OTCPK:HKBN.Y

Stock Analysis Report

Executive Summary

HKBN Ltd., an investment holding company, provides fixed telecommunications network and international telecommunications services to residential and enterprise markets primarily in Hong Kong.

Snowflake

Fundamentals

Outstanding track record with high growth potential.

Share Price & News

How has HKBN's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:HKBN.Y

3.1%

US Telecom

1.2%

US Market


1 Year Return

45.5%

OTCPK:HKBN.Y

8.4%

US Telecom

1.7%

US Market


Share holder returns

HKBN.YIndustryMarket
7 Day0%3.1%1.2%
30 Day0%7.5%4.9%
90 Dayn/a9.8%3.7%
1 Year53.2%45.5%14.1%8.4%3.9%1.7%
3 Yearn/a18.1%0.9%47.2%37.7%
5 Yearn/a35.1%4.2%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is HKBN 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

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

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


Price Based on Earnings

HKBN is overvalued based on earnings compared to the US Telecom industry average.

HKBN is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

HKBN is poor value based on expected growth next year.


Price Based on Value of Assets

HKBN is overvalued based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is HKBN expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HKBN's revenue is expected to grow by 18.1% yearly, however this is not considered high growth (20% yearly).

HKBN's earnings are expected to grow significantly at over 20% yearly.

HKBN's revenue growth is expected to exceed the United States of America market average.

HKBN's earnings growth is expected to exceed the United States of America market average.

HKBN's earnings growth is expected to exceed the low risk savings rate of 3%.


Earnings per Share Growth Estimates


Future Return on Equity

HKBN is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has HKBN performed over the past 5 years?

48.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

HKBN has delivered over 20% year on year earnings growth in the past 5 years.

HKBN's 1-year earnings growth exceeds its 5-year average (135.4% vs 48.7%)

HKBN's earnings growth has exceeded the US Telecom industry average in the past year (135.4% vs 77.1%).


Return on Equity

HKBN has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

HKBN used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

HKBN has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is HKBN's financial position?


Financial Position Analysis

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

HKBN's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

HKBN's level of debt (334.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (137% vs 334.9% today).

Debt is well covered by operating cash flow (25.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is HKBN's current dividend yield, its reliability and sustainability?

6.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

HKBN's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.38%).

HKBN's dividend is above the markets top 25% of dividend payers in United States of America (3.49%).

Whilst dividend payments have been stable, HKBN has been paying a dividend for less than 10 years.

Dividend payments have increased, but HKBN only paid a dividend in the past 3 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (0.8x coverage).


Next Steps

Management

What is the CEO of HKBN's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

NiQ Lai (48yo)

0.08yrs

Tenure

HK$9,051,000

Compensation

Mr. Ni Quiaque Lai, also known as NiQ, has been Chief Operating Officer of HKBN Ltd. since March 1, 2017 and serves as its Executive Director since 2014. Mr. Lai has been the Chief Executive Officer of HKB ...


CEO Compensation Analysis

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

NiQ's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.3yrs

Average Tenure

53.5yo

Average Age

The average tenure for the HKBN management team is less than 2 years, this suggests a new team.


Board Age and Tenure

3.7yrs

Average Tenure

55.5yo

Average Age

The tenure for the HKBN board of directors is about average.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • NiQ Lai (48yo)

    CEO, COO & Executive Director

    • Tenure: 0.08yrs
    • Compensation: HK$9.05m
  • William Yeung (57yo)

    Executive Vice-Chairman

    • Tenure: 0.08yrs
    • Compensation: HK$11.49m
  • Gary Mclaren (55yo)

    Chief Technology Officer

    • Tenure: 3.3yrs
  • Eric Ho (61yo)

    Chief Information Officer

    • Tenure: 0yrs
  • Billy Yeung (52yo)

    Chief Operating Officer of Enterprise Solutions

    • Tenure: 1.9yrs
    • Compensation: HK$13.37m
  • CY Chan

    Head of Talent Engagement & Corporate Social Investment

    • Tenure: 0yrs
  • Andrew Wong (39yo)

    Company Secretary & CFO

    • Tenure: 0.8yrs
  • Elinor Shiu

    Head of Marketing

    • Tenure: 0yrs
  • Ben Yeung

    Head of Business Development & Partnership

    • Tenure: 0yrs
  • Gladys Cheng

    Associate Director of Corporate Communications

    • Tenure: 0yrs

Board Members

  • Brad Horwitz (62yo)

    Chairman

    • Tenure: 3.7yrs
    • Compensation: HK$388.00k
  • NiQ Lai (48yo)

    CEO, COO & Executive Director

    • Tenure: 0.08yrs
    • Compensation: HK$9.05m
  • William Yeung (57yo)

    Executive Vice-Chairman

    • Tenure: 0.08yrs
    • Compensation: HK$11.49m
  • Quinn Law (65yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$388.00k
  • Deborah Keiko Orida (51yo)

    Non-Executive Director

    • Tenure: 2.9yrs
  • Stanley Chow (54yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$388.00k

Company Information

HKBN Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HKBN Ltd.
  • Ticker: HKBN.Y
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$12.732b
  • Listing Market Cap: HK$1.624b
  • Shares outstanding: 1.01b
  • Website: https://www.hkbn.net/personal/home/en/landing

Number of Employees


Location

  • HKBN Ltd.
  • Trans Asia Centre
  • 12th Floor
  • Kwai Chung
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1310SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2015
2HKDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2015
HKBN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2015
1310SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2015
HKBN.YOTCPK (Pink Sheets LLC)ADRUSUSDNov 2015

Biography

HKBN Ltd. provides telecommunication services to residential and enterprise markets in Hong Kong. It offers a portfolio of telecom services, including broadband and Wi-Fi access, communication, entertainme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2018/10/21 21:31
End of Day Share Price2018/07/24 00:00
Earnings2018/02/28
Annual Earnings2017/08/31


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.