Executive Summary
Smart-Core Holdings Limited, an investment holding company, engages in the trading of integrated circuits and other electronic components in the People’s Republic of China.
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with acceptable track record.
Share Price & News
How has Smart-Core Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2166 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
2166
-0.4%
HK Electronic
-0.6%
HK Market
1 Year Return
-25.7%
2166
-10.2%
HK Electronic
-7.6%
HK Market
Return vs Industry: 2166 underperformed the Hong Kong Electronic industry which returned -10.2% over the past year.
Return vs Market: 2166 underperformed the Hong Kong Market which returned -7.4% over the past year.
Shareholder returns
| 2166 | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | -0.4% | -0.6% |
| 30 Day | -2.9% | -5.8% | -1.2% |
| 90 Day | -3.5% | 2.7% | 3.0% |
| 1 Year | -22.7%-25.7% | -7.5%-10.2% | -4.2%-7.6% |
| 3 Year | -23.1%-29.2% | -0.6%-8.6% | 12.9%1.5% |
| 5 Year | n/a | 75.9%52.7% | 13.1%-5.6% |
Price Volatility Vs. Market
How volatile is Smart-Core Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 day ago | Simply Wall St
What Can We Make Of Smart-Core Holdings Limited’s (HKG:2166) High Return On Capital?2 weeks ago | Simply Wall St
Should You Buy Smart-Core Holdings Limited (HKG:2166) For Its Dividend?1 month ago | Simply Wall St
Can Smart-Core Holdings Limited's (HKG:2166) ROE Continue To Surpass The Industry Average?Valuation
Is Smart-Core Holdings undervalued compared to its fair value and its price relative to the market?
9.3x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 2166 (HK$1.36) is trading above our estimate of fair value (HK$0.74)
Significantly Below Fair Value: 2166 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 2166 is poor value based on its PE Ratio (9.3x) compared to the Electronic industry average (9.1x).
PE vs Market: 2166 is good value based on its PE Ratio (9.3x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 2166's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 2166 is overvalued based on its PB Ratio (1.2x) compared to the HK Electronic industry average (0.9x).
Next Steps
Future Growth
How is Smart-Core Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
24.6%
Forecasted Tech industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Smart-Core Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine Smart-Core Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- Smart-Core Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Tech industry.
Past Performance
How has Smart-Core Holdings performed over the past 5 years?
8.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2166 has a high level of non-cash earnings.
Growing Profit Margin: 2166's current net profit margins (1.5%) are higher than last year (1.5%).
Past Earnings Growth Analysis
Earnings Trend: 2166's earnings have grown by 8.8% per year over the past 5 years.
Accelerating Growth: 2166's earnings growth over the past year (1.3%) is below its 5-year average (8.8% per year).
Earnings vs Industry: 2166 earnings growth over the past year (1.3%) exceeded the Electronic industry -11.5%.
Return on Equity
High ROE: 2166's Return on Equity (12.2%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Smart-Core Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 2166's short term assets (HK$1.4B) exceed its short term liabilities (HK$918.1M).
Long Term Liabilities: 2166's short term assets (HK$1.4B) exceed its long term liabilities (HK$8.3M).
Debt to Equity History and Analysis
Debt Level: 2166's debt to equity ratio (81.4%) is considered high.
Reducing Debt: 2166's debt to equity ratio has reduced from 86.5% to 81.4% over the past 5 years.
Debt Coverage: 2166's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 2166's interest payments on its debt are well covered by EBIT (4.5x coverage).
Balance Sheet
Inventory Level: 2166 has a high level of physical assets or inventory.
Debt Coverage by Assets: 2166's debt is covered by short term assets (assets are 2.7x debt).
Next Steps
Dividend
What is Smart-Core Holdings's current dividend yield, its reliability and sustainability?
4.41%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 2166's dividend (4.41%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).
High Dividend: 2166's dividend (4.41%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 2166 has been paying a dividend for less than 10 years.
Growing Dividend: 2166's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (41%), 2166's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average board tenure
CEO
Weidong Tian (53yo)
HK$1,398,000
Compensation
Mr. Weidong Tian is Founder, Chairman and Chief Executive Officer at Smart-Core Holdings Limited and has been its Executive Director since October 22, 2015. Mr. Tian has been leading Smart-Core for over 10 ...
CEO Compensation Analysis
Compensation vs Market: Weidong's total compensation ($USD179.51K) is about average for companies of similar size in the Hong Kong market ($USD225.23K).
Compensation vs Earnings: Weidong's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 0yrs | HK$1.40m | 53.25% HK$357.0m | |
| CFO & Executive Director | 4.3yrs | HK$1.02m | 18.26% HK$122.4m | |
| Executive Director | 4.3yrs | HK$1.10m | no data | |
| Executive Director | 0.8yrs | no data | 0.25% HK$1.7m | |
| Independent Non-Executive Director | 3.9yrs | HK$280.00k | no data | |
| Independent Non-Executive Director | 1.6yrs | HK$140.00k | no data | |
| Independent Non-Executive Director | 3.9yrs | HK$280.00k | no data |
3.9yrs
Average Tenure
53yo
Average Age
Experienced Board: 2166's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Smart-Core Holdings Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Smart-Core Holdings Limited
- Ticker: 2166
- Exchange: SEHK
- Founded: 2005
- Industry: Technology Distributors
- Sector: Tech
- Market Cap: HK$670.419m
- Shares outstanding: 492.96m
- Website: https://www.smart-core.com.hk
Number of Employees
Location
- Smart-Core Holdings Limited
- Tower B
- 15th Floor
- Kwai Chung
- New Territories
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2166 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Oct 2016 |
Biography
Smart-Core Holdings Limited, an investment holding company, engages in the trading of integrated circuits and other electronic components in the People’s Republic of China. It also provides technical value-added services. The company’s products are used in various applications, such as smart media display, intelligent broadcasting terminal, mobile terminal, smart automotive electronics, and memory products. Its principal customers include consumer electronic product manufacturing companies, original design manufacturers, and original equipment manufacturers in the electronic product industry. The company was formerly known as Smart-Core Cloud Group Limited and changed its name to Smart-Core Holdings Limited in August 2016. The company was founded in 2005 and is based in Kwai Chung, Hong Kong. Smart-Core Holdings Limited is a subsidiary of Smart IC Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 13:07 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.