But CIMB analyst William Tng notes that TeleChoice traded at a historical FY15A P/BV of 1.65x as at Feb 7, compared to its peers’ average of 3.84x.
“[TeleChoice]’s historical ROE for FY15A was 14.0% versus the peer average of 6.7% and its historical FY15A dividend yield was 5.9% versus the peer average of 2.5%,” Tng says in a non-rated report on Wednesday.
TeleChoice’s key business is its personal communication services segment, which distributes mobile phone and wearables. The division accounted for some 71% of TeleChoice’s FY15A sales.
TeleChoice’s management has flagged that the rapidly changing industry is a key risk.
Tng says TeleChoice needs to keep abreast of industry developments, and evaluate the potential impact of these developments on its businesses,
In addition, TeleChoice has to keep an eye on its customer concentration.
According to its FY15A annual report, one customer in the personal communication services segment and one customer in its network engineering services segment combined represented 37% of FY15A sales.
As at 1.30pm, TeleChoice International is trading half a cent higher at 27 cents.
