New Risk • Jun 25
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Hong Kong stocks, typically moving 16% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (16% average weekly change). Earnings have declined by 8.6% per year over the past 5 years. High level of non-cash earnings (42% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to HK$4.41, the stock trades at a trailing P/E ratio of 12.5x. Average trailing P/E is 19x in the Electronic industry in Hong Kong. Total returns to shareholders of 149% over the past three years. Valuation Update With 7 Day Price Move • May 27
Investor sentiment improves as stock rises 27% After last week's 27% share price gain to HK$5.71, the stock trades at a trailing P/E ratio of 16.2x. Average trailing P/E is 17x in the Electronic industry in Hong Kong. Total returns to shareholders of 268% over the past three years. Upcoming Dividend • May 25
Upcoming dividend of HK$0.14 per share Eligible shareholders must have bought the stock before 01 June 2026. Payment date: 26 June 2026. Payout ratio is a comfortable 49% but the company is not cash flow positive. Trailing yield: 3.5%. Lower than top quartile of Hong Kong dividend payers (6.9%). Higher than average of industry peers (2.5%). New Risk • May 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 11% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 8.6% per year over the past 5 years. High level of non-cash earnings (42% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (11% average weekly change). Valuation Update With 7 Day Price Move • May 05
Investor sentiment improves as stock rises 28% After last week's 28% share price gain to HK$3.71, the stock trades at a trailing P/E ratio of 10.5x. Average trailing P/E is 15x in the Electronic industry in Hong Kong. Total returns to shareholders of 126% over the past three years. Board Change • Apr 22
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. 3 independent directors (5 non-independent directors). Independent Non-executive Director Chen Lin was the last independent director to join the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Declared Dividend • Apr 02
Final dividend increased to HK$0.14 Dividend of HK$0.14 is 40% higher than last year. Ex-date: 1st June 2026 Payment date: 26th June 2026 Dividend yield will be 6.2%, which is higher than the industry average of 4.2%. Sustainability & Growth The dividend has increased by an average of 14% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has grown by 19% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 31
Smart-Core Holdings Limited, Annual General Meeting, May 22, 2026 Smart-Core Holdings Limited, Annual General Meeting, May 22, 2026. Announcement • Mar 13
Smart-Core Holdings Limited to Report Fiscal Year 2025 Results on Mar 31, 2026 Smart-Core Holdings Limited announced that they will report fiscal year 2025 results on Mar 31, 2026 Buy Or Sell Opportunity • Jan 07
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 21% to HK$2.45. The fair value is estimated to be HK$2.02, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 34% over the last 3 years. Earnings per share has declined by 28%. New Risk • Sep 24
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 5.4% per year over the past 5 years. High level of non-cash earnings (26% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Sep 11
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$1.94, the stock trades at a trailing P/E ratio of 8x. Average trailing P/E is 12x in the Electronic industry in Hong Kong. Total returns to shareholders of 16% over the past three years. Reported Earnings • Sep 03
First half 2025 earnings released: EPS: HK$0.10 (vs HK$0.077 in 1H 2024) First half 2025 results: EPS: HK$0.10 (up from HK$0.077 in 1H 2024). Revenue: HK$2.80b (up 6.6% from 1H 2024). Net income: HK$48.5m (up 33% from 1H 2024). Profit margin: 1.7% (up from 1.4% in 1H 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Declared Dividend • Aug 31
First half dividend increased to HK$0.03 Dividend of HK$0.03 is 50% higher than last year. Ex-date: 15th September 2025 Payment date: 30th September 2025 Dividend yield will be 6.6%, which is higher than the industry average of 4.2%. Sustainability & Growth Dividend is well covered by both earnings (41% earnings payout ratio) and cash flows (26% cash payout ratio). The dividend has increased by an average of 15% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 17% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Aug 30
New major risk - Revenue and earnings growth Earnings have declined by 5.8% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 5.8% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Aug 09
Smart-Core Holdings Limited to Report First Half, 2025 Results on Aug 29, 2025 Smart-Core Holdings Limited announced that they will report first half, 2025 results on Aug 29, 2025 Upcoming Dividend • May 26
Upcoming dividend of HK$0.10 per share Eligible shareholders must have bought the stock before 02 June 2025. Payment date: 27 June 2025. Payout ratio is a comfortable 56% and this is well supported by cash flows. Trailing yield: 7.2%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (3.6%). Announcement • May 23
Smart-Core Holdings Limited Approves Final Dividend for the Year Ended 31 December 2024 Smart-Core Holdings Limited, at the AGM held on 23 May 2025 approved a final dividend of HK 10 cents per share for the year ended 31 December 2024. New Risk • May 15
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$777.9m (US$99.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (HK$777.9m market cap, or US$99.6m). Declared Dividend • Mar 24
Final dividend of HK$0.10 announced Shareholders will receive a dividend of HK$0.10. Ex-date: 2nd June 2025 Payment date: 27th June 2025 Dividend yield will be 7.1%, which is higher than the industry average of 4.2%. Sustainability & Growth Dividend is covered by both earnings (56% earnings payout ratio) and cash flows (29% cash payout ratio). The dividend has increased by an average of 15% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 14% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. New Risk • Mar 23
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 12% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (HK$756.5m market cap, or US$97.3m). Reported Earnings • Mar 22
Full year 2024 earnings released: EPS: HK$0.21 (vs HK$0.15 in FY 2023) Full year 2024 results: EPS: HK$0.21 (up from HK$0.15 in FY 2023). Revenue: HK$4.65b (down 18% from FY 2023). Net income: HK$100.3m (up 41% from FY 2023). Profit margin: 2.2% (up from 1.3% in FY 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Announcement • Mar 21
Smart-Core Holdings Limited, Annual General Meeting, May 23, 2025 Smart-Core Holdings Limited, Annual General Meeting, May 23, 2025. New Risk • Feb 20
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$775.3m (US$99.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. New Risk • Nov 15
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$751.8m (US$96.6m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (HK$751.8m market cap, or US$96.6m). Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$1.63, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 9x in the Electronic industry in Hong Kong. Total returns to shareholders of 46% over the past three years. Upcoming Dividend • Sep 02
Upcoming dividend of HK$0.02 per share Eligible shareholders must have bought the stock before 09 September 2024. Payment date: 27 September 2024. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Hong Kong dividend payers (8.3%). In line with average of industry peers (3.5%). Reported Earnings • Aug 27
First half 2024 earnings released: EPS: HK$0.077 (vs HK$0.027 in 1H 2023) First half 2024 results: EPS: HK$0.077 (up from HK$0.027 in 1H 2023). Revenue: HK$2.62b (down 18% from 1H 2023). Net income: HK$36.3m (up 187% from 1H 2023). Profit margin: 1.4% (up from 0.4% in 1H 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Aug 26
Smart-Core Holdings Limited Announces Interim Dividend for the Six Months Ended 30 June 2024, Payable on September 27, 2024 Smart-Core Holdings Limited announced interim dividend of HKD 0.02 per share for the six months ended 30 June 2024. Ex-dividend date: 09 September 2024. Record date: 13 September 2024. Payment date: 27 September 2024. Announcement • Aug 22
Smart-Core Holdings Limited Provides Unaudited Earning Guidance for the Six Months Ended 30 June 2024 Smart-Core Holdings Limited provided unaudited earning guidance for the six months ended 30 June 2024. For the period, it is expected that the profit attributable to owners of the Company for the Period will record an increase of no less than HKD 23 million, representing an increase of no less than 180%, as compared with the profit attributable to owners of the Company for the six months ended 30 June 2023. The growth in the profit attributable to owners of the Company for the Period is mainly due to decrease in finance costs. During the Period, the Group had efficiently controlled and improved the inventory and debtor turnover rates, as a result, less bank and other borrowings were used for the business of the Group. Valuation Update With 7 Day Price Move • Aug 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$1.22, the stock trades at a trailing P/E ratio of 8.1x. Average trailing P/E is 9x in the Electronic industry in Hong Kong. Total loss to shareholders of 11% over the past three years. Announcement • Aug 09
Smart-Core Holdings Limited to Report Q2, 2024 Results on Aug 29, 2024 Smart-Core Holdings Limited announced that they will report Q2, 2024 results on Aug 29, 2024 Buy Or Sell Opportunity • Jul 11
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 12% to HK$1.23. The fair value is estimated to be HK$1.57, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 15%. Upcoming Dividend • May 27
Upcoming dividend of HK$0.05 per share Eligible shareholders must have bought the stock before 03 June 2024. Payment date: 28 June 2024. Payout ratio is a comfortable 33% and this is well supported by cash flows. Trailing yield: 3.7%. Lower than top quartile of Hong Kong dividend payers (7.6%). Higher than average of industry peers (3.1%). Announcement • May 25
Smart-Core Holdings Limited Declares Final Dividend for the Year Ended 31 December 2023 Smart-Core Holdings Limited announced that at the AGM was held on 24 May 2024, the company declared final dividend of 5 HK cents per share for the year ended 31 December 2023. Reported Earnings • Apr 21
Full year 2023 earnings released: EPS: HK$0.15 (vs HK$0.34 in FY 2022) Full year 2023 results: EPS: HK$0.15 (down from HK$0.34 in FY 2022). Revenue: HK$5.67b (down 43% from FY 2022). Net income: HK$71.1m (down 57% from FY 2022). Profit margin: 1.3% (down from 1.6% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$1.40, the stock trades at a trailing P/E ratio of 9.3x. Average trailing P/E is 9x in the Electronic industry in Hong Kong. Total returns to shareholders of 42% over the past three years. Announcement • Mar 23
Smart-Core Holdings Limited, Annual General Meeting, May 24, 2024 Smart-Core Holdings Limited, Annual General Meeting, May 24, 2024. Agenda: To approve final dividend for fiscal 2023. Reported Earnings • Mar 23
Full year 2023 earnings released: EPS: HK$0.15 (vs HK$0.34 in FY 2022) Full year 2023 results: EPS: HK$0.15 (down from HK$0.34 in FY 2022). Revenue: HK$5.67b (down 43% from FY 2022). Net income: HK$71.1m (down 57% from FY 2022). Profit margin: 1.3% (down from 1.6% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Announcement • Mar 08
Smart-Core Holdings Limited to Report Fiscal Year 2023 Results on Mar 22, 2024 Smart-Core Holdings Limited announced that they will report fiscal year 2023 results on Mar 22, 2024 Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to HK$1.18, the stock trades at a trailing P/E ratio of 17.2x. Average trailing P/E is 7x in the Electronic industry in Hong Kong. Total returns to shareholders of 13% over the past three years. Announcement • Dec 05
Smart-Core Holdings Limited Appoints Xue Chun as Independent Non-Executive Director and Member of the Audit Committee The Board of Smart-Core Holdings Limited announced that Dr. Xue Chun has been appointed as an independent non-executive Director and a member of the Audit Committee with effect from 4 December 2023. Dr. Xue, aged 49, has more than 25 years' of experience in the field of computer sciences and machine learning systems. Dr. Xue obtained a bachelor of science in computer science engineering in May 1997 from the University of Texas at Arlington, a master of science in computer science in December 2002 and a PhD in computer science in May 2007 from the University of Texas at Dallas. He has been working at the Department of Computer Science at the City University of Hong Kong since July 2007 where he was an assistant professor and was then promoted to an associate professor in July 2016. He is currently a professor at the City University of Hong Kong since March 2022. Following the appointment of Dr. Xue, (i) the Board comprises three independent non- executive Directors and the Company has appointed independent non-executive Directors representing a minimum of one-third of the Board as required under Rules 3.10(1) and 3.10A of the Listing Rules; and (ii) the Audit Committee comprises three members which fulfils the requirement under Rule 3.21 of the Listing Rules and the terms of reference of the Audit Committee. New Risk • Nov 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Hong Kong stocks, typically moving 9.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (9.9% average weekly change). Profit margins are more than 30% lower than last year (0.4% net profit margin). Market cap is less than US$100m (HK$771.3m market cap, or US$99.0m). Valuation Update With 7 Day Price Move • Nov 17
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to HK$1.49, the stock trades at a trailing P/E ratio of 21.8x. Average trailing P/E is 7x in the Electronic industry in Hong Kong. Total returns to shareholders of 35% over the past three years. Valuation Update With 7 Day Price Move • Sep 07
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to HK$1.22, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 8x in the Electronic industry in Hong Kong. Total returns to shareholders of 9.6% over the past three years. Announcement • Sep 05
Smart-Core Holdings Limited Announces Redesignation of Mr. Zheng Gang from Being an Independent Non-Executive Director to an Executive Director The board of directors of Smart-Core Holdings Limited announced that with effect from 4 September 2023: Mr. Zheng Gang has been redesignated from being an independent non-executive Director to an executive Director, and ceased to be the members of each of the audit committee of the Board and remuneration committee of the Board; and Ms. Xu Wei, an independent non-executive Director, has been appointed as the chairman of the Remuneration Committee. The biographical details of Mr. Zheng are set out as follows: Mr. Zheng, aged 55, was appointed as an independent non-executive Director of Company on 16 March 2016. Mr. Zheng has been the executive director of Yield Go Holdings Ltd., a company listed on The Stock Exchange of Hong Kong Limited since 1 October 2022. He was the executive director of Good Fellow Healthcare Holdings Limited (formerly known as Hua Xia Healthcare Holdings Limited), a company listed on the Stock Exchange (stock code: 8143) from August 2007 to 22 August 2023, a non-executive director of New Provenance Everlasting Holdings Limited, a company listed on the Stock Exchange from May 2018 to November 2019, and also an independent non-executive director of Opes Asia Development Limited (currently known as China Castson 81 Finance Company Limited), a company listed on the Stock Exchange from July 2012 to May 2013. Mr. Zheng has extensive experience in management in the finance and investment industry. Mr. Zheng obtained a degree in Bachelor of Electronic Engineering from Xiamen University in July 1989 and a degree of Master of Business Administration from University of Wales in April 1994. Save as disclosed above and as at the date of this announcement, Mr. Zheng does not hold any directorship in other public companies the securities of which are listed on any securities market in Hong Kong or overseas in the last three years or any other position with the Company and other members of the Group or other major appointments and professional qualifications. Reported Earnings • Aug 27
First half 2023 earnings released: EPS: HK$0.027 (vs HK$0.30 in 1H 2022) First half 2023 results: EPS: HK$0.027 (down from HK$0.30 in 1H 2022). Revenue: HK$3.18b (down 44% from 1H 2022). Net income: HK$12.7m (down 91% from 1H 2022). Profit margin: 0.4% (down from 2.6% in 1H 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. New Risk • Aug 26
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.4% Last year net profit margin: 2.4% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (0.4% net profit margin). Announcement • Aug 20
Smart-Core Holdings Limited Provides Unaudited Earnings Guidance for the Six Months Ended 30 June, 2023 Smart-Core Holdings Limited provides unaudited earnings guidance for the six months ended 30 June, 2023. For the period, the company expected that the profit attributable to owners of the Company for the Period will record adecrease of approximately 90% as compared to the profit attributable to owners of the Company for the six months ended 30 June 2022 (2022: HKD 145.2 million). The decrease in profit attributable to owners of the Company for the Period is mainly due to the decrease in revenue recorded as a result of the drop in the sales orders received from customers. Announcement • Aug 09
Smart-Core Holdings Limited to Report First Half, 2023 Results on Aug 25, 2023 Smart-Core Holdings Limited announced that they will report first half, 2023 results on Aug 25, 2023 Valuation Update With 7 Day Price Move • Jun 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to HK$2.24, the stock trades at a trailing P/E ratio of 6.4x. Average trailing P/E is 6x in the Electronic industry in Hong Kong. Total returns to shareholders of 106% over the past three years. Upcoming Dividend • May 29
Upcoming dividend of HK$0.06 per share at 5.3% yield Eligible shareholders must have bought the stock before 05 June 2023. Payment date: 23 June 2023. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 5.3%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (3.4%). Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: HK$0.34 (vs HK$0.44 in FY 2021) Full year 2022 results: EPS: HK$0.34 (down from HK$0.44 in FY 2021). Revenue: HK$10.0b (down 3.7% from FY 2021). Net income: HK$164.7m (down 23% from FY 2021). Profit margin: 1.6% (down from 2.1% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 51% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 28
Investor sentiment improved over the past week After last week's 18% share price gain to HK$2.29, the stock trades at a trailing P/E ratio of 4.2x. Average trailing P/E is 6x in the Electronic industry in Hong Kong. Total returns to shareholders of 79% over the past three years. Board Change • Nov 16
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Wei Xu was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Sep 02
Upcoming dividend of HK$0.04 per share Eligible shareholders must have bought the stock before 09 September 2022. Payment date: 30 September 2022. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 6.2%. Lower than top quartile of Hong Kong dividend payers (8.2%). Higher than average of industry peers (5.6%). Reported Earnings • Aug 27
First half 2022 earnings released: EPS: HK$0.30 (vs HK$0.19 in 1H 2021) First half 2022 results: EPS: HK$0.30 (up from HK$0.19 in 1H 2021). Revenue: HK$5.66b (up 15% from 1H 2021). Net income: HK$145.2m (up 54% from 1H 2021). Profit margin: 2.6% (up from 1.9% in 1H 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 60% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Aug 26
Smart-Core Holdings Limited Announces Interim Dividend for the Six Months Ended 30 June 2022, Payable on September 30, 2022 Smart-Core Holdings Limited announced Interim dividend of HKD 0.04 per share for the Six Months Ended 30 June 2022. Ex-dividend date is 12 September 2022. Record date is 16 September 2022. Payment date is 30 September 2022. Announcement • May 26
Smart-Core Holdings Limited Approves Final Dividend for the Year Ended 31 December 2021 Smart-Core Holdings Limited approved final dividend of HK 8 cents per share for the year ended 31 December 2021 at its annual general meeting held on May 25, 2022. Upcoming Dividend • May 24
Upcoming dividend of HK$0.08 per share Eligible shareholders must have bought the stock before 31 May 2022. Payment date: 24 June 2022. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 10%. Within top quartile of Hong Kong dividend payers (7.8%). Higher than average of industry peers (5.1%). Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Wei Xu was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Apr 03
Full year 2021 earnings released: EPS: HK$0.44 (vs HK$0.14 in FY 2020) Full year 2021 results: EPS: HK$0.44 (up from HK$0.14 in FY 2020). Revenue: HK$10.4b (up 88% from FY 2020). Net income: HK$214.1m (up 202% from FY 2020). Profit margin: 2.1% (up from 1.3% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Executive Departure • Dec 06
Executive Director Yan Qing has left the company On the 6th of December, Yan Qing's tenure as Executive Director ended after 2.7 years in the role. As of September 2021, Yan still personally held 1.23m shares (HK$1.6m worth at the time). Yan is the only executive to leave the company over the last 12 months. Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improved over the past week After last week's 17% share price gain to HK$1.54, the stock trades at a trailing P/E ratio of 5.5x. Average trailing P/E is 9x in the Electronic industry in Hong Kong. Total returns to shareholders of 2.6% over the past three years. Upcoming Dividend • Sep 07
Upcoming dividend of HK$0.04 per share Eligible shareholders must have bought the stock before 14 September 2021. Payment date: 30 September 2021. Trailing yield: 5.1%. Lower than top quartile of Hong Kong dividend payers (6.5%). Higher than average of industry peers (2.8%). Reported Earnings • Aug 27
First half 2021 earnings released: EPS HK$0.19 (vs HK$0.061 in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: HK$4.91b (up 131% from 1H 2020). Net income: HK$94.6m (up 217% from 1H 2020). Profit margin: 1.9% (up from 1.4% in 1H 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Aug 12
Investor sentiment deteriorated over the past week After last week's 15% share price decline to HK$1.64, the stock trades at a trailing P/E ratio of 11.4x. Average trailing P/E is 11x in the Electronic industry in Hong Kong. Total returns to shareholders of 17% over the past three years. Valuation Update With 7 Day Price Move • Jul 28
Investor sentiment improved over the past week After last week's 23% share price gain to HK$1.82, the stock trades at a trailing P/E ratio of 12.6x. Average trailing P/E is 10x in the Electronic industry in Hong Kong. Total returns to shareholders of 30% over the past three years. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improved over the past week After last week's 18% share price gain to HK$1.57, the stock trades at a trailing P/E ratio of 10.9x. Average trailing P/E is 11x in the Electronic industry in Hong Kong. Total returns to shareholders of 19% over the past three years.