SmarTone Telecommunications Holdings (0315) AI Stock Analysis

• Market Cap: HK$4.91B
• Dividend Yield: 13%
• Average Volume (3M): 874.00K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.31
• Revenue Growth: -0.35%
• EPS Growth: 86.29%
• Country: HK
• Employees: 1,693
• Sector: Technology
• Sector Strength: 87
• Industry: Telecommunications Services
• EPS (TTM): 0.44
• Shares Outstanding: 1,100,951,700
• 10 Day Avg. Volume: 954,504
• 30 Day Avg. Volume: 874,004
• PEG Ratio: -0.54
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.46
• 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
EBITDA	2.12B	2.43B	2.27B	2.50B	2.46B	2.40B
Net Income	480.99M	470.13M	268.85M	423.17M	444.62M	378.99M
Balance Sheet
Total Assets	10.94B	11.18B	10.90B	12.58B	10.65B	10.43B
Cash, Cash Equivalents and Short-Term Investments	1.88B	1.68B	1.27B	2.27B	2.25B	2.41B
Total Debt	885.00M	963.18M	852.99M	2.42B	2.49B	2.76B
Total Liabilities	5.69B	5.99B	5.81B	7.43B	5.55B	5.42B
Stockholders Equity	5.25B	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: 4.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.46 is above the 20-day moving average (MA) of 4.37, above the 50-day MA of 4.35, and above the 200-day MA of 4.09, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.61 is Negative, 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$4.91B	10.22	9.25%	13.00%	-0.35%	86.29%
6823	75 Outperform	$90.65B	17.87	13.76%	7.67%	1.23%	1.58%
1883	73 Outperform	$9.10B	10.00	8.46%	9.76%	-4.15%	-26.13%
0008	62 Neutral	HK$42.24B	―	-14.69%	10.43%	3.33%	36.39%
0215	58 Neutral	HK$4.96B	858.33	0.06%	10.21%	-2.33%	―
Sector *	56 Neutral	HK$13.54B	4.87	-5.76%	5.64%	8.06%	-42.52%
1310	50 Neutral	HK$7.38B	56.26	4.51%	6.16%	-2.02%	―

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.