SMC Electric Limited (2381) AI Stock Analysis

• Market Cap: HK$398.00M
• Dividend Yield: 6.94%
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.40
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: HK$0.22 ▲(28.24% Upside)

The score is driven by solid financial positioning (strong balance sheet and stable margins) offset by weaker cash flow visibility and revenue growth concerns. Technicals are supportive with an established uptrend, and valuation is helped by a moderate P/E and high dividend yield.

Positive Factors

Balance Sheet Strength

Low financial leverage and a high equity ratio provide durable financial flexibility. This reduces solvency risk, supports continued capex and R&D funding, and enables the firm to withstand industry downturns or pursue opportunistic investments over the next several months.

Stable Profitability and Margins

Consistent gross, net and healthy EBIT/EBITDA margins indicate operational efficiency and pricing power. Sustainable margins support ongoing cash generation, fund dividends and reinvestment, and help the business remain competitive amid cost fluctuations over a multi-month horizon.

Diversified & Recurring Revenue Streams

A mix of product sales plus installation, maintenance and service contracts creates recurring revenue and cross-sell opportunities. Partnerships with construction and industrial clients diversify demand sources and increase revenue visibility and resilience over time.

Negative Factors

Cash Flow Visibility

Lack of up-to-date operating and free cash flow figures limits assessment of true cash generation and working capital dynamics. This uncertainty can mask shortfalls in funding for dividends, capex, or debt service and raises medium-term liquidity and execution risk.

Longer-Term Revenue Decline Trend

A multi-year revenue decline trend undermines growth momentum and may indicate market share loss or weakening demand. Persistent top-line erosion can pressure scale economics and margins, forcing strategic shifts or margin trade-offs to restore sustainable growth.

Limited Forward Guidance / Disclosure

Absence of formal guidance and limited earnings highlights reduces forward visibility for stakeholders. This constrains transparent performance tracking, complicates planning for customers and investors, and raises perceived execution risk for management over the medium term.

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

Profitability appears stable with healthy EBIT/EBITDA margins and consistent gross/net margins, and the balance sheet is strong with low leverage and a high equity ratio. The score is held back by a longer-term revenue decline trend and limited current-year cash flow visibility (cash flow score materially lower).

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: 0.17
• 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 0.17 is below the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.16, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 65.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.62 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	69 Neutral	HK$398.00M	15.19	18.10%	6.94%	10.65%	25.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0396	52 Neutral	HK$91.31M	5.41	20.69%	8.93%	-13.44%	―
6822	51 Neutral	HK$287.00M	-12.73	-4.25%	9.76%	8.85%	-18.82%
1715	44 Neutral	HK$165.95M	-2.42	-39.50%	―	-32.54%	71.35%
2127	41 Neutral	HK$76.58M	-0.04	―	―	-72.73%	-764.81%
1575	39 Underperform	HK$154.76M	-5.65	―	―	-50.43%	79.67%