SMIT Holdings Limited (HK:2239)
:2239
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SMIT Holdings
(2239)
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Rating:45Neutral
Price Target:
HK$0.82
▼(-1.33% Downside)
Action:ReiteratedDate:01/06/26
The score is driven primarily by weak financial performance (declining revenue, ongoing losses, and negative cash flows) and a technically weak setup (below key moving averages with negative MACD). Valuation is only mildly supportive due to a modest dividend yield, while the negative P/E reflects ongoing losses.
Positive Factors
Diversified revenue streams and partnerships
SMIT's multi-pronged business model—IT consulting, software development and system integration—plus stated partnerships with technology and telecom firms provide durable revenue diversification. These relationships support recurring contract opportunities and cross-selling, reducing single-client concentration risk over the medium term.
Negative Factors
Significant revenue decline
A steep decline in revenue materially reduces operational scale and bargaining power with suppliers and clients. Over several months this can compress margins, limit investment in product and service improvements, and heighten the risk that fixed costs outpace recoveries, impairing medium-term competitiveness.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified revenue streams and partnerships
SMIT's multi-pronged business model—IT consulting, software development and system integration—plus stated partnerships with technology and telecom firms provide durable revenue diversification. These relationships support recurring contract opportunities and cross-selling, reducing single-client concentration risk over the medium term.
Read all positive factors
SMIT Holdings (2239) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$256.70M
Dividend Yield1.23%
Average Volume (3M)85.93K
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth-38.02%
EPS Growth-33.66%
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 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 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 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 I...
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 incom...
SMIT Holdings Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| 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
Negative
0.83
Price Trends
0.84
Negative
0.82
Negative
0.88
Negative
Market Momentum
-0.02
Positive
44.26
Neutral
32.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2239, the sentiment is Negative. The current price of 0.83 is above the 20-day moving average (MA) of 0.82, below the 50-day MA of 0.84, and below the 200-day MA of 0.88, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 32.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$539.12M | 7.47 | 11.92% | 2.53% | 19.80% | ― | |
67 Neutral | HK$530.92M | 1.25 | 5.41% | 0.98% | 9.73% | 90.98% | |
67 Neutral | HK$399.08M | -0.34 | 3.70% | 9.12% | 27.05% | 842.50% | |
65 Neutral | HK$894.43M | 8.62 | 3.58% | ― | -9.34% | 605.26% | |
62 Neutral | HK$747.09M | 7.99 | 3.52% | 3.66% | 5.84% | 94.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
45 Neutral | HK$256.70M | -6.53 | -4.43% | 1.23% | -38.02% | -33.66% |
* Technology Sector Average
HK:2239
SMIT Holdings
0.79
0.08
11.27%
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SiS International Holdings
1.91
0.07
3.80%
HK:1473
Pangaea Connectivity Technology Limited
0.46
0.30
187.50%
HK:1617
Nanfang Communication Holdings Ltd.
0.55
0.46
491.40%
HK:1900
China ITS Holdings Co., Ltd.
0.23
0.09
63.38%
HK:0771
Automated Systems Holdings Limited
0.89
0.16
21.92%
SMIT Holdings Corporate Events
SMIT Holdings Completes Major Equity Disposal in S2C Shanghai
Dec 5, 2025
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...
SMIT Holdings Announces Supplemental Agreement for S2C Shanghai Equity Disposal
Dec 3, 2025
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, modi...
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.