0552:HK:HK-China Communications Services Corp Ltd (HKD)

COMMON STOCK | Telecom Services |

Last Closing

USD 4.11

Change

+0.03 (+0.74)%

Market Cap

USD 28.40B

Volume

8.11M

Analyst Target

N/A
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

China Communications Services Corporation Limited provides telecommunications support services worldwide. It offers telecommunications infrastructure services, including planning, design, construction, and project supervision for fixed line, mobile, broadband networks, data centers and supporting systems; construction services of ancillary communications networks; and integrated solutions for informatization, digitalization, and intelligentization. The company also provides business process outsourcing services comprising network maintenance and optimization services that include fiber optic and electric cables, mobile base stations, network equipment, and terminals; general facilities management services for customers data centers, cloud computing bases, commercial and residential buildings, high-speed railway stations, airports, etc.; and supply chain services, including warehousing, transportation, integrated logistics, procurement and tendering, and quality inspection, as well as repair and disposition to domestic telecommunications operators, government and enterprise customers. In addition, it offers applications, content, and other services, such as system integration, software development and system support, value-added, and other services. Further, the company provides submarine cable installation and other related services. Additionally, it involved in the distribution of communication and information products; terminals sales; device distribution services; and distribution and procurement services of IT devices, auxiliary machinery, and equipment. It serves telecommunications operators; and non-telecom operator customers, such as government agencies, industrial customers, and small and medium enterprises, as well as overseas customers. The company was incorporated in 2006 and is headquartered in Beijing, China. Address: Block No.1, Beijing, China, 100073

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

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Relative Returns (From:    To: 2024-09-26 )

Largest Industry Peers for Telecom Services

Symbol Name Price(Change) Market Cap
0941:HK China Mobile Ltd

-1.20 (-1.63%)

USD 1,584.56B
0728:HK China Telecom

-0.23 (-5.07%)

USD 601.65B
0762:HK China Unicom Hong Kong Ltd

-0.31 (-4.56%)

USD 193.38B
0788:HK China Tower Corp

-0.01 (-0.98%)

USD 179.53B
6823:HK HKT Trust

-0.14 (-1.35%)

USD 78.76B
0008:HK PCCW Limited

-0.04 (-0.90%)

USD 33.98B
1883:HK CITIC Telecom International Ho..

+0.04 (+1.79%)

USD 8.29B
0215:HK Hutchison Telecommunications H..

+0.01 (+1.03%)

USD 4.67B
0315:HK SmarTone Telecommunications Ho..

+0.02 (+0.49%)

USD 4.56B
1310:HK HKBN Ltd

+0.07 (+2.33%)

USD 3.92B

ETFs Containing 0552:HK

N/A

Market Performance

  Market Performance vs. Industry/Classification (Telecom Services) Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 26.85% 82% B 86% B+
Dividend Return 7.37% 42% F 75% C
Total Return 34.22% 88% B+ 87% B+
Trailing 12 Months  
Capital Gain 25.30% 82% B 83% B
Dividend Return 7.28% 50% F 70% C-
Total Return 32.58% 76% C+ 84% B
Trailing 5 Years  
Capital Gain -6.59% 67% D+ 72% C
Dividend Return 21.29% 42% F 63% D
Total Return 14.70% 60% D- 73% C
Average Annual (5 Year Horizon)  
Capital Gain -6.72% 35% F 45% F
Dividend Return -1.97% 35% F 51% F
Total Return 4.75% 17% F 72% C
Risk Return Profile  
Volatility (Standard Deviation) 22.47% 41% F 66% D+
Risk Adjusted Return -8.77% 35% F 53% F
Market Capitalization 28.40B 63% D 91% A-

Annual Financials (HKD)

Quarterly Financials (HKD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.