SMIT Holdings (2239) AI Stock Analysis

• Market Cap: HK$347.68M
• Dividend Yield: 0.93%
• Average Volume (3M): 55.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -37.98%
• EPS Growth: -176.24%
• Country: HK
• Employees: 179
• Sector: Services
• Sector Strength: N/A
• Industry: Security & Protection Services
• EPS (TTM): -0.92
• Shares Outstanding: 324,931,980
• 10 Day Avg. Volume: 89,000
• 30 Day Avg. Volume: 55,900
• PEG Ratio: 0.10
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.05
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: -0.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$1.00 ▼(-6.54%Downside)

The overall stock score is primarily driven by financial performance challenges, with significant risks stemming from declining revenues and persistent losses. Technical analysis provides some positive signals, but valuation concerns due to negative earnings weigh heavily on the score.

SMIT Holdings Business Overview & Revenue Model

Company Description

SMIT Holdings Limited (2239) is a leading global provider of security devices and solutions that enable secure digital access for the pay television industry. The company operates primarily in the digital television and mobile payment sectors, offering products such as conditional access modules (CAMs) and secure microcontrollers that enable secure content protection and transaction processing capabilities.

How the Company Makes Money

SMIT Holdings generates revenue through the manufacture and sale of its conditional access modules (CAMs) and secure microcontrollers, which are essential for content protection in the pay television industry. The company partners with pay TV operators, broadcasters, and smart card providers, selling its CAMs to these entities who use them to ensure secure subscriber access to content. Additionally, SMIT Holdings expands its revenue streams by providing secure microcontroller solutions for mobile payment applications, collaborating with financial institutions and mobile network operators to facilitate secure transactions. These partnerships and product offerings are crucial to the company's revenue model, contributing significantly to its earnings.

SMIT Holdings Financial Statement Overview

Summary

SMIT Holdings faces significant financial challenges with declining revenues, persistent losses, and negative cash flows. The company is highly leveraged, adding financial risk. Although the equity position is relatively stable, the negative profitability and cash flow trends are concerning.

Income Statement

The company has experienced a significant decline in revenue over the years, with a negative revenue growth rate and decreasing gross profit margins. Net income has been negative, indicating persistent losses, and both EBIT and EBITDA margins are negative, signaling operational inefficiencies. These factors contribute to a lower score for the income statement.

Balance Sheet

The balance sheet shows a relatively stable equity position but concerns arise from a high debt-to-equity ratio in recent years, indicating increased leverage. The equity ratio remains strong, but the return on equity has been negative due to consistent net losses. The balance sheet reflects moderate stability with potential risks from leverage.

Cash Flow

Cash flow analysis reveals negative operating cash flow in recent years, highlighting cash constraints. The free cash flow has also been negative, suggesting challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is unfavorable due to negative net income, resulting in a low cash flow score.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.98M	22.47M	29.41M	36.25M	37.79M
Gross Profit	7.53M	8.38M	12.14M	17.13M	13.31M
EBITDA	-869.35K	-9.40M	83.26M	6.42M	-1.56M
Net Income	-38.46M	-13.90M	57.19M	9.84M	-3.43M
Balance Sheet
Total Assets	151.20M	195.94M	247.24M	232.03M	232.53M
Cash, Cash Equivalents and Short-Term Investments	19.07M	20.57M	48.23M	18.80M	46.48M
Total Debt	1.33M	868.45K	18.59M	30.96M	38.85M
Total Liabilities	20.61M	24.44M	59.65M	93.65M	106.22M
Stockholders Equity	129.12M	169.59M	185.39M	135.95M	123.97M
Cash Flow
Free Cash Flow	0.00	-13.01M	20.46M	-9.01M	-48.30M
Operating Cash Flow	0.00	-12.55M	26.74M	9.52M	-6.51M
Investing Cash Flow	0.00	2.62M	12.61M	-26.29M	-55.81M
Financing Cash Flow	0.00	-17.08M	-9.67M	-11.34M	35.68M

SMIT Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.07
• 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:2239, the sentiment is Positive. The current price of 1.07 is above the 20-day moving average (MA) of 0.98, above the 50-day MA of 0.98, and above the 200-day MA of 0.93, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.06 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2239.

SMIT Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	56 Neutral	HK$2.84B	4.84	-9.32%	8.02%	12.55%	-102.16%
2885	56 Neutral	HK$272.00M	―	-1.03%	1.99%	-2.38%	-6.10%
8066	56 Neutral	HK$336.60M	644.44	1.12%	―	-24.68%	-89.16%
2239	53 Neutral	HK$347.68M	―	-25.78%	0.93%	-37.98%	-176.24%
3882	47 Neutral	€1.12B	―	-47.29%	―	-7.86%	20.05%
0487	44 Neutral	HK$670.00M	6.84	10.02%	―	-49.59%	-44.77%

SMIT Holdings Corporate Events

SMIT Holdings Enhances Governance with New Nomination Committee

SMIT Holdings Limited has established a Nomination Committee to enhance its corporate governance framework. The committee is tasked with reviewing the board’s structure, identifying qualified candidates for board positions, and ensuring diversity and independence among directors. This move is aimed at aligning the board’s composition with the company’s strategic goals and improving overall board performance.

SMIT Holdings Announces Unanimous Approval of AGM Resolutions

SMIT Holdings Limited announced that all resolutions proposed at their annual general meeting on May 30, 2025, were passed unanimously. This includes the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting of mandates related to shares. The successful passing of these resolutions indicates strong shareholder support and positions the company for continued stability and strategic flexibility.

SMIT Holdings Announces Final Dividend for 2024

SMIT Holdings Limited announced a final cash dividend of HKD 0.01 per share for the financial year ending December 31, 2024. The dividend will be paid on June 20, 2025, following shareholder approval on May 30, 2025, with a record date of June 12, 2025. This update reflects a change in the dividend payment date, highlighting the company’s commitment to returning value to its shareholders.

SMIT Holdings Announces Board Composition and Roles

SMIT Holdings Limited announced the composition of its board of directors, which includes eight members with various roles across executive, non-executive, and independent non-executive positions. The announcement highlights the leadership structure and the roles within the board committees, potentially impacting the company’s governance and strategic direction.

SMIT Holdings Announces Executive Retirement

SMIT Holdings Limited has announced the retirement of Mr. Loong, Manfred Man-tsun from his roles as Executive Director, President, and Chief Financial Officer, effective April 30, 2025. Mr. Loong will continue to serve as an advisor post-retirement, and the board has expressed its gratitude for his contributions. This transition is expected to be smooth, with no disagreements reported between Mr. Loong and the board, ensuring stability for stakeholders.

SMIT Holdings Appoints Ms. Zhang Min as Independent Director

SMIT Holdings Limited has appointed Ms. Zhang Min as an independent non-executive director and a member of the nomination committee, effective from April 29, 2025. Ms. Zhang brings extensive experience in electronic engineering and academia, having held significant roles at institutions such as Peking University and the Hong Kong Applied Science and Technology Research Institute. Her appointment is expected to strengthen the company’s governance and contribute to its strategic direction, leveraging her expertise in semiconductor devices and advanced display technologies.

SMIT Holdings Announces Board of Directors and Their Roles

SMIT Holdings Limited, a company incorporated in the Cayman Islands, has announced its current board of directors, which comprises nine members. The announcement details the roles and functions of each director, highlighting the composition of various board committees such as the Audit, Remuneration, and Nomination Committees. This update is crucial for stakeholders as it provides insights into the governance structure of the company, potentially impacting its strategic direction and operational oversight.

SMIT Holdings Announces Key Resolutions for Upcoming AGM

SMIT Holdings Limited has announced its upcoming annual general meeting, where shareholders will consider several key resolutions. These include the adoption of the company’s audited financial statements for 2024, the declaration of a final dividend, and the re-election of several directors. Additionally, the company plans to re-appoint PricewaterhouseCoopers as its auditor and authorize the board to fix their remuneration. The meeting will also address the authorization of directors to allot and issue shares, reflecting the company’s strategic focus on maintaining flexibility in capital management.