SMIT Holdings (2239) AI Stock Analysis

• Market Cap: HK$272.94M
• Dividend Yield: 1.19%
• Average Volume (3M): 85.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -38.02%
• EPS Growth: -33.66%
• Country: HK
• Employees: 179
• Sector: Technology
• Sector Strength: 88
• Industry: Security & Protection Services
• EPS (TTM): N/A
• Shares Outstanding: 324,931,980
• 10 Day Avg. Volume: 124,500
• 30 Day Avg. Volume: 85,933
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 2.81
• P/FCF Ratio: -51.52
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$1.00 ▲(19.05% Upside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenues, persistent losses, and negative cash flows. Technical analysis indicates a bearish trend, further contributing to the low score. Valuation metrics are unfavorable due to negative earnings, despite a modest dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance product distribution and market reach, providing a durable competitive advantage and supporting long-term revenue growth.

Market Position in CAM Sector

The company's focus on digital TV conditional access modules positions it well in a niche market, ensuring a steady demand for its secure access solutions.

Diverse Revenue Streams

Diversified revenue streams from CAM and mPOS devices reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial stability.

High Leverage

High leverage can strain financial resources, limiting the company's ability to invest in growth opportunities and increasing financial risk.

Negative Cash Flow

Negative cash flow suggests difficulties in generating sufficient cash to cover operations, which can hinder the company's ability to sustain long-term growth.

SMIT Holdings Business Overview & Revenue Model

Company Description

SMIT Holdings Limited designs, develops, and markets security devices for pay TV broadcasting access and mobile point-of-sale payment (mPOS) systems worldwide. It operates through CAM, Rapid Verification Systems and Software, Cloud Services, and IC Solutions segments. The CAM and mPOS devices enable secure distribution and delivery of digital content to television and secure mobile payment transaction. It also develops and sells rapid hardware-based verification systems and software; researches, develops, and sells IC products and related design services; and provides cloud services, including cloud platform services and related support services. In addition, the company is involved in the development and application of full process electronic design automation systems for chip design. SMIT Holdings Limited was founded in 2002 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

SMIT Holdings generates revenue through multiple streams, including service contracts in IT consulting and software development, which cater to businesses looking to improve their technological infrastructure. Additionally, the company earns income from system integration projects, where it collaborates with partners to implement comprehensive IT solutions for clients. Key revenue partnerships with technology providers and telecommunications firms further boost its earnings, as they often involve joint ventures and collaborative projects that expand the company's market reach and capabilities. The company also explores opportunities in emerging markets and sectors, contributing to its overall revenue growth.

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, which adds 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.38M	13.98M	22.47M	29.41M	36.25M	37.79M
Gross Profit	7.34M	7.53M	8.38M	12.14M	17.13M	13.31M
EBITDA	-1.41M	-869.35K	-9.40M	83.26M	3.18M	-1.56M
Net Income	-39.22M	-38.46M	-13.90M	57.19M	9.84M	-3.71M
Balance Sheet
Total Assets	133.20M	151.20M	195.94M	247.24M	232.03M	232.53M
Cash, Cash Equivalents and Short-Term Investments	14.78M	19.07M	20.57M	48.23M	18.80M	46.48M
Total Debt	2.34M	1.33M	868.45K	18.59M	30.96M	38.85M
Total Liabilities	18.54M	20.61M	24.44M	59.65M	93.65M	106.22M
Stockholders Equity	113.29M	129.12M	169.59M	185.39M	135.95M	123.97M
Cash Flow
Free Cash Flow	-1.62M	-762.87K	-13.01M	20.46M	-9.01M	-48.30M
Operating Cash Flow	-875.77K	-473.12K	-12.55M	26.74M	9.52M	-6.51M
Investing Cash Flow	167.94K	372.85K	2.62M	12.61M	-26.29M	-55.81M
Financing Cash Flow	-1.40M	-1.36M	-17.08M	-9.67M	-11.34M	35.68M

SMIT Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 0.84 is above the 20-day moving average (MA) of 0.79, above the 50-day MA of 0.83, and below the 200-day MA of 0.91, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.72 is Neutral, neither overbought nor oversold. The STOCH value of 69.58 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
8066	56 Neutral	HK$311.93M	6.21	64.72%	―	99.25%	82000.00%
2239	49 Neutral	HK$272.94M	-0.89	-29.27%	1.19%	-38.02%	-33.66%
2885	46 Neutral	HK$304.00M	-77.55	-1.21%	12.27%	-24.55%	-30.67%
0487	44 Neutral	HK$270.96M	2.85	10.60%	―	-27.48%	―
3882	41 Neutral	HK$695.93M	-11.26	-56.62%	―	-8.19%	7.82%

SMIT Holdings Corporate Events

SMIT Holdings Completes Major Equity Disposal in S2C Shanghai

SMIT Holdings Limited has completed a major transaction involving the disposal of its equity interest in S2C Shanghai. The completion of this transaction, effective December 5, 2025, results in S2C Holding retaining a 13.75% equity interest in S2C Shanghai, potentially impacting the company’s strategic positioning and stakeholder interests.

SMIT Holdings Announces Supplemental Agreement for S2C Shanghai Equity Disposal

SMIT Holdings Limited has announced a supplemental agreement regarding the disposal of its equity interest in S2C Shanghai. The agreement, which involves S2C Holding, S2C Shanghai, an investor, and Hefei Zhongwan Shuruan Venture Capital Fund, modifies the payment terms of the equity transfer to allow additional time for currency exchange procedures. Key amendments include the nomination of the Fund by the investor to complete the equity transfer, detailed payment schedules, and conditions for the transfer of the equity interest. This move is expected to streamline the transaction process and potentially impact the company’s financial operations and stakeholder interests.

SMIT Holdings Granted Waiver for Circular Dispatch Delay

SMIT Holdings Limited, a company incorporated in the Cayman Islands, has announced a delay in the dispatch of its major transaction circular related to an Equity Transfer. The company has received a waiver from the Hong Kong Stock Exchange to extend the deadline for sending out the circular to shareholders from September 26 to October 24, 2025. This delay is due to the need for additional time to finalize certain financial information. Shareholders and potential investors are advised to exercise caution as the Equity Transfer is contingent on several conditions and may not proceed.

SMIT Holdings Announces Major Equity Sale in S2C Shanghai

SMIT Holdings Limited has announced a major transaction involving the sale of a 16% equity interest in its subsidiary, S2C Shanghai, to an investor for RMB211,665,760. This transaction is classified as a major transaction under the Listing Rules and requires shareholders’ approval, which the company plans to obtain through written consent from its major shareholders, Ever Expert and Mr. Huang. The transaction is subject to certain conditions and may not proceed, urging shareholders and potential investors to exercise caution.