Comba Telecom Systems Holdings (2342) AI Stock Analysis

• Market Cap: HK$5.80B
• Dividend Yield: 1.26%
• Average Volume (3M): 6.66M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: -24.30%
• EPS Growth: -10350.00%
• Country: HK
• Employees: 4,349
• Sector: Technology
• Sector Strength: 92
• Industry: Communication Equipment
• EPS (TTM): -0.15
• Shares Outstanding: 3,104,110,000
• 10 Day Avg. Volume: 7,493,331
• 30 Day Avg. Volume: 6,663,634
• PEG Ratio: 0.08
• Price to Book (P/B): 1.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$1.96
• Price Target Upside: 4.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• 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 Business Overview & Revenue Model

Company Description

Comba 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 Money

Comba 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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.53B	5.98B	6.36B	5.87B	5.06B
Gross Profit	1.17B	1.66B	1.87B	1.42B	1.45B
EBITDA	-220.10M	456.61M	787.05M	-157.15M	134.17M
Net Income	-564.19M	6.70M	143.50M	-672.56M	-291.12M
Balance Sheet
Total Assets	7.44B	9.41B	10.58B	11.51B	11.33B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.52B	1.66B	1.90B	1.72B
Total Debt	1.08B	878.30M	1.39B	1.54B	1.49B
Total Liabilities	4.73B	5.58B	6.61B	7.33B	6.78B
Stockholders Equity	2.65B	3.58B	3.73B	3.77B	4.11B
Cash Flow
Free Cash Flow	297.52M	276.76M	198.70M	40.33M	-690.89M
Operating Cash Flow	339.44M	492.72M	499.47M	374.61M	-334.51M
Investing Cash Flow	89.98M	-51.88M	-272.70M	-744.14M	-223.06M
Financing Cash Flow	-238.72M	-746.86M	-233.01M	267.81M	385.36M

Comba Telecom Systems Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0763	79 Outperform	$171.56B	14.22	11.39%	2.56%	-2.65%	-14.96%
6869	66 Neutral	HK$24.85B	17.95	6.68%	0.08%	0.24%	-31.74%
Sector *	57 Neutral	HK$14.24B	5.65	-5.77%	5.08%	9.65%	-43.80%
2342	55 Neutral	HK$5.80B	―	-18.09%	1.26%	-24.30%	-10350.00%
1202	55 Neutral	€376.00M	303.23	0.15%	―	-26.82%	-56.94%
1473	48 Neutral	HK$248.11M	8.20	13.21%	―	61.65%	98.79%
0947	40 Neutral	HK$91.27M	―	-27.13%	―	-21.31%	-105.30%

Comba Telecom Systems Holdings Corporate Events

Comba Telecom Announces Positive Profit Turnaround for H1 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

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

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

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

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

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.