SIM Technology Group (2000) AI Stock Analysis

• Market Cap: HK$676.77M
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 5.59%
• EPS Growth: -101.17%
• Country: HK
• Employees: 400
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): <0.01
• Shares Outstanding: 2,119,047,400
• 10 Day Avg. Volume: 2,841,266
• 30 Day Avg. Volume: 1,334,218
• PEG Ratio: 0.06
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 1.72
• P/FCF Ratio: -22.56
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.33 ▼(-3.53% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and negative cash flows. Technical analysis shows bullish momentum, but overbought conditions could lead to a pullback. Valuation is weak due to negative earnings and lack of dividend yield.

Positive Factors

Low Leverage / Strong Equity Base

Low leverage and a healthy equity ratio give the company durable financial flexibility to fund operations, invest in product development, and withstand cyclical telecom demand. Manageable debt limits fixed charges and supports long-term strategic options without urgent refinancing needs.

Diverse Revenue Streams & Recurring Services

Revenue from hardware sales, value-added software/services and ongoing maintenance contracts creates recurring revenue that stabilizes cash inflows. This mix supports cross‑sell opportunities, improves customer stickiness, and smooths volatility from product cycles over multiple quarters to years.

Established Market Position and Domain Expertise

Two decades of specialization in SIMs, modules and IoT builds durable technical expertise, customer relationships and industry credibility. This entrenched position aids long-term contract wins, product integration with partners, and defends share versus newer entrants in telecom and IoT niches.

Negative Factors

Negative Operating and Free Cash Flow

Sustained negative operating and free cash flow undermines the firm's ability to self-fund capex, R&D and working capital needs. Over months to years this forces reliance on external financing or equity dilution, constraining strategic investment and increasing financing risk during downturns.

Declining Revenue and Persistent Losses

A multi-year revenue decline and repeated net losses weaken scale economics and pricing leverage. This trend erodes margins, limits reinvestment capacity, and makes it harder to achieve sustainable profitability, compromising long-term competitiveness in capital-intensive telecom and IoT markets.

Erosion of Shareholders' Equity

Falling stockholders' equity often reflects cumulative losses or impairments, reducing the company’s capital buffer. Over the medium term this weakens balance-sheet resilience, limits borrowing capacity on favorable terms, and constrains the ability to absorb shocks or fund growth initiatives.

SIM Technology Group Business Overview & Revenue Model

Company Description

SIM Technology Group Limited, an investment holding company, primarily designs, develops, manufactures, and sells handsets and Internet of Things (IOT) terminals in the People's Republic of China, Europe, the United States, and other Asian countries. It operates through Handsets and IOT Terminals Business, Electronics Manufacturing Services Business, and Property Management segments. The company also offers electronic manufacturing services, as well as logistics, procurement agency, administrative, and finance leasing services. In addition, it engages in the sale of goods to vending machine customers; building design and construction of smart homes; trading of snacks; development of automated test equipment; and holding of land use rights. Further, the company develops, rents, and manages properties. SIM Technology Group Limited was founded in 1986 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

SIM Technology Group generates revenue through multiple streams, primarily by manufacturing and selling telecommunications and IoT-related hardware, such as SIM cards and communication modules. The company also offers value-added services, including software solutions and technical support, which contribute to its earnings. Key revenue streams include direct sales to telecommunications operators, partnerships with device manufacturers, and collaborations with technology firms to integrate IoT solutions into their products. Additionally, the company benefits from recurring revenues through ongoing service contracts and maintenance agreements with clients, ensuring a steady income flow.

SIM Technology Group Financial Statement Overview

Summary

The company faces financial challenges with declining revenues and persistent losses. Despite a strong equity base, negative cash flows and operational inefficiencies pose significant risks.

Income Statement

The company's income statement reveals declining revenue and profitability. A significant drop in total revenue from 2020 to 2024 is evident, with a negative net income in recent years. Gross profit margins are volatile, and the company struggles with negative EBIT and EBITDA margins, indicating operational inefficiencies.

Balance Sheet

The balance sheet shows a strong equity base, but the decline in stockholders' equity over the years is a concern. The debt-to-equity ratio remains low, suggesting manageable leverage. The equity ratio indicates a healthy proportion of equity financing relative to assets.

Cash Flow

Cash flow analysis highlights negative operating cash flow and free cash flow in recent years, indicating cash generation issues. The lack of free cash flow growth and negative operating cash flow to net income ratio suggest financial challenges in operational cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	453.90M	429.37M	543.94M	638.02M	724.71M	710.29M
Gross Profit	99.95M	92.94M	120.33M	5.83M	21.50M	111.32M
EBITDA	-28.95M	-80.24M	438.69M	-422.39M	-158.43M	80.02M
Net Income	-3.72M	-94.78M	344.29M	-507.82M	-245.80M	-38.32M
Balance Sheet
Total Assets	1.88B	1.92B	2.15B	2.05B	2.58B	2.80B
Cash, Cash Equivalents and Short-Term Investments	897.14M	941.42M	768.37M	361.54M	679.64M	963.34M
Total Debt	9.46M	31.59M	37.70M	253.36M	56.42M	69.84M
Total Liabilities	418.95M	491.26M	530.35M	745.52M	689.00M	653.77M
Stockholders Equity	1.48B	1.44B	1.62B	1.29B	1.88B	2.13B
Cash Flow
Free Cash Flow	19.65M	-32.77M	-18.36M	-315.61M	-184.77M	93.62M
Operating Cash Flow	22.95M	-27.77M	-10.63M	-207.72M	-81.38M	185.25M
Investing Cash Flow	-138.39M	415.98M	135.60M	-65.10M	-197.00M	-43.08M
Financing Cash Flow	5.25M	-92.40M	-234.12M	165.33M	-58.15M	-76.42M

SIM Technology Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.34
• 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:2000, the sentiment is Positive. The current price of 0.34 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.36, and above the 200-day MA of 0.33, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.90 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2000.

SIM Technology Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1473	68 Neutral	HK$621.16M	16.88	12.27%	2.53%	19.80%	―
1085	67 Neutral	HK$786.86M	-13.48	-3.08%	―	5.24%	-201.60%
1617	65 Neutral	HK$191.90M	2.99	7.40%	―	-9.34%	605.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1202	54 Neutral	HK$412.00M	-500.00	-0.09%	―	-23.93%	-109.41%
2000	52 Neutral	HK$676.77M	-202.94	-0.25%	―	5.59%	-101.17%
1708	44 Neutral	HK$225.74M	-0.50	-29.76%	―	-7.70%	-954.43%

SIM Technology Group Corporate Events

SIM Technology Reports December Revenue Rebound but Slight Full-Year Decline for 2025

SIM Technology Group reported unaudited December 2025 revenue of HK$52.6 million, up 18.7% from November, driven by a 19.8% rebound in core business revenue to HK$49.9 million as customers adjusted delivery schedules for their purchase orders, while non-core rental income remained largely stable. Despite the month-on-month improvement, core business revenue in December fell 22.4% year-on-year, and the group’s total unaudited revenue for 2025 slipped 7.4% to HK$397.1 million versus 2024, indicating a modest full-year contraction that may reflect softer demand or timing shifts in orders; the company also cautioned that these figures are based on internal management accounts and may differ from its audited financial results, urging investors to exercise caution.

The most recent analyst rating on (HK:2000) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on SIM Technology Group stock, see the HK:2000 Stock Forecast page.

SIM Technology Group Reports Significant Monthly Revenue Growth

SIM Technology Group Limited announced a significant increase in its unaudited monthly revenue for November 2025, with core business revenue rising by 54.7% compared to October 2025, primarily due to adjustments in delivery times by customers. Despite this monthly increase, the total unaudited revenue for the eleven months ended November 2025 showed a slight decline of 4.5% compared to the same period in the previous year, indicating stable overall performance.

The most recent analyst rating on (HK:2000) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on SIM Technology Group stock, see the HK:2000 Stock Forecast page.

SIM Technology Group Sees October Revenue Surge Amid Yearly Decline

SIM Technology Group Limited reported a significant increase in its unaudited monthly revenue for October 2025, driven by a 44.2% rise in core business revenue compared to September 2025, attributed to adjustments in delivery schedules by customers. Despite this monthly growth, the company’s total unaudited revenue for the ten months ending October 2025 showed a 7.3% decline compared to the same period last year, indicating challenges in maintaining consistent year-over-year growth.

The most recent analyst rating on (HK:2000) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on SIM Technology Group stock, see the HK:2000 Stock Forecast page.