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Smart-Core Holdings Ltd. (2166) AI Stock Analysis

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HK:2166

Smart-Core Holdings Ltd.

(HKEX:2166)

Select Model
Rating:59Neutral
Price Target:HKD 3.50â–²(5.58% Upside)
Action:reiterated
Date:10/09/26

The score is held back primarily by weak cash flow quality (sharp negative operating/free cash flow in 2025) and bearish technical signals (price below major moving averages, negative MACD). These risks are partially offset by very compelling valuation metrics (low P/E and high dividend yield) and an improved balance sheet versus prior high-leverage periods.

Positive Factors
Revenue reboundThe 2025 revenue rebound shows renewed demand and restored business activity after several weaker years. If this recovery persists, it can improve operating leverage, support reinvestment, and strengthen the company’s ability to rebuild earnings over the next several quarters.
Negative Factors
Weak cash generationThe sharp move to negative operating and free cash flow is a material threat to earnings quality and financial flexibility. Persistent cash shortfalls could increase reliance on debt or working-capital funding, constrain investment, and make reported profitability less durable.

Smart-Core Holdings Ltd. (2166) vs. iShares MSCI Hong Kong ETF (EWH)

-50%0%50%100%150%200%250%300%HK:2166+91.73%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 1.84B
Dividend Yield
5.74%
Average Volume (3M)
603.32K
Price to Earnings (P/E)
3.8
Beta (1Y)
0.36
Revenue Growth
120.16%
EPS Growth
263.85%
Country
Hong Kong
Employees
350
Sector
Technology
Sector Strength
61
Industry
Technology Distributors

Smart-Core Holdings Ltd. Business Overview & Revenue Model

Company Description

Smart-Core Holdings Limited functions as an investment holding company primarily engaged in distributing integrated circuits and various other electronic components. The company's operations span the People's Republic of China, Singapore, and global...

Smart-Core Holdings Ltd. Financial Statement Overview

Summary

Income statement is moderately solid (revenue rebounded strongly in 2025 and profitability remains positive), and the balance sheet has improved with lower leverage and decent ROE. However, cash flow is a major concern: 2025 operating and free cash flow turned sharply negative, signaling weak and volatile earnings-to-cash conversion and raising working-capital risk.

Income Statement

72Positive

Balance Sheet

66Positive

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue10.61B6.59B4.65B5.67B10.01B10.39B
Gross Profit655.41M409.53M311.68M441.46M1.09B989.95M
EBITDA375.06M166.97M153.95M189.30M558.05M542.68M
Net Income402.87M161.35M100.34M71.13M164.74M214.06M
Balance Sheet
Total Assets4.00B2.26B1.69B1.74B2.86B3.64B
Cash, Cash Equivalents and Short-Term Investments454.25M336.64M297.72M395.28M494.40M290.93M
Total Debt1.30B568.36M315.68M484.46M1.05B1.67B
Total Liabilities2.69B1.20B734.14M835.88M1.66B2.60B
Stockholders Equity1.31B1.06B959.33M904.74M873.37M805.99M
Cash Flow
Free Cash Flow-546.62M-379.14M215.36M355.83M859.24M-447.51M
Operating Cash Flow-545.68M-378.46M216.49M361.65M869.75M-441.23M
Investing Cash Flow-129.56M915.00K33.25M27.93M-74.70M-281.13M
Financing Cash Flow685.94M273.08M-173.44M-711.51M-592.78M775.02M

Smart-Core Holdings Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price3.31

Price Trends

50DMA4.01Negative
100DMA4.19Negative
200DMA3.68Negative

Market Momentum

MACD-0.13Negative
RSI40.04Neutral
STOCH41.45Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2166, the sentiment is Negative. The current price of 3.31 is below the 20-day moving average (MA) of 3.54, below the 50-day MA of 4.01, and below the 200-day MA of 3.68, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 41.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2166.

Smart-Core Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

HK:2166 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:1362HK:136274OutperformHKD 231.00M22.125.93%1.21%-32.77%337.65%
HK:0856HK:085666NeutralHKD 11.05B6.4116.01%5.43%10.80%37.32%
HK:2302HK:230263NeutralHKD 1.24B6.6421.49%―-15.95%-12.10%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
HK:0595HK:059560NeutralHKD 1.07B4.7112.36%1.64%12.17%331.64%
HK:2166HK:216659NeutralHKD 1.84B3.8134.04%5.74%120.16%263.85%
HK:0400HK:040044NeutralHKD 5.35B12.588.41%―81.43%65.90%

* Technology Sector Average

Performance Comparison

0%100%200%300%HK:2166HK:0856HK:0400HK:0595HK:2302HK:1362Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:2166 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:2166Smart-Core Holdings Ltd.3.311.5385.51%
HK:0856VSTECS Holdings Limited7.70-1.58-17.06%
HK:0400Cogobuy Group3.270.4415.72%
HK:0595AV Concept Holdings Limited1.220.82206.53%
HK:2302CNNC International Limited2.53-3.34-56.90%
HK:1362SiS Mobile Holdings Limited0.820.3468.71%

Smart-Core Holdings Ltd. Corporate Events

Smart-Core Holdings Delivers Surge in Interim Profit and Ups Dividend

Aug 25, 2026

Smart-Core Holdings Limited reported a sharp expansion in interim performance for the six months ended 30 June 2026, with group revenue surging 143.8% year on year to HK$6,818.3 million and gross profit climbing 152.0% to HK$408.9 million. Net profit...

Smart-Core Declares Interim Cash Dividend for First Half of 2026

Aug 25, 2026

Smart-Core Holdings Ltd. has declared an interim ordinary cash dividend of HKD 0.05 per share for the six months ended 30 June 2026, for the financial year ending 31 December 2026. The move underscores the company’s willingness to return cash t...

Smart-Core Sets August Board Meeting to Approve Interim Results and Consider Dividend

Aug 12, 2026

Smart-Core Holdings Ltd. has scheduled a board meeting for 25 August 2026 to review and approve the unaudited interim results for the six months ended 30 June 2026, along with their publication. The board will also consider the payment of an interim...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 09, 2026