SMIT Holdings AI Stock Analysis
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SMIT Holdings (2239) AI Stock Analysis
SMIT Holdings
(HKEX:2239)
The overall score is constrained by weak financial performance, particularly persistent negative cash flow and unprofitability, which are the most significant factors. Bearish technical momentum and a high P/E ratio further weigh on the score. The company's strong, low-debt balance sheet is the primary mitigating factor, providing a financial cushion but not enough to offset the operational challenges.
SMIT Holdings (2239) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 402.92M
- Dividend Yield
- 0.81%
- Average Volume (3M)
- 23.46K
- Price to Earnings (P/E)
- 39.2
- Beta (1Y)
- 0.36
- Revenue Growth
- 32.17%
- EPS Growth
- ―
- Country
- Hong Kong
- Employees
- 104
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Communication Equipment
SMIT Holdings Business Overview & Revenue Model
Company Description
SMIT Holdings Limited is a global entity focused on designing, developing, and commercializing security devices. These solutions cater to secure access for pay TV broadcasting and mobile point-of-sale (mPOS) payment systems worldwide. The company's o...
How the Company Makes Money
SMIT Holdings makes money primarily by selling its manufactured electrical/electronic products and related components to customers (i.e., revenue is recognized from product sales). Key revenue drivers typically include (1) shipment volume and product...
SMIT Holdings Financial Statement Overview
Summary
Financial performance is mixed. The balance sheet is strong (Score 80) with minimal debt, but this is offset by weak cash flow (Score 30) and persistent unprofitability (Income Score 35). The narrowing net loss and improved gross margin are positive signals, but negative operating cash flow remains a significant concern.
Income Statement
35NegativeBalance Sheet
80PositiveCash Flow
30Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.29M | 14.71M | 13.98M | 22.47M | 29.41M | 36.25M |
| Gross Profit | 7.85M | 7.74M | 7.53M | 8.38M | 12.14M | 17.13M |
| EBITDA | -3.41M | -1.45M | 400.82K | -9.40M | 83.26M | 4.77M |
| Net Income | 1.48M | -5.30M | -38.46M | -13.90M | 57.19M | 9.84M |
Balance Sheet | ||||||
| Total Assets | 146.40M | 154.78M | 151.20M | 195.94M | 247.24M | 232.03M |
| Cash, Cash Equivalents and Short-Term Investments | 41.99M | 19.02M | 19.07M | 20.57M | 48.23M | 18.80M |
| Total Debt | 3.40M | 1.80M | 1.33M | 868.45K | 18.59M | 30.96M |
| Total Liabilities | 24.49M | 27.26M | 20.61M | 24.44M | 59.65M | 93.65M |
| Stockholders Equity | 119.00M | 125.22M | 129.12M | 169.59M | 185.39M | 135.95M |
Cash Flow | ||||||
| Free Cash Flow | -4.67M | -5.90M | -762.87K | -13.01M | 20.46M | -9.01M |
| Operating Cash Flow | -4.42M | -5.27M | -473.12K | -12.55M | 26.74M | 9.52M |
| Investing Cash Flow | 30.77M | 6.67M | 372.85K | 2.62M | 12.61M | -26.29M |
| Financing Cash Flow | 1.60M | -1.50M | -1.36M | -17.08M | -9.67M | -11.34M |
SMIT Holdings Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2239, the sentiment is Negative. The current price of 1.23 is below the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.27, and above the 200-day MA of 1.12, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 84.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2239.
SMIT Holdings Peers Comparison
Overall Rating
HK:161761.5Neutral
HK:190060Neutral
HK:052957Neutral
HK:077156Neutral
HK:147352Neutral- HK:223946Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:1617 | 62Neutral | HKD 297.60M | 5.69 | 4.88% | ― | 11.57% | -26.37% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| HK:1900 | 60Neutral | HKD 232.23M | -0.74 | -14.17% | ― | -7.04% | -163.40% |
| HK:0529 | 57Neutral | HKD 483.66M | 9.59 | 1.66% | 1.21% | 6.08% | -86.65% |
| HK:0771 | 56Neutral | HKD 587.60M | -2.32 | -11.90% | 4.29% | 4.44% | -266.43% |
| HK:1473 | 52Neutral | HKD 1.31B | 28.61 | 14.03% | 1.40% | 4.77% | 19.94% |
| HK:2239 | 46Neutral | HKD 399.67M | 39.19 | 1.22% | 0.81% | 32.17% | ― |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:2239 | SMIT Holdings | 1.23 | 0.43 | 54.72% | |
| HK:0529 | SiS International Holdings | 1.71 | -0.36 | -17.39% | |
| HK:1473 | Pangaea Connectivity Technology Limited | 1.07 | 0.69 | 177.92% | |
| HK:1617 | Nanfang Communication Holdings Ltd. | 0.17 | 0.07 | 62.62% | |
| HK:1900 | China ITS Holdings Co., Ltd. | 0.14 | -0.18 | -57.81% | |
| HK:0771 | Automated Systems Holdings Limited | 0.70 | -0.02 | -3.05% |
SMIT Holdings Corporate Events
SMIT Holdings Completes Exit from X-Times Equity Investment
SMIT Holdings Limited has completed the disposal of its remaining equity interest in X-Times, following the satisfaction of all conditions under Equity Transfer Agreement A on 12 October 2026. Together with the earlier completion of Equity Transfer B...
SMIT Holdings Refines Terms of X-Times Equity Disposal in Supplemental Agreement
SMIT Holdings Limited has entered into a supplemental agreement relating to the previously announced disposal of its equity interest in X-Times, adjusting the structure of the transaction while keeping the total number of shares sold and overall cons...
SMIT Holdings Narrows Interim Loss Despite Higher Investment-Related Losses
SMIT Holdings reported interim unaudited revenue of USD 8.67 million for the six months ended 30 June 2026, up from USD 7.07 million a year earlier, with gross profit edging higher to USD 4.21 million. Despite this top-line growth, the group posted a...
SMIT Holdings Sells Minority Stake in X-Times for RMB63.2 Million
SMIT Holdings has agreed to dispose of part of its equity interest in X-Times through two equity transfer agreements signed on 20 July 2026. A wholly owned subsidiary will sell a total of 5,000,000 X-Times shares, representing about 3.95% of X-Times’...
SMIT Holdings Completes Major Disposal of Shenzhen Giga Stake
SMIT Holdings Limited has completed the disposal of its equity interest in Shenzhen Giga, following satisfaction of all conditions precedent under an equity transfer agreement. The industrial and commercial registration for the transaction was finali...
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: Sep 12, 2026