Comba Telecom Systems Holdings (2342) AI Stock Analysis

• Market Cap: HK$7.11B
• Dividend Yield: 0.24%
• Average Volume (3M): 16.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• 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: 3,134,025,600
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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$2.00 ▼(-11.89% 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

Structural 4G/5G demand

Comba serves mobile operators with infrastructure needed for multi-year 4G/5G upgrades and densification. That structural demand creates recurring project opportunities and predictable tender cycles, supporting revenue visibility and backlog conversion over the medium term.

Bundled product + services model

Bundling equipment with design, installation and maintenance increases contract stickiness and recurring revenue potential. This integration raises switching costs, supports higher lifetime customer value, and stabilizes cash flows compared with pure hardware sales over multiple reporting periods.

Positive operating cash flow

Sustained positive operating cash flow underpins day-to-day operations and working capital needs despite profit pressure. It provides a buffer to fund project execution, service obligations and targeted capex, preserving liquidity and strategic optionality over the coming quarters.

Negative Factors

Declining revenue trend

Material year-over-year revenue decline signals weakening market traction or lost tenders. Persisting top-line contraction erodes economies of scale, pressures gross margins and reduces internal funding for R&D and bid competitiveness, making medium-term recovery more difficult.

Negative profitability and margin erosion

Transition to negative operating and EBITDA margins indicates structural cost or pricing issues. Prolonged unprofitability corrodes retained earnings, limits reinvestment into product development and service capabilities, and raises the risk of margin-driven customer loss over time.

Shrinking equity and leverage risk

A shrinking equity base and elevated leverage reduce financial flexibility to fund large projects or absorb cyclical shocks. Higher leverage can increase refinancing costs and restrict bidding agility, constraining strategic investments and growth initiatives over multiple quarters.

Comba Telecom Systems Holdings Business Overview & Revenue Model

Company Description

Comba Telecom Systems Holdings Limited, an investment holding company, engages in research, development, manufacture, and sale of wireless telecommunications network system equipment and related engineering services. It operates through two segments, Wireless Telecommunications Network System Equipment and Services, and Operator Telecommunication Services. The company provides base station antennas and subsystems; network system products, including macro and small cells, and open RAN products, as well as related extended and in-depth coverage solutions; and software technology, technical support, value-added, and repairing services. It also engages in the trading and marketing of wireless telecommunications network system equipment; research and development, and trading of digital microwave system equipment; and provision of hardware and software solutions and services. The company serves the airport, education, government and public safety, healthcare, hospitality, retail, stadium, and transportation industries. It operates in Mainland China, rest of Asia Pacific, the Americas, the European Union, the Middle East, and internationally. The company was founded in 1997 and is headquartered in Tai Po, Hong Kong.

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: Negative
• Last Price: 2.27
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 2.27 is below the 20-day moving average (MA) of 2.38, below the 50-day MA of 2.51, and above the 200-day MA of 2.26, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 41.47 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	HK$586.00M	15.92	12.27%	2.53%	19.80%	―
6869	65 Neutral	HK$103.22B	102.02	4.79%	0.54%	14.38%	-41.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1202	59 Neutral	HK$436.00M	-573.68	-0.09%	―	-23.93%	-109.41%
0763	52 Neutral	HK$195.54B	21.58	7.73%	2.43%	5.14%	-38.37%
2342	46 Neutral	HK$7.11B	-17.97	-10.70%	0.24%	-13.99%	-32.74%
0947	45 Neutral	HK$115.61M	-0.88	-29.56%	―	-12.03%	-40.38%