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China Netcom Technology Holdings

SEHK:8071
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
8071
SEHK
HK$149M
Market Cap
  1. Home
  2. HK
  3. Software
Company description

China Netcom Technology Holdings Limited, an investment holding company, provides financial technology services in the People’s Republic of China. The last earnings update was 28 days ago. More info.


Add to Portfolio Compare Print
  • China Netcom Technology Holdings has significant price volatility in the past 3 months.
8071 Share Price and Events
7 Day Returns
-6.1%
SEHK:8071
2.9%
HK Software
0.5%
HK Market
1 Year Returns
-62.2%
SEHK:8071
2.1%
HK Software
-0.2%
HK Market
8071 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Netcom Technology Holdings (8071) -6.1% -24.4% -43.6% -62.2% -64.4% -75.8%
HK Software 2.9% -6% -1.5% 2.1% 14.9% 1.4%
HK Market 0.5% -3.8% -1.3% -0.2% 6.7% -0.5%
1 Year Return vs Industry and Market
  • 8071 underperformed the Software industry which returned 2.1% over the past year.
  • 8071 underperformed the Market in Hong Kong which returned -0.2% over the past year.
Price Volatility
8071
Industry
5yr Volatility vs Market

8071 Value

 Is China Netcom Technology 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 China Netcom Technology 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 China Netcom Technology Holdings.

SEHK:8071 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year HK Government Bond Rate 1.6%

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 SEHK:8071
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 1.6%
Equity Risk Premium S&P Global 6.1%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.136 (1 + (1- 25%) (29.24%))
1.258
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.26
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.55% + (1.258 * 6.07%)
9.19%

Discounted Cash Flow Calculation for SEHK:8071 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Netcom Technology 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.

SEHK:8071 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 9.19%)
2020 24.48 Est @ 18.25% 22.42
2021 27.73 Est @ 13.24% 23.26
2022 30.43 Est @ 9.73% 23.37
2023 32.64 Est @ 7.28% 22.97
2024 34.45 Est @ 5.56% 22.20
2025 35.96 Est @ 4.36% 21.22
2026 37.22 Est @ 3.52% 20.12
2027 38.31 Est @ 2.93% 18.96
2028 39.27 Est @ 2.51% 17.81
2029 40.15 Est @ 2.22% 16.67
Present value of next 10 years cash flows HK$209.00
SEHK:8071 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$40.15 × (1 + 1.55%) ÷ (9.19% – 1.55%)
HK$533.85
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$533.85 ÷ (1 + 9.19%)10
HK$221.68
SEHK:8071 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$209.00 + HK$221.68
HK$430.68
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$430.68 / 4,671.04
HK$0.09
SEHK:8071 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$0.09
Current discount Discount to share price of HK$0.03
= -1 x (HK$0.03 - HK$0.09) / HK$0.09
66.4%

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

Current Discount
Amount off the current price China Netcom Technology Holdings is available for.
Intrinsic value
>50%
Share price is HK$0.031 vs Future cash flow value of HK$0.0922
Current Discount Checks
For China Netcom Technology Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Netcom Technology Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Netcom Technology 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 China Netcom Technology Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Netcom Technology Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:8071 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in HKD HK$0.01
SEHK:8071 Share Price ** SEHK (2019-12-11) in HKD HK$0.03
Hong Kong Software Industry PE Ratio Median Figure of 14 Publicly-Listed Software Companies 10.17x
Hong Kong Market PE Ratio Median Figure of 1,469 Publicly-Listed Companies 10.2x

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

** Primary Listing of China Netcom Technology Holdings.

SEHK:8071 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:8071 Share Price ÷ EPS (both in HKD)

= 0.03 ÷ 0.01

3.84x

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

  • China Netcom Technology Holdings is good value based on earnings compared to the HK Software industry average.
  • China Netcom Technology Holdings is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Netcom Technology Holdings's expected growth come at a high price?
Raw Data
SEHK:8071 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.84x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Hong Kong Software Industry PEG Ratio Median Figure of 5 Publicly-Listed Software Companies 0.54x
Hong Kong Market PEG Ratio Median Figure of 478 Publicly-Listed Companies 0.74x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for China Netcom Technology Holdings, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on China Netcom Technology Holdings's assets?
Raw Data
SEHK:8071 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in HKD HK$0.02
SEHK:8071 Share Price * SEHK (2019-12-11) in HKD HK$0.03
Hong Kong Software Industry PB Ratio Median Figure of 30 Publicly-Listed Software Companies 1.14x
Hong Kong Market PB Ratio Median Figure of 2,204 Publicly-Listed Companies 0.81x
SEHK:8071 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:8071 Share Price ÷ Book Value per Share (both in HKD)

= 0.03 ÷ 0.02

1.96x

* Primary Listing of China Netcom Technology Holdings.

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

  • China Netcom Technology Holdings is overvalued based on assets compared to the HK Software industry average.
X
Value checks
We assess China Netcom Technology 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 Software 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 Software industry average (and greater than 0)? (1 check)
  5. China Netcom Technology Holdings has a total score of 4/6, 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.

8071 Future Performance

 How is China Netcom Technology Holdings expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Netcom Technology Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

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
52.5%
Expected Software industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Netcom Technology Holdings expected to grow at an attractive rate?
  • Unable to compare China Netcom Technology Holdings's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare China Netcom Technology Holdings's earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare China Netcom Technology Holdings's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:8071 Future Growth Rates Data Sources
Data Point Source Value (per year)
Hong Kong Software Industry Earnings Growth Rate Market Cap Weighted Average 52.5%
Hong Kong Software Industry Revenue Growth Rate Market Cap Weighted Average 25.4%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.9%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*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
SEHK:8071 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:8071 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:8071 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-09-30 92 38
2019-06-30 82 29 36
2019-03-31 66 27
2018-12-31 53 -8 16
2018-09-30 36 -29
2018-06-30 25 -29 -38
2018-03-31 23 -45
2017-12-31 19 -18 -48
2017-09-30 7 -30
2017-06-30 5 -22 -33
2017-03-31 3 -37
2016-12-31 2 -16 -37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if China Netcom Technology Holdings is high growth as no earnings estimate data is available.
  • Unable to determine if China Netcom Technology Holdings is high growth as no revenue estimate data is available.
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
SEHK:8071 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 0 Analyst Estimates (S&P Global) See Below

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

SEHK:8071 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:8071 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-09-30 0.01
2019-06-30 0.01
2019-03-31 0.01
2018-12-31 0.00
2018-09-30 -0.01
2018-06-30 -0.01
2018-03-31 -0.01
2017-12-31 -0.01
2017-09-30 -0.01
2017-06-30 -0.01
2017-03-31 -0.01
2016-12-31 -0.01

*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.
  • Unable to establish if China Netcom Technology Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether China Netcom Technology Holdings is trading at China Netcom Technology Holdings'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. China Netcom Technology Holdings's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Software companies here
  3. China Netcom Technology Holdings's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess China Netcom Technology 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 Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong 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.
China Netcom Technology 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.

8071 Past Performance

  How has China Netcom Technology 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 China Netcom Technology Holdings's growth in the last year to its industry (Software).
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.
  • China Netcom Technology Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • China Netcom Technology Holdings has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • China Netcom Technology Holdings has become profitable in the last year making it difficult to compare the HK Software industry average.
Earnings and Revenue History
China Netcom Technology 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 China Netcom Technology Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:8071 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 92.42 37.71 19.47
2019-06-30 82.05 36.31 19.17
2019-03-31 66.04 26.95 20.97
2018-12-31 53.07 16.20 22.45
2018-09-30 36.03 -29.02 23.55
2018-06-30 25.40 -38.19 25.55
2018-03-31 23.50 -44.72 31.80
2017-12-31 19.36 -48.29 32.60
2017-09-30 6.67 -29.55 27.87
2017-06-30 4.86 -32.64 28.86
2017-03-31 2.65 -36.75 29.56
2016-12-31 2.01 -37.04 28.28
2016-09-30 1.77 -45.16 34.01
2016-06-30 1.33 -48.53 33.65
2016-03-31 0.82 -54.09 35.40
2015-12-31 0.96 -54.68 35.52
2015-09-30 1.10 -189.77 29.29
2015-06-30 1.09 -186.14 27.59
2015-03-31 3.50 -176.86 20.89
2014-12-31 3.53 -186.05 29.73
2014-09-30 3.54 -81.42 35.56
2014-06-30 3.98 -81.41 34.61
2014-03-31 1.70 -82.34 36.05
2013-12-31 1.73 -75.33 27.13
2013-09-30 2.30 -176.20 23.28
2013-06-30 1.89 -223.20 28.88
2013-03-31 1.82 -251.21 31.75
2012-12-31 2.25 -287.95 36.32

*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.
  • China Netcom Technology Holdings made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • China Netcom Technology Holdings used its assets more efficiently than the HK Software industry average last year based on Return on Assets.
  • China Netcom Technology Holdings has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess China Netcom Technology 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 Software 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.
China Netcom Technology Holdings has a total score of 4/6, 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.

8071 Health

 How is China Netcom Technology 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 China Netcom Technology Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Netcom Technology Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Netcom Technology Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Netcom Technology 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 7.7x 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 China Netcom Technology Holdings Company Filings, last reported 2 months ago.

SEHK:8071 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 75.45 43.71 56.10
2019-06-30 75.45 15.45 56.10
2019-03-31 61.67 14.37 45.36
2018-12-31 61.67 14.37 45.36
2018-09-30
2018-06-30 39.50 13.00 49.87
2018-03-31 7.38 50.11 63.37
2017-12-31 7.38 50.11 63.37
2017-09-30
2017-06-30 21.28 46.70 26.06
2017-03-31 20.67 43.92 25.22
2016-12-31 20.67 43.92 25.22
2016-09-30
2016-06-30 49.23 41.45 37.57
2016-03-31 77.56 59.63 86.46
2015-12-31 77.56 59.63 86.46
2015-09-30
2015-06-30 81.73 101.89 117.11
2015-03-31 36.40 93.82 65.89
2014-12-31 36.40 93.82 65.89
2014-09-30
2014-06-30 338.53 107.88 93.95
2014-03-31 286.28 102.32 37.81
2013-12-31 286.28 102.32 37.81
2013-09-30
2013-06-30 373.37 96.69 42.41
2013-03-31 384.48 91.12 41.60
2012-12-31 384.48 91.12 41.60
  • China Netcom Technology Holdings's level of debt (20.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (54.2% vs 20.5% today).
  • Debt is well covered by operating cash flow (190.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 21.3x coverage).
X
Financial health checks
We assess China Netcom Technology 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. China Netcom Technology Holdings has a total score of 6/6, 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.

8071 Dividends

 What is China Netcom Technology 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
0%
Current annual income from China Netcom Technology Holdings dividends.
If you bought HK$2,000 of China Netcom Technology Holdings shares you are expected to receive HK$0 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?
  • Unable to evaluate China Netcom Technology Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate China Netcom Technology Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
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
SEHK:8071 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 0 Analyst Estimates (S&P Global) See Below
Hong Kong Software Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 0.7%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 963 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.3%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.3%
Hong Kong Top 25% Dividend Yield 75th Percentile 6.2%

Industry and Market average data is calculated daily.

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

SEHK:8071 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts

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

  • Unable to perform a dividend volatility check as China Netcom Technology Holdings has not reported any payouts.
  • Unable to verify if China Netcom Technology Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of China Netcom Technology Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as China Netcom Technology Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess China Netcom Technology Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - 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 China Netcom Technology Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Netcom Technology Holdings has a total score of 0/6, see the detailed checks below.


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

8071 Management

 What is the CEO of China Netcom Technology 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.
  • China Netcom Technology Holdings has no CEO, or we have no data on them.
Management Team Tenure

Average tenure and age of the China Netcom Technology Holdings management team in years:

4.4
Average Tenure
41.5
Average Age
  • The tenure for the China Netcom Technology Holdings management team is about average.
Management Team

Haitao Sun

TITLE
Chairman
COMPENSATION
HK$378K
AGE
39

Ke Zhao

TITLE
Compliance Officer & Executive Director
COMPENSATION
HK$378K
AGE
35
TENURE
2.3 yrs

Zhi Wei Lin

TITLE
Chief Technology Officer
AGE
45

Shi Kui Gao

TITLE
Director of Business Development
COMPENSATION
HK$30K
AGE
67
TENURE
6.5 yrs

Hiu Ling Li

TITLE
Company Secretary
AGE
35
TENURE
2.3 yrs

Hang Tat Lee

TITLE
Deputy Financial Controller
AGE
44
TENURE
16.8 yrs
Board of Directors Tenure

Average tenure and age of the China Netcom Technology Holdings board of directors in years:

2.3
Average Tenure
54
Average Age
  • The average tenure for the China Netcom Technology Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Haitao Sun

TITLE
Chairman
COMPENSATION
HK$378K
AGE
39
TENURE
2.3 yrs

Ke Zhao

TITLE
Compliance Officer & Executive Director
COMPENSATION
HK$378K
AGE
35
TENURE
2.3 yrs

Michael Yu

TITLE
Independent Non- Executive Director
COMPENSATION
HK$150K
AGE
54
TENURE
2.3 yrs

Ke Song

TITLE
Independent Non-Executive Director
COMPENSATION
HK$150K
AGE
54
TENURE
2.3 yrs

Bo Wu

TITLE
Independent Non-Executive Director
COMPENSATION
HK$150K
AGE
54
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess China Netcom Technology 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. China Netcom Technology 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.

8071 News

Simply Wall St News

China Netcom Technology Holdings (HKG:8071) Has A Pretty Healthy Balance Sheet

SEHK:8071 Historical Debt, August 4th 2019 A Look At China Netcom Technology Holdings's Liabilities According to the last reported balance sheet, China Netcom Technology Holdings had liabilities of HK$29.5m due within 12 months, and liabilities of HK$16.5m due beyond 12 months. … While China Netcom Technology Holdings has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Summing up While it is always sensible to investigate a company's debt, in this case China Netcom Technology Holdings has HK$31m in net cash and a decent-looking balance sheet.

Simply Wall St -

China Netcom Technology Holdings Limited's (HKG:8071) Earnings Dropped -6.0%, How Did It Fare Against The Industry?

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. … Investors may find my commentary, albeit very high-level and brief, on China Netcom Technology Holdings Limited (HKG:8071) useful as an attempt to give more color around how China Netcom Technology Holdings is currently performing. … View our latest analysis for China Netcom Technology Holdings?

Simply Wall St -

Why China Netcom Technology Holdings Limited's (HKG:8071) Investor Composition Impacts Your Returns

Today, I will be analyzing China Netcom Technology Holdings Limited’s (HKG:8071) recent ownership structure, an important but not-so-popular subject among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

How China Netcom Technology Holdings Limited (HKG:8071) Can Impact Your Portfolio Volatility

Generally, an investor should consider two types of risk that impact the market value of 8071. … China Netcom Technology Holdings has a beta of 3.53, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … A high level of beta means investors face higher risk associated with potential gains and losses driven by market movements.

Simply Wall St -

What You Must Know About China Netcom Technology Holdings Limited's (HKG:8071) Major Investors

See our latest analysis for China Netcom Technology Holdings SEHK:8071 Ownership_summary Apr 6th 18 Institutional Ownership Due to the big order sizes of institutional investors, a company's shares can experience large, one-sided momentum, driven by high volume of shares removed from, or injected into, the market. … With an institutional ownership of 7.81%, 8071 doesn't seem too exposed to higher volatility resulting from institutional trading. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.Next Steps: Institutional ownership in 8071 is not at a level that would concern investors.

Simply Wall St -

What does China Netcom Technology Holdings Limited's (HKG:8071) Balance Sheet Tell Us About Its Future?

Given that 8071 is not presently profitable, it’s crucial to assess the current state of its operations and pathway to profitability. … Though, since 8071 is currently loss-making, sustainability of its current state of operations becomes a concern. … Running high debt, while not yet making money, can be risky in unexpected downturns as liquidity may dry up, making it hard to operate.Next Steps: At its current level of cash flow coverage, 8071 has room for improvement to better cushion for events which may require debt repayment.

Simply Wall St -

China Netcom Technology Holdings Limited (HKG:8071): Should The Recent Earnings Drop Worry You?

When China Netcom Technology Holdings Limited (SEHK:8071) released its most recent earnings update (31 December 2017), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were China Netcom Technology Holdings's average earnings over the past couple of years, and its industry performance. … Check out our latest analysis for China Netcom Technology Holdings Was 8071's recent earnings decline indicative of a tough track record?

Simply Wall St -

How Should You Think About China Netcom Technology Holdings Limited's (HKG:8071) Risks?

China Netcom Technology Holdings has a beta of 3.56, which means that the percentage change in its stock value will be higher than the entire market in times of booms and busts. … A high level of beta means investors face higher risk associated with potential gains and losses driven by market movements. … 8071, with its market capitalisation of HK$864.14M, is a small-cap stock, which generally have higher beta than similar companies of larger size.

Simply Wall St -

Is This A Catalyst To Buy China Netcom Technology Holdings Limited (HKG:8071)?

Additional cash raising may dilute the value of your shares, and since China Netcom Technology Holdings is currently burning more cash than it is making, it’s likely the business will need funding for future growth. … The measure of how fast China Netcom Technology Holdings goes through its cash reserves over time is called the cash burn rate. … SEHK:8071 Income Statement Feb 8th 18 When will China Netcom Technology Holdings need to raise more cash?

Simply Wall St -

Breaking Down China Netcom Technology Holdings Limited's (HKG:8071) Ownership Structure

Private Equity Ownership Private equity firms hold a 7.88% stake in 8071. … Private Company Ownership Another important group of owners for potential investors in 8071 are private companies that hold a stake of 39.64% in 8071. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.What this means for you: However, if you are building an investment case for 8071, ownership structure alone should not dictate your decision to buy or sell the stock.

Simply Wall St -

8071 Company Info

Description

China Netcom Technology Holdings Limited, an investment holding company, provides financial technology services in the People’s Republic of China. It operates through Financial Technology Services Business, Apartment leasing Business, Smart Wearable Device Business, Lottery Business, and Sports Training Business segments. The company offers financial technology services, including credit referral and services, such as credit facilitation, post-origination, and financial guarantee services; and researches, develops, produces, wholesales, and sells smart wearable devices, smart glasses, and smart watches. It also develops computer software, hardware, and application system, as well as provides self-developed technology and related technical consultancy services to the operating system sector of lottery market. In addition, the company manages and leases apartments for property owners and lessees; and provides sports training services. Further, it company offers asset management services; and consultation and result transfer on network technology and computer network engineering services. The company was formerly known as China Metal Resources Holdings Limited and changed its name to China Netcom Technology Holdings Limited in January 2011. China Netcom Technology Holdings Limited is headquartered in Hong Kong, Hong Kong.

Details
Name: China Netcom Technology Holdings Limited
8071
Exchange: SEHK
Founded:
HK$149,473,121
4,671,035,048
Website: http://www.chinanetcomtech.com
Address: China Netcom Technology Holdings Limited
Tower One, Lippo Centre,
10th Floor,
Hong Kong,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 8071 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Mar 2001
Number of employees
Current staff
Staff numbers
40
China Netcom Technology Holdings employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/11 12:56
End of day share price update: 2019/12/11 00:00
Last estimates confirmation: 2018/03/20
Last earnings filing: 2019/11/13
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.