Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

SmarTone Telecommunications Holdings

DB:SMA
Snowflake Description

Undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SMA
DB
HK$5B
Market Cap
  1. Home
  2. DE
  3. Telecom
Company description

SmarTone Telecommunications Holdings Limited, an investment holding company, provides mobile telecommunication services in Hong Kong and Macau. The last earnings update was 39 days ago. More info.


Add to Portfolio Compare Print
  • SmarTone Telecommunications Holdings has significant price volatility in the past 3 months.
SMA Share Price and Events
7 Day Returns
4.8%
DB:SMA
3.7%
Europe Wireless Telecom
7.2%
DE Market
1 Year Returns
-45%
DB:SMA
-15.6%
Europe Wireless Telecom
-17.5%
DE Market
SMA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SmarTone Telecommunications Holdings (SMA) 4.8% -23% -24.1% -45% -56.7% -70%
Europe Wireless Telecom 3.7% -18.4% -20.3% -15.6% -34.8% -40.7%
DE Market 7.2% -22.3% -26.1% -17.5% -25.7% -29.1%
1 Year Return vs Industry and Market
  • SMA underperformed the Wireless Telecom industry which returned -15.6% over the past year.
  • SMA underperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
SMA
Industry
5yr Volatility vs Market

Value

 Is SmarTone Telecommunications Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SmarTone Telecommunications Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SmarTone Telecommunications Holdings.

DB:SMA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 4.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SMA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 6.1%
Wireless Telecom Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.337 (1 + (1- 25%) (63.77%))
0.664
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.8 * 6.07%)
4.47%

Discounted Cash Flow Calculation for DB:SMA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SmarTone Telecommunications Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:SMA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 4.47%)
2020 600.50 Analyst x2 574.83
2021 718.50 Analyst x2 658.38
2022 778.00 Analyst x2 682.42
2023 835.00 Analyst x1 701.11
2024 872.05 Est @ 4.44% 700.92
2025 898.12 Est @ 2.99% 691.01
2026 915.86 Est @ 1.98% 674.53
2027 927.45 Est @ 1.27% 653.87
2028 934.58 Est @ 0.77% 630.73
2029 938.52 Est @ 0.42% 606.31
Present value of next 10 years cash flows HK$6,574.00
DB:SMA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$938.52 × (1 + -0.39%) ÷ (4.47% – -0.39%)
HK$19,251.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$19,251.64 ÷ (1 + 4.47%)10
HK$12,437.07
DB:SMA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$6,574.00 + HK$12,437.07
HK$19,011.07
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$19,011.07 / 1,121.68
HK$16.95
DB:SMA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:SMA represents 0.11454x of SEHK:315
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11454x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 16.95 x 0.11454
€1.94
Value per share (EUR) From above. €1.94
Current discount Discount to share price of €0.52
= -1 x (€0.52 - €1.94) / €1.94
73.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price SmarTone Telecommunications Holdings is available for.
Intrinsic value
>50%
Share price is €0.52 vs Future cash flow value of €1.94
Current Discount Checks
For SmarTone Telecommunications Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • SmarTone Telecommunications Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • SmarTone Telecommunications Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SmarTone Telecommunications Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SmarTone Telecommunications Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SMA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in HKD HK$0.50
SEHK:315 Share Price ** SEHK (2020-03-27) in HKD HK$4.54
Europe Wireless Telecom Industry PE Ratio Median Figure of 7 Publicly-Listed Wireless Telecom Companies 27.83x
Germany Market PE Ratio Median Figure of 400 Publicly-Listed Companies 16.49x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SmarTone Telecommunications Holdings.

DB:SMA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:315 Share Price ÷ EPS (both in HKD)

= 4.54 ÷ 0.50

9.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SmarTone Telecommunications Holdings is good value based on earnings compared to the Europe Wireless Telecom industry average.
  • SmarTone Telecommunications Holdings is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does SmarTone Telecommunications Holdings's expected growth come at a high price?
Raw Data
DB:SMA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-6.4%per year
Europe Wireless Telecom Industry PEG Ratio Median Figure of 5 Publicly-Listed Wireless Telecom Companies 1.82x
Germany Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

DB:SMA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.02x ÷ -6.4%

-1.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SmarTone Telecommunications Holdings earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on SmarTone Telecommunications Holdings's assets?
Raw Data
DB:SMA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in HKD HK$4.53
SEHK:315 Share Price * SEHK (2020-03-27) in HKD HK$4.54
Europe Wireless Telecom Industry PB Ratio Median Figure of 10 Publicly-Listed Wireless Telecom Companies 2.04x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.42x
DB:SMA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:315 Share Price ÷ Book Value per Share (both in HKD)

= 4.54 ÷ 4.53

1x

* Primary Listing of SmarTone Telecommunications Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SmarTone Telecommunications Holdings is good value based on assets compared to the Europe Wireless Telecom industry average.
X
Value checks
We assess SmarTone Telecommunications Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Wireless Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Wireless Telecom industry average (and greater than 0)? (1 check)
  5. SmarTone Telecommunications Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-6.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SmarTone Telecommunications Holdings expected to grow at an attractive rate?
  • SmarTone Telecommunications Holdings's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • SmarTone Telecommunications Holdings's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • SmarTone Telecommunications Holdings's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SMA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SMA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -6.4%
DB:SMA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts -2.3%
Europe Wireless Telecom Industry Earnings Growth Rate Market Cap Weighted Average 21%
Europe Wireless Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SMA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SMA Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 5,560 1
2022-06-30 7,729 1,601 436 8
2021-06-30 7,717 1,550 490 8
2020-06-30 7,708 1,432 463 8
2020-03-28
DB:SMA Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-12-31 7,485 565
2019-09-30 7,950 599
2019-06-30 8,415 1,304 632
2019-03-31 9,741 1,176 626
2018-12-31 11,067 1,049 620
2018-09-30 10,528 1,640 617
2018-06-30 9,988 2,231 615
2018-03-31 8,720 2,265 611
2017-12-31 7,451 2,299 607
2017-09-30 8,083 2,025 639
2017-06-30 8,715 1,750 672
2017-03-31 11,108 1,593 730

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SmarTone Telecommunications Holdings's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • SmarTone Telecommunications Holdings's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SMA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from SmarTone Telecommunications Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SMA Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30 0.30 0.50 0.19 5.00
2021-06-30 0.39 0.49 0.30 6.00
2020-06-30 0.43 0.49 0.39 6.00
2020-03-28
DB:SMA Past Financials Data
Date (Data in HKD Millions) EPS *
2019-12-31 0.50
2019-09-30 0.53
2019-06-30 0.56
2019-03-31 0.56
2018-12-31 0.55
2018-09-30 0.55
2018-06-30 0.55
2018-03-31 0.55
2017-12-31 0.55
2017-09-30 0.58
2017-06-30 0.62
2017-03-31 0.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SmarTone Telecommunications Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess SmarTone Telecommunications Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SmarTone Telecommunications Holdings has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SmarTone Telecommunications Holdings's growth in the last year to its industry (Wireless Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SmarTone Telecommunications Holdings's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • SmarTone Telecommunications Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • SmarTone Telecommunications Holdings's 1-year earnings growth is negative, it can't be compared to the Europe Wireless Telecom industry average.
Earnings and Revenue History
SmarTone Telecommunications Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SmarTone Telecommunications Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SMA Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 7,485.08 565.30 0.64
2019-09-30 7,950.06 598.78 0.64
2019-06-30 8,415.04 632.25 0.64
2019-03-31 9,741.26 625.89 0.66
2018-12-31 11,067.48 619.54 0.67
2018-09-30 10,527.98 617.39 0.67
2018-06-30 9,988.49 615.24 0.67
2018-03-31 8,719.59 611.03 0.66
2017-12-31 7,450.69 606.82 0.64
2017-09-30 8,083.05 639.46 0.64
2017-06-30 8,715.41 672.10 0.64
2017-03-31 11,107.52 729.96 508.78
2016-12-31 13,499.63 787.82 1,016.92
2016-09-30 15,927.62 792.49 1,016.92
2016-06-30 18,355.61 797.15 1,016.92
2016-03-31 19,285.00 834.48 1,017.06
2015-12-31 20,214.39 871.82 1,017.20
2015-09-30 19,436.61 903.60 1,017.20
2015-06-30 18,658.84 935.38 1,017.20
2015-03-31 17,022.52 813.74 756.23
2014-12-31 15,386.20 692.10 495.26
2014-09-30 14,315.30 614.61 741.23
2014-06-30 13,244.40 537.11 987.20
2014-03-31 12,976.89 616.10 975.14
2013-12-31 12,709.38 695.09 963.08
2013-09-30 12,387.96 769.14 933.01
2013-06-30 12,066.53 843.19 902.95
2013-03-31 11,423.37 925.06 992.15

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SmarTone Telecommunications Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SmarTone Telecommunications Holdings used its assets less efficiently than the Europe Wireless Telecom industry average last year based on Return on Assets.
  • SmarTone Telecommunications Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SmarTone Telecommunications Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Wireless Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SmarTone Telecommunications Holdings has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is SmarTone Telecommunications Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SmarTone Telecommunications Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SmarTone Telecommunications Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SmarTone Telecommunications Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SmarTone Telecommunications Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SmarTone Telecommunications Holdings Company Filings, last reported 2 months ago.

DB:SMA Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 5,088.91 2,233.92 2,509.91
2019-09-30 5,088.91 2,233.92 2,509.91
2019-06-30 5,076.65 2,302.91 2,527.49
2019-03-31 5,076.65 2,302.91 2,527.49
2018-12-31 4,950.68 2,369.80 1,563.94
2018-09-30 4,950.68 2,369.80 1,563.94
2018-06-30 4,831.72 2,430.38 1,992.79
2018-03-31 4,831.72 2,430.38 1,992.79
2017-12-31 4,741.40 2,628.85 1,969.23
2017-09-30 4,741.40 2,628.85 1,969.23
2017-06-30 4,634.30 2,690.69 1,410.47
2017-03-31 4,634.30 2,690.69 1,410.47
2016-12-31 4,500.27 2,788.56 1,142.43
2016-09-30 4,500.27 2,788.56 1,142.43
2016-06-30 4,363.84 2,850.42 3,565.13
2016-03-31 4,363.84 2,850.42 3,565.13
2015-12-31 4,025.13 2,908.44 3,299.95
2015-09-30 4,025.13 2,908.44 3,299.95
2015-06-30 3,907.95 2,968.77 4,321.48
2015-03-31 3,907.95 2,968.77 4,321.48
2014-12-31 3,596.82 3,003.46 3,499.23
2014-09-30 3,596.82 3,003.46 3,499.23
2014-06-30 3,249.53 2,840.22 3,342.31
2014-03-31 3,249.53 2,840.22 3,342.31
2013-12-31 3,134.40 2,809.49 2,820.09
2013-09-30 3,134.40 2,809.49 2,820.09
2013-06-30 3,047.98 2,594.80 2,675.23
2013-03-31 3,047.98 2,594.80 2,675.23
  • SmarTone Telecommunications Holdings's level of debt (43.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (83.4% vs 43.9% today).
  • Debt is well covered by operating cash flow (58.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 30.4x coverage).
X
Financial health checks
We assess SmarTone Telecommunications Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SmarTone Telecommunications Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
8.59%
Current annual income from SmarTone Telecommunications Holdings dividends. Estimated to be 6.47% next year.
If you bought €2,000 of SmarTone Telecommunications Holdings shares you are expected to receive €172 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • SmarTone Telecommunications Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • SmarTone Telecommunications Holdings's dividend is above the markets top 25% of dividend payers in Germany (4.96%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SMA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Europe Wireless Telecom Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 320 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SMA Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.28 1.00
2022-06-30 0.25 8.00
2021-06-30 0.30 9.00
2020-06-30 0.32 9.00
2020-03-28
DB:SMA Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-09-27 0.390 6.571
2019-09-06 0.390 5.598
2018-09-24 0.410 4.845
2017-09-28 0.600 6.921
2016-09-29 0.600 5.725
2016-08-26 0.600 4.697
2015-11-18 0.600 4.780
2014-09-29 0.260 1.981
2014-03-10 0.360 3.753
2013-09-27 0.660 7.336
2013-09-11 0.660 6.321
2013-03-08 0.970 7.683
2012-10-03 1.060 7.378
2012-09-04 1.060 6.890
2012-03-29 0.920 5.903
2012-02-21 0.920 5.546
2011-09-30 0.840 6.173
2011-08-31 0.840 5.546
2011-02-23 0.620 4.924
2010-09-07 0.350 5.391
2010-03-03 0.170 4.208
2009-10-05 0.040 1.299
2009-09-02 0.040 1.335

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of SmarTone Telecommunications Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess SmarTone Telecommunications Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SmarTone Telecommunications Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SmarTone Telecommunications Holdings has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Anna Yip
COMPENSATION HK$10,419,000
AGE 49
TENURE AS CEO 3.8 years
CEO Bio

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 SmarTone Telecommunications Holdings Ltd. since June 16, 2016. She served as the Head of Hong Kong & Macau at MasterCard Incorporated from March 2014 to 2016. She was responsible for developing strategy for the local market and forging close business alliances with customer financial institutions, while developing and promoting MasterCard products and services in line with market demands. A Hong Kong native, she joined MasterCard in 2013 as Head of Greater China, MasterCard Advisors, the professional services arm of MasterCard which provides proprietary analysis and solutions. Based in Hong Kong, she was responsible for the operation and growth of the business in the Greater China region. She has years of experience in the financial services industry in Hong Kong, Greater China and Southeast Asia. Prior to joining MasterCard, she served as the Managing Director for Corporate Planning and International Strategy at United Overseas Bank in Singapore. She was a Partner with McKinsey & Company in Greater China, where she founded and led the Asia Retail and Wholesale Payments practice and co-led the Asia Financial Institutional Group. Over her 12-year tenure with McKinsey, she advised banks, non-bank financial institutions and funds on strategy, mergers & acquisitions and organizational issues. She is a Council member of The Open University of Hong Kong. Ms. Yip holds a Bachelor degree in Business Administration from The Chinese University of Hong Kong and both MPhil and DPhil degrees in Management Studies from the University of Oxford.

CEO Compensation
  • Anna's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Anna's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the SmarTone Telecommunications Holdings management team in years:

16.9
Average Tenure
54
Average Age
  • The average tenure for the SmarTone Telecommunications Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Anna Yip

TITLE
CEO & Executive Director
COMPENSATION
HK$10M
AGE
49
TENURE
3.8 yrs

Patrick Chan

TITLE
CFO & Executive Director
COMPENSATION
HK$8M
AGE
59

Stephen Chau

TITLE
CTO & Executive Director
COMPENSATION
HK$8M
AGE
58
TENURE
21.2 yrs

Rita Hui

TITLE
General Manager of Human Resources
TENURE
25.2 yrs

Alvin Mak

TITLE
Company Secretary
AGE
50
TENURE
12.7 yrs
Board of Directors Tenure

Average tenure and age of the SmarTone Telecommunications Holdings board of directors in years:

14.3
Average Tenure
62.5
Average Age
  • The average tenure for the SmarTone Telecommunications Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Raymond Kwok

TITLE
Chairman
COMPENSATION
HK$180K
AGE
66

Anna Yip

TITLE
CEO & Executive Director
COMPENSATION
HK$10M
AGE
49
TENURE
3.8 yrs

Edward Cheung

TITLE
Deputy Chairman
COMPENSATION
HK$162K
AGE
69
TENURE
5.3 yrs

Allen Fung

TITLE
Deputy Chairman
COMPENSATION
HK$162K
AGE
51
TENURE
5.3 yrs

Patrick Chan

TITLE
CFO & Executive Director
COMPENSATION
HK$8M
AGE
59
TENURE
23.4 yrs

Stephen Chau

TITLE
CTO & Executive Director
COMPENSATION
HK$8M
AGE
58
TENURE
4.9 yrs

Eric Li

TITLE
Independent Non Executive Director
COMPENSATION
HK$288K
AGE
66
TENURE
23.4 yrs

Eric Gan

TITLE
Independent Non-Executive Director
COMPENSATION
HK$288K
AGE
56
TENURE
14.3 yrs

Leung-Sing Ng

TITLE
Independent Non-Executive Director
COMPENSATION
HK$288K
AGE
70
TENURE
22.8 yrs

David Prince

TITLE
Non-Executive Director
COMPENSATION
HK$144K
AGE
68
TENURE
14.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess SmarTone Telecommunications Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SmarTone Telecommunications Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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 fiber broadband services for the consumer and corporate markets. It is also involved in the sale of handsets and accessories; issuance of guaranteed notes; and provision of customer support and telemarketing services. The company was founded in 1992 and is headquartered in Kwun Tong, Hong Kong. SmarTone Telecommunications Holdings Limited is a subsidiary of Sun Hung Kai Properties Limited.

Details
Name: SmarTone Telecommunications Holdings Limited
SMA
Exchange: DB
Founded: 1992
HK$592,510,277
1,121,675,927
Website: http://www.smartoneholdings.com
Address: SmarTone Telecommunications Holdings Limited
Millennium City 2,
31st Floor,
Kwun Tong,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 315 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 01. Nov 1996
OTCPK STTF.F Ordinary Shares Pink Sheets LLC US USD 01. Nov 1996
DB SMA Ordinary Shares Deutsche Boerse AG DE EUR 01. Nov 1996
SHSC 315 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 01. Nov 1996
SZSC 315 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 01. Nov 1996
Number of employees
Current staff
Staff numbers
1,932
SmarTone Telecommunications Holdings employees.
Industry
Wireless Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/28 22:08
End of day share price update: 2020/03/27 00:00
Last estimates confirmation: 2020/03/26
Last earnings filing: 2020/02/18
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.