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SMC Electric Limited (HK:2381)
:2381
Hong Kong Market
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SMC Electric Limited (2381) AI Stock Analysis

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HK:2381

SMC Electric Limited

(2381)

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Neutral 63 (OpenAI - Gpt-5.6Sol)
Rating:63Neutral
Price Target:
HK$0.36
▲(112.94% Upside)
Action:Reiterated
Date:09/11/26
The score is anchored by a strong balance sheet but weighed down by the latest-year deterioration in profitability and free cash flow. Technicals are supportive with a clear uptrend and positive momentum, while valuation is constrained by a negative P/E and only a moderate dividend yield.
Positive Factors
Low Leverage and Balance Sheet Resilience
Very low leverage and a sizable equity base reduce financial risk and preserve flexibility through weaker operating periods. This resilience can help the company sustain operations, absorb earnings volatility, and retain capacity for future investment without relying heavily on debt.
Negative Factors
Revenue Contraction and Margin Compression
The combination of a sharp revenue decline and very thin operating margin signals weakened demand or operating leverage, reducing earnings resilience. If sustained, this pressure could limit reinvestment, weaken competitive flexibility, and make profits more volatile over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage and Balance Sheet Resilience
Very low leverage and a sizable equity base reduce financial risk and preserve flexibility through weaker operating periods. This resilience can help the company sustain operations, absorb earnings volatility, and retain capacity for future investment without relying heavily on debt.
Read all positive factors

SMC Electric Limited (2381) vs. iShares MSCI Hong Kong ETF (EWH)

SMC Electric Limited Business Overview & Revenue Model

Company Description
Operating as an investment holding entity, SMC Electric Limited is engaged in the development, production, and sale of various electric appliances. Its market reach extends across North America, specifically the United States, Canada, and Mexico. ...

SMC Electric Limited Financial Statement Overview

Summary
Mixed fundamentals: a very strong, low-leverage balance sheet (debt-to-equity ~2.9% in 2025) supports resilience, but 2025 operating performance and cash generation weakened materially (revenue down ~17% YoY, operating margin ~1.3%, and free cash flow down sharply to ~4.0M from ~29.5M).
Income Statement
44
Neutral
Balance Sheet
86
Very Positive
Cash Flow
50
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue183.68M217.82M257.28M232.92M254.49M230.44M
Gross Profit33.84M51.38M71.08M63.69M69.96M61.89M
EBITDA-7.63M4.56M26.30M24.60M34.94M39.13M
Net Income-6.75M9.48M26.36M20.77M22.37M28.32M
Balance Sheet
Total Assets173.39M186.17M203.14M183.33M182.35M224.21M
Cash, Cash Equivalents and Short-Term Investments52.49M70.95M90.43M82.16M89.30M90.91M
Total Debt1.85M3.61M6.97M3.60M5.36M3.64M
Total Liabilities50.39M60.82M67.56M54.07M43.63M59.82M
Stockholders Equity123.00M125.35M135.58M129.26M138.72M164.40M
Cash Flow
Free Cash Flow-11.98M3.99M29.53M26.06M48.05M24.67M
Operating Cash Flow1.25M14.80M31.04M27.81M48.85M28.87M
Investing Cash Flow-13.22M-10.79M1.40M659.00K-212.00K-4.10M
Financing Cash Flow-23.73M-23.71M-23.71M-35.51M-49.63M-11.66M

SMC Electric Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.17
Price Trends
50DMA
0.23
Positive
100DMA
0.20
Positive
200DMA
0.16
Positive
Market Momentum
MACD
0.03
Negative
RSI
67.73
Neutral
STOCH
77.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2381, the sentiment is Positive. The current price of 0.17 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.23, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 77.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2381.

SMC Electric Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
HK$756.87B14.5019.96%4.95%9.41%6.11%
73
Outperform
HK$213.30B10.7214.77%6.41%0.59%-6.14%
63
Neutral
HK$680.00M-105.88-5.44%2.28%-30.25%-125.95%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
59
Neutral
HK$41.12B14.4215.74%6.32%-5.25%-15.94%
56
Neutral
HK$5.17B14.938.56%3.47%0.39%
52
Neutral
HK$314.51M-17.19-0.49%414.85%4.73%76.27%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2381
SMC Electric Limited
0.36
0.25
236.45%
HK:0921
Hisense Home Appliances Group Co
23.18
2.25
10.76%
HK:1691
JS Global Lifestyle Company Limited
1.51
-0.42
-21.76%
HK:2222
NVC International Holdings Ltd.
0.62
-0.15
-19.48%
HK:6690
Haier Smart Home Co., Ltd. Class H
20.58
-3.54
-14.67%
HK:0300
Midea Group Co. Ltd. Class H
99.20
18.05
22.25%

SMC Electric Limited Corporate Events

Mega Nova Takes Control of SMC Electric With HK$154 Million Stake Purchase
Sep 8, 2026
SMC Electric Limited is a Hong Kong-listed player in the electrical sector, though the release does not detail its specific products or geographic focus. The company’s shares trade on the Stock Exchange of Hong Kong, and its ownership has sh...
SMC Electric Swings to Interim Loss as Revenue Drops Sharply
Aug 31, 2026
SMC Electric Limited reported unaudited interim results for the six months ended 30 June 2026, showing a sharp downturn in performance compared with the prior year period. Revenue fell to HK$95.8 million from HK$130.0 million, and gross profit mor...
Mega Nova delays composite offer document in SMC Electric takeover
Aug 21, 2026
Mega Nova Holdings Limited and SMC Electric Limited have announced a delay in sending out a composite document related to a mandatory unconditional cash offer for all SMC Electric shares not already held or agreed to be acquired by the offeror and...
SMC Electric Sets Board Meeting to Approve 2026 Interim Results
Aug 19, 2026
SMC Electric Limited has scheduled a board meeting for 31 August 2026 to review and approve the unaudited consolidated interim results for the six months ended 30 June 2026. The meeting will also address any other business matters, signaling routi...
SMC Electric Declares HK$91.5 Million Conditional Special Dividend Tied to Deal Completion
Aug 13, 2026
SMC Electric Limited has declared a conditional special cash dividend of HK$0.04575 per share, totaling about HK$91.5 million, contingent on completion of a previously announced sale and purchase transaction. The board states that sufficient funds...
SMC Electric Declares Special Cash Dividend for Shareholders
Aug 13, 2026
SMC Electric Limited has declared a special cash dividend of HK$0.04575 per share, reinforcing its commitment to returning surplus capital to shareholders. The dividend will be paid in Hong Kong dollars, with the shares trading ex-dividend on 26 A...
SMC Electric Plans Board Meeting to Consider Special Dividend
Aug 3, 2026
SMC Electric Limited has convened a board meeting for 13 August 2026 to consider declaring and paying a special dividend to its shareholders, with further details to be announced if the payout is approved. The company cautioned that the proposed s...
Mega Nova to Acquire Majority Stake in SMC Electric, Triggers Mandatory Offer and Special Dividend
Jul 31, 2026
Mega Nova Holdings Limited has agreed to acquire 1.4 billion shares of SMC Electric Limited from the controlling shareholder, representing 70% of the company’s issued share capital, for HK$154 million at HK$0.11 per share. Completion will oc...
SMC Electric flags interim loss on weaker margins and disrupted sales
Jul 16, 2026
SMC Electric Limited has warned that it expects to report a loss attributable to shareholders of between HK$2 million and HK$5 million for the six months ended 30 June 2026, compared with a profit of about HK$12.9 million a year earlier. The board...
SMC Electric Shareholders Unanimously Back AGM Resolutions and Governance Changes
Jun 11, 2026
SMC Electric Limited reported that all resolutions at its 11 June 2026 annual general meeting were approved by poll with 100% of votes cast in favour, reflecting unanimous shareholder support across the agenda. Shareholders received and considered...
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: Sep 11, 2026