTO & Executive Director5.25yrsHK$8.30m0.0068% HK$325.8k
Josephine Lam
Head of Marketing & Sales4.67yrsno datano data
Ching-Yee Hui
General Manager of Human Resources25.5yrsno datano data
Alex Kun
Head of Products & Services4.5yrsno datano data
Yau-Hing Mak
Company Secretary13yrsno datano data

8.8yrs

Average Tenure

55yo

Average Age

Experienced Management: 315's management team is seasoned and experienced (8.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anna Yip
CEO & Executive Director4.08yrsHK$10.42m0.28% HK$13.2m
Kai-Lung Chan
CFO & Executive Director23.75yrsHK$7.81m0.0059% HK$279.0k
Kam-Kun Chau
CTO & Executive Director5.25yrsHK$8.30m0.0068% HK$325.8k
David Prince
Non-Executive Director15yrsHK$144.00kno data
Wing Yui Cheung
Deputy Chairman5.58yrsHK$162.00kno data
Ping-Luen Kwok
Chairmanno dataHK$180.00k0.46% HK$21.9m
Ka-Cheung Li
Independent Non Executive Director23.75yrsHK$288.00kno data
Leung-Sing Ng
Independent Non-Executive Director23.08yrsHK$288.00kno data
Fock-Kin Gan
Independent Non-Executive Director14.58yrsHK$288.00kno data
Yuk-lun Fung
Deputy Chairman5.58yrsHK$162.00k0.039% HK$1.9m

14.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: 315's board of directors are seasoned and experienced ( 14.6 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.


Ownership Breakdown

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


Top Shareholders

Company Information

SmarTone Telecommunications Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SmarTone Telecommunications Holdings Limited
  • Ticker: 315
  • Exchange: SZSC
  • Founded: 1992
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$4.770b
  • Shares outstanding: 1.12b
  • Website: https://www.smartoneholdings.com

Number of Employees


Location

  • SmarTone Telecommunications Holdings Limited
  • Millennium City 2
  • 31st Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
315SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1996
SMADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1996
315SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1996
315SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1996

Biography

SmarTone Telecommunications Holdings Limited, an investment holding company, provides mobile telecommunication services in Hong Kong and Macau. The company offers voice, multimedia, and mobile and fixed fiber broadband services for the consumer and corporate markets. It is also involved in the sale of handsets and accessories; issuance of guaranteed notes; and provision of customer support and telemarketing services. The company was founded in 1992 and is headquartered in Kwun Tong, Hong Kong. SmarTone Telecommunications Holdings Limited is a subsidiary of Sun Hung Kai Properties Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 15:21
End of Day Share Price2020/07/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.