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Comba Telecom Systems Holdings (HK:2342)
:2342
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Comba Telecom Systems Holdings (2342) AI Stock Analysis

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HK:2342

Comba Telecom Systems Holdings

(OTC:2342)

Rating:55Neutral
Price Target:
HK$2.00
▲(6.38%Upside)
Comba Telecom Systems Holdings' overall stock score of 55 reflects significant financial performance challenges, including declining revenue and profitability, and a negative P/E ratio indicating valuation concerns. While technical analysis shows positive market momentum, the company's financial health and valuation issues are the most significant factors impacting the score.

Comba Telecom Systems Holdings (2342) vs. iShares MSCI Hong Kong ETF (EWH)

Comba Telecom Systems Holdings Business Overview & Revenue Model

Company DescriptionComba Telecom Systems Holdings (2342) is a leading global wireless solutions provider based in Hong Kong. The company specializes in offering a comprehensive range of products and services including wireless network solutions, antenna and subsystems, and wireless enhancement solutions. Comba Telecom serves telecommunications operators and enterprises worldwide, focusing on improving network performance, coverage, and capacity.
How the Company Makes MoneyComba Telecom Systems Holdings generates revenue primarily through the sale of its wireless network products and solutions. Key revenue streams include the sale of base station antennas, subsystems, and wireless enhancement solutions such as indoor and outdoor distributed antenna systems (DAS) and small cell solutions. The company also offers professional services, including network design, installation, and maintenance, which contribute to its revenue. Partnerships with major telecommunications operators and enterprises across various regions play a significant role in driving sales and expanding market reach. Additionally, Comba Telecom's focus on research and development helps maintain its competitive edge, enabling it to offer innovative solutions that meet the evolving needs of the telecom industry.

Comba Telecom Systems Holdings Financial Statement Overview

Summary
Comba Telecom Systems Holdings faces challenges in financial performance. The income statement reveals declining revenue and profitability, with negative net income and shrinking margins. The balance sheet indicates leverage risk and a shrinking equity base, while cash flow is positive but under pressure from profitability issues.
Income Statement
45
Neutral
Comba Telecom Systems Holdings experienced a significant decline in revenue and profitability over the past year, with the latest figures showing a negative net income and decreasing revenue. The gross profit margin has also decreased, indicating challenges in maintaining cost efficiencies. EBIT and EBITDA margins have turned negative, reflecting operational difficulties. Overall, the income statement reveals declining financial health and profitability issues.
Balance Sheet
55
Neutral
The balance sheet shows a moderate financial position with a decrease in stockholders' equity. The debt-to-equity ratio is relatively stable but indicates potential leverage risk. The equity ratio suggests adequate capitalization, yet declining total assets and equity highlight potential challenges. While there is no immediate liquidity crisis, the company needs to address the shrinking equity base and manage liabilities effectively.
Cash Flow
60
Neutral
Comba Telecom Systems Holdings demonstrates a positive operating cash flow, which is a strength. However, free cash flow is under pressure due to declining net income and capital expenditures. The cash flow to net income ratios suggest some efficiency in converting net income into cash, but the overall cash flow situation requires careful monitoring to ensure sustainability, particularly with negative free cash flow in past years.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.53B5.98B6.36B5.87B5.06B
Gross Profit1.17B1.66B1.87B1.42B1.45B
EBITDA-220.10M456.61M787.05M-157.15M134.17M
Net Income-564.19M6.70M143.50M-672.56M-291.12M
Balance Sheet
Total Assets7.44B9.41B10.58B11.51B11.33B
Cash, Cash Equivalents and Short-Term Investments1.63B1.52B1.66B1.90B1.72B
Total Debt1.08B878.30M1.39B1.54B1.49B
Total Liabilities4.73B5.58B6.61B7.33B6.78B
Stockholders Equity2.65B3.58B3.73B3.77B4.11B
Cash Flow
Free Cash Flow297.52M276.76M198.70M40.33M-690.89M
Operating Cash Flow339.44M492.72M499.47M374.61M-334.51M
Investing Cash Flow89.98M-51.88M-272.70M-744.14M-223.06M
Financing Cash Flow-238.72M-746.86M-233.01M267.81M385.36M

Comba Telecom Systems Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.88
Price Trends
50DMA
1.71
Positive
100DMA
1.66
Positive
200DMA
1.37
Positive
Market Momentum
MACD
0.04
Positive
RSI
60.28
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2342, the sentiment is Positive. The current price of 1.88 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.71, and above the 200-day MA of 1.37, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 60.28 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2342.

Comba Telecom Systems Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$171.56B14.2211.39%2.56%-2.65%-14.96%
66
Neutral
HK$24.85B17.956.68%0.08%0.24%-31.74%
57
Neutral
HK$14.24B5.65-5.77%5.08%9.65%-43.80%
55
Neutral
HK$5.80B-18.09%1.26%-24.30%-10350.00%
55
Neutral
€376.00M303.230.15%-26.82%-56.94%
48
Neutral
HK$248.11M8.2013.21%61.65%98.79%
40
Neutral
HK$91.27M-27.13%-21.31%-105.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2342
Comba Telecom Systems Holdings
1.88
1.04
123.81%
HK:1473
Pangaea Connectivity Technology Limited
0.26
0.09
52.94%
HK:0947
Mobi Development Co., Ltd.
0.11
-0.03
-21.43%
HK:0763
ZTE
26.10
9.69
59.00%
HK:1202
Chengdu Putian Telecommunications Cable Co., Ltd. Class H
0.94
0.27
40.30%
HK:6869
Yangtze Optical Fibre and Cable Joint Stock Co
19.68
12.06
158.37%

Comba Telecom Systems Holdings Corporate Events

Comba Telecom Announces Positive Profit Turnaround for H1 2025
Jul 25, 2025

Comba Telecom Systems Holdings Limited has announced a positive profit alert, indicating an expected profit of not less than HK$50 million for the first half of 2025, a significant turnaround from a loss of approximately HK$158 million in the same period of 2024. This improvement is attributed to the company’s successful transition and transformation of its products and business operations, maintaining stable gross profit margins, and implementing effective cost control measures, which have lowered the operating expense ratio. The company remains cautiously optimistic about future opportunities in the global ICT market.

Comba Telecom Updates Remuneration Committee Terms
Jun 25, 2025

Comba Telecom Systems Holdings Limited has updated the terms of reference for its Remuneration Committee, which was established in 2005. The committee is responsible for advising the board on remuneration policies and structures for directors and senior management, ensuring transparency and fairness. This update aims to align the company’s remuneration practices with corporate goals and industry standards, potentially impacting stakeholder confidence and corporate governance.

Comba Telecom Updates Audit Committee Terms to Strengthen Governance
Jun 25, 2025

Comba Telecom Systems Holdings Limited has updated the terms of reference for its audit committee, which was established in 2003. The committee is composed of non-executive directors, with a majority being independent, and is tasked with overseeing the company’s financial reporting and internal controls. This update aims to enhance the company’s governance and compliance with the Hong Kong Listing Rules, potentially strengthening its market position and stakeholder confidence.

Comba Telecom Updates Nomination Committee Terms to Strengthen Governance
Jun 25, 2025

Comba Telecom Systems Holdings Limited has updated the terms of reference for its Nomination Committee, initially established in 2012. The committee is responsible for ensuring a balanced and diverse board composition, with a formal procedure for appointing new directors and plans for orderly succession. This update aims to enhance the company’s governance by maintaining a strong independent element on the board, which can effectively exercise independent judgment, thereby potentially improving stakeholder confidence.

Comba Telecom Successfully Passes All AGM Resolutions
May 21, 2025

Comba Telecom Systems Holdings Limited announced that all resolutions proposed at its Annual General Meeting (AGM) on May 21, 2025, were approved by shareholders through a poll. Key resolutions included the re-election of directors, the re-appointment of Ernst & Young as auditors, and granting mandates to the board for share issuance and repurchase. This successful AGM reflects shareholder confidence in the company’s governance and strategic direction, potentially strengthening its position in the telecommunications market.

Comba Telecom Grants Share Awards to Boost Growth
May 21, 2025

Comba Telecom Systems Holdings Limited announced the grant of 2,821,000 share awards under its Share Award Scheme to certain directors and employees. This initiative aims to recognize and incentivize the contributions of these individuals to the company’s operations and future growth. The share awards, which do not have performance targets, are intended to align the interests of the grantees with the company’s goals, promoting sustained competitiveness and operational results.

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.Date of analysis: Jul 11, 2025