SMC Electric Limited (2381) AI Stock Analysis

• Market Cap: HK$196.00M
• Dividend Yield: 10.2%
• Average Volume (3M): 378.00K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.17
• Revenue Growth: 10.46%
• EPS Growth: 26.92%
• Country: HK
• Employees: 115
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): <0.01
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 555,000
• 30 Day Avg. Volume: 378,000
• PEG Ratio: 0.56
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.40
• 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 (2381) is a company engaged in the design, manufacturing, and distribution of electric components and systems. It operates within the electrical industry, focusing on providing high-quality products such as electric motors, transformers, and related accessories that serve a variety of sectors including industrial, commercial, and residential markets.

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
EBITDA	26.30M	24.60M	34.94M	38.92M	49.27M
Net Income	26.36M	20.77M	22.37M	28.32M	36.35M
Balance Sheet
Total Assets	203.14M	183.33M	182.35M	224.21M	199.71M
Cash, Cash Equivalents and Short-Term Investments	90.43M	82.16M	89.30M	90.91M	77.46M
Total Debt	6.97M	3.60M	5.36M	3.64M	7.17M
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	29.53M	26.06M	48.05M	24.67M	20.73M
Operating Cash Flow	31.04M	27.81M	48.85M	28.87M	23.61M
Investing Cash Flow	1.40M	659.00K	-212.00K	-4.10M	-2.71M
Financing Cash Flow	-23.71M	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 82.96 is Negative, 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$196.00M	7.42	19.91%	10.20%	10.46%	26.92%
6822	57 Neutral	HK$283.50M	12.98	3.83%	10.13%	20.66%	―
6822	57 Neutral	HK$283.50M	12.98	3.83%	10.13%	20.66%	―
Sector *	56 Neutral	HK$24.59B	3.77	-2.05%	6.59%	-0.32%	-67.68%
0396	51 Neutral	HK$80.00M	5.21	19.25%	―	20.86%	―
2127	43 Neutral	HK$76.58M	―	-38.40%	―	-72.73%	-764.81%
2127	43 Neutral	HK$76.58M	―	-38.40%	―	-72.73%	-764.81%
1715	41 Neutral	HK$115.44M	―	-71.41%	―	6.24%	44.29%
1715	41 Neutral	HK$115.44M	―	-71.41%	―	6.24%	44.29%
1575	39 Underperform	HK$170.88M	―		―	-37.59%	-244.66%
1575	39 Underperform	HK$170.88M	―		―	-37.59%	-244.66%

SMC Electric Limited Corporate Events

SMC Electric Limited Unanimously Passes AGM Resolutions

SMC Electric Limited announced the results of its annual general meeting held on June 13, 2025, where all proposed resolutions were passed unanimously. These resolutions included the approval of financial statements, the declaration of a final dividend, the re-election of directors, and the granting of mandates for share issuance and repurchase, reflecting strong shareholder support and a stable outlook for the company’s governance and strategic initiatives.

SMC Electric Limited Updates Nomination Committee Composition

SMC Electric Limited has announced a change in the composition of its nomination committee. Mdm. LI Pik Mui, Cindy, a non-executive director, and Mr. HO Chi Sing, Spencer, an independent non-executive director, have been appointed as members of the nomination committee effective June 13, 2025. This change reflects the company’s ongoing efforts to enhance its governance structure and ensure diverse representation in its decision-making processes.

SMC Electric Limited Announces Board and Committee Roles

SMC Electric Limited has announced the composition of its board of directors and the roles within its established committees, including the Audit, Remuneration, and Nomination Committees. The announcement highlights the leadership structure of the company, which may influence its strategic direction and governance practices.

SMC Electric Limited Updates Nomination Committee Terms

SMC Electric Limited has revised the terms of reference for its Nomination Committee, effective July 1, 2025. The Committee is responsible for reviewing the Board’s composition, recommending procedures and criteria for director appointments, and implementing adopted recommendations. The Committee must consist of at least three members, with a majority being independent non-executive directors, and include at least one member of a different gender. Meetings are to be held at least once a year, with resolutions possible via written consent.

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.