Smart City Development Holdings Limited (8268) AI Stock Analysis

• Market Cap: HK$84.96M
• Dividend Yield: N/A
• Average Volume (3M): 192.81K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -4.69%
• EPS Growth: -21.69%
• Country: HK
• Employees: 109
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 288,000,000
• 10 Day Avg. Volume: 86,100
• 30 Day Avg. Volume: 192,806
• PEG Ratio: -0.09
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -4.38
• 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: 44 Neutral
• Price Target: HK$0.32 ▼(-21.25% Downside)

The score is driven primarily by weak financial performance (declining revenue and ongoing losses, with poor ROE), despite low leverage on the balance sheet. Technicals add further pressure as the stock trades below all major moving averages with bearish momentum indicators. Valuation is constrained by negative earnings (negative P/E) and no provided dividend yield.

Positive Factors

Low Leverage

The company's low debt-to-equity ratio indicates a stable financial structure, reducing risk associated with high leverage and providing financial flexibility.

Diversified Revenue Streams

A diversified business model with multiple revenue streams can help stabilize income and reduce dependency on any single source, supporting long-term growth.

High Free Cash Flow Growth

Significant free cash flow growth, despite originating from a negative base, indicates potential for improved cash generation and financial health over time.

Negative Factors

Declining Revenue

A decline in revenue suggests challenges in market demand or competitive positioning, which could impact the company's ability to grow and sustain operations.

Negative Margins

Negative margins indicate operational inefficiencies and challenges in cost management, which can hinder profitability and long-term financial stability.

Poor Shareholder Returns

Negative return on equity reflects poor returns for shareholders, potentially affecting investor confidence and the company's ability to attract capital.

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 a diversified business model centered around the development and implementation of smart city technologies. Key revenue streams include project-based income from large-scale urban development contracts, consulting services for smart infrastructure projects, and recurring revenue from maintenance and support contracts for its technology solutions. The company may also benefit from partnerships with government agencies and private enterprises looking to invest in smart city initiatives, which can provide additional funding and collaborative opportunities. Additionally, revenue is bolstered by participation in public-private partnerships (PPPs) aimed at enhancing urban infrastructure and services.

Smart City Development Holdings Limited Financial Statement Overview

Summary

Smart City Development Holdings Limited faces significant financial challenges, with declining revenues and profitability issues. The balance sheet is stable with low leverage, but returns on equity are negative. Cash flow metrics indicate volatility and insufficient operating cash flow to cover losses. Overall, the company needs to address operational inefficiencies and improve profitability to enhance financial health.

Income Statement

The company has experienced declining revenue over the past year with a negative revenue growth rate of -9.14%. Gross profit margin is relatively low at 6.42%, and the net profit margin is negative at -8.80%, indicating challenges in maintaining profitability. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio of 0.0059, suggesting low leverage, which is a positive aspect. However, the return on equity is significantly negative at -31.61%, indicating poor returns for shareholders. The equity ratio is not calculated, but the low leverage suggests a stable financial structure.

Cash Flow

The company has a high free cash flow growth rate of 555.39%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is negative, showing that operating cash flows are insufficient to cover net losses. The free cash flow to net income ratio is slightly above 1, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	512.98M	400.85M	435.08M	323.70M	324.90M	617.77M
Gross Profit	31.01M	25.74M	24.51M	33.57M	49.88M	48.90M
EBITDA	-39.66M	-30.23M	-16.54M	-6.56M	19.39M	12.17M
Net Income	-49.26M	-35.28M	-20.36M	-10.97M	15.34M	9.86M
Balance Sheet
Total Assets	217.97M	312.65M	333.04M	322.41M	299.81M	390.13M
Cash, Cash Equivalents and Short-Term Investments	41.24M	79.70M	84.75M	115.85M	103.50M	90.88M
Total Debt	3.88M	655.00K	7.05M	10.08M	1.80M	12.57M
Total Liabilities	115.89M	201.04M	204.11M	171.47M	169.44M	284.40M
Stockholders Equity	102.08M	111.60M	128.93M	150.94M	130.37M	116.88M
Cash Flow
Free Cash Flow	-88.63M	-37.69M	-18.29M	-21.77M	41.78M	-35.92M
Operating Cash Flow	-88.18M	-37.24M	-17.10M	-21.68M	46.77M	-21.15M
Investing Cash Flow	54.58M	28.02M	10.01M	201.00K	-15.02M	-68.31M
Financing Cash Flow	-353.00K	8.60M	-3.08M	38.92M	-10.88M	2.91M

Smart City Development Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8268, the sentiment is Negative. The current price of 0.4 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.37, and below the 200-day MA of 0.51, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.41 is Neutral, neither overbought nor oversold. The STOCH value of 10.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1582	65 Neutral	HK$172.50M	4.09	6.32%	9.71%	27.42%	-32.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0368	61 Neutral	HK$336.00M	17.80	9.06%	3.63%	6.27%	―
2863	54 Neutral	HK$210.30M	-11.34	-1.47%	8.33%	0.94%	82.30%
1865	49 Neutral	HK$224.33M	-2.91	-16.00%	―	9.19%	84.15%
6182	49 Neutral	HK$592.00M	1,233.33	0.47%	―	144.67%	―
8268	44 Neutral	HK$84.96M	-2.36	-30.34%	―	-4.69%	-21.69%