SmarTone Telecommunications Holdings Ltd. (315) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SmarTone Telecommunications Holdings Ltd.

China Telecom Corp. Ltd.

Hutchison Telecommunications Hong Kong Holdings Ltd.

Jiande International Holdings Ltd.

Why is SmarTone Telecommunications Holdings Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.93

Poor long term growth as Net Sales has grown by an annual rate of 1.14% and Operating profit at 2.75% over the last 5 years

Flat results in Dec 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 57.36%
RAW MATERIAL COST(Y) Grown by 8.31% (YoY)
OPERATING PROFIT MARGIN(Q) Lowest at 34.24 %

With ROE of 9.28%, it has a Very Attractive valuation with a 1.02 Price to Book Value

Over the past year, while the stock has generated a return of 12.10%, its profits have fallen by -3.2%

Real-Time Research Report

Verdict Report

How 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.

12.1%

2.19

14.96%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.14%

EBIT Growth (5y)

2.75%

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)

1.01

Tax Ratio

28.48%

Dividend Payout Ratio

73.61%

Pledged Shares

Institutional Holding

ROCE (avg)

14.90%

ROE (avg)

8.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.02

EV to EBIT

4.91

EV to EBITDA

1.50

EV to Capital Employed

1.03

EV to Sales

0.57

PEG Ratio

Dividend Yield

3.54%

ROCE (Latest)

20.96%

ROE (Latest)

9.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 4,934.32 MM

ROCE(HY)

Highest at 9.41%

CASH AND EQV(HY)

Highest at HKD 2,435.05 MM

DEBT-EQUITY RATIO (HY)

Lowest at -30.38 %

NET SALES(Q)

Highest at HKD 3,561.29 MM

EPS(Q)

Highest at HKD 0.25

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 57.36%

RAW MATERIAL COST(Y)

Grown by 8.31% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 34.24 %

Here's what is working for SmarTone Telecommunications Holdings Ltd.

Operating Cash Flow

Highest at HKD 4,934.32 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Net Sales

Highest at HKD 3,561.29 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

EPS

Highest at HKD 0.25

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Cash and Eqv

Highest at HKD 2,435.05 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -30.38 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for SmarTone Telecommunications Holdings Ltd.

Operating Profit Margin

Lowest at 34.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend Payout Ratio

Lowest at 57.36%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 8.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales