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Smart-Core Holdings Ltd. (HK:2166)
:2166
Hong Kong Market

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

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HK

Smart-Core Holdings Ltd.

(2166)

Rating:66Neutral
Price Target:
HK$2.00
▲(17.65%Upside)
The overall score reflects a challenging financial performance due to declining revenues and cash flow issues, partially offset by stable balance sheet metrics. The stock's valuation suggests potential undervaluation with an attractive dividend yield, providing some investment appeal. Technical indicators indicate neutral market sentiment, with no strong directional trend.

Smart-Core Holdings Ltd. (2166) vs. iShares MSCI Hong Kong ETF (EWH)

Smart-Core Holdings Ltd. Business Overview & Revenue Model

Company DescriptionSmart-Core Holdings Ltd. (2166) is a company primarily engaged in the distribution of electronic components and the provision of related services. The company operates within the electronics and technology sectors, offering a range of products that include semiconductors, passive components, and electromechanical components. Its core services encompass supply chain management, logistics support, and value-added engineering services to cater to the needs of original equipment manufacturers (OEMs) and other technology firms.
How the Company Makes MoneySmart-Core Holdings Ltd. generates revenue through the sale and distribution of electronic components to various industries, including telecommunications, automotive, and consumer electronics. The company's revenue model is primarily based on the margins obtained from the procurement and distribution of these components, leveraging its extensive supply chain and relationships with component manufacturers. Additionally, Smart-Core Holdings earns income by providing ancillary services such as logistics support and engineering solutions, which help clients optimize their supply chain operations and improve product design and performance. Strategic partnerships with key suppliers and technology firms enhance its market position and contribute significantly to its earnings.

Smart-Core Holdings Ltd. Financial Statement Overview

Summary
Smart-Core Holdings Ltd. faces a challenging financial situation with declining revenues and profitability. While balance sheet metrics are stable and leverage is improving, cash flow issues pose significant risks. Addressing cash generation and revenue growth is crucial for financial health.
Income Statement
65
Positive
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
72
Positive
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
58
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.65B5.67B10.01B10.39B5.54B
Gross Profit
311.68M441.46M1.09B989.95M310.46M
EBIT
110.43M121.27M509.36M542.89M126.24M
EBITDA
153.95M189.30M558.05M542.68M133.10M
Net Income Common Stockholders
100.34M71.13M379.75M391.90M71.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
297.72M395.28M494.40M290.93M238.56M
Total Assets
1.69B1.74B2.86B3.64B2.20B
Total Debt
315.68M484.46M1.05B1.67B754.61M
Net Debt
76.22M316.66M558.86M1.38B516.05M
Total Liabilities
734.14M835.88M1.66B2.60B1.50B
Stockholders Equity
959.33M904.74M873.37M805.99M630.68M
Cash FlowFree Cash Flow
215.36M355.83M859.24M-447.51M-192.11M
Operating Cash Flow
199.81M361.65M869.75M-441.23M-191.03M
Investing Cash Flow
33.25M27.93M-74.70M-281.13M-11.95M
Financing Cash Flow
-173.44M-771.51M-592.78M775.02M256.12M

Smart-Core Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.70
Price Trends
50DMA
1.64
Positive
100DMA
1.62
Positive
200DMA
1.56
Positive
Market Momentum
MACD
0.02
Negative
RSI
53.91
Neutral
STOCH
42.86
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 1.7 is above the 20-day moving average (MA) of 1.68, above the 50-day MA of 1.64, and above the 200-day MA of 1.56, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.91 is Neutral, neither overbought nor oversold. The STOCH value of 42.86 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$390.73M2.927.93%9.30%77.75%295.97%
69
Neutral
HK$2.52B5.0318.22%48.69%24.08%24.13%
66
Neutral
HK$845.42M8.0810.77%4.05%-17.97%46.24%
62
Neutral
$11.91B9.99-7.22%4.96%7.31%-8.91%
60
Neutral
€2.16B9.524.79%12.40%-10.70%
48
Neutral
HK$478.42M71.432.38%20.64%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2166
Smart-Core Holdings Ltd.
1.70
0.50
41.67%
HK:6036
Apex Ace Holding Ltd.
0.44
-0.02
-4.35%
HK:1184
S.A.S. Dragon Holdings Limited
4.03
0.44
12.26%
HK:0400
Cogobuy Group
1.42
0.31
27.93%
HK:0595
AV Concept Holdings Limited
0.43
-0.02
-4.44%

Smart-Core Holdings Ltd. Corporate Events

Smart-Core Holdings Enhances Governance with New Nomination Committee
Jun 18, 2025

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.

Smart-Core Holdings Appoints Dr. Lin Chen as Independent Director
Jun 2, 2025

Smart-Core Holdings Limited has announced the appointment of Dr. Lin Chen as an independent non-executive Director. Dr. Lin has confirmed his independence by meeting all necessary criteria and having no financial or other interests in the company’s business or connections with any core connected persons. This appointment is expected to strengthen the board’s governance and oversight capabilities.

Smart-Core Holdings Announces Board Changes
May 30, 2025

Smart-Core Holdings Limited has announced a change in its board of directors, effective June 1, 2025. Dr. Lin Chen will be appointed as an independent non-executive director and a member of the Audit Committee, replacing Dr. Xue Chun. Dr. Lin brings over 20 years of experience in finance and holds various prestigious positions, including roles at the University of Hong Kong and the Hong Kong Monetary Authority. This appointment is expected to strengthen the company’s governance and potentially enhance its strategic direction.

Smart-Core Holdings Announces New Board Structure
May 30, 2025

Smart-Core Holdings Limited, a company incorporated in the Cayman Islands, has announced changes to its board of directors, effective June 1, 2025. The board will consist of executive directors including Mr. Tian Weidong as Chairman, Mr. Liu Hongbing, Mr. Mak Hon Kai, Stanly, and Mr. Zheng Gang, along with non-executive director Mr. Wong Tsz Leung, and independent non-executive directors Dr. Tang Ming Je, Ms. Xu Wei, and Dr. Lin Chen. The company has also established three committees under the board: the Audit Committee, Remuneration Committee, and Nomination Committee, with specific directors assigned as members or chairs of these committees. These changes are likely to impact the company’s governance structure and strategic direction.

Smart-Core Holdings Announces Successful AGM Resolutions
May 23, 2025

Smart-Core Holdings Limited announced that all resolutions proposed at their Annual General Meeting held on May 23, 2025, were passed by shareholders. The resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and authorization for directors to fix remuneration and manage share issuance and repurchase. The successful passing of these resolutions reflects shareholder confidence in the company’s governance and strategic direction.

Smart-Core Holdings Announces AGM and Key Resolutions for 2025
Apr 17, 2025

Smart-Core Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 23, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for 2024, declaration of a final dividend, re-election of directors, and authorization of directors’ remuneration. Additionally, the company seeks approval to allot and issue additional shares, not exceeding 20% of the current shares in issue, which could impact the company’s capital structure and shareholder value.

Smart-Core Holdings Ltd. Announces Final Dividend for 2024
Mar 21, 2025

Smart-Core Holdings Ltd. has announced a final cash dividend of HKD 0.1 per share for the financial year ending December 31, 2024. The dividend reflects the company’s financial performance and commitment to returning value to its shareholders. The ex-dividend date is set for June 2, 2025, with the payment date scheduled for June 27, 2025. This announcement is likely to impact the company’s market positioning by reinforcing investor confidence and potentially influencing stockholder decisions.

Smart-Core Holdings Reports 2024 Financial Results: Revenue Decline but Profit Increase
Mar 21, 2025

Smart-Core Holdings Ltd. reported a significant decline in total revenue and gross profit for the year ended December 31, 2024, with an 18% decrease in revenue and a 29.4% drop in gross profit compared to the previous year. Despite these declines, the company achieved a 41.1% increase in net profit attributable to its owners, reaching HK$100.3 million, and announced a final dividend of HK10 cents per share, indicating a positive outlook for shareholders.

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.