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SMIT Holdings
(2239)
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Rating:51Neutral
Price Target:
HK$1.50
▲(80.72% 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
Healthy Gross Margin
A sustained gross margin near 52.6% indicates durable product/service economics and meaningful markup potential. Over 2–6 months this margin buffer supports operating leverage as revenue grows, improving the path to profitability if SG&A and operating costs are controlled.
Negative Factors
Continued Net Losses
A deeply negative net margin (‑36%) and recurring operating losses indicate structural profitability issues. Persistent losses erode equity, limit reinvestment capacity, and make sustained turnaround reliant on material improvement in either revenues, margins, or cost structure.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy Gross Margin
A sustained gross margin near 52.6% indicates durable product/service economics and meaningful markup potential. Over 2–6 months this margin buffer supports operating leverage as revenue grows, improving the path to profitability if SG&A and operating costs are controlled.
Read all positive factors
SMIT Holdings (2239) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$435.41M
Dividend Yield1.23%
Average Volume (3M)85.93K
Price to Earnings (P/E)―
Beta (1Y)0.88
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
Positive
0.83
Price Trends
1.18
Positive
1.00
Positive
0.91
Positive
Market Momentum
-0.04
Positive
57.20
Neutral
43.08
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 0.83 is below the 20-day moving average (MA) of 1.17, below the 50-day MA of 1.18, and below the 200-day MA of 0.91, indicating a bullish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 57.20 is Neutral, neither overbought nor oversold. The STOCH value of 43.08 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | HK$1.67B | 37.97 | 11.92% | 2.53% | 4.77% | 20.26% | |
65 Neutral | HK$654.75M | 8.04 | 3.52% | 3.66% | 9.79% | -44.84% | |
63 Neutral | HK$503.12M | 9.69 | 5.41% | 0.98% | 6.90% | -55.59% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | HK$585.45M | 16.65 | 3.59% | ― | -13.56% | -24.44% | |
52 Neutral | HK$361.24M | 4.14 | 3.70% | 9.12% | 13.15% | 197.79% | |
51 Neutral | HK$435.41M | -10.48 | -4.44% | 1.23% | 5.12% | 86.25% |
* Technology Sector Average
HK:2239
SMIT Holdings
1.34
0.28
25.94%
HK:0529
SiS International Holdings
1.81
0.19
11.94%
HK:1473
Pangaea Connectivity Technology Limited
1.42
1.27
846.67%
HK:1617
Nanfang Communication Holdings Ltd.
0.36
0.23
174.81%
HK:1900
China ITS Holdings Co., Ltd.
0.21
<0.01
0.96%
HK:0771
Automated Systems Holdings Limited
0.78
-0.06
-7.47%
SMIT Holdings Corporate Events
SMIT Holdings Shareholders Unanimously Approve Equity Transfer Agreement
Jul 9, 2026
SMIT Holdings said shareholders overwhelmingly approved an equity transfer agreement at an extraordinary general meeting held on 9 July 2026, with 215,811,777 votes, or 100%, cast in favour and none against. The resolution, passed as an ordinary r...
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...
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.