SEHK:2239

Stock Analysis Report

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Executive Summary

SMIT Holdings Limited provides security devices for pay TV broadcasting access and mobile point-of-sale payment (mPOS) systems worldwide.


Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has SMIT Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2239's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.5%

2239

8.6%

HK Electronic

6.0%

HK Market


1 Year Return

11.5%

2239

5.3%

HK Electronic

-4.0%

HK Market

Return vs Industry: 2239 exceeded the Hong Kong Electronic industry which returned 4.9% over the past year.

Return vs Market: 2239 exceeded the Hong Kong Market which returned -4% over the past year.


Shareholder returns

2239IndustryMarket
7 Day8.5%8.6%6.0%
30 Day15.9%3.7%4.3%
90 Day-7.0%-10.9%-2.4%
1 Year11.9%11.5%7.4%5.3%-0.5%-4.0%
3 Year41.6%40.4%-21.6%-27.3%1.4%-9.2%
5 Yearn/a14.7%-0.3%-9.3%-23.6%

Price Volatility Vs. Market

How volatile is SMIT Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SMIT 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: 2239 (HK$3.58) is trading below our estimate of fair value (HK$19.98)

Significantly Below Fair Value: 2239 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2239 is poor value based on its PE Ratio (13.8x) compared to the Electronic industry average (9.2x).

PE vs Market: 2239 is poor value based on its PE Ratio (13.8x) compared to the Hong Kong market (9.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2239's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2239 is overvalued based on its PB Ratio (1.2x) compared to the HK Electronic industry average (0.7x).


Next Steps

Future Growth

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

19.8%

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 SMIT 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 SMIT Holdings performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2239 has a large one-off gain of $19.2M impacting its December 31 2019 financial results.

Growing Profit Margin: 2239's current net profit margins (27.8%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: 2239's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: 2239's earnings growth over the past year (704.6%) exceeds its 5-year average (0.2% per year).

Earnings vs Industry: 2239 earnings growth over the past year (704.6%) exceeded the Electronic industry -4.3%.


Return on Equity

High ROE: 2239's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is SMIT Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 2239's short term assets ($104.2M) exceed its short term liabilities ($45.6M).

Long Term Liabilities: 2239's short term assets ($104.2M) exceed its long term liabilities ($8.3M).


Debt to Equity History and Analysis

Debt Level: 2239 is debt free.

Reducing Debt: 2239 had no debt 5 years ago.

Debt Coverage: 2239 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 2239 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is SMIT Holdings's current dividend yield, its reliability and sustainability?

0.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2239's dividend (0.28%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.43%).

High Dividend: 2239's dividend (0.28%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.03%).


Stability and Growth of Payments

Stable Dividend: 2239 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2239 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2239 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2239's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

4.3yrs

Average board tenure


CEO

Xueliang Huang (56yo)

4.75yrs

Tenure

US$544,504

Compensation

Mr. Xueliang Huang serves as Chief Executive Officer and Chairman at SMIT Holdings Limited since September 20, 2015 and has been Executive Director since June 29, 2015. Mr. Huang founded SMIT Corporation i ...


CEO Compensation Analysis

Compensation vs Market: Xueliang's total compensation ($USD544.50K) is above average for companies of similar size in the Hong Kong market ($USD228.98K).

Compensation vs Earnings: Xueliang's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Xueliang Huang
CEO & Chairman of the Board4.75yrsUS$544.50k46.4% $528.9m
Hongyu Shuai
President3.25yrsUS$493.28k0.43% $4.9m
Man-tsun Loong
CFO, Executive VP & Executive Director3.25yrsUS$463.99kno data
Chung-yuen Kwan
Non-Executive Director4.75yrsUS$24.00k0.34% $3.9m
Kar Tung Woo
Independent Non-Executive Director4.25yrsUS$24.00kno data
Junjie Zhang
Independent Non-Executive Director4.25yrsUS$24.00kno data
Yufeng Jin
Independent Non-Executive Director4.25yrsUS$24.00kno data
Yang Liu
Non-Executive Director0.25yrno datano data

4.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: 2239's board of directors are considered experienced (4.3 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.


Top Shareholders

Company Information

SMIT Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SMIT Holdings Limited
  • Ticker: 2239
  • Exchange: SEHK
  • Founded: 2002
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: HK$1.140b
  • Shares outstanding: 318.34m
  • Website: https://www.smit.com.cn

Number of Employees


Location

  • SMIT Holdings Limited
  • Harbour View 2
  • 1st Floor
  • Sha Tin
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2239SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2016

Biography

SMIT Holdings Limited provides security devices for pay TV broadcasting access and mobile point-of-sale payment (mPOS) systems worldwide. It operates through three segments: CAM and mPOS, Rapid Verification System and Software, and EDA. The company also develops and markets mPOS systems, which enable users to conduct credit and debit card transactions using their smartphones or tablets. In addition, it develops and sells rapid hardware-based verification system and software; and involved in the development and application of full process electronic design automation system for chip design. SMIT Holdings Limited was founded in 2002 and is headquartered in Wanchai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 13:58
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
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.