OTCPK:HKTT.Y

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

HKT Trust and HKT Limited provides telecommunications services in Hong Kong, Mainland China, and internationally. More Details


Snowflake Analysis

Fair value with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

HKTT.Y

-1.8%

US Telecom

-1.9%

US Market


1 Year Return

n/a

HKTT.Y

-12.0%

US Telecom

13.1%

US Market

Return vs Industry: Insufficient data to determine how HKTT.Y performed against the US Telecom industry.

Return vs Market: Insufficient data to determine how HKTT.Y performed against the US Market.


Shareholder returns

HKTT.YIndustryMarket
7 Day0%-1.8%-1.9%
30 Day-5.0%-2.5%-2.9%
90 Day-6.6%3.2%8.2%
1 Yearn/a-7.5%-12.0%15.7%13.1%
3 Year30.1%13.3%6.0%-9.2%38.4%29.1%
5 Year46.2%11.9%31.8%2.2%89.3%68.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is HKT Trust and HKT undervalued compared to its fair value and its price relative to the market?

43.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HKTT.Y ($13.75) is trading below our estimate of fair value ($24.36)

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


Price To Earnings Ratio

PE vs Industry: HKTT.Y is poor value based on its PE Ratio (15.7x) compared to the US Telecom industry average (11.6x).

PE vs Market: HKTT.Y is good value based on its PE Ratio (15.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HKTT.Y is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: HKTT.Y is overvalued based on its PB Ratio (2.1x) compared to the US Telecom industry average (1.2x).


Next Steps

Future Growth

How is HKT Trust and HKT forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HKTT.Y's forecast earnings growth (3.5% per year) is above the savings rate (2.2%).

Earnings vs Market: HKTT.Y's earnings (3.5% per year) are forecast to grow slower than the US market (23% per year).

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

Revenue vs Market: HKTT.Y's revenue (2.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: HKTT.Y's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HKTT.Y's Return on Equity is forecast to be low in 3 years time (14.3%).


Next Steps

Past Performance

How has HKT Trust and HKT performed over the past 5 years?

5.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HKTT.Y has high quality earnings.

Growing Profit Margin: HKTT.Y's current net profit margins (15.2%) are lower than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: HKTT.Y's earnings have grown by 5.5% per year over the past 5 years.

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

Earnings vs Industry: HKTT.Y had negative earnings growth (-3.3%) over the past year, making it difficult to compare to the Telecom industry average (-12.9%).


Return on Equity

High ROE: HKTT.Y's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is HKT Trust and HKT's financial position?


Financial Position Analysis

Short Term Liabilities: HKTT.Y's short term assets (HK$9.3B) do not cover its short term liabilities (HK$15.7B).

Long Term Liabilities: HKTT.Y's short term assets (HK$9.3B) do not cover its long term liabilities (HK$47.7B).


Debt to Equity History and Analysis

Debt Level: HKTT.Y's debt to equity ratio (111.9%) is considered high.

Reducing Debt: HKTT.Y's debt to equity ratio has increased from 97.6% to 111.9% over the past 5 years.

Debt Coverage: HKTT.Y's debt is well covered by operating cash flow (26.4%).

Interest Coverage: HKTT.Y's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet


Next Steps

Dividend

What is HKT Trust and HKT current dividend yield, its reliability and sustainability?

6.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HKTT.Y's dividend (6.87%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: HKTT.Y's dividend (6.87%) is in the top 25% of dividend payers in the US market (4.89%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HKTT.Y has been paying a dividend for less than 10 years.

Growing Dividend: HKTT.Y's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (107.7%), HKTT.Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HKTT.Y's dividends in 3 years are not forecast to be well covered by earnings (110.1% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Susanna Hui (55 yo)

2yrs

Tenure

HK$20,790,000

Compensation

Ms. Hon Hing Hui, also known as Susanna, has been Group Managing Director of HKT Limited (HKT) and HKT Management Limited (Trustee-Manager), the trustee-manager of the HKT Trust, since September 2018. She ...


CEO Compensation Analysis

Compensation vs Market: Susanna's total compensation ($USD2.68M) is below average for companies of similar size in the US market ($USD11.30M).

Compensation vs Earnings: Susanna's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hon Hing Hui
Group MD & Executive Director of HKT Management Limited2yrsHK$20.79m0.054%
HK$ 5.4m
Tzar Kai Li
Executive Chairman of HKT Management Limited8.83yrsno data0.87%
HK$ 87.5m
Hong Wong
Chief Financial Officer2yrsno datano data
Paul Berriman
Chief Technology Officer of Technology Strategy and Development -HKT Management Limited13.33yrsno datano data
Bernadette Mak Lomas
Group General Counsel & Company Secretary of HKT Management Limited4.08yrsno datano data
Chi-Keung Chan
Head of Group Communications - HKT Management Limited9.17yrsno datano data
Shum Ling
Group Chief Human Resources Officer1.17yrsno datano data
Wing Ng
Managing Director of Consumer Group -HKT Management Limitedno datano datano data
Wing Lam
Managing Director of Engineering - HKT Management Limitedno datano datano data
Kwok Shing Lam
Chief Marketing Officer of Wireless Business - HKT Management Limited no datano datano data
Kee Chan
Managing Director of the Commercial Group - HKT Management Limitedno datano datano data
Veronica Lockyer
Head of Group Regulatory Affairs2.67yrsno datano data

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: HKTT.Y's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hon Hing Hui
Group MD & Executive Director of HKT Management Limited2yrsHK$20.79m0.054%
HK$ 5.4m
Tzar Kai Li
Executive Chairman of HKT Management Limited8.83yrsno data0.87%
HK$ 87.5m
Aman Mehta
Independent Non-Executive Director of HKT Management Limited6.33yrsHK$370.00kno data
Cho Yee Chung
Non-Executive Director of HKT Management Limited8.83yrsHK$250.00kno data
Hsin-Kang Chang
Independent Non-Executive Director of HKT Management Limited8.83yrsHK$250.00kno data
Fushen Li
Non-Executive Director of HKT Management Limited8.83yrsHK$250.00kno data
Peter Anthony Allen
Non-Executive Director of HKT Management Limited8.83yrsno data0.00028%
HK$ 28.0k
Sunil Varma
Independent Non-Executive Director of HKT Management Limited8.83yrsHK$370.00kno data
Srinivas Gangaiah
Non-Executive Director of HKT Management Limited6.08yrsno data0.00066%
HK$ 66.0k
Kebing Zhu
Non-Executive Director of HKT Management Limited2yrsHK$250.00kno data
Waikwun Wong
Independent Non-Executive Director of HKT Management Limited5.33yrsHK$370.00kno data

8.8yrs

Average Tenure

59yo

Average Age

Experienced Board: HKTT.Y's board of directors are considered experienced (8.8 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

HKT Trust and HKT Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HKT Trust and HKT Limited
  • Ticker: HKTT.Y
  • Exchange: OTCPK
  • Founded: 2011
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$77.538b
  • Listing Market Cap: HK$10.005b
  • Shares outstanding: 7.57b
  • Website: https://www.hkt.com

Number of Employees


Location

  • HKT Trust and HKT Limited
  • PCCW Tower
  • 39th Floor
  • Quarry Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6823SEHK (The Stock Exchange of Hong Kong Ltd.)YesStapled UnitsHKHKDNov 2011
HKTT.FOTCPK (Pink Sheets LLC)YesStapled UnitsUSUSDNov 2011
4HKDB (Deutsche Boerse AG)YesStapled UnitsDEEURNov 2011
HKTT.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2012

Biography

HKT Trust and HKT Limited provides telecommunications services in Hong Kong, Mainland China, and internationally. It operates through Telecommunications Services, Mobile, and Other Businesses segments. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/24 05:47
End of Day Share Price2020/09/09 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.