SmarTone Telecommunications Holdings (0315) AI Stock Analysis

• Market Cap: HK$5.33B
• Dividend Yield: 6.6%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.33
• 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: 1,210,612
• 30 Day Avg. Volume: 1,009,457
• 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: 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: 81 Outperform
• Price Target: HK$5.00 ▲(5.26% 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 (0315) is a leading telecommunications company based in Hong Kong, offering a wide range of communication services. The company specializes in providing mobile services, including voice, data, and broadband services, catering to both individual consumers and businesses. SmarTone is known for its commitment to delivering high-quality network performance and customer service, leveraging advanced technology to enhance user experience across its service offerings.

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: Positive
• Last Price: 4.75
• 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 4.75 is above the 20-day moving average (MA) of 4.71, above the 50-day MA of 4.72, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.22 is Neutral, neither overbought nor oversold. The STOCH value of 95.49 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	―	HK$5.33B	11.13	9.18%	6.60%	0.52%	2.07%
1883	―	$8.96B	9.78	8.67%	7.55%	-0.62%	-5.10%
6823	―	$86.26B	16.69	14.75%	2.96%	2.33%	2.41%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
0008	―	HK$42.16B	-148.91	―	1.77%	4.26%	36.68%
0215	―	$5.25B	218.00	0.26%	6.87%	6.79%	―
1310	―	HK$10.09B	76.89	8.30%	4.80%	-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.