Comba Telecom Systems Holdings (2342) AI Stock Analysis

• Market Cap: $8.76B
• Dividend Yield: 0.23%
• Average Volume (3M): 16.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: -13.99%
• EPS Growth: -32.74%
• Country: HK
• Employees: 4,349
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.02
• Shares Outstanding: 3,132,676,800
• 10 Day Avg. Volume: 17,702,343
• 30 Day Avg. Volume: 16,469,680
• PEG Ratio: <0.01
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 10.87
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.92
• Enterprise Value/Gross Profit: 3.37
• Enterprise Value/Ebitda: -21.39
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$2.50 ▼(-3.85% Downside)

Comba Telecom Systems Holdings is facing significant challenges, primarily due to declining financial performance and bearish technical indicators. The company's negative P/E ratio and low dividend yield further highlight valuation concerns. The absence of positive earnings call insights or notable corporate events leaves the stock with limited catalysts for improvement in the near term.

Positive Factors

Cash Generation Ability

Positive operating cash flow indicates the company's ability to generate cash from its core operations, which is crucial for sustaining business activities and funding future growth.

Recurring Revenue Streams

Recurring revenue from service agreements and maintenance contracts enhances financial stability and predictability, supporting long-term business sustainability.

Market Opportunities

The increasing demand for 5G and smart city solutions offers significant growth potential, allowing Comba to expand its market presence and drive future earnings.

Negative Factors

Declining Revenue

A decline in revenue indicates challenges in maintaining market share and competitiveness, which can impact long-term financial health and growth prospects.

Profitability Challenges

Negative EBIT and EBITDA margins suggest operational inefficiencies and cost management issues, which can hinder profitability and long-term business viability.

Leverage Risk

Leverage risk and declining equity can limit financial flexibility, increasing vulnerability to economic downturns and impacting long-term stability.

Comba Telecom Systems Holdings Business Overview & Revenue Model

Company Description

Comba Telecom Systems Holdings Limited (stock code: 2342) is a leading global provider of wireless communication solutions, primarily operating in the telecommunications sector. The company specializes in the design, development, and manufacturing of a wide range of products and services, including radio frequency (RF) equipment, base station systems, and network infrastructure solutions. Comba serves various sectors such as mobile operators, system integrators, and enterprises, focusing on enhancing wireless network coverage and capacity through its innovative technologies.

How the Company Makes Money

Comba Telecom generates revenue primarily through the sale of its telecommunications equipment and solutions, which include indoor and outdoor coverage systems, antennas, and base station products. The company’s revenue model is largely based on product sales, complemented by ongoing service agreements and maintenance contracts that provide recurring income. Significant partnerships with major telecom operators and system integrators allow Comba to secure large-scale contracts and projects, contributing to its revenue streams. Additionally, the growing demand for 5G infrastructure and smart city solutions presents new opportunities for Comba to expand its market presence and drive future earnings.

Comba Telecom Systems Holdings Financial Statement Overview

Summary

Comba Telecom Systems Holdings faces challenges across its financial statements. The income statement reveals declining revenue and profitability, while the balance sheet indicates leverage risk and shrinking equity. Cash flow remains positive but is pressured by profitability issues. The company needs strategic initiatives to improve profitability and maintain financial stability in the competitive communication equipment industry.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.38B	4.53B	5.98B	6.36B	5.87B	5.06B
Gross Profit	1.20B	1.17B	1.66B	1.87B	1.42B	1.45B
EBITDA	-188.58M	-218.31M	456.61M	787.05M	-157.15M	134.17M
Net Income	-343.98M	-564.19M	6.70M	190.24M	-592.57M	-194.10M
Balance Sheet
Total Assets	7.70B	7.44B	9.41B	10.58B	11.51B	11.33B
Cash, Cash Equivalents and Short-Term Investments	2.18B	1.63B	1.52B	1.66B	1.90B	1.72B
Total Debt	1.02B	1.08B	1.12B	1.70B	1.54B	1.65B
Total Liabilities	4.45B	4.73B	5.58B	6.61B	7.33B	6.78B
Stockholders Equity	3.19B	2.65B	3.58B	3.73B	3.77B	4.11B
Cash Flow
Free Cash Flow	588.25M	297.52M	276.76M	198.70M	40.33M	-690.89M
Operating Cash Flow	633.43M	339.44M	492.72M	499.47M	374.61M	-334.51M
Investing Cash Flow	-327.25M	89.98M	-51.88M	-272.70M	-744.14M	-223.06M
Financing Cash Flow	247.09M	-238.72M	-746.86M	-233.01M	267.81M	385.36M

Comba Telecom Systems Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2342, the sentiment is Neutral. The current price of 2.6 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 2.86, and above the 200-day MA of 2.14, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 42.51 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2342.

Comba Telecom Systems Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1473	66 Neutral	HK$439.50M	11.94	12.27%	2.63%	19.80%	―
6869	62 Neutral	HK$63.93B	57.65	4.79%	0.62%	14.38%	-41.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0763	61 Neutral	$192.19B	22.00	7.73%	2.34%	5.14%	-38.37%
1202	52 Neutral	€356.00M	―	-0.09%	―	-23.93%	-109.41%
2342	46 Neutral	$8.76B	―	-10.70%	0.23%	-13.99%	-32.74%
0947	41 Neutral	HK$114.02M	-0.87	-29.56%	―	-12.03%	-40.38%

Comba Telecom Systems Holdings Corporate Events

Comba Telecom Announces Board and Committee Changes

Comba Telecom Systems Holdings Limited has announced a change in its board of directors and the composition of its board committees. Ms. Wong Lok Lam has resigned from her roles to focus on other business commitments, and Dr. Tan Khee Giap will take over her positions effective from October 16, 2025. Dr. Tan brings extensive experience in economics and consultancy, having worked with various government and international agencies, which may enhance the company’s strategic direction and governance.

Comba Telecom Grants Share Awards to Employees to Boost Growth

Comba Telecom Systems Holdings Limited has announced the grant of 1,560,000 share awards to its employees under its Share Award Scheme, which was adopted in May 2023. This initiative aims to recognize and incentivize employees, aligning their interests with the company’s goals and enhancing its operational performance and future growth. The share awards, representing approximately 0.05% of the issued shares, have no performance targets attached and are intended to retain talent and attract suitable personnel for the company’s ongoing development.

Comba Telecom Releases 2025 Interim Report

Comba Telecom Systems Holdings Limited has announced the publication of its 2025 Interim Report, available in both English and Chinese on its website and the Singapore Exchange’s website. Shareholders can request a printed version of the report by submitting a form to the company’s share transfer agent in Singapore by the specified deadline.