175:HKEXWILL SMART CO LTD Analysis
Data as of 2026-05-21 - not real-time
HK$0.10
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
REM Group trades at HK$0.099, well below its DCF-derived fair value of HK$0.150, indicating a material discount. The stock sits under both the 20‑day (HK$0.1029) and 50‑day (HK$0.1055) simple moving averages, the MACD histogram is negative and the RSI is at 43, suggesting short‑term momentum is still bearish. Volume is on a decreasing trend, and the 30‑day volatility is high at roughly 56%, which adds to near‑term uncertainty.
On the fundamentals side, the company posted 15.5% revenue growth, maintains a healthy cash buffer of HK$74.9 million against modest debt, and trades at a price‑to‑book of 1.02, close to its book value. Margins are thin (gross 26.4%, operating 4.7%) and ROE is low (3.2%), but the low beta (0.41) and undervaluation relative to peers make it attractive for longer horizons, provided investors can tolerate the liquidity and market‑risk profile.
On the fundamentals side, the company posted 15.5% revenue growth, maintains a healthy cash buffer of HK$74.9 million against modest debt, and trades at a price‑to‑book of 1.02, close to its book value. Margins are thin (gross 26.4%, operating 4.7%) and ROE is low (3.2%), but the low beta (0.41) and undervaluation relative to peers make it attractive for longer horizons, provided investors can tolerate the liquidity and market‑risk profile.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 5/10
Key Factors
- Bearish MACD and price below short‑term SMAs
- RSI around 43 indicating lack of strong buying pressure
- Decreasing volume trend raising liquidity concerns
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- 15.5% revenue growth outpacing many peers
- DCF fair value (HK$0.150) vs market price (HK$0.099) suggests upside
- Low beta (0.41) and modest debt enhance risk‑adjusted profile
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Strong cash position relative to minimal debt
- Undervalued price‑to‑book near 1.0 and price‑to‑sales around 1.1
- Stable demand for low‑voltage electrical distribution equipment in HK, Macau and Mainland China
Key Metrics & Analysis
Financial Health
Revenue Growth15.50%
Profit Margin3.33%
ROE3.16%
ROA1.46%
Debt/Equity1.07
P/B Ratio1.0
Op. Cash FlowHK$14.2M
Free Cash FlowHK$8.0M
Industry P/E29.5
Technical Analysis
TrendNeutral
RSI43.3
SupportHK$0.09
ResistanceHK$0.12
MA 20HK$0.10
MA 50HK$0.11
MA 200HK$0.07
MACDBearish
VolumeDecreasing
Fear & Greed Index91.5
Valuation
Fair ValueHK$0.15
GradeUndervalued
TypeBlend
Risk Assessment
Beta0.41
Volatility55.85%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskHigh
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.