SMC Electric Limited (2381) AI Stock Analysis

• Market Cap: HK$270.00M
• Dividend Yield: 7.41%
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.33
• Revenue Growth: 10.65%
• EPS Growth: 25.96%
• Country: HK
• Employees: 115
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): <0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 1,063,000
• 30 Day Avg. Volume: 3,287,666
• PEG Ratio: 0.29
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 6.91
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$0.15 ▲(3.57% Upside)

The stock's overall score is driven by strong valuation metrics and positive technical indicators. While financial performance is stable, the company faces challenges in revenue growth and cash flow management. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low financial leverage indicates the company is well-positioned to withstand economic fluctuations and invest in growth opportunities.

Consistent Margins

Consistent profit margins reflect operational efficiency and pricing power, supporting long-term profitability and competitive positioning.

Revenue Growth

Positive revenue growth suggests increasing demand for the company's products and successful market penetration, which is crucial for long-term success.

Negative Factors

Declining Revenue Trends

A declining revenue trend could indicate market saturation or increased competition, potentially impacting future growth and profitability.

Cash Flow Visibility Issues

Limited visibility into cash flow can hinder strategic planning and investment, posing risks to the company's financial stability and growth initiatives.

Cash Flow Management Concerns

Potential issues with cash flow management could affect liquidity and the ability to fund operations or growth, impacting long-term financial health.

SMC Electric Limited Business Overview & Revenue Model

Company Description

SMC Electric Limited, an investment holding company, designs, manufactures, and markets electric tools in the United States, Canada, and Mexico. The company's products include fans, work lights, and vacuum cleaners. It also sources and sells electric fans under the SMC brand. The company was founded in 1950 and is headquartered in Chai Wan, Hong Kong. SMC Electric Limited is a subsidiary of Shell Electric Holdings Limited.

How the Company Makes Money

SMC Electric Limited generates revenue through multiple key streams including product sales, service contracts, and maintenance agreements. The primary source of income comes from the sale of electrical equipment and systems, where the company benefits from both direct sales to end-users and distribution partnerships with electrical supply wholesalers. Additionally, SMC Electric offers installation and maintenance services for its products, creating a recurring revenue model. Strategic partnerships with construction firms and industrial operators further enhance its market reach, while ongoing investments in research and development ensure a steady pipeline of innovative products that meet evolving market demands.

SMC Electric Limited Financial Statement Overview

Summary

SMC Electric Limited demonstrates stable profitability and a robust balance sheet with low financial risk. However, challenges lie in maintaining revenue growth and improving cash flow visibility. The company is well-positioned but should focus on enhancing revenue streams and cash flow management.

Income Statement

The company shows consistent gross and net profit margins with a slight increase in revenue from the previous year, indicating stable profitability. However, the decreasing trend in revenue over the past few years may be concerning. The EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio, signifying low financial leverage and risk. The return on equity is respectable, showing effective use of shareholder funds. The equity ratio is high, indicating strong asset backing by equity.

Cash Flow

The absence of current data on operating and free cash flow is concerning, but historical free cash flow has been positive. The operating cash flow to net income ratio is unavailable for the current year, suggesting potential cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	263.34M	257.28M	232.92M	254.49M	230.44M	249.41M
Gross Profit	69.13M	71.08M	63.69M	69.96M	61.89M	76.24M
EBITDA	24.00M	26.30M	24.60M	34.94M	39.13M	49.27M
Net Income	26.30M	26.36M	20.77M	22.37M	28.32M	36.35M
Balance Sheet
Total Assets	198.78M	203.14M	183.33M	182.35M	224.21M	199.71M
Cash, Cash Equivalents and Short-Term Investments	86.92M	90.43M	82.16M	89.30M	90.91M	77.46M
Total Debt	5.32M	6.97M	3.60M	5.36M	3.64M	7.17M
Total Liabilities	50.27M	67.56M	54.07M	43.63M	59.82M	56.30M
Stockholders Equity	148.51M	135.58M	129.26M	138.72M	164.40M	143.40M
Cash Flow
Free Cash Flow	21.05M	29.53M	26.06M	48.05M	24.67M	20.73M
Operating Cash Flow	22.14M	31.04M	27.81M	48.85M	28.87M	23.61M
Investing Cash Flow	275.00K	1.40M	659.00K	-212.00K	-4.10M	-2.71M
Financing Cash Flow	-21.85M	-23.71M	-35.51M	-49.63M	-11.66M	37.14M

SMC Electric Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2381, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.09 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2381.

SMC Electric Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2381	72 Outperform	HK$270.00M	10.31	18.10%	7.41%	10.65%	25.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0396	53 Neutral	HK$90.51M	5.36	20.69%	8.93%	-13.44%	―
6822	51 Neutral	HK$287.00M	-12.73	-4.25%	9.76%	8.85%	-18.82%
1575	44 Neutral	HK$157.99M	-5.76	―	―	-50.43%	79.67%
1715	44 Neutral	HK$176.77M	-2.58	-39.50%	―	-32.54%	71.35%
2127	41 Neutral	HK$76.58M	-0.04	―	―	-72.73%	-764.81%

SMC Electric Limited Corporate Events

SMC Electric Limited Reports Stable Interim Results for 2025

SMC Electric Limited announced its unaudited interim results for the six months ended June 30, 2025, reporting a slight decrease in gross profit compared to the same period in 2024. Despite this, the company maintained stable profitability with a net profit of HK$12,896,000, indicating resilience in its operations amidst fluctuating market conditions.

SMC Electric Limited Declares Interim Dividend for 2025

SMC Electric Limited announced an interim dividend of HKD 0.005 per share for the six months ending June 30, 2025. The dividend will be paid on September 26, 2025, with a record date of September 10, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its market positioning by potentially increasing investor interest.

SMC Electric Limited Schedules Board Meeting for Interim Results

SMC Electric Limited has announced a board meeting scheduled for August 22, 2025, to review and approve the unaudited consolidated interim results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could influence its market positioning and stakeholder decisions.