Smart City Development Holdings Limited (8268) AI Stock Analysis

• Market Cap: HK$213.12M
• Dividend Yield: N/A
• Average Volume (3M): 672.76K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.21
• Revenue Growth: 17.34%
• EPS Growth: -107.68%
• Country: HK
• Employees: 109
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): -0.04
• Shares Outstanding: 288,000,000
• 10 Day Avg. Volume: 1,304,396
• 30 Day Avg. Volume: 672,765
• PEG Ratio: 0.06
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.09
• 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: 44 Neutral
• Price Target: ―

Smart City Development Holdings Limited faces significant financial difficulties, with negative cash flows and ongoing losses posing substantial risks. Technical analysis suggests a bearish trend, and valuation metrics highlight concerns over profitability. The stock's potential for recovery hinges on reversing these negative trends and improving financial health.

Smart City Development Holdings Limited Business Overview & Revenue Model

Company Description

Smart City Development Holdings Limited, an investment holding company, operates as a contractor in the building industry in Hong Kong, the People's Republic of China, and Macau. It operates through four segments: Construction Business, Securities Investment, Property Investment Business, and Money Lending Business. The Construction Business segment undertakes building construction works; electrical and mechanical engineering works; and alteration, addition, renovation, refurbishment, and fitting-out works, as well as provides decoration engineering services. The Securities Investment segment invests in long term and short term marketable securities. The Property Investment segment invests in, acquires, and rents properties. The Money Lending Business segment engages in the money lending activities. The company was formerly known as Deson Construction International Holdings Limited and changed its name to Smart City Development Holdings Limited in September 2020. Smart City Development Holdings Limited was founded in 1988 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Smart City Development Holdings Limited generates revenue through its core business operations in the construction and engineering sectors. The company earns money primarily by undertaking construction contracts for both private and public sector projects. Revenue streams include fees from building construction, maintenance services, and renovation projects. The company may also engage in strategic partnerships or collaborations with government entities and private developers to secure contracts and expand its project portfolio, which contributes to its earnings.

Smart City Development Holdings Limited Financial Statement Overview

Summary

The company faces considerable financial challenges, with declining revenues and ongoing losses. While the balance sheet shows low leverage, decreasing equity and negative cash flows indicate potential risks. Cash flow generation remains a significant concern, requiring urgent improvements.

Income Statement

The company has faced declining revenues over the past few years, with a notable decrease from 627.5M in 2020 to 435.1M in 2024. Gross profit margin has improved slightly to 5.6% in 2024, but the net profit margin has been negative in recent years, indicating ongoing losses. The EBIT and EBITDA margins are also negative, suggesting operational challenges. While there was a slight revenue growth from 2023 to 2024, the income statement reflects continued financial strain.

Balance Sheet

The balance sheet shows moderate stability, with a debt-to-equity ratio of 0.05, indicating low leverage. However, the stockholders' equity has decreased over the years, leading to a reduced equity ratio of 38.7% in 2024. The company's total assets have slightly increased, but the declining equity suggests potential challenges in sustaining financial health without increasing liabilities.

Cash Flow

The cash flow statement reveals significant challenges in generating positive cash flow. Operating cash flow has been consistently negative, with a notable decrease in free cash flow from 2023 to 2024. The free cash flow to net income ratio indicates difficulty in converting earnings into cash. Despite some improvements in investing cash flow, the overall cash flow position remains weak.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
441.15M	435.08M	323.70M	324.90M	617.77M	627.53M
	Gross Profit
22.42M	24.51M	33.57M	49.88M	48.90M	34.94M
	EBIT
-23.18M	-18.75M	-9.61M	13.39M	3.36M	-1.46M
	EBITDA
-21.44M	-16.54M	-6.56M	19.39M	12.17M	-1.08M
	Net Income Common Stockholders
-24.84M	-20.36M	-10.97M	15.34M	9.86M	-3.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
83.42M	84.75M	98.59M	86.34M	90.88M	139.91M
	Total Assets
320.82M	333.04M	322.41M	299.81M	390.13M	388.03M
	Total Debt
3.02M	7.05M	10.08M	1.80M	12.57M	8.51M
	Net Debt
-49.49M	-51.24M	-49.26M	-65.54M	-49.40M	-99.18M
	Total Liabilities
185.47M	204.11M	171.47M	169.44M	284.40M	291.01M
	Stockholders Equity
135.35M	128.93M	150.94M	130.37M	116.88M	106.18M
Cash Flow		Free Cash Flow
-5.75M	-18.29M	-21.77M	41.78M	-35.92M	47.45M
	Operating Cash Flow
-4.95M	-17.10M	-21.68M	46.77M	-21.15M	67.60M
	Investing Cash Flow
13.63M	10.01M	201.00K	-15.02M	-68.31M	1.56M
	Financing Cash Flow
15.92M	-3.08M	38.92M	-10.88M	2.91M	-37.06M

Smart City Development Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8268, the sentiment is Positive. The current price of 0.74 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.62, and below the 200-day MA of 0.76, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 82.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8268.

Smart City Development Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
8268	44 Neutral	HK$213.12M	―	-17.62%	―	17.34%	-107.68%
CCOHF		$8.14B	7.64	14.62%	4.03%	―	―
CRGGF		$6.15B	12.16	9.94%	0.81%	―	―
6MT		€6.69B	4.50	5.56%	5.95%	―	―