SmarTone Telecommunications Holdings (0315) AI Stock Analysis

• Market Cap: HK$4.83B
• Dividend Yield: 8.21%
• Average Volume (3M): 569.07K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.27
• Revenue Growth: -0.35%
• EPS Growth: 86.29%
• Country: HK
• Employees: 1,693
• Sector: Technology
• Sector Strength: 84
• Industry: Telecommunications Services
• EPS (TTM): 0.44
• Shares Outstanding: 1,100,951,700
• 10 Day Avg. Volume: 539,307
• 30 Day Avg. Volume: 569,068
• PEG Ratio: 4.22
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ―

SmarTone Telecommunications Holdings scores highly due to its strong financial stability and positive technical indicators. The company's low leverage and solid cash flow management provide a robust foundation despite revenue challenges. Additionally, its attractive dividend yield enhances its appeal as a value investment.

SmarTone Telecommunications Holdings Business Overview & Revenue Model

Company Description

SmarTone Telecommunications Holdings Limited (0315) is a leading telecommunications company based in Hong Kong. It operates primarily in the mobile communications sector, providing a wide range of services including mobile voice, data, and broadband services. SmarTone is known for its advanced network infrastructure and commitment to delivering high-quality connectivity solutions to both individual consumers and businesses.

How the Company Makes Money

SmarTone makes money through various revenue streams centered around its telecommunications services. The company generates significant income from mobile service subscriptions, which include voice call plans, data plans, and value-added services such as roaming and international calling. Additionally, SmarTone earns revenue from its broadband internet services offered to residential and business customers. The company also engages in handset sales, often bundling devices with service plans to attract and retain customers. Strategic partnerships with technology and network equipment providers contribute to operational efficiencies and cost management, further supporting its financial performance. SmarTone's focus on network quality and customer service helps maintain a loyal customer base, which is crucial for sustaining its revenue model.

SmarTone Telecommunications Holdings Financial Statement Overview

Summary

SmarTone Telecommunications Holdings exhibits strong financial health with a stable balance sheet and efficient cash flow management. The company maintains low leverage, providing stability amidst industry fluctuations. However, the recent decline in revenue suggests potential challenges in market expansion.

Income Statement

The company has demonstrated a stable gross profit margin of approximately 54.7% for the latest period, with a slight increase in net profit margin to 7.6% from the previous 4.0%. However, the revenue has declined by 8% compared to the previous year, indicating potential challenges in maintaining top-line growth.

Balance Sheet

SmarTone's balance sheet shows strong equity, with an equity ratio of 46.4%, suggesting a stable financial structure. The debt-to-equity ratio stands at 0.19, indicating low leverage. Return on equity improved to 9.1%, reflecting efficient use of shareholder funds.

Cash Flow

The operating cash flow to net income ratio is robust at 4.6, indicating strong cash conversion. However, free cash flow growth is modest at 0.9% year-over-year, indicating limited expansion in cash reserves. The free cash flow to net income ratio is 3.3, reinforcing solid cash generation.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
6.32B	6.22B	6.76B	6.96B	6.72B	6.99B
	Gross Profit
2.57B	3.41B	3.44B	3.53B	3.44B	1.63B
	EBIT
761.66M	700.60M	701.77M	745.47M	677.31M	611.37M
	EBITDA
2.12B	2.43B	2.27B	2.50B	2.46B	2.40B
	Net Income Common Stockholders
480.99M	470.13M	268.85M	423.17M	444.62M	378.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.33B	1.68B	1.27B	2.27B	2.25B	2.41B
	Total Assets
10.59B	11.18B	10.90B	12.58B	10.65B	10.43B
	Total Debt
3.25B	963.18M	852.99M	2.42B	2.49B	2.76B
	Net Debt
1.35B	-613.74M	-302.16M	2.03B	390.84M	637.44M
	Total Liabilities
5.50B	5.99B	5.81B	7.43B	5.55B	5.42B
	Stockholders Equity
5.08B	5.19B	5.08B	5.15B	5.12B	5.03B
Cash Flow		Free Cash Flow
1.66B	1.56B	1.55B	1.32B	1.57B	1.47B
	Operating Cash Flow
2.28B	2.16B	2.25B	2.04B	2.42B	2.10B
	Investing Cash Flow
-699.78M	-721.91M	930.98M	-2.62B	-1.14B	-266.63M
	Financing Cash Flow
-980.26M	-1.02B	-2.42B	-1.12B	-1.32B	-1.67B

SmarTone Telecommunications Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0315, the sentiment is Positive. The current price of 4.39 is below the 20-day moving average (MA) of 4.40, above the 50-day MA of 4.27, and above the 200-day MA of 4.01, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0315.

SmarTone Telecommunications Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0315	80 Outperform	HK$4.83B	10.06	9.25%	8.21%	-0.35%	86.29%
6823	75 Outperform	$87.17B	17.18	13.76%	10.10%	1.23%	1.58%
1883	71 Outperform	HK$8.66B	9.52	8.46%	8.10%	-4.15%	-26.13%
0008	62 Neutral	HK$40.23B	―	-14.69%	7.36%	3.33%	36.39%
0215	62 Neutral	$4.82B	833.33	0.06%	8.01%	-2.33%	―
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
1310	50 Neutral	$7.35B	56.03	4.51%	6.44%	-2.02%	―

SmarTone Telecommunications Holdings Corporate Events

SmarTone Announces Interim Dividend for 2024/2025

SmarTone Telecommunications Holdings Limited has announced an interim cash dividend of HKD 0.145 per share for the financial year ending June 30, 2025. This announcement reflects the company’s ongoing commitment to delivering value to its shareholders, with the dividend payment scheduled for March 21, 2025.

SmarTone Reports Growth in 5G Services and Profit Amidst Competitive Market

SmarTone Telecommunications Holdings Limited reported a 4% increase in profit attributable to equity holders, reaching $256 million, driven by strong growth in their 5G Home Broadband and roaming services. The company has expanded its customer base to 2.87 million, with 5G penetration at 40%, and is leveraging its advanced network capabilities to support Hong Kong’s Smart City initiatives and cater to the needs of new talents relocating to the city. SmarTone’s strategic focus on network quality, customer experience, and cost management positions it well for future growth in the competitive telecommunications market.