Smart-Core Holdings (SEHK:2166) - Share price, News & Analysis

2166 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	3/6
Dividends	3/6

2166 Stock Overview

Rewards

Trading at 33.1% below our estimate of its fair value

Earnings grew by 201.5% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Dividend of 9.09% is not well covered by earnings

Smart-Core Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Smart-Core Holdings
Historical stock prices
Current Share Price	HK$1.76
52 Week High	HK$2.19
52 Week Low	HK$1.10
Beta	0.079
1 Month Change	12.82%
3 Month Change	38.58%
1 Year Change	19.73%
3 Year Change	28.47%
5 Year Change	-3.82%
Change since IPO	-2.22%

Recent News & Updates

May 19

Smart-Core Holdings (HKG:2166) Has Announced That It Will Be Increasing Its Dividend To HK$0.08

Smart-Core Holdings Limited's ( HKG:2166 ) dividend will be increasing to HK$0.08 on 24th of June. This will take the...

Shareholder Returns

	2166	HK Electronic	HK Market
7D	0.6%	1.9%	2.1%
1Y	19.7%	-39.8%	-23.3%

Return vs Industry: 2166 exceeded the Hong Kong Electronic industry which returned -42.2% over the past year.

Return vs Market: 2166 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 2166's price volatile compared to industry and market?
2166 volatility
2166 Average Weekly Movement	6.5%
Electronic Industry Average Movement	6.5%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 2166 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 2166's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	570	Weidong Tian	https://www.smart-core.com.hk

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, Singapore, and internationally. The company operates through Authorised Distribution and Independent Distribution segments. Its products are used in various applications, such as television products, smart terminals, memory products, optoelectronic displays, communication, security monitoring, Internet of Things, optical communication, etc. The company also engages in the provision of technical solutions and support services; e-commerce platform business; and the manufacture of optical communication chips.

Smart-Core Holdings Fundamentals Summary

How do Smart-Core Holdings's earnings and revenue compare to its market cap?
2166 fundamental statistics
Market Cap	HK$860.08m
Earnings (TTM)	HK$214.06m
Revenue (TTM)	HK$10.39b

4.0x

P/E Ratio

0.1x

P/S Ratio

Is 2166 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2166 income statement (TTM)
Revenue	HK$10.39b
Cost of Revenue	HK$9.40b
Gross Profit	HK$989.95m
Other Expenses	HK$775.89m
Earnings	HK$214.06m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.44
Gross Margin	9.53%
Net Profit Margin	2.06%
Debt/Equity Ratio	157.5%

How did 2166 perform over the long term?

See historical performance and comparison

Dividends

9.1%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2166 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2166?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2166. This is calculated by dividing 2166's market cap by their current preferred multiple.
What is 2166's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$860.08m

2166 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.2x
Enterprise Value/EBITDA	4.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 2166's PE Ratio compare to its peers?

2166 PE Ratio vs Peers

The above table shows the PE ratio for 2166 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.2x

Forward PE

Price-To-Earnings vs Peers: 2166 is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (10.2x).

Price to Earnings Ratio vs Industry

How does 2166's PE Ratio compare vs other companies in the Hong Kong Electronic Industry?

Price-To-Earnings vs Industry: 2166 is good value based on its Price-To-Earnings Ratio (4x) compared to the Hong Kong Electronic industry average (7x)

Price to Earnings Ratio vs Fair Ratio

What is 2166's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2166 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2166's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 2166 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2166 (HK$1.76) is trading below our estimate of fair value (HK$2.63)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2166's PEG Ratio to determine if it is good value.

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Future Growth

How is Smart-Core Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.4%

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.

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Examine whether Smart-Core Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Smart-Core Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

15.9%

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 (2.1%) are higher than last year (1.3%).

Past Earnings Growth Analysis

Earnings Trend: 2166's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: 2166's earnings growth over the past year (201.5%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: 2166 earnings growth over the past year (201.5%) exceeded the Electronic industry 19.6%.

Return on Equity

High ROE: Whilst 2166's Return on Equity (37.58%) is high, this metric is skewed due to their high level of debt.

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Financial Health

How is Smart-Core Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 2166's short term assets (HK$3.4B) exceed its short term liabilities (HK$2.6B).

Long Term Liabilities: 2166's short term assets (HK$3.4B) exceed its long term liabilities (HK$24.7M).

Debt to Equity History and Analysis

Debt Level: 2166's net debt to equity ratio (121.5%) is considered high.

Reducing Debt: 2166's debt to equity ratio has increased from 39.4% to 157.5% 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 (9.9x coverage).

Balance Sheet

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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

9.09%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 2166's dividend (9.09%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.76%).

High Dividend: 2166's dividend (9.09%) is in the top 25% of dividend payers in the Hong Kong market (7.89%)

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's dividend payments have increased, but the company has only paid a dividend for 5 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.4%), 2166's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 2166 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average board tenure

CEO

Weidong Tian (55 yo)

no data

Tenure

HK$1,870,000

Compensation

Mr. Weidong Tian is a 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 and is re...

CEO Compensation Analysis

Compensation vs Market: Weidong's total compensation ($USD238.24K) is about average for companies of similar size in the Hong Kong market ($USD232.99K).

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

Board Members

Experienced Board: 2166's board of directors are considered experienced (6.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31