OTCPK:STTF.Y

Stock Analysis Report

SmarTone Telecommunications Holdings

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

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


Market Performance


7 Day Return

-10.0%

STTF.Y

2.5%

US Wireless Telecom

0.5%

US Market


1 Year Return

-5.9%

STTF.Y

3.6%

US Wireless Telecom

6.8%

US Market


Shareholder returns

STTF.YIndustryMarket
7 Day-10.0%2.5%0.5%
30 Day-10.0%-0.6%-0.8%
90 Dayn/a-3.2%-0.9%
1 Year-2.3%-5.9%4.9%3.6%9.2%6.8%
3 Year-38.4%-46.3%27.6%23.3%45.6%36.2%
5 Year-10.8%-27.5%52.5%38.7%63.2%45.4%

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?

13.45x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STTF.Y ($4.75) is trading above our estimate of fair value ($1.14)

Significantly Below Fair Value: STTF.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STTF.Y is good value based on its PE Ratio (13.5x) compared to the Wireless Telecom industry average (22.1x).

PE vs Market: STTF.Y is good value based on its PE Ratio (13.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: STTF.Y is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: STTF.Y is good value based on its PB Ratio (1.7x) compared to the US Wireless Telecom industry average (2x).


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?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STTF.Y's forecast earnings growth (7.3% per year) is above the savings rate (2.7%).

Earnings vs Market: STTF.Y's earnings (7.3% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: STTF.Y's revenue (1% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: STTF.Y's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

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

-2.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: STTF.Y's earnings have declined by -2.4% per year over the past 5 years.

Accelerating Growth: STTF.Y's earnings growth over the past year (2.1%) exceeds its 5-year average (-2.4% per year).

Earnings vs Industry: STTF.Y earnings growth over the past year (2.1%) exceeded the Wireless Telecom industry 7.7%.


Return on Equity

High ROE: STTF.Y's Return on Equity (12.3%) is considered low.


Return on Assets

ROA vs Industry: STTF.Y has a higher Return on Assets than the Wireless Telecom industry average last year.


Return on Capital Employed

ROCE Improving: STTF.Y's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is SmarTone Telecommunications Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: STTF.Y's short term assets (HK$3.1B) exceeds its short term liabilities (HK$2.1B)

Long Term Liabilities: STTF.Y's short term assets (3.1B) exceeds its long term liabilities (2.6B)


Debt to Equity History and Analysis

Debt Level: STTF.Y's debt to equity ratio (47.9%) is considered high

Reducing Debt: STTF.Y's debt to equity ratio has reduced from 89.6% to 47.9% over the past 5 years.

Debt Coverage: STTF.Y's debt is well covered by operating cash flow (44.2%).

Interest Coverage: STTF.Y's interest payments on its debt are well covered by EBIT (44.7x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

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

5.51%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.4%markettop25%3.7%industryaverage8.0%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: STTF.Y's dividend (5.51%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: STTF.Y's dividend (5.51%) is in the top 25% of dividend payers in the US market (3.73%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.1%), STTF.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STTF.Y's dividends in 3 years are forecast to be covered by earnings (74.6% payout ratio).


Next Steps

Management

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

16.3yrs

Average management tenure


CEO

Anna Yip (49yo)

3.1yrs

Tenure

HK$15,685,000

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

Information is not available.

Compensation vs Earnings: Anna's compensation has increased by more than 20% in the past year.


Management Age and Tenure

16.3yrs

Average Tenure

54yo

Average Age

Experienced Management: STTF.Y's management team is seasoned and experienced (16.3 years average tenure).


Board Age and Tenure

13.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: STTF.Y's board of directors are seasoned and experienced ( 13.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Alvin Mak (50yo)

    Company Secretary

    • Tenure: 12yrs
  • Patrick Chan (59yo)

    CFO & Executive Director

    • Tenure: 22.8yrs
    • Compensation: HK$7.35m
  • Rita Hui

    General Manager of Human Resources

    • Tenure: 24.5yrs
  • Stephen Chau (58yo)

    CTO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$7.94m
  • Anna Yip (49yo)

    CEO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: HK$15.69m

Board Members

  • David Prince (68yo)

    Non-Executive Director

    • Tenure: 14yrs
    • Compensation: HK$144.00k
  • Edward Cheung (69yo)

    Deputy Chairman

    • Tenure: 4.6yrs
    • Compensation: HK$162.00k
  • Raymond Kwok (66yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: HK$180.00k
  • Eric Li (66yo)

    Independent Non Executive Director

    • Tenure: 22.8yrs
    • Compensation: HK$288.00k
  • Patrick Chan (59yo)

    CFO & Executive Director

    • Tenure: 22.8yrs
    • Compensation: HK$7.35m
  • Leung-Sing Ng (70yo)

    Independent Non-Executive Director

    • Tenure: 22.1yrs
    • Compensation: HK$288.00k
  • Stephen Chau (58yo)

    CTO & Executive Director

    • Tenure: 4.3yrs
    • Compensation: HK$7.94m
  • Eric Gan (56yo)

    Independent Non-Executive Director

    • Tenure: 13.6yrs
    • Compensation: HK$288.00k
  • Allen Fung (51yo)

    Deputy Chairman

    • Tenure: 4.6yrs
    • Compensation: HK$162.00k
  • Anna Yip (49yo)

    CEO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: HK$15.69m

Company Information

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


Key Information

  • Name: SmarTone Telecommunications Holdings Limited
  • Ticker: STTF.Y
  • Exchange: OTCPK
  • Founded: 1992
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: HK$8.367b
  • Listing Market Cap: HK$1.071b
  • 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
STTF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1996
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
STTF.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDFeb 2003

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 fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/01 23:50
End of Day Share Price2019/06/27 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.