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SmarTone Telecommunications Holdings (HK:0315)
:0315

SmarTone Telecommunications Holdings (0315) AI Stock Analysis

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HK

SmarTone Telecommunications Holdings

(OTC:0315)

Rating:80Outperform
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 (0315) vs. iShares MSCI Hong Kong ETF (EWH)

SmarTone Telecommunications Holdings Business Overview & Revenue Model

Company DescriptionSmarTone 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 MoneySmarTone 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
75
Positive
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
82
Very Positive
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
78
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
6.32B6.22B6.76B6.96B6.72B6.99B
Gross Profit
2.57B3.41B3.44B3.53B3.44B1.63B
EBIT
761.66M700.60M701.77M745.47M677.31M611.37M
EBITDA
2.12B2.43B2.27B2.50B2.46B2.40B
Net Income Common Stockholders
480.99M470.13M268.85M423.17M444.62M378.99M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.33B1.68B1.27B2.27B2.25B2.41B
Total Assets
10.59B11.18B10.90B12.58B10.65B10.43B
Total Debt
3.25B963.18M852.99M2.42B2.49B2.76B
Net Debt
1.35B-613.74M-302.16M2.03B390.84M637.44M
Total Liabilities
5.50B5.99B5.81B7.43B5.55B5.42B
Stockholders Equity
5.08B5.19B5.08B5.15B5.12B5.03B
Cash FlowFree Cash Flow
1.66B1.56B1.55B1.32B1.57B1.47B
Operating Cash Flow
2.28B2.16B2.25B2.04B2.42B2.10B
Investing Cash Flow
-699.78M-721.91M930.98M-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 Price4.39
Price Trends
50DMA
4.27
Positive
100DMA
4.17
Positive
200DMA
4.01
Positive
Market Momentum
MACD
0.04
Positive
RSI
54.29
Neutral
STOCH
41.18
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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$4.83B10.069.25%8.21%-0.35%86.29%
75
Outperform
$87.17B17.1813.76%10.10%1.23%1.58%
71
Outperform
HK$8.66B9.528.46%8.10%-4.15%-26.13%
62
Neutral
HK$40.23B-14.69%7.36%3.33%36.39%
62
Neutral
$4.82B833.330.06%8.01%-2.33%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
50
Neutral
$7.35B56.034.51%6.44%-2.02%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0315
SmarTone Telecommunications Holdings
4.38
0.94
27.33%
HK:0008
PCCW Limited
5.19
1.66
47.03%
HK:1310
HKBN
4.97
2.63
112.48%
HK:1883
CITIC Telecom International Holdings
2.32
-0.08
-3.17%
HK:6823
HKT and HKT
11.42
3.43
42.89%
HK:0215
Hutchison Telecommunications Hong Kong Holdings
1.00
0.08
9.05%

SmarTone Telecommunications Holdings Corporate Events

SmarTone Announces Interim Dividend for 2024/2025
Feb 26, 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
Feb 26, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.