SEHK:2166

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Smart-Core Holdings

Executive Summary

Smart-Core Holdings Limited, an investment holding company, engages in the distribution of integrated circuits and other electronic components in the People’s Republic of China. More Details


Snowflake Analysis

Excellent balance sheet and fair value.

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

-3.1%

2166

0.6%

HK Electronic

1.2%

HK Market


1 Year Return

-5.9%

2166

-3.9%

HK Electronic

2.7%

HK Market

Return vs Industry: 2166 underperformed the Hong Kong Electronic industry which returned -3.9% over the past year.

Return vs Market: 2166 underperformed the Hong Kong Market which returned 2.7% over the past year.


Shareholder returns

2166IndustryMarket
7 Day-3.1%0.6%1.2%
30 Day-1.6%2.1%4.0%
90 Day3.3%-6.4%3.2%
1 Year-3.0%-5.9%-0.9%-3.9%7.0%2.7%
3 Year-24.0%-31.4%-33.4%-39.0%-4.4%-14.8%
5 Yearn/a18.1%2.1%19.5%-0.7%

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

Valuation

Is Smart-Core Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2166 (HK$1.27) is trading below our estimate of fair value (HK$23.72)

Significantly Below Fair Value: 2166 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2166 is good value based on its PE Ratio (11.5x) compared to the HK Electronic industry average (12.4x).

PE vs Market: 2166 is poor value based on its PE Ratio (11.5x) compared to the Hong Kong market (11.1x).


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 (1x) compared to the HK Electronic industry average (0.8x).


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?

20.5%

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

Past Performance

How has Smart-Core Holdings performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2166 has high quality earnings.

Growing Profit Margin: 2166's current net profit margins (1.1%) are lower than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: 2166's earnings have declined by 1% per year over the past 5 years.

Accelerating Growth: 2166's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 2166 had negative earnings growth (-24.6%) over the past year, making it difficult to compare to the Electronic industry average (-15.1%).


Return on Equity

High ROE: 2166's Return on Equity (9.8%) is considered low.


Next Steps

Financial Health

How is Smart-Core Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2166's short term assets (HK$1.3B) exceed its short term liabilities (HK$834.0M).

Long Term Liabilities: 2166's short term assets (HK$1.3B) exceed its long term liabilities (HK$12.1M).


Debt to Equity History and Analysis

Debt Level: 2166's debt to equity ratio (53.7%) is considered high.

Reducing Debt: 2166's debt to equity ratio has reduced from 129.8% to 53.7% over the past 5 years.

Debt Coverage: 2166's debt is well covered by operating cash flow (88.9%).

Interest Coverage: 2166's interest payments on its debt are well covered by EBIT (4.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Smart-Core Holdings's current dividend yield, its reliability and sustainability?

3.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2166's dividend (3.15%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 2166's dividend (3.15%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 2166 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 2166 has only been paying a dividend for 3 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.1%), 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?

4.6yrs

Average board tenure


CEO

Weidong Tian (54 yo)

no data

Tenure

HK$1,348,000

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 ($USD173.93K) is about average for companies of similar size in the Hong Kong market ($USD232.63K).

Compensation vs Earnings: Weidong's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Weidong Tian
Founderno dataHK$1.35m53.35%
HK$ 333.4m
Tsz Leung Wong
CFO & Executive Director5yrsHK$988.00k18.29%
HK$ 114.3m
Hongbing Liu
Executive Director5yrsHK$1.05mno data
Yan Qing
Executive Director1.5yrsHK$677.00k0.25%
HK$ 1.6m
Ming-Je Tang
Independent Non-Executive Director4.58yrsHK$300.00kno data
Hok Leung Wong
Independent Non-Executive Director2.25yrsHK$300.00kno data
Gang Zheng
Independent Non-Executive Director4.58yrsHK$300.00kno data

4.6yrs

Average Tenure

54yo

Average Age

Experienced Board: 2166's board of directors are considered experienced (4.6 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$624.910m
  • Shares outstanding: 492.06m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2166SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2016

Biography

Smart-Core Holdings Limited, an investment holding company, engages in the distribution of integrated circuits and other electronic components in the People’s Republic of China. Its products are used in va ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 12:44
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.