Smart-Core Holdings Ltd. (2166) AI Stock Analysis

• Market Cap: HK$933.38M
• Dividend Yield: 6.77%
• Average Volume (3M): 505.89K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.09
• Revenue Growth: -5.58%
• EPS Growth: 22.50%
• Country: HK
• Employees: 312
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.10
• Shares Outstanding: 488,681,030
• 10 Day Avg. Volume: 641,085
• 30 Day Avg. Volume: 505,895
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$2.00
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: HK$2.00 ▲(0.00% Upside)

Smart-Core Holdings Ltd. has a mixed outlook. The stock benefits from strong technical indicators and attractive valuation metrics, suggesting potential upside. However, significant financial performance challenges, particularly in cash flow, pose risks. Investors should weigh the attractive valuation against the financial risks.

Smart-Core Holdings Ltd. Business Overview & Revenue Model

Company Description

Smart-Core Holdings Limited, an investment holding company, engages in the distribution of integrated circuits and other electronic components in the People's Republic of China, Singapore, and internationally. The company operates through Authorised Distribution and Independent Distribution segments. Its products are used in various applications, such as television products, smart terminals, memory products, optoelectronic displays, communication, security monitoring, Internet of Things, optical communication, etc. The company also engages in the provision of technical solutions and support services; e-commerce platform business; and the manufacture of optical communication chips. Its principal customers include consumer electronic product manufacturing companies, original design manufacturers, and original equipment manufacturers operating in the electronic product industry. The company was formerly known as Smart-Core Cloud Group Limited and changed its name to Smart-Core Holdings Limited in August 2016. Smart-Core Holdings Limited was founded in 2005 and is based in Kwai Chung, Hong Kong. Smart-Core Holdings Limited is a subsidiary of Smart IC Limited.

How the Company Makes Money

Smart-Core Holdings Ltd. generates revenue primarily through the sale and distribution of electronic components. The company sources these components from a network of manufacturers and suppliers and then distributes them to clients across different industries, including telecommunications, automotive, and consumer electronics. The company's revenue model is based on a markup on the components sold to its clients. Key revenue streams include direct sales to businesses, as well as long-term supply agreements with major manufacturers and distributors. Significant partnerships with global component manufacturers also contribute to its earnings, allowing the company to offer a diverse portfolio of products to its clients.

Smart-Core Holdings Ltd. Financial Statement Overview

Summary

Smart-Core Holdings Ltd. faces declining revenues and profitability concerns, with stable balance sheet metrics and improved leverage. However, cash flow issues pose significant risks, necessitating improvements in cash generation and revenue growth.

Income Statement

The company shows a declining revenue trend over recent years, with a significant drop from 2022 to 2023. Gross profit margin is relatively stable, though net profit margin is affected by declining net income. EBITDA margin indicates reasonable operating efficiency, but the declining EBIT margin highlights reduced operating profitability.

Balance Sheet

Smart-Core Holdings Ltd. maintains a relatively stable equity position, with an improving debt-to-equity ratio indicating better leverage management. The equity ratio shows strong asset backing, although total assets have slightly declined. The return on equity is positive, suggesting efficient use of equity to generate profits.

Cash Flow

The cash flow position is challenging, with operating cash flow dropping to zero in the latest year. Free cash flow has been inconsistent, impacting the company's ability to manage capital expenditures and growth. The lack of free cash flow growth and poor operating cash flow to net income ratio are concerning.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.65B	5.67B	10.01B	10.39B	5.54B
Gross Profit	311.68M	441.46M	1.09B	989.95M	310.46M
EBITDA	153.95M	189.30M	558.05M	542.68M	133.10M
Net Income	100.34M	71.13M	379.75M	391.90M	71.00M
Balance Sheet
Total Assets	1.69B	1.74B	2.86B	3.64B	2.20B
Cash, Cash Equivalents and Short-Term Investments	297.72M	395.28M	494.40M	290.93M	238.56M
Total Debt	315.68M	484.46M	1.05B	1.67B	754.61M
Total Liabilities	734.14M	835.88M	1.66B	2.60B	1.50B
Stockholders Equity	959.33M	904.74M	873.37M	805.99M	630.68M
Cash Flow
Free Cash Flow	215.36M	355.83M	859.24M	-447.51M	-192.11M
Operating Cash Flow	199.81M	361.65M	869.75M	-441.23M	-191.03M
Investing Cash Flow	33.25M	27.93M	-74.70M	-281.13M	-11.95M
Financing Cash Flow	-173.44M	-771.51M	-592.78M	775.02M	256.12M

Smart-Core Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2166, the sentiment is Positive. The current price of 2 is above the 20-day moving average (MA) of 1.81, above the 50-day MA of 1.79, and above the 200-day MA of 1.63, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 63.79 is Neutral, neither overbought nor oversold. The STOCH value of 75.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2166.

Smart-Core Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0400	73 Outperform	4.25B	17.38	4.94%	―	33.59%	-15.98%
2166	72 Outperform	HK$933.38M	7.59	11.96%	6.77%	-5.58%	22.50%
1184	69 Neutral	2.88B	6.63	0.00%	8.73%	-0.06%	-6.11%
0595	58 Neutral	363.47M	6.77	3.10%	5.00%	20.90%	-50.79%
6036	53 Neutral	499.93M	33.09	2.32%	―	14.50%	247.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Smart-Core Holdings Ltd. Corporate Events

Smart-Core Holdings Announces Interim Dividend for 2025

Smart-Core Holdings Limited has announced an interim cash dividend of HKD 0.03 per share for the six months ending June 30, 2025. The dividend will be paid on September 30, 2025, with the ex-dividend date set for September 15, 2025. The announcement reflects the company’s commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (HK:2166) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Smart-Core Holdings Ltd. stock, see the HK:2166 Stock Forecast page.

Smart-Core Holdings Reports Strong Interim Financial Results for 2025

Smart-Core Holdings Limited reported a 6.6% increase in total revenue for the first half of 2025, amounting to HK$2,796.2 million. The company also saw a significant rise in net profit attributable to its owners, with a 33.4% increase to HK$48.5 million. The Board declared an interim dividend of HK3 cents per share, reflecting a positive financial performance compared to the previous year.

The most recent analyst rating on (HK:2166) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on Smart-Core Holdings Ltd. stock, see the HK:2166 Stock Forecast page.

Smart-Core Holdings Schedules Board Meeting for Interim Results Review

Smart-Core Holdings Limited has announced an upcoming board meeting scheduled for August 29, 2025. The meeting will focus on reviewing and approving the interim financial results for the first half of 2025 and considering the payment of an interim dividend. This announcement is significant as it outlines the company’s financial performance review process and potential shareholder returns, which could impact investor confidence and market perception.

Smart-Core Holdings Enhances Governance with New Nomination Committee

Smart-Core Holdings Limited has established a Nomination Committee to enhance its corporate governance structure. The committee, formed by the board of directors, will consist of at least three members, primarily independent non-executive directors, to ensure diversity and independence in the nomination process. This move is expected to strengthen the company’s decision-making framework and align with best practices in corporate governance, potentially enhancing stakeholder confidence.