SGX:AZG

Stock Analysis Report

8Telecom International Holdings

Executive Summary

8Telecom International Holdings Co. Ltd., an investment holding company, operates as an information communications services provider in Asia.

Rewards

Trading at 97.5% below its fair value

Risk Analysis

Earnings have declined by -12.29% per year over past 5 years

Shares are highly illiquid

Makes less than USD$1m in revenue (SGD802K)

Does not have a meaningful market cap (SGD8M)

+ 1 more risk


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

How has 8Telecom International Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AZG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

AZG

-3.8%

SG Communications

-0.3%

SG Market


1 Year Return

-55.8%

AZG

26.8%

SG Communications

2.1%

SG Market

Return vs Industry: AZG underperformed the SG Communications industry which returned 30.4% over the past year.

Return vs Market: AZG underperformed the SG Market which returned 2.1% over the past year.


Shareholder returns

AZGIndustryMarket
7 Day0%-3.8%-0.3%
30 Day0%-4.0%1.4%
90 Day137.9%11.9%2.8%
1 Year-55.8%-55.8%32.0%26.8%6.3%2.1%
3 Year-58.2%-58.2%3.7%-5.6%14.9%2.6%
5 Year245.9%-87.2%-35.8%-54.4%11.1%-7.4%

Price Volatility Vs. Market

How volatile is 8Telecom International Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 8Telecom 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: AZG (SGD0.07) is trading below our estimate of fair value (SGD2.77)

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


Price To Earnings Ratio

PE vs Industry: AZG is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: AZG is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AZG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AZG has negative assets, so we can't compare its PB Ratio to the SG Communications industry average.


Next Steps

Future Growth

How is 8Telecom International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.3%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as 8Telecom International Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has 8Telecom International Holdings performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AZG is currently unprofitable.

Growing Profit Margin: AZG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AZG is unprofitable, and losses have increased over the past 5 years at a rate of -12.3% per year.

Accelerating Growth: Unable to compare AZG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AZG is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-0.6%).


Return on Equity

High ROE: AZG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is 8Telecom International Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AZG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AZG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AZG is debt free.

Reducing Debt: AZG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: AZG has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AZG's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable AZG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: AZG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -3.4% per year.


Next Steps

Dividend

What is 8Telecom International Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.5%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AZG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AZG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AZG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AZG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AZG is not paying a notable dividend for the SG market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AZG's dividend in 3 years as they are not forecast to pay a notable one for the SG market.


Next Steps

Management

What is the CEO of 8Telecom International Holdings's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average board tenure


CEO

8Telecom International Holdings has no CEO, or we have no data on them.


Board Age and Tenure

0.8yrs

Average Tenure

Experienced Board: AZG's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


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

BuyS$810,65713 Mar 19
Asia Internet Technology Pte Ltd
EntityCompany
Shares11,580,916
Max PriceS$0.07
BuyS$89,98905 Mar 19
Tian Di Internet Pte Ltd
EntityCompany
Shares12,000,000
Max PriceS$0.0075

Ownership Breakdown

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


Management Team

  • Yongxiang Huang

    Executive Officer

    • Hong Wei Li

      Executive Officer

      • Chunbiao Wang

        Executive Officer

        • Zhejun Wang

          Executive Director

          • Tenure: 2.4yrs
        • Chuanlong Shan

          Executive Director

          • Tenure: 0.8yrs
        • Bin Wu

          Executive Director

          • Tenure: 0.4yrs

        Board Members

        • Zhejun Wang

          Executive Director

          • Tenure: 2.4yrs
        • Jing Li

          Independent Director

          • Tenure: 1.1yrs
        • Chuanlong Shan

          Executive Director

          • Tenure: 0.8yrs
        • Mao Yongjiu

          Non-Independent Non-Executive Director

          • Tenure: 0.8yrs
        • Bin Wu

          Executive Director

          • Tenure: 0.4yrs

        Company Information

        8Telecom International Holdings Co. Ltd.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: 8Telecom International Holdings Co. Ltd.
        • Ticker: AZG
        • Exchange: SGX
        • Founded: 1997
        • Industry: Communications Equipment
        • Sector: Tech
        • Market Cap: S$7.761m
        • Shares outstanding: 112.48m
        • Website: https://www.8telecom.cn

        Location

        • 8Telecom International Holdings Co. Ltd.
        • 20 Sin Ming Lane
        • No. 03-63, Midview City
        • Singapore
        • 573968
        • Singapore

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        AZGSGX (Singapore Exchange)YesOrdinary SharesSGSGDJul 2004

        Biography

        8Telecom International Holdings Co. Ltd., an investment holding company, operates as an information communications services provider in Asia. It provides information communications services through long term evolution networks. The company was founded in 1997 and is based in Singapore. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2019/12/03 12:31
        End of Day Share Price2019/09/05 00:00
        Earnings2019/09/30
        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.