ScoreWhy is SmarTone Telecommunications Holdings Ltd. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.93
2
Poor long term growth as Net Sales has grown by an annual rate of -2.19% and Operating profit at 4.40% over the last 5 years
3
Flat results in Jun 25
- DEBTORS TURNOVER RATIO(HY) Lowest at 8.79 times
- INTEREST COVERAGE RATIO(Q) Lowest at 2,327.97
- DEBT-EQUITY RATIO (HY) Highest at 28.63 %
4
With ROE of 9.86%, it has a Very Attractive valuation with a 0.98 Price to Book Value
- Over the past year, while the stock has generated a return of 16.13%, its profits have risen by 81.1% ; the PEG ratio of the company is 0.1
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to SmarTone Telecommunications Holdings Ltd. should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is SmarTone Telecommunications Holdings Ltd. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
SmarTone Telecommunications Holdings Ltd.
-100.0%
2.36
15.38%
Hang Seng Hong Kong
8.25%
0.41
19.93%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.19%
EBIT Growth (5y)
4.40%
EBIT to Interest (avg)
11.93
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.21
Sales to Capital Employed (avg)
0.99
Tax Ratio
28.48%
Dividend Payout Ratio
73.61%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
14.90%
ROE (avg)
8.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.98
EV to EBIT
5.32
EV to EBITDA
1.64
EV to Capital Employed
0.98
EV to Sales
0.64
PEG Ratio
0.12
Dividend Yield
3.78%
ROCE (Latest)
18.34%
ROE (Latest)
9.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -4.24% (YoY
-12What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.79 times
INTEREST COVERAGE RATIO(Q)
Lowest at 2,327.97
DEBT-EQUITY RATIO
(HY)
Highest at 28.63 %
NET SALES(Q)
Lowest at HKD 2,761.91 MM
INTEREST(Q)
Highest at HKD 50.03 MM
OPERATING PROFIT(Q)
Lowest at HKD 1,164.75 MM
Here's what is working for SmarTone Telecommunications Holdings Ltd.
Raw Material Cost
Fallen by -4.24% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for SmarTone Telecommunications Holdings Ltd.
Interest Coverage Ratio
Lowest at 2,327.97
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debtors Turnover Ratio
Lowest at 8.79 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Net Sales
Lowest at HKD 2,761.91 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (HKD MM)
Interest
Highest at HKD 50.03 MM
in the last five periods and Increased by 121.84% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (HKD MM)
Operating Profit
Lowest at HKD 1,164.75 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (HKD MM)
Debt-Equity Ratio
Highest at 28.63 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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