SMC Electric Limited (2381) AI Stock Analysis

• Market Cap: HK$202.00M
• Dividend Yield: 9.9%
• Average Volume (3M): 234.00K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.24
• Revenue Growth: 10.46%
• EPS Growth: 26.92%
• Country: HK
• Employees: 115
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): <0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 373,000
• 30 Day Avg. Volume: 234,000
• PEG Ratio: -0.46
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.50
• 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

• Rating: 65 Neutral
• Price Target: ―

The overall score reflects SMC Electric Limited's balanced financial performance with strong margins and a low-risk balance sheet, which is slightly offset by concerns over declining revenue and cash flow visibility. The technical indicators suggest moderate upward momentum, while the attractive valuation, particularly the high dividend yield, enhances the stock's appeal despite the noted challenges.

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 primarily through the sale of its electric components and systems. The company's key revenue streams include direct sales to industrial and commercial clients, as well as distribution through retail channels. Significant factors contributing to its earnings include its ability to innovate and provide reliable, efficient products that meet the specific needs of its clients. Additionally, SMC Electric may engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings.

SMC Electric Limited Financial Statement Overview

Summary

SMC Electric Limited demonstrates stable profitability with healthy EBIT and EBITDA margins alongside a strong balance sheet with low financial leverage. However, challenges lie in maintaining revenue growth and improving cash flow visibility, indicated by the absence of current cash flow data.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
257.28M	232.92M	254.49M	230.44M	249.41M
	Gross Profit
71.08M	63.69M	69.96M	61.89M	76.24M
	EBIT
24.25M	17.19M	29.32M	33.95M	45.14M
	EBITDA
26.30M	24.60M	34.94M	38.92M	49.27M
	Net Income Common Stockholders
26.36M	20.77M	22.37M	28.32M	36.35M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.43M	82.16M	89.30M	90.91M	77.46M
	Total Assets
203.14M	183.33M	182.35M	224.21M	199.71M
	Total Debt
6.97M	3.60M	5.36M	3.64M	7.17M
	Net Debt
-83.46M	-78.56M	-83.94M	-87.27M	-70.30M
	Total Liabilities
67.56M	54.07M	43.63M	59.82M	56.30M
	Stockholders Equity
135.58M	129.26M	138.72M	164.40M	143.40M
Cash Flow		Free Cash Flow
0.00	26.06M	48.05M	24.67M	20.73M
	Operating Cash Flow
0.00	27.81M	48.85M	28.87M	23.61M
	Investing Cash Flow
0.00	659.00K	-212.00K	-4.10M	-2.71M
	Financing Cash Flow
0.00	-35.51M	-49.63M	-11.66M	37.14M

SMC Electric Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.10
• 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:2381, the sentiment is Positive. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 54.76 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	65 Neutral	HK$202.00M	7.65	19.91%	9.90%	10.46%	26.92%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
BNKHF		$46.60B	9.40	11.58%	3.35%	―	―
CRGGF		$6.28B	12.16	9.94%	0.81%	―	―
HPIFF		$7.90B	7.78	13.59%	7.41%	―	―
TNJIF		$1.19B	6.88	8.42%	0.67%	―	―
1799	41 Neutral	HK$6.91B	―	-11.29%	―	-32.63%	-185.82%

SMC Electric Limited Corporate Events

SMC Electric Limited Announces Annual General Meeting and Key Resolutions

SMC Electric Limited has announced its upcoming annual general meeting scheduled for June 13, 2025, where it will discuss key agenda items including the approval of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of auditors. The meeting will also consider resolutions to authorize the board to issue new shares, which could impact the company’s capital structure and market positioning.

SMC Electric Limited Reports Increased Revenue and Profit for 2024

SMC Electric Limited announced its audited consolidated annual results for the year ending December 31, 2024, reporting a revenue increase to HK$257,278,000 from HK$232,920,000 in 2023. The company achieved a gross profit of HK$71,075,000 and a profit attributable to owners of HK$26,360,000, reflecting a positive financial performance that may strengthen its position in the electric industry.

SMC Electric Limited Announces Final Dividend for 2024

SMC Electric Limited has announced a final ordinary cash dividend of HKD 0.005 per share for the financial year ending December 31, 2024. The dividend will be paid on July 16, 2025, following shareholder approval on June 13, 2025. This announcement reflects the company’s financial performance and commitment to returning value to shareholders.

SMC Electric Limited Announces Upcoming Board Meeting for Annual Results Approval

SMC Electric Limited has announced that its board of directors will hold a meeting on 24 March 2025 to consider and approve the audited consolidated annual results for the year ended 31 December 2024. This meeting is significant as it will address key financial outcomes and potentially influence the company’s strategic direction and stakeholder interests.