OTCPK:ONET.Y

Stock Analysis Report

O-Net Technologies (Group)

Executive Summary

O-Net Technologies (Group) Limited, an investment holding company, designs, manufactures, and sells optical networking subcomponents, components, modules, and subsystems for high-speed telecommunications and data communications systems.

Snowflake

Fundamentals

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has O-Net Technologies (Group)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:ONET.Y

-1.0%

US Communications

-1.6%

US Market


1 Year Return

n/a

OTCPK:ONET.Y

-5.4%

US Communications

-3.0%

US Market

No trading data on ONET.Y.

No trading data on ONET.Y.


Share holder returns

ONET.YIndustryMarket
7 Day0%-1.0%-1.6%
30 Day0%-16.6%-5.8%
90 Day0%-11.8%0.2%
1 Yearn/a-3.3%-5.4%-0.8%-3.0%
3 Yearn/a47.4%38.0%38.0%29.1%
5 Yearn/a74.8%56.9%50.8%34.1%

Price Volatility Vs. Market

How volatile is O-Net Technologies (Group)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is O-Net Technologies (Group) undervalued based on future cash flows and its price relative to the stock market?

12.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

O-Net Technologies (Group)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

O-Net Technologies (Group)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

O-Net Technologies (Group) is good value based on earnings compared to the US Communications industry average.

O-Net Technologies (Group) is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

O-Net Technologies (Group) is good value based on expected growth next year.


Price Based on Value of Assets

O-Net Technologies (Group) is good value based on assets compared to the US Communications industry average.


Next Steps

Future Growth

How is O-Net Technologies (Group) expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

17.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

O-Net Technologies (Group)'s revenue is expected to grow significantly at over 20% yearly.

O-Net Technologies (Group)'s earnings are expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).

O-Net Technologies (Group)'s revenue growth is expected to exceed the United States of America market average.

O-Net Technologies (Group)'s earnings growth is expected to exceed the United States of America market average.

O-Net Technologies (Group)'s earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

O-Net Technologies (Group) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has O-Net Technologies (Group) performed over the past 5 years?

41.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

O-Net Technologies (Group) has delivered over 20% year on year earnings growth in the past 5 years.

O-Net Technologies (Group)'s 1-year earnings growth is less than its 5-year average (25.3% vs 41.6%)

O-Net Technologies (Group)'s earnings growth has exceeded the US Communications industry average in the past year (25.3% vs 18%).


Return on Equity

O-Net Technologies (Group) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

O-Net Technologies (Group) used its assets more efficiently than the US Communications industry average last year based on Return on Assets.


Return on Capital Employed

O-Net Technologies (Group) has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is O-Net Technologies (Group)'s financial position?


Financial Position Analysis

O-Net Technologies (Group) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

O-Net Technologies (Group)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

O-Net Technologies (Group)'s level of debt (21.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 21.7% today).

Debt is well covered by operating cash flow (63.5%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.8x debt.


Next Steps

Dividend

What is O-Net Technologies (Group)'s current dividend yield, its reliability and sustainability?

1.10%

Expected Dividend Yield


Dividend Yield and Payments Analysis

O-Net Technologies (Group)'s pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

O-Net Technologies (Group)'s dividend is below the markets top 25% of dividend payers in United States of America (3.73%).

O-Net Technologies (Group) is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.

O-Net Technologies (Group) is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of O-Net Technologies (Group)'s dividends as it is not paying a notable one for United States of America.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (9.7x coverage).


Next Steps

Management

What is the CEO of O-Net Technologies (Group)'s salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Qinglin Na (52yo)

17.5yrs

Tenure

HK$5,850,000

Compensation

Mr. Qinglin Na has been the Chief Executive Officer of O-Net Technologies (Group) Limited since January 2002. Mr. Na is a Co-Owner of Mandarin Venture Partners Limited. He serves as the President of 3SP Te ...


CEO Compensation Analysis

Qinglin's remuneration is lower than average for companies of similar size in United States of America.

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


Management Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

The tenure for the O-Net Technologies (Group) management team is about average.


Board Age and Tenure

9.3yrs

Average Tenure

52yo

Average Age

The tenure for the O-Net Technologies (Group) board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Kam Fai Tse (56yo)

    Company Secretary

    • Tenure: 0.5yrs
  • Qinglin Na (52yo)

    Chairman of the Board & CEO

    • Tenure: 17.5yrs
    • Compensation: HK$5.85m
  • Steven Tan (49yo)

    Vice President of Sales

    • Tenure: 3.2yrs
  • Aihua Yu (61yo)

    Group Chief Scientist

    • Tenure: 2.3yrs
  • Fotis Konstantinidis (60yo)

    Chief Executive Officer of ITF Technologies Inc

    • Tenure: 4.5yrs
  • Jiaxi Kan (76yo)

    Group Chief Scientist

    • Tenure: 3.3yrs
  • Yi-Cheng Liu (56yo)

    Vice President of Global Operations

    • Tenure: 2.3yrs
  • Wang Kevin Haigeng (35yo)

    Vice President of Finance

    • Tenure: 0.5yrs

Board Members

  • Alan Ong (49yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: HK$274.00k
  • Qinglin Na (52yo)

    Chairman of the Board & CEO

    • Tenure: 17.5yrs
    • Compensation: HK$5.85m
  • Bin Huang (58yo)

    Non Executive Director

    • Tenure: 9.7yrs
    • Compensation: HK$137.00k
  • Wei Zhao (54yo)

    Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: HK$309.00k
  • Zhujiang Chen (52yo)

    Non-Executive Director

    • Tenure: 9.7yrs
    • Compensation: HK$137.00k
  • Xinping Deng (52yo)

    Independent Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: HK$274.00k
  • Shangyun Mo (52yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: HK$134.00k

Company Information

O-Net Technologies (Group) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: O-Net Technologies (Group) Limited
  • Ticker: ONET.Y
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: HK$3.285b
  • Listing Market Cap: HK$420.088m
  • Shares outstanding: 774.70m
  • Website: https://www.o-netcom.com

Number of Employees


Location

  • O-Net Technologies (Group) Limited
  • 35 Cuijing Road
  • Pingshan New District
  • Shenzhen
  • Guangdong Province
  • 518118
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
877SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2010
ONET.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDMar 2012

Biography

O-Net Technologies (Group) Limited, an investment holding company, designs, manufactures, and sells optical networking subcomponents, components, modules, and subsystems for high-speed telecommunications a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/28 00:20
End of Day Share Price2019/04/29 00:00
Earnings2018/12/31
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.