SmarTone Telecommunications Holdings Ltd. (315) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

SmarTone Telecommunications Holdings Ltd.

China Telecom Corp. Ltd.

Hutchison Telecommunications Hong Kong Holdings Ltd.

Jiande International Holdings Ltd.

Why is SmarTone Telecommunications Holdings Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.93

Poor long term growth as Net Sales has grown by an annual rate of -2.19% and Operating profit at 4.40% over the last 5 years

INTEREST(HY) At HKD 22.55 MM has Grown at 51.21%
OPERATING CASH FLOW(Y) Lowest at HKD 4,286.28 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 9.67%

With ROE of 9.86%, it has a Very Attractive valuation with a 0.98 Price to Book Value

Over the past year, while the stock has generated a return of 15.85%, its profits have risen by 81.1% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 15.85% in the last 1 year, much lower than market (Hang Seng Hong Kong) returns of 26.67%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SmarTone Telecommunications Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SmarTone Telecommunications Holdings Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

SmarTone Telecommunications Holdings Ltd.

15.01%

1.70

16.72%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.19%

EBIT Growth (5y)

4.40%

EBIT to Interest (avg)

11.93

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.99

Tax Ratio

28.48%

Dividend Payout Ratio

73.61%

Pledged Shares

Institutional Holding

ROCE (avg)

14.90%

ROE (avg)

8.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.98

EV to EBIT

5.32

EV to EBITDA

1.64

EV to Capital Employed

0.98

EV to Sales

0.64

PEG Ratio

0.12

Dividend Yield

3.78%

ROCE (Latest)

18.34%

ROE (Latest)

9.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for SmarTone Telecommunications Holdings Ltd.

Debt-Equity Ratio

Lowest at -14.57 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit

Highest at HKD 1,279.08 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 403.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 292.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.23

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Raw Material Cost

Fallen by -8.43% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for SmarTone Telecommunications Holdings Ltd.

Interest

At HKD 22.55 MM has Grown at 51.21%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debtors Turnover Ratio

Lowest at 9.67% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at HKD 4,286.28 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Inventory Turnover Ratio

Lowest at 20.5%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio