SmarTone Telecommunications Holdings (0315) AI Stock Analysis

• Market Cap: $5.12B
• Dividend Yield: 6.88%
• Average Volume (3M): 813.74K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.32
• Revenue Growth: 0.52%
• EPS Growth: 2.07%
• Country: HK
• Employees: 1,693
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 0.20
• Shares Outstanding: 1,100,951,700
• 10 Day Avg. Volume: 792,440
• 30 Day Avg. Volume: 813,735
• PEG Ratio: 0.00
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.74
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 1.13
• Enterprise Value/Ebitda: 2.16
• 1Y Price Target: $4.98
• Price Target Upside: 7.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 81 Outperform
• Price Target: HK$5.00 ▲(7.53% Upside)

SmarTone's overall stock score is driven by strong financial performance, attractive valuation, and positive technical indicators. The company's low leverage and stable financial structure provide resilience, while its bullish technical momentum indicates strong market interest. The high dividend yield further enhances its investment appeal.

SmarTone Telecommunications Holdings Business Overview & Revenue Model

Company Description

SmarTone Telecommunications Holdings Limited, an investment holding company, provides 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 also engages 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.

How the Company Makes Money

SmarTone Telecommunications Holdings generates revenue primarily through its mobile services, which include voice and data plans for consumers and enterprise clients. The company offers various subscription packages that cater to different customer needs, from basic voice and text services to high-speed data plans. Additionally, SmarTone earns revenue from the sale of mobile devices and accessories, often bundling these with service contracts. Roaming services, value-added services, and digital content offerings further contribute to the company's income. Partnerships with technology providers and other telecommunications companies also play a role in enhancing SmarTone's service offerings and expanding its customer base, thereby driving revenue growth.

SmarTone Telecommunications Holdings Financial Statement Overview

Summary

SmarTone Telecommunications Holdings demonstrates strong financial health with a solid balance sheet and efficient cash flow management. The company maintains a stable equity ratio and low leverage, providing financial stability. However, a 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.25B	6.25B	6.22B	6.76B	6.96B	6.72B
Gross Profit	3.34B	3.34B	3.41B	3.44B	3.53B	3.44B
EBITDA	1.75B	1.75B	2.43B	2.27B	2.50B	2.46B
Net Income	478.90M	478.90M	470.13M	268.85M	423.17M	444.62M
Balance Sheet
Total Assets	11.31B	11.31B	11.18B	10.90B	12.58B	10.65B
Cash, Cash Equivalents and Short-Term Investments	2.31B	2.31B	1.68B	1.18B	2.20B	2.16B
Total Debt	877.59M	877.59M	963.18M	852.99M	2.42B	2.49B
Total Liabilities	6.00B	6.00B	5.99B	5.81B	7.43B	5.55B
Stockholders Equity	5.31B	5.31B	5.19B	5.08B	5.15B	5.12B
Cash Flow
Free Cash Flow	634.95M	0.00	1.56B	1.55B	1.32B	1.57B
Operating Cash Flow	967.96M	0.00	2.16B	2.25B	2.04B	2.42B
Investing Cash Flow	-380.39M	0.00	-721.91M	930.98M	-2.62B	-1.14B
Financing Cash Flow	-514.67M	0.00	-1.02B	-2.42B	-1.12B	-1.32B

SmarTone Telecommunications Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.65
• 50DMA: Negative
• 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 Neutral. The current price of 4.65 is below the 20-day moving average (MA) of 4.72, below the 50-day MA of 4.70, and above the 200-day MA of 4.34, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.51 is Neutral, neither overbought nor oversold. The STOCH value of 21.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	81 Outperform	$5.12B	10.70	9.18%	6.88%	0.52%	2.07%
1883	71 Outperform	HK$8.99B	9.82	8.67%	7.74%	-0.62%	-5.10%
6823	66 Neutral	$88.38B	17.35	14.75%	2.90%	2.33%	2.41%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0215	58 Neutral	$5.20B	218.00	0.26%	6.87%	6.79%	―
1310	57 Neutral	$10.83B	82.53	8.30%	4.37%	-2.02%	―
0008	54 Neutral	HK$41.85B	―	-14.69%	1.81%	4.26%	36.68%

SmarTone Telecommunications Holdings Corporate Events

SmarTone Renews Framework Agreement for Continued Operations

SmarTone Telecommunications Holdings has entered into a new 2025 Framework Agreement with SHKP to continue its connected transactions, including leasing premises and acquiring insurance services. These transactions are deemed to be in the ordinary course of business and are expected to comply with listing rules without requiring shareholder approval, ensuring stability in operations and market positioning.