China Display Optoelectronics Technology Holdings Ltd (0334) AI Stock Analysis

• Market Cap: HK$639.56M
• Dividend Yield: N/A
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.84
• Revenue Growth: 73.34%
• EPS Growth: 416.67%
• Country: HK
• Employees: 3,297
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 2,114,307,900
• 10 Day Avg. Volume: 1,998,640
• 30 Day Avg. Volume: 1,487,597
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: HK$0.50 ▲(66.67%Upside)

The overall stock score of 61 reflects mixed financial performance, strong technical momentum, and attractive valuation metrics. The significant bullish momentum is a major strength, although the overbought RSI indicates a potential risk of correction. The financial performance shows room for improvement in revenue consistency and operational efficiency, which could further enhance the company's valuation.

China Display Optoelectronics Technology Holdings Ltd Business Overview & Revenue Model

Company Description

China Display Optoelectronics Technology Holdings Ltd (0334) is a leading company in the high-tech optoelectronics sector, primarily engaged in the design, manufacturing, and sale of liquid crystal display (LCD) modules. The company serves various industries including mobile phones, automotive, and industrial equipment by providing advanced display solutions that enhance visual performance and user experience.

How the Company Makes Money

China Display Optoelectronics Technology Holdings Ltd generates revenue through the sale of LCD modules to a diverse range of industries. Its key revenue streams include direct sales to manufacturers of mobile devices, automotive components, and industrial equipment. The company leverages its advanced technology and manufacturing capabilities to offer high-quality display solutions that meet the specific needs of its clients. Significant partnerships with electronics and automotive manufacturers enhance its market reach and contribute to its earnings. Additionally, the company invests in research and development to innovate and expand its product offerings, further driving its revenue growth.

China Display Optoelectronics Technology Holdings Ltd Financial Statement Overview

Summary

The company shows inconsistent revenue growth and pressure on profitability margins. While the balance sheet is strong with low leverage, return on equity is not optimal. Cash flow management is improving but lacks consistency. Overall financial stability needs enhancement.

Income Statement

The company shows a volatile revenue growth pattern with a significant drop in the latest year. Gross profit margin decreased from previous highs, indicating pressure on profitability. The net profit margin improved slightly but remains low, reflecting the challenge of converting sales into profit. EBIT and EBITDA margins are weak, with a negative EBIT in the latest year, highlighting operational inefficiencies.

Balance Sheet

The balance sheet shows an improving equity position with a growing stockholders' equity. The debt-to-equity ratio is low, suggesting a conservative leverage strategy. However, the return on equity remains modest, indicating limited profitability on shareholder investments. The equity ratio is stable, reflecting a balanced asset financing strategy.

Cash Flow

The company has shown improvement in free cash flow, turning positive in recent years. However, operating cash flow to net income ratio fluctuates, suggesting inconsistency in cash generation relative to profits. Free cash flow to net income ratio improved, highlighting better cash management, but overall cash flow stability needs enhancement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.55B	2.58B	4.21B	5.84B	4.35B
Gross Profit	196.32M	174.05M	343.74M	494.63M	219.62M
EBITDA	79.70M	103.83M	250.12M	374.59M	205.43M
Net Income	65.98M	13.09M	169.03M	193.22M	6.32M
Balance Sheet
Total Assets	3.53B	2.53B	2.58B	2.89B	3.11B
Cash, Cash Equivalents and Short-Term Investments	81.15M	854.58M	278.97M	1.05B	416.73M
Total Debt	239.00K	3.73M	63.42M	81.36M	240.85M
Total Liabilities	2.46B	1.52B	1.58B	2.06B	2.36B
Stockholders Equity	1.07B	1.01B	1.00B	831.50M	639.07M
Cash Flow
Free Cash Flow	376.98M	-54.51M	-41.43M	360.55M	1.15B
Operating Cash Flow	543.40M	97.44M	129.49M	600.25M	1.36B
Investing Cash Flow	-482.81M	-308.27M	-887.29M	46.79M	-200.78M
Financing Cash Flow	-14.91M	-64.58M	-33.39M	-8.77M	-835.63M

China Display Optoelectronics Technology Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0334, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.24, and above the 200-day MA of 0.21, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 67.56 is Neutral, neither overbought nor oversold. The STOCH value of 24.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0334.

China Display Optoelectronics Technology Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0710	78 Outperform	HK$4.62B	11.77	8.79%	2.63%	24.98%	-17.75%
6088	71 Outperform	HK$18.14B	15.14	6.27%	―	5.75%	18.75%
0259	68 Neutral	HK$2.02B	0.73	93.13%	2.47%	-14.15%	-63.50%
0732	62 Neutral	$3.61B	12.24	3.20%	8.55%	14.45%	15.04%
0334	61 Neutral	HK$639.56M	8.94	6.28%	―	73.34%	416.67%
0580	60 Neutral	HK$2.39B	21.50	5.45%	0.67%	50.17%	234.78%
Sector *	57 Neutral	HK$14.02B	7.30	-5.36%	4.96%	8.42%	-47.13%

China Display Optoelectronics Technology Holdings Ltd Corporate Events

Leadership Transition at China Display Optoelectronics Technology Holdings Ltd

China Display Optoelectronics Technology Holdings Ltd announced significant changes in its executive leadership, with Mr. OUYANG Hongping resigning from multiple roles, including executive director, to focus on other commitments. Mr. ZHANG Feng has been appointed as the new executive director and CEO, bringing extensive experience from his previous roles in related companies. This leadership transition is expected to influence the company’s strategic direction and operational efficiency, potentially impacting its market positioning and stakeholder relations.

China Display Optoelectronics Updates Board of Directors and Committees

China Display Optoelectronics Technology Holdings Ltd has announced the updated list of its board of directors and their roles, effective from July 4, 2025. This announcement includes the appointment of Mr. Liao Qian as the Chairman and Mr. Zhang Feng as the Chief Executive Officer, along with the establishment of three board committees to enhance governance and strategic oversight.

China Display Optoelectronics Successfully Passes All Resolutions at AGM

China Display Optoelectronics Technology Holdings Ltd announced that all proposed resolutions were successfully passed at its Annual General Meeting held on May 23, 2025. This includes the reappointment of auditors, re-election of directors, and the authorization of mandates related to shares, reflecting strong shareholder support and potentially enhancing the company’s governance and operational capabilities.