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

• Market Cap: HK$825.87M
• Dividend Yield: 7.1%
• Average Volume (3M): 294.40K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.06
• Revenue Growth: -17.97%
• EPS Growth: 46.24%
• Country: HK
• Employees: 312
• Sector: Technology
• Sector Strength: 91
• Industry: Technology Distributors
• EPS (TTM): 0.21
• Shares Outstanding: 488,681,030
• 10 Day Avg. Volume: 210,000
• 30 Day Avg. Volume: 294,400
• PEG Ratio: -1.18
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.31
• 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: 18.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: HK$2.00 ▲(18.34%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. 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 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

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: 1.69
• 50DMA: Positive
• 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:2166, the sentiment is Positive. The current price of 1.69 is below the 20-day moving average (MA) of 1.69, above the 50-day MA of 1.67, and above the 200-day MA of 1.60, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 46.15 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
2166	66 Neutral	HK$825.87M	7.89	10.77%	7.10%	-17.97%	46.24%
Sector *	63 Neutral	$33.91B	5.95	-11.88%	1.83%	5.33%	-18.39%
0529	―	HK$472.54M	3.47	3.94%	1.18%	―	―
7C3	―	€318.70M	10.17	4.79%	―	―	―
0595	71 Outperform	HK$354.38M	6.60	3.12%	10.26%	77.75%	295.97%
1184	69 Neutral	HK$2.64B	5.27	18.22%	5.92%	24.08%	24.13%
6036	48 Neutral	HK$462.30M	68.25	2.38%	―	20.64%	―

Smart-Core Holdings Ltd. Corporate Events

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.

Smart-Core Holdings Appoints Dr. Lin Chen as Independent Director

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

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

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

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

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.