Smartone Telecommunications Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = HK$5.37b | Revenue (TTM) = HK$6.60b
Market Cap = HK$5.37b | Estimated Revenue = HK$6.19b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = HK$3.53b | Revenue (TTM) = HK$6.60b
Enterprise Value = HK$3.53b | Forward Revenue = HK$6.19b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF) | ex SBC
📈 What is it?
EV/FCF compares a company’s enterprise value with its free cash flow. The metric therefore shows the multiple of current free cash flow at which a company is valued. EV/FCF ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted version.
🧮 How is it calculated?
EV/FCF ex SBC = Enterprise Value ÷ (Free Cash Flow (TTM) − SBC)
🏛️ Why is it important?
EV/FCF provides a valuation based on free cash flow and therefore complements earnings-based valuation metrics such as the P/E ratio. The ex SBC version additionally accounts for the economic impact of stock-based compensation and provides a more conservative view from a shareholder perspective.
🎯 What does this mean for investors?
- A low EV/FCF means that enterprise value is low relative to current free cash flow. The reasons should always be considered in the context of the company and its industry.
- A high EV/FCF means that enterprise value is high relative to current free cash flow. This can, for example, reflect high growth expectations or temporarily weak cash generation.
- When SBC is positive and adjusted free cash flow remains positive, EV/FCF ex SBC is generally higher than the standard EV/FCF.
- The metric is particularly useful for companies with relatively stable and predictable cash flows.
- If free cash flow is negative or very low, EV/FCF has limited usefulness and should not be interpreted like a standard valuation multiple.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🧮 Calculation
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF) | ex SBC
📈 What is it?
Free cash flow shows how much cash remains after a company has covered its operating and capital expenditures. FCF ex SBC additionally deducts stock-based compensation (SBC) to adjust the cash flow for the effect of non-cash SBC.
🧮 How is it calculated?
Free Cash Flow ex SBC = Operating Cash Flow − SBC − Capital Expenditures (CAPEX)
🏛️ Why is it important?
FCF reflects a company’s actual financial strength – independent of reported accounting earnings. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction. FCF ex SBC also deducts stock-based compensation and shows how much cash generation remains after SBC.
🎯 What does this mean for investors?
- High free cash flow indicates that a company has strong financial strength – independent of reported earnings.
- It is often a solid basis for sustainable dividends and share buybacks.
- Declining FCF can be a warning sign, even if reported earnings remain stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🧮 Calculation
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net Margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free Cash Flow Margin | ex SBC
📈 What is it?
The Free Cash Flow Margin shows how much free cash flow a company generates relative to its revenue. In simplified terms, free cash flow is calculated as operating cash flow minus capital expenditures. The Free Cash Flow Margin ex SBC additionally accounts for stock-based compensation (SBC). While SBC does not represent a direct cash outflow, issuing shares as compensation can dilute existing shareholders. Therefore, SBC is deducted from free cash flow in this adjusted metric.
🧮 How is it calculated?
Free Cash Flow Margin ex SBC = (Free Cash Flow − SBC) ÷ Revenue × 100
🏛️ Why is it important?
The Free Cash Flow Margin shows how efficiently a company converts its revenue into free cash flow. Strong free cash flow can provide financial flexibility for dividends, share buybacks, debt repayment, or further investments. The ex SBC version additionally accounts for the economic impact of stock-based compensation and therefore provides a more conservative view of cash generation from a shareholder perspective.
🎯 What does this mean for investors?
- A high Free Cash Flow Margin shows that a company converts a high proportion of its revenue into free cash flow.
- This can provide greater financial flexibility for dividends, share buybacks, debt repayment, or investments.
- The Free Cash Flow Margin ex SBC additionally accounts for potential shareholder dilution from stock-based compensation.
- The long-term trend is particularly important. Declining margins can, for example, result from higher investments, changes in working capital, or weaker operating performance.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Revenue per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Smartone Telecommunications Stock Analysis
Analyst Opinions
7 Analysts have issued a Smartone Telecommunications forecast:
Analyst Opinions
7 Analysts have issued a Smartone Telecommunications forecast:
Smartone Telecommunications Events
Past Events
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SEP
2
Q4 2026 Earnings Call
about one month ago
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FEB
23
Q2 2026 Earnings Call
7 months ago
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StocksGuide Free
Smartone Telecommunications — Q4 2026 Earnings Call
1. Management Discussion
Good afternoon, ladies and gentlemen. Welcome to SmarTone Telecommunications Holdings Limited Annual Results Announcement and Management Presentation for the Financial Year 2025 and '26. First, may I introduce you to the executives with us here today: Ms. Fiona Lau, Executive Director and Chief Executive Officer; Mr. Stephen Chau, Executive Director and Chief Technology Officer; and finally, Ms. Ada Lam, Head of Finance. The briefing will first begin with a slide presentation by Ms. Fiona Lau and Mr. Stephen Chau covering the business review and outlook, while Ms. Ada Lam will cover the financial section, followed by a question-and-answer session. [Operator Instructions]
Now may I invite Ms. Lau to begin with the presentation, please.
Good afternoon, and welcome to SmarTone's FY '26 Annual Results Presentation. For today's presentation, Stephen and I will first take you through our business review. After that, Ada and I will take you through the financial review and outlook. In FY '25-'26, SmarTone delivered profitable growth despite an intensely competitive market. Our performance reflects disciplined execution, a more diversified revenue base and our continued focus on delivering quality growth. We are reporting stable revenue with a 10% growth in profit after tax. Mobile postpaid ARPU decreased slightly by 1% to HKD 220. Importantly, our 5G ARPU remained 2x that of our 4G, demonstrating the value customers continue to place on our premium network and service experience.
Our key growth drivers maintained good momentum. Consumer outbound data roaming revenue increased by 6%, while 5G Home Broadband revenue grew by 10% and EBIT increased by 31%. At the same time, operating expenses decreased by 6% and capital expenditure declined by 21%. Service EBITDA margin improved by 0.5 percentage points to 55%, demonstrating the benefits of disciplined cost and capital management. Our full year dividend per share is $0.32, same as last year. SmarTone total revenue increased by 5.6% to approximately $6.6 billion. Market competition remains very intense. Our underlying service revenue remained steady, while growth from more diversified revenue streams, including Enterprise Solutions, 5G Home Broadband, strengthened the overall revenue mix.
We will continue to make progress in scaling growth areas beyond traditional mobile connectivity. We continue to focus on growing a high-quality customer portfolio rather than pursuing volume at the expense of value. Our mobile postpaid customer base increased by 2% year-on-year. Mobile postpaid ARPU was $220, representing a modest decrease. This was achieved by both strengthening the proposition of our SmarTone PRIORITY premium customers at the top end as well as offering value for money bundles to retain and acquire new customers.
Our 5G stands at a premium to 4G. It proves that what we are offering as a superior network experience and service are well valued by our customers. Our strategy is not to compete on price alone, but to give customers clear and tangible reasons to move to higher-value plans. During the year, we introduced targeted propositions, including our 5G family sharing plan and Gen SmarT AI Plan, to address the different connectivity, lifestyle and digital needs of our customers. This value-driven approach paid off, effectively doubling our year-on-year 5G plan upgrades.
By translating our network strength into clear service tier benefits, we provide reasons for customers to upgrade. This supports ARPU resilience, deepens customer relationships and creates potential for more sustainable revenue growth over time. We also revamped our premium membership program to SmarTone PRIORITY, which contains more personalized service designed around customers' evolving digital connectivity and lifestyle needs. All SmarTone PRIORITY members are supported by dedicated relationship managers who can provide timely and customized solutions together with more personalized and attentive services. For customers traveling overseas, we have curated premium 5G roaming services across 23 destinations, covering more than 95% of our customers' travel traffic.
We work with leading overseas network providers to provide reliable connectivity and consistent SmarTone quality experience. We have strengthened emergency support for customers who lose their SIM card or mobile phone while traveling. Our assistance include SIM replacement and loan phone delivery in Tokyo and in Mainland China, helping our customers restore connectivity quickly when it matters the most. Together, these initiatives create a scalable premium service platform. They strengthen engagement and differentiation.
Beyond individual customers, we are developing a more integrated proposition for the entire family. The SmarTone Family Plan consolidates household connectivity under one account, allowing family members to share high-speed 5G data while simplifying account management through a single monthly bill. Customers can allocate data flexibly across connected SIM cards and upgrade to the Family Lite Plan as the household requirements grow. This has been one of our most successful propositions and customer acquisition channels. This will be a strength that we'll continue to build on.
We further expanded our family connectivity ecosystem with Kids Watch, a SmarTone exclusive solution that combines secure communication, seamless connectivity and greater independence for children. With a built-in SmarTone eSIM, children can stay connected at home, on the move and while traveling. Through our proprietary applications, families can create a private communication circle without relying on open social media or third-party messaging platforms. Calls, conversations and photo sharing remain within an approved group of family members. This gives children greater freedom while providing parents with more control and peace of mind. Together with our other family services, Kids Watch strengthens SmarTone's differentiated family proposition and creates a scalable platform for future connectivity, safety and digital lifestyle solutions.
We also have Kids CARE. This proposition is complemented by helping parents manage their children's digital health across different devices and operating system across both iOS and Android. Through one application, parents can stay connected with and protect the children even when the family members are using a mix of iOS and Android. The service supports up to 20 devices, allowing parents to manage digital assets across the family in a simple and a coordinated manner. Customers also have access to expert support when assistance is needed. Together, Kids Watch and Kids CARE enable us to serve families beyond basic mobile connectivity, supporting safer digital habits, closer family connections and greater peace of mind.
Building upon our kids-related services, our Family segment becomes much more complete when we expand our ecosystem to support elderly care. We recognize that modern households manage multigenerational needs, so we have to build a comprehensive safety and wellness network for seniors. Through our SmartHome Solutions, we enable the older family members to stay connected with their loved ones anywhere. To address critical safety concerns, the platform features automated emergency response triggers for physical accidents paired with continuous remote health monitoring to detect health risks.
Lastly, intelligent location mapping provides a dependable safety net if they ever get lost. By covering both child care and elderly care, we deliver total household peace of mind and significantly deepen our value to the entire family unit. 5G Home Broadband remained one of our key structural growth engines during the year. Revenue increased by 10% year-on-year, while EBIT rose by 31%. The strong profit growth reflects the attractive incremental margins and scalability of the business. The segment benefits from the accelerating adoption of premium 5G connectivity, synergistic customer acquisition through our existing subscriber base and a capital-efficient operating model. The strength give us confidence in the continued growth potential of 5G Home Broadband.
The sustained momentum was supported by continuous improvement in both our product and customer proposition. Wi-Fi 7 accounted for 45% of new subscriptions during the year. This supported ARPU growth and demonstrated strong demand for premium home connectivity experience. We also expanded our home service portfolio by introducing AI Connect on 5G Home Broadband, enabling families to access ChatGPT or Claude without a VPN. Together with Disney+ entertainment and HomePhone+, which is a fixed line substitute, this creates a more compelling and integrated proposition for the household.
In addition, we deepened our strategic collaboration with Sun Hung Kai Properties through tailored mobile and broadband offerings, enhancing the overall customer experience and supporting efficient customer acquisition. Taken together, these initiatives reinforce the competitiveness of our home proposition and its role as a scalable and profitable growth driver. For Mainland newcomer market, our strategy moves through 3 phases. We build awareness before departure by engaging specialty students at the Mainland orientations and highlighting our Call Guard anti-scam protection as a key differentiator.
Second, we strengthened post-arrival engagement by providing Mandarin language in-store support and launching dedicated cross-border plans tailored for the demographic. Furthermore, we expand our strategic partnerships by deepening ties with student housing operators and leveraging our group Sun Hung Kai synergies across the properties to offer exclusive onboarding privileges. Roaming. Our Roaming business continued to deliver solid momentum during the year. Consumer outbound data roaming revenue increased by 6% year-on-year, while the consumer roamer penetration rate reached 72%, representing an increase of 5 percentage points.
This performance was driven by our continued focus on effortless subscription and meticulous services designed around customers' changing international travel needs. Our objective is to support the customer throughout the entire travel journey rather than provide connectivity alone. For frequent and long-stay travelers, we introduced larger multi-day roaming passes, reducing the need for repeated purchases and making the experience more convenient. We also created a more complete travel proposition by combining roaming with year-round travel insurance, payment benefits and airport food and beverage privileges. This provides customers with greater value throughout their journey.
When unexpected incidents occur, our support teams also help customers restore the connectivity quickly. At the same time, we accelerated the expansion of our VoLTE Roaming footprint in response to the retirement of 2G and 3G networks in the overseas markets. This helps safeguard voice service continuity and to maintain a reliable experience for customers while they are abroad. These initiatives demonstrate our commitment, taking end-to-end ownership of the customers' Roaming experience. Beyond connectivity, we're driving digital adoption by bringing top-tier AI right to our customers' fingerprints.
With AI Connect, users enjoy seamless high-privacy access to leading tools like ChatGPT right over our network. To complement this, our one-on-one AI consultation service provides personalized guidance while our information hub provides and delivers real-world use cases for AI, making it truly accessible, safe and actionable for everyday life.
I will now pass over to Stephen to take you through the Enterprise Solutions initiatives and our latest network developments. Thank you, Stephen.
Thank you, Fiona. I will now walk you through our latest progress across Enterprise Solutions and the network developments. During the period under review, Enterprise Solutions revenue increased by 17% year-on-year, reflecting growing demand for integrated connectivity and smart technology solutions. Building on our network capabilities, SmarTone Solutions continue to support the digital transformation of enterprises across Hong Kong, leveraging on 5G, AI as well as IoT technologies. Our Enterprise Solutions team continues to unlock the digital potential of Hong Kong industry. This is essential to support digital transformation and help to position Hong Kong as a leading innovation and technology hub.
Over the years, we have expand our Enterprise Solution portfolio to different sectors, ranging from SmartHome, SmartMall, SmarTransport to Smart Construction. Tapping into this smart living trend, our SmartHome Solutions bring automated convenience to everyday living, while our SmartMall applications drive footfall and customer engagement for commercial clients. In the construction sector, our 5G-enabled smart site safety system, what we call 4S, allows site teams to monitor workers, equipment and environmental conditions in real time, upholding strict safety standards without compromising operational efficiency.
This versatility allows us to address specific industry demands while deploying scalable capabilities across the wider market. During the year, we deployed these capabilities around diverse sectors, enabling Telemedicine in health care, upgrading hospitality with smart guest experiences, power-boosting residential developments and bringing 5G monitoring to critical infrastructure and primary industries. As shown in the slide, our solution continue to empower enterprises and transform city operations. For the Pui O project, SmarTone Solutions deployed an end-to-end 5G smart monitoring setup to overcome harsh environmental and power constraints along the South Lantau Road.
This solution delivers secure, high-speed connectivity and real-time video oversight, ensures continuous operational resilience, faster response time and effective risk management. In hospitality, we partnered with The Bauhinia Hotel in Central to blend luxury with a smart technology. SmarTone Solutions built a carrier-grade Wi-Fi backbone that powers high-speed guest connectivity while running critical operations like PMS and CCTV surveillance. We also allow guests to seamlessly control lighting and curtain with a single touch while optimizing energy efficiency behind the scenes.
In the health care sector, we newly launched the TeleCare SmartHub, serving as the technology enabler to Gleneagles Hospital Hong Kong's telemedicine services. These projects demonstrate how our network, IoT and digital capabilities can be adapted to different sectors and improving customer experience, operational efficiency, safety and service accessibilities. Going into AI and to complement AI Connect individual users, we developed SmarTone AI Workspace specifically to meet the needs of SMEs operations. It integrates top international and mainland multimodal LLMs with powerful content creation and document tools.
Designed for seamless access across web and mobile, it caters to everybody from individual power users to commercial and enterprise operations with the added convenience of direct Telco billing. By delivering target solution for both individual power users and SMEs, we solidify SmarTone as a complete technology enabler, which clearly differentiates us from all our competitors. Our network strategy is purpose-built around the locations and moments where performance matters most to customers. During high demand occasions such as Fireworks over Victoria Harbour, the Lunar New Year Fair at Victoria Park and major event at Kai Tak Main Stadium, customers are actively uploading photo and live streaming at once.
Having a fast, stable and seamless network during these moments is extremely critical. Therefore, we have deployed our exclusive SmarTone small cells at critical hotspots and high-traffic venues to strengthen capacity and service assurance, supported by our advanced 5G capabilities and intelligent network operations. This targeted investment allow us to deliver best-in-class performance and reliability even during peak demand periods. This is how we translate network leadership into a consistent and differentiated customer experience.
Our collaboration with Sun Hung Kai Group continues to create unique opportunities across its flagship developments. From International Gateway Centre in West Kowloon, Cullinan Sky and Cullinan Harbour in Kai Tak to GO PARK and Sierra Sea in Sai Sha as well as YOHO West, we are integrating all the advanced connectivity into the next generation of living and working environments. Our 5G advanced solution provides comprehensive coverage across the entire properties from car park, lift lobbies, office, clubhouse to all the private residences. SmartConnect 5G Wi-Fi also offer fast, stable and cable-free access, allowing every user to connect immediately without the limitation of traditional wiring.
At the same time, 5G smart IoT enables real-time security management and automated fault detection while connecting devices such as lighting, climate control system, cameras and smart mirrors through one intelligent ecosystem. We continue to expand our 5G footprint across the infrastructure and development areas that will shape Hong Kong's future. We deployed the Golden Spectrum 3.3 and 3.5 gigahertz in the key urban locations and all the transport hubs to maximize capacity and ensure faster download and upload data speed for our users.
Across the MTR station, we prioritize high-capacity 5G spectrum at 24 major stations, strengthening coverage and performance as well as a sufficient capacity to accommodate their daily needs. We also expand coverage across major developments, including, again, GO PARK, Hong Kong International Airport, Kai Tak Sports Park and also the Northern Metropolis. In parallel, AI-enabled network operations allow us to monitor the network around the clock, predict potential issues and optimize performance dynamically. Our investment approach remains targeted and disciplined, focusing resources where they have the greatest impact on customer experience and Hong Kong future connectivity needs.
To further expand our network leadership, we are empowering the future by unlocking more 5G capacity by reallocating spectrum from our 3G sunset directly into our 5G network. We maximize spectrum efficiency to deliver superior data speeds, low latency as well as enhanced overall customer experience. To ensure service continuity and safeguard customer retention, our dedicated team are proactively guiding clients step by step through the device and SIM upgrade via targeted communication channels. Ultimately, this transition will allow us to deliver a seamless, high-speed network experience for our customers.
Looking ahead, this migration set the foundation of our next stage of network evolution, pioneering AI native technologies to deliver an unmatched hyper-optimized experience to our customers. We also continue to advance our ESG efforts with a focus on responsible technology, community inclusion, employee well-being and environmental protections. Cybersecurity remains a priority. Through the Anti-Scam Consumer Protection Charter 3.0 and adaptive machine learning models, we are strengthening our ability to identify and block cyber threats, malware and network intrusions. In the community, we support youth development through the Strive and Rise mentorship program.
We also promote digital inclusion and safety among senior citizens through training on smartphone use and scam prevention. For our employees, we continue to foster an inclusive and supportive workplace through various wellness and ongoing health awareness initiatives. This year, we organized sport event to bring our team together alongside health seminars to support everyone's physical and mental well-being. We also use high-speed connectivity and smart technology to support sports, arts and cultural activities, helping to strengthen connection across the community. These efforts reflect our commitment to applying technology responsibly and creating sustainable value for the communities we serve.
At the core of our business, our ultimate goal is to continuously provide premium service to our customers. We strive every single day to give our customers the absolute best experience where they are interacting with our frontline staff or using our network services. At the same time, we know that a premium experience require complete peace of mind. We deeply concern ourselves with cybersecurity to ensure our customers and their data are fully protected in an increasingly complex digital landscape. We are incredibly happy and humble that our ongoing effort across customer service, team excellence and cyber safety have been recognized by the industry. It gives us our stakeholders clear confidence that SmarTone remains a trusted premium brand in the market.
I will now pass the presentation to Ada for the financial review.
Thank you, Stephen. I will now take you through the financial performance for the fiscal year 2026. SmarTone reported a growth in both revenue and profit. Total revenue increased by 5.6% to $6.6 billion. Excluding the prior year one-off income from our Macau operations, underlying revenue increased by 6.5%, driven by our diversified product portfolio that is mentioned in the beginning of our presentation as well as increasing demand on the handset. Underlying EBIT increased by 6.9%, reaching $749 million, while the underlying EBIT margin remained stable at 11%. Reported profit after tax increased by 9.6% to $525 million.
Capital expenditure, it's decreased by 20.9% to $464 million, reflecting our disciplined and targeted approach to investments. At the same time, net cash increased by 29% to $2.5 billion, further strengthening our financial position, bearing in mind that we have a committed obligations in spectrum cost of around $2.6 billion. As a result, the Board was pleased to propose a final dividend of $0.175 per share, making a full year dividends of $0.32 per share, which is consistent with last year.
We maintained a strict cost and capital discipline throughout the year. Operating costs decreased by $94 million or 6% to $1.5 billion. This improvement was driven by targeted optimizations and AI-enabled efficiency programs across the organization. Importantly, these savings were achieved while we continue to invest in customer experience, digital transformation and future growth. Capital expenditure reduced by 21% to $464 million. This reflects a more efficient and selective approach to investments without compromising the quality and consistency of our network. Spectrum costs decreased by 2% to $526 million. We also expect a further full year benefit in the coming year as these costs continue to decline. Together, these results demonstrate our continued focus on improving efficiency and directing capital towards areas with the strongest strategic and financial returns.
Now, as you can see, the benefits of these efficiency initiatives are reflected in our profitability. Our underlying service EBITDA margin increased by 0.5 percentage points to 55% in fiscal year '26. And our profit after tax increased by $46 million or approximately 10% to $500 million. And again, this improvement was achieved while we continue to improve in network quality, customer experience and our key growth platforms.
Operating cash inflow increased by 5% to over $2.2 billion, supported by our core business as well as results from our diversified product portfolio and disciplined working capital management. This financial strength provides us with flexibility to sustain our network leadership and invest selectively in high-return growth opportunities. At the same time, we keep in mind a prudent and strong balance sheet is important to meet the future spectrum obligations. Dividends amounted to $352 million, which will be paid to the shareholders with a full year dividends of $0.32 per share.
I will now pass the floor back to Fiona to take us through the outlook.
Thank you, Ada. Now, looking ahead, the operating environment remains highly competitive. We do not expect market conditions to become any less demanding. However, we remain confident in our proposition, and we are clear about our priorities. On the growth front, we will continue to pursue value-driven growth rather than volume expansion. Our focus remains on delivering differentiated services and quality customer relationships, not competing on price alone. When it comes to operational excellence, we will maintain diligent cost discipline and deepen the adoption of AI to deliver further productivity gains and optimize capital expenditure.
Furthermore, we will accelerate the growth of 5G Home Broadband by strengthening our premium home proposition and leveraging the scalability of the businesses. We will also continue to make targeted network investments that reinforce our market leadership through consistent quality, particularly in the locations and moments where performance matters most to our customers. From a customer experience standpoint, we will advance AI-powered transformation across our operations to improve customer engagement, sharpen business insights and enhance productivity. We will continue to tailor our product suite to serve emerging customer segments and deepen our relationship with the premium customer base.
And finally, we will continue to leverage the strength and the ecosystem of our Sun Hung Kai Properties Group to deliver value to customers. SmarTone strategy is built for durability, balancing growth, efficiency and disciplined capital management. We are building a sustainable competitive advantage and will remain committed to delivering consistent earnings and long-term value for our shareholders.
This concludes our presentation today. Thank you for your attention, and we will now move on to Q&A session.
Thank you, Ms. Lau, Mr. Chau and Ms. Lam. Now we will have the Q&A session. [Operator Instructions] To make the best use of time, similar or repetitive questions will be grouped together for management to answer.
[Foreign Language]
[Foreign Language]
Second question is, could you unpack the specific drivers behind your capital CapEx discipline?
Thank you for the question. So from a cost perspective, I think as I just mentioned, it is one of our very important levers for our overall financial health and financial performance. We will continue AI adoption. I think this is one thing that is an enormous lever in terms of helping us to improve our productivity. We are not saying that we will replace human with AI. I think, what we are saying is that we will increase the productivity of our staff in order to capture the cost saving opportunities.
One more thing. I think we have announced that we will be retiring our 3G network in October this year. So next month, we'll be retiring sunsetting our 3G. It has now a very low single-digit percentage point of customers still using 3G. We are very confident that we'll be able to migrate our customers to 4G and 5G, respectively. I think with that, we will be able to capture better cost saving as well as to optimize the network efficiency.
[Foreign Language]
[Foreign Language]
We will now take the last question before concluding the briefing today.
[Foreign Language]
[Foreign Language]
This will conclude today's briefing. Thank you very much for joining us today.
Smartone Telecommunications — Q4 2026 Earnings Call
Profitable FY26 with stable revenue, higher margins and disciplined CapEx while pushing premium 5G, family services and AI-enabled growth.
📊 Quarter at a Glance
- Revenue: $6.6B (+5.6% YoY)
- Profit: Reported profit after tax $525M (+9.6% YoY)
- Margin: Service EBITDA margin 55% (+0.5pp)
- CapEx: $464M (–21% YoY)
- Dividend/ARPU: Full-year DPS $0.32 (unchanged); mobile postpaid ARPU $220 (–1%)
🎯 What Management Says
- Premium focus: Prioritise value over price—drive upgrades to higher‑value 5G plans and deepen premium customer relationships via SmarTone PRIORITY.
- Household ecosystem: Scale 5G Home Broadband and family offerings (Kids Watch, Kids CARE, elderly SmartHome) to broaden revenue beyond mobile SIMs.
- Enterprise & AI: Expand Enterprise Solutions (SME AI Workspace, IoT, 5G use cases) to capture digital transformation spend.
🔭 Outlook & Guidance
- Market view: Expect continued intense competition; management will pursue value-driven growth, not volume-led pricing.
- Investment stance: Continue targeted network spend and disciplined CapEx with further AI-driven productivity gains; CapEx already down ~21%.
- Balance sheet: Net cash $2.5B but committed spectrum obligations ~ $2.6B; dividend maintained at $0.32/share.
❓ Analyst Q&A
- CapEx drivers: Management pointed to AI adoption and operational efficiencies as key levers for lower ongoing CapEx and OPEX.
- 3G sunset: Confirmed 3G retirement in October to reallocate spectrum to 5G, migrate remaining users and capture cost/spectrum efficiency; limited numeric guidance on future CapEx provided.
⚡ Bottom Line
SmarTone delivered resilient, profitable growth with improving margins and strong cash balance while keeping dividends steady; upside comes from scalable 5G Home Broadband, family and enterprise AI services, while risks are intense competition and sizable spectrum liabilities.
Disclaimer: This analysis was generated with AI. AI can also make mistakes. This is not investment advice.
Smartone Telecommunications — Q2 2026 Earnings Call
1. Management Discussion
Good afternoon, ladies and gentlemen. Welcome to the SmarTone Telecommunications Holdings Limited Interim Results Announcement for the 6 months Ended the 31st of December 2025. First, may I introduce the management team presenting today, Ms. Fiona Lau, Executive Director and Chief Executive Officer; and Mr. Stephen Chau, Executive Director and Chief Technology Officer. The presentation will begin with a business review and key initiatives, followed by a financial review presented by Ms. Lau. [Operator Instructions]
Now may I invite Ms. Lau and Mr. Chau to begin with the presentation, please.
Good afternoon. During the first half of FY '26, SmarTone delivered a solid business performance. Our disciplined execution and strategic clarity create durable value even in a highly competitive market. Total revenue increased by 2% year-on-year, while profit after tax increased by 8%. Mobile postpaid ARPU increased by 1% year-on-year, and our 5G ARPU continued to be 2x that of 4G, reflecting continued strength in the premium segment. Our key growth drivers continue to perform well with consumer outbound roaming delivering solid year-on-year growth and 5G home broadband and enterprise solutions delivering strong year-on-year growth.
At the same time, operating expenses decreased by 6% and capital expenditure decreased by 3%. Service EBITDA margin remained stable at 54%, demonstrating disciplined cost and capital management. The Board declared an interim dividend per share at HKD 0.145, same as last year. Stephen and I will now take you through the business review, starting with our core growth engines, customer-centric initiatives and followed by updates on our latest network developments.
SmarTone continues to maintain leadership position in the premium segment, delivering quality growth during the period. Mobile postpaid ARPU increased by 1% year-on-year, demonstrating resilience despite intense competition. Our customer base continued to expand with total customer number increasing by 10% year-on-year. Importantly, our 5G ARPU continued to be 2x that of 4G, proving the premium value customers placed on our superior network quality and customer experience. Our 5G home broadband sustained strong momentum during the period. This performance was underpinned by the rapid adoption of Wi-Fi 7 penetration, which not only enhanced the customer experience, but also contributed to a higher ARPU, reflecting growing demand for the premium home connectivity.
We further strengthened our home proposition by introducing attractive bundle offerings, including Disney+ video content and our fixed telephony service, HomePhone+. These enhancements have made our services more compelling and integrated for everyday life. Additionally, strategic partnerships, particularly our tailored offerings for Sun Hung Kai properties have enabled us to deliver superb customer experience in a high-value residential development. 5G home broadband is one of our structural growth. Revenue increased 12% year-on-year, while EBIT rose 36%. This segment benefits from growing demand from flexible broadband alternatives, efficient acquisition economics as well as attractive incremental margins. We see continued expansion potential as the household digital consumption increase.
On roaming, roaming services maintained stable and resilient with consistent service quality maintained throughout the period. This performance was supported by a growing base of cross-border and international travelers. With greater mobility in the Greater China Bay Area, we are offering subscription plans that include GBA data, enabling customers to roam in the Mainland with a seamless experience. Customers can also choose between services such as 1 card 2 number or a virtual easy number to enhance cross-border convenience.
Consumer roaming experience experienced a consistent and robust 7% year-on-year increase, driven by customer-focused roaming products and bundled packages. Roamer penetration continued its steady rise, reaching 70% in December 2025, an improvement of 6 percentage points compared to last year. Underpinning our set of solid results and strong growth drivers is our obsession in our customer-centric services, which I'm going to talk through.
Number one, we continue to differentiate ourselves through network leadership. Building on this commitment, we became the first operator in Hong Kong to leverage 5G advanced technology, offering network priority for selected valued customers, reinforcing our service differentiation and premium experience. This is one of the industry's first commercialized applications of network slicing technology, whereby a customer is guaranteed to be among the best no matter how crowded data traffic is in a given location and a given time. It serves as a fast lane for our most premium customers.
Number two, from a customer servicing perspective, we also enhanced the device purchase journey with industry-leading transparency and convenience. During peak phone seasons, we are the only operator in Hong Kong to provide customers with clear stock availability dates, reinforcing trust and purchase confidence. We also upgraded our retail queuing system to enable seamless device pickup. When eSIM is introduced in the mainstream phone models, we introduced a customer-friendly one-click eSIM migration assistance, which received great feedback. Now when you visit our stores, you may notice that we have launched an AI and tech corner to help our customers maximize the value of their devices and to provide consultation services for the device or on AI usage.
Next, we launched Kids Care, an integrated parental control solution, tailored for the needs of today's families. Kids Care supports parents in providing a safe and enriching and digital environment for children by offering features such as screen time management and customizable website filtering. It is the first cross-platform solution in Hong Kong, supporting both iOS and Android. To stay connected, communicating seamlessly among family members and knowing the whereabout in case of dangers are essential and useful functions of a mobile technology. Now on the other hand, with rising cybersecurity threats and increasing exposure to social media, it is our responsibility to support families in protecting the young generation. Launching this as an example of serving our customers beyond the basic mobile connectivity. It is also our CSR effort to support families in protecting the younger generation.
Taking innovation a step further, we've also pioneered AI Connect, a first in Hong Kong service that provides assets to leading global AI platforms via SmarTone's mobile network. This provides customers with effortless access without the need for complicated setup such as VPN, while offering safe and trustworthy connectivity through our dedicated network. We've achieved a key milestone this year by becoming the first mobile network operator to obtain approval under CEPA to distribute telecom service cards in Mainland China. Leveraging the Sun Hung Kai Group's resources and network in Mainland China, we are building more brand presence and market awareness. Our recent collaborations with Guangzhou Parc Central represent the initial phase of this strategy, serving as a launch pad to showcase our brand, products and differentiated service offerings.
Looking ahead, we plan to progressively expand partnership and engagement channels to strengthen brand visibility and product distribution across Mainland China.
I will now pass on to Stephen to talk about our latest developments in network and AI adoption.
Thank you, Fiona. At the heart of our strategy is the SmarTone 5G Advanced Network, recognized for its outstanding performance and major venues such as Kai Tak Main Stadium. With SmarTone Priority, we harness the power of 5G Advanced and network slicing to deliver up to 3x more dedicated network resources for users who really demand speed and reliability. That means even in the business environment like the stadium, the concerts, transport hubs and city districts, our customers can enjoy always fast and stable connectivity.
Whether it's ticketing, HD streaming, gaming, our network ensures seamless experience for all high-demand applications. Our advanced architecture, including the 5G stand-alone and mobile edge computing delivers ultra-low latency, enhanced security and efficient infrastructure. AI-driven automation empowers us to optimize the network, predict issues and orchestrate traffic dynamically. We are also deploying the next-generation massive MIMO radios to further enhance performance while improving the energy consumption.
We are proactively enhancing the 5G capabilities across Hong Kong's key infrastructures. The Central Kowloon route is boosting east-to-west connectivity. The Northern Metropolis is emerging as a new strategic economic hub, driving innovation and future development. SmarTone has delivered the highest speed hour speeds across all MTL stations, consistently recognized by our customers. By deploying the Golden Spectrum 3.3 and 3.5 gigahertz, we further enhanced the capacity, especially during the peak traffic hours. So far, 15 key MTL stations have already been in service with more to come, ensuring reliable 5G service through tunnels, platforms and concourses.
Our collaboration with Sun Hung Kai Properties brings comprehensive 5G Advanced coverage to Hong Kong's reliability, most prestigious landmarks, including the International Gateway Center, the IGC in West Kowloon, the Cullinan Sky and Cullinan Harbour in Kai Tak. GOPA and CORC [indiscernible]. We deliver comprehensive indoor coverage and seamless connectivity from car parks to lobbies, live offices, car house, everywhere within the properties.
Our 724 AI-enabled quality assurance system ensure quality mobile service performance across the whole and entire properties, while real-time fraud and security management through the 5G IoT devices ensure utmost reliable. Our market-leading Smart Connect 5G Wi-Fi delivers fast cable 3 connectivity, supporting a wide ecosystem of smart devices. We are committed to delivering superior experiences, supporting innovation and drive sustainable growth.
With our cooperation, we have won the Best Smartphone Customer Experience Award by Network X in 2025, recognizing our leadership in innovation and user-first experiences. We continue to support Hong Kong as a mega event hub, delivering advanced connectivity and smart solutions for major sports and cultural initiatives. A recent example is the FIP Silver REAP tournament 2025, a prestigious international event held in Hong Kong for the first time. Our carrier-grade infrastructure provides robust connectivities, supporting seamless official live streaming throughout the tournament.
On the cultural front, we partnered with the Bridge+ UOB Art Academy, a century old heritage property transformed into a connected arts and cultural center. Our smart building solutions include intelligent automation control for lighting and integrated AV systems, enhancing ambient comfort and operation efficiency. This scalable smart building backbone is already ready for supporting our building-wise smart technology ecosystem.
I touched about AI. AI is central to our transformation journey. We are harnessing the power of AI to deliver customer service and operational excellence. AI enables every customer interaction into actionable insight, driving smarter knowledge engagement and effective governance. We have developed multiple AI agents to automate process across vehicle, HR, market research and content review, achieving significant time and cost savings. Our enterprise AI agent platform also enhanced the productivity, streamline operations and fostering collaboration across the organization.
With this, I will end my part of the presentation. And now I will hand back to Fiona to continue on the financial review session.
I will now walk you through the financial performance for the first half of FY '26. Revenue: Revenue for the first half of the year rose 2% to HKD 3,561 million or 3.5%, excluding last year's one-off income. EBIT was up 6.2%, excluding the one-off, with margin steady at 11%. Profit after tax has grew 8.4% to HKD 278 million. Capital expenditures slightly declined by 3% to HKD 179 million. Net cash increased 50% to HKD 2,376 million. And the interim dividend stayed at HKD 0.145 per share.
We maintained strict cost discipline through targeted optimization and AI-enabled efficiency programs, resulting in operating cost savings of 6% compared to the previous year, which enabled us to invest in better customer experience, digital transformation and future growth. As a result, our service EBITDA margin is maintained steady at a healthy level of 54%. We continued to reduce capital expenditure without compromising network quality. CapEx decreased year-on-year by 3%, and spectrum costs have been gradually declining following the peak in FY '23, reflecting a disciplined approach to capital management.
Due to rigorous management of costs and capital expenditures, our net cash grew by HKD 788 million, representing a 50% year-on-year increase, reaching approximately HKD 2.4 billion as of December 2025. Our capital allocation priorities remain clear. We're here to sustain network leadership. We want to invest selectively in high-return growth areas, and we will maintain financial strength and stable dividend distribution. We operate with a strong balance sheet and a disciplined financial management. The financial strength allow us to sustain consistent dividends for our shareholders.
Looking forward, we're feeling focused and confident. The competitive environment remains intense. We do not expect conditions to ease. However, we're confident in our positioning. Our priorities for the second half of FY '25 and '26 are clear: Quality growth, not volume growth, scaled 5G home broadband business, cost and CapEx discipline, deepened AI-driven operational transformation and better customer experience, targeted network investment to maintain leadership because we compete on consistency.
SmarTone strategy is built for durability with balance between growth, efficiency and disciplined capital management. We're not pursuing short-term gains. We're building sustainable competitive advantage. We will remain committed to delivering consistent earnings and long-term value creation for the shareholders. Thank you.
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We will now take the last question before concluding the briefing today.
You have HKD 2.3 billion of cash at the interim stage and cash seems to be increasing at the rate of HKD 500 million a year. How do you plan to use the cash?
Thank you for the question. We are generating a healthy level of cash. We are, I think, in a telecom business, in the infrastructure business. We are here for the very long term. So while we are maintaining a healthy level of cash, we will be very cautious in the way we spend. We have -- as Stephen mentioned, we selectively invest in our network. I think that's our #1 priority. We invest in the network where it matters the most. We compete on consistency. We're not competing on headlines, maximum speed. We are really competing on consistency. And that includes indoor, outdoor, above the ground, under the ground, especially in MTR. And we also noticed that there are a lot of new developments coming up in Hong Kong over the next decades, especially the Northern Metropolis. So these are all the investments that we will need to continue for our long-term sustainability of business in Hong Kong. Apart from network, obviously, we will invest into our platform. I mentioned AI. So AI, we will invest selectively and smartly to ensure that the investment will pay off. Apart from that, we will also invest in areas of growth. You would have seen that we have quite successfully grow our 5G home broadband business. We really grew from zero to quite a meaningful segment of our profit today. So we'll continue to look for these opportunities and invest in those areas. Thank you.
This will conclude today's briefing. Thank you all for joining us today.
Smartone Telecommunications — Q2 2026 Earnings Call
Steady interim results: revenue +2% and profit after tax +8%, driven by 5G home broadband, roaming growth and tight cost/CapEx discipline.
📊 Quarter at a Glance
- Revenue: HKD 3,561m (+2% YoY; +3.5% excl. prior one-off)
- Profit: Profit after tax HKD 278m (+8.4% YoY)
- Service EBITDA: 54% (service-level EBITDA margin — earnings before interest, taxes, depreciation and amortisation)
- ARPU: Mobile postpaid ARPU +1% YoY; 5G ARPU ~2x 4G, showing premium segment strength
- Balance: Net cash ~HKD 2.4bn (+50% YoY); interim dividend HKD 0.145/sh (unchanged)
🎯 What Management Says
- Network leadership: Continued focus on 5G Advanced, network slicing and "SmarTone Priority" to secure premium customer experience in crowded venues.
- Home & roaming growth: 5G home broadband revenue +12% and EBIT +36%; roaming services +7% with 70% roamer penetration.
- Digital/AI push: Selective investment in AI for operations and customer platforms; Mainland market entry via CEPA and Sun Hung Kai partnerships.
🔭 Outlook & Guidance
- Priorities: "Quality growth not volume" — scale 5G home broadband, maintain cost and CapEx discipline, targeted network and AI investment.
- Risks: Competitive intensity remains high; no formal numeric guidance change issued; dividend policy steady.
❓ Analyst Q&A
- Cash use: Management plans cautious deployment: priority on targeted network investment (MTR, new developments), selective AI/platform spend and reinvestment into growth areas like 5G home broadband.
- Capital returns: No mention of buybacks; focus remains on sustaining network leadership and consistent dividend distribution.
⚡ Bottom Line
SmarTone delivered steady, margin-accretive interim results with strong 5G home and roaming momentum, rising net cash and unchanged dividend. Shareholders should expect continued conservative capital allocation prioritising network and AI to protect premium positioning amid stiff competition.
Disclaimer: This analysis was generated with AI. AI can also make mistakes. This is not investment advice.
Financial data from Smartone Telecommunications
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 6,604 6,604 |
6%
6%
100%
|
|
| - Direct Costs | 2,699 2,699 |
23%
23%
41%
|
|
| Gross Profit | 3,904 3,904 |
4%
4%
59%
|
|
| - Selling and Administrative Expenses | 659 659 |
8%
8%
10%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | 2,387 2,387 |
2%
2%
36%
|
|
| - Depreciation and Amortization | 1,633 1,633 |
3%
3%
25%
|
|
| EBIT (Operating Income) EBIT | 753 753 |
1%
1%
11%
|
|
| Net Profit | 525 525 |
10%
10%
8%
|
|
In millions HKD.
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Smartone Telecommunications Stock News
Company Profile
SmarTone Telecommunications Holdings Ltd. is an investment company, which engages in the provision of telecommunications services and sale of handsets and accessories. The company employs 1,553 full-time employees The firm provides voice, multimedia and mobile Internet services, as well as fixed-line fiber broadband services for residential and business users. The firm provides multiple platforms, including a company website, 24/7 online live chat, an online store and the SmarTone CARE application (app). The firm also sells mobile phones and accessories.
StocksGuide Premium
| Head office | Bermuda |
| CEO | Ms. Lau |
| Employees | 1,553 |
| Website | www.smartoneholdings.com |
