SMIT Holdings Limited (HK:2239)
:2239
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SMIT Holdings
(2239)
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Rating:51Neutral
Price Target:
HK$1.00
â–²(20.48% Upside)
Action:Reiterated
Date:06/12/26
The score is held back primarily by weak fundamentals—continued net losses and ongoing cash burn—despite a strong, low-debt balance sheet. Technicals are somewhat supportive over the medium/long term but show near-term weakness versus the 20-day average. Valuation is constrained by negative earnings and only a modest dividend yield.
Positive Factors
Revenue & gross margin recovery
A 19% revenue rebound combined with a sustained ~52.6% gross margin indicates underlying product demand and durable unit economics. Over months, healthy gross margins support reinvestment in growth and provide a structural cushion while management works toward operating leverage and profitability.
Negative Factors
Continued net losses
A deeply negative net margin (-36%) and recurring operating losses show the core business is not yet profitable. Persisting losses erode equity, constrain reinvestment, and indicate the business model or cost structure requires material change before earnings can sustainably support growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & gross margin recovery
A 19% revenue rebound combined with a sustained ~52.6% gross margin indicates underlying product demand and durable unit economics. Over months, healthy gross margins support reinvestment in growth and provide a structural cushion while management works toward operating leverage and profitability.
Read all positive factors
SMIT Holdings (2239) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$399.67M
Dividend Yield1.23%
Average Volume (3M)85.93K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth5.12%
EPS Growth86.25%
CountryHK
Employees179
SectorTechnology
Sector Strength88
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)N/A
Shares Outstanding324,931,980
10 Day Avg. Volume124,500
30 Day Avg. Volume85,933
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.28
Price to Sales (P/S)2.36
P/FCF Ratio-5.87
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SMIT Holdings Business Overview & Revenue Model
Company Description
SMIT Holdings Limited is a global entity focused on designing, developing, and commercializing security devices. These solutions cater to secure access for pay TV broadcasting and mobile point-of-sale (mPOS) payment systems worldwide. The company'...
How the Company Makes Money
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SMIT Holdings Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
76
Positive
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.71M | 13.98M | 22.47M | 29.41M | 36.25M |
| Gross Profit | 7.74M | 7.53M | 8.38M | 12.14M | 17.13M |
| EBITDA | -2.83M | -869.35K | -9.40M | 83.26M | 3.18M |
| Net Income | -5.30M | -38.46M | -13.90M | 57.19M | 9.84M |
Balance Sheet | |||||
| Total Assets | 154.78M | 151.20M | 195.94M | 247.24M | 232.03M |
| Cash, Cash Equivalents and Short-Term Investments | 19.02M | 19.07M | 20.57M | 48.23M | 18.80M |
| Total Debt | 1.80M | 1.33M | 868.45K | 18.59M | 30.96M |
| Total Liabilities | 27.26M | 20.61M | 24.44M | 59.65M | 93.65M |
| Stockholders Equity | 125.22M | 129.12M | 169.59M | 185.39M | 135.95M |
Cash Flow | |||||
| Free Cash Flow | -5.90M | -762.87K | -13.01M | 20.46M | -9.01M |
| Operating Cash Flow | -5.27M | -473.12K | -12.55M | 26.74M | 9.52M |
| Investing Cash Flow | 6.67M | 372.85K | 2.62M | 12.61M | -26.29M |
| Financing Cash Flow | -1.50M | -1.36M | -17.08M | -9.67M | -11.34M |
SMIT Holdings Technical Analysis
Neutral
0.83
Price Trends
1.07
Positive
0.95
Positive
0.89
Positive
Market Momentum
0.04
Positive
47.93
Neutral
20.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2239, the sentiment is Neutral. The current price of 0.83 is below the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.07, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 47.93 is Neutral, neither overbought nor oversold. The STOCH value of 20.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2239.
SMIT Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$1.82B | 50.63 | 11.92% | 2.53% | 19.80% | ― | |
67 Neutral | HK$519.80M | 3.02 | 5.41% | 0.98% | 6.90% | -55.59% | |
65 Neutral | HK$629.57M | 7.73 | 3.52% | 3.66% | 9.79% | -44.84% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | HK$1.11B | 31.42 | 3.59% | ― | -13.56% | -24.44% | |
52 Neutral | HK$412.84M | 4.73 | 3.70% | 9.12% | 13.15% | 197.79% | |
51 Neutral | HK$399.67M | -9.62 | -4.44% | 1.23% | 5.12% | 86.25% |
* Technology Sector Average
HK:2239
SMIT Holdings
1.23
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466.67%
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China ITS Holdings Co., Ltd.
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SMIT Holdings Corporate Events
SMIT Holdings Seeks Shareholder Approval to Divest Part of Shenzhen Giga Stake
Jun 15, 2026
SMIT Holdings has called an extraordinary general meeting in Hong Kong on 9 July 2026, asking shareholders to approve an equity transfer involving its subsidiary SMIT Group Limited and Shanghai Linke Xinlun Venture Capital Partnership. The deal co...
SMIT Holdings Delays Circular on Major Shenzhen Giga Disposal
May 29, 2026
SMIT Holdings has announced a further delay in sending to shareholders a circular relating to its proposed very substantial disposal of the group’s equity interest in Shenzhen Giga, pushing the expected despatch date from 29 May 2026 to on o...
SMIT Holdings Wins Unanimous Shareholder Backing for AGM Resolutions
May 29, 2026
Shareholders of SMIT Holdings Limited unanimously approved all 11 ordinary resolutions at the annual general meeting held on 29 May 2026. The meeting endorsed the 2025 audited financial statements, a final dividend of HK$0.01 per share, the re-ele...
SMIT Holdings Delays Circular on Major Shenzhen Giga Disposal
Apr 30, 2026
SMIT Holdings Limited has announced a delay in sending to shareholders a circular regarding a proposed very substantial disposal of its equity interest in Shenzhen Giga. The circular, which was originally scheduled for despatch by 30 April 2026 an...
SMIT Holdings Sets 2026 AGM to Approve Dividend, Board Mandates and New Share Issue Authority
Apr 15, 2026
SMIT Holdings Limited has convened its annual general meeting for 29 May 2026 in Hong Kong, where shareholders will be asked to adopt the audited consolidated financial statements for the year ended 31 December 2025 and approve a final dividend of...
SMIT Holdings Updates Board Changes and Corrects Director Credentials
Apr 10, 2026
SMIT Holdings has announced that independent non-executive directors Mr. Zhang and Mr. Jin resigned from the board and its key committees with effect from 2 April 2026, citing personal work adjustments. Their departures affect the audit, remunerat...
SMIT Holdings Plans Very Substantial Disposal of Shenzhen Giga Stake
Apr 2, 2026
SMIT Holdings has agreed to dispose of its equity interest in Shenzhen Giga via an equity transfer agreement signed on 2 April 2026 between a wholly owned subsidiary as vendor and an independent purchaser, for a consideration of approximately RMB2...
SMIT Holdings Reshapes Board With Director Resignations and New Appointment
Apr 2, 2026
SMIT Holdings has announced the resignations of independent non-executive directors Zhang Junjie and Jin Yufeng, effective 2 April 2026, which also trigger changes to their roles on the audit, remuneration, and nomination committees. Both departin...
SMIT Holdings Sets Out Board and Committee Structure
Apr 2, 2026
SMIT Holdings Limited has announced the current composition of its seven-member board of directors, detailing the split between executive, non-executive and independent non-executive directors. The company also set out the roles of these directors...
SMIT Holdings Narrows Annual Loss as Revenue and Margins Improve
Mar 27, 2026
SMIT Holdings reported a modest increase in revenue to USD 14.7 million for 2025, up from USD 14.0 million a year earlier, with gross profit edging higher to USD 7.7 million. The group also sharply reduced its net loss to USD 4.5 million from USD ...
SMIT Holdings Declares Final Dividend for 2025 Financial Year
Mar 27, 2026
SMIT Holdings Limited has declared a final ordinary cash dividend of HKD 0.01 per share for the financial year ended 31 December 2025, subject to shareholder approval at a meeting scheduled for 29 May 2026. The dividend will be paid in Hong Kong d...
SMIT Holdings Signs Connected Tenancy Deal to Centralise Shenzhen Operations
Mar 27, 2026
SMIT Holdings’ subsidiary Shenzhen ERASense has signed a three-year tenancy agreement with connected landlord Shenzhen Digital TV for office premises on the 19th floor of Guoshi Building in Shenzhen’s Nanshan District. The lease, cover...
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.