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

• Market Cap: HK$859.73M
• Dividend Yield: N/A
• Average Volume (3M): 5.23M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.09
• Revenue Growth: 83.70%
• EPS Growth: 299.30%
• Country: HK
• Employees: 3,297
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 2,114,307,900
• 10 Day Avg. Volume: 3,552,629
• 30 Day Avg. Volume: 5,228,323
• PEG Ratio: 0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 1.04
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.39 ▲(23.13% Upside)

Overall score is driven primarily by mixed financial performance—weak profitability and volatile revenue, offset by low leverage and improved cash flow—while technicals are supportive with strong uptrend signals. Valuation is modestly favorable due to a low P/E, but lack of dividend data limits the valuation boost.

Positive Factors

Product mix: LCD & OLED

A diversified product portfolio across LCD and OLED technologies and multiple end markets (consumer, industrial, automotive) supports durable demand exposure. This breadth reduces reliance on a single cycle, enables cross-market R&D leverage, and positions the company to capture structural growth in automotive and premium displays.

Conservative leverage

A low debt profile with improving equity provides financial flexibility to fund capex, R&D, and strategic partnerships without overreliance on external financing. This balance-sheet strength increases resilience through industry cyclicality and supports long-term investment in product development and customer relationships.

Improving free cash flow

A shift to positive free cash flow signals better conversion of revenue into cash, enabling internal funding of capital expenditures and working capital needs. Sustained FCF improvement strengthens liquidity, supports strategic initiatives and reduces dependence on debt or equity raises over the medium term.

Negative Factors

Revenue volatility

Material revenue volatility and a recent year-over-year decline undermine predictable top-line growth and make capacity planning and long-term contract negotiations harder. Persistent volatility can weaken bargaining power with OEMs and limit steady scaling of manufacturing or R&D investments.

Weak operating profitability

Declining gross margins and a negative EBIT indicate structural pressure on core operations and pricing or cost inefficiencies. Sustained weak operating profits constrain reinvestment into technology, slow margin recovery, and impair return on shareholder equity, limiting long-term competitive strength.

Inconsistent cash conversion

Fluctuating operating cash conversion increases financing uncertainty and complicates funding of working capital, capex, and R&D. Even with improved free cash flow recently, inconsistent OCF reduces the reliability of internal funding and raises the risk of liquidity stress during industry downturns.

China Display Optoelectronics Technology Holdings Ltd Business Overview & Revenue Model

Company Description

China Display Optoelectronics Technology Holdings Limited, an investment holding company, engages in the research, development, manufacture, distribution, and sale of liquid crystal display modules for mobile phones and tablets in Mainland China, Hong Kong, Turkey, Thailand, South Korea, and Taiwan. The company was formerly known as TCL Display Technology Holdings Limited and changed its name to China Display Optoelectronics Technology Holdings Limited in January 2017. The company was founded in 2004 and is based in Hong Kong, Hong Kong. China Display Optoelectronics Technology Holdings Limited is a subsidiary of High Value Ventures Limited.

How the Company Makes Money

China Display Optoelectronics Technology Holdings Ltd generates revenue primarily through the sale of its display products, which include LCDs and OLED panels. The company operates on a business model that includes direct sales to manufacturers in consumer electronics and partnerships with major tech firms for tailored display solutions. Key revenue streams include bulk orders from original equipment manufacturers (OEMs) and contracts for specialized display technology. Additionally, the company may benefit from ongoing maintenance and support services for its products, along with potential licensing agreements for its proprietary technologies. Strategic collaborations with industry leaders enhance its market reach and contribute to its financial performance.

China Display Optoelectronics Technology Holdings Ltd Financial Statement Overview

Summary

Overall mixed fundamentals: weak and volatile income statement performance (revenue drop and negative EBIT), partly offset by a relatively solid balance sheet with low leverage and improving—but still inconsistent—cash flow generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.88B	4.55B	2.58B	4.21B	5.84B	3.57B
Gross Profit	245.06M	196.32M	174.05M	343.74M	494.63M	278.96M
EBITDA	143.09M	79.70M	103.83M	250.12M	374.59M	226.95M
Net Income	110.05M	65.98M	13.09M	169.03M	193.22M	25.15M
Balance Sheet
Total Assets	3.95B	3.53B	2.53B	2.58B	2.89B	3.11B
Cash, Cash Equivalents and Short-Term Investments	122.87M	81.15M	854.58M	1.02B	1.12B	416.73M
Total Debt	0.00	239.00K	3.73M	63.42M	81.36M	240.85M
Total Liabilities	2.82B	2.46B	1.52B	1.58B	2.06B	2.36B
Stockholders Equity	1.13B	1.07B	1.01B	1.00B	831.50M	639.07M
Cash Flow
Free Cash Flow	-102.31M	376.98M	-54.51M	-41.43M	360.55M	1.15B
Operating Cash Flow	116.40M	543.40M	97.44M	129.49M	600.25M	1.36B
Investing Cash Flow	-12.62M	-482.81M	-308.27M	-887.29M	46.79M	-200.78M
Financing Cash Flow	-19.93M	-14.91M	-64.58M	-33.39M	-8.77M	-835.63M

China Display Optoelectronics Technology Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.32 is below the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.34, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 81.90 is Negative, 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$3.86B	9.64	8.91%	3.25%	19.25%	-10.14%
0259	74 Outperform	HK$3.42B	0.87	108.05%	46.02%	12.26%	2497.49%
0580	67 Neutral	HK$3.07B	17.44	8.36%	1.01%	46.98%	130.04%
0732	64 Neutral	HK$3.08B	12.06	2.87%	9.26%	2.59%	0.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0334	60 Neutral	HK$859.73M	6.88	10.61%	―	83.70%	299.30%
6088	56 Neutral	HK$34.84B	28.01	6.17%	―	4.33%	-10.79%

China Display Optoelectronics Technology Holdings Ltd Corporate Events

China Display Optoelectronics Signs Three-Year HR Sharing Agreement With TCL Technology

China Display Optoelectronics Technology Holdings Limited has entered into a Master HR Sharing Services (2025–2027) Agreement with its controlling shareholder TCL Technology, allowing members of the two groups to share surplus employees with each other over a period running from the agreement’s effective date through 31 December 2027. The arrangement, treated as a continuing connected transaction under Hong Kong listing rules, falls below the threshold requiring shareholder approval but is subject to reporting, annual review and announcement requirements, underscoring the company’s effort to optimise staffing flexibility within the TCL group while remaining in compliance with regulatory safeguards for minority investors.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.

China Display Optoelectronics Signs R&D Service Framework Deal With TCL CSOT

China Display Optoelectronics Technology Holdings has signed a Master Research & Development Service Agreement with TCL CSOT, a subsidiary of its controlling shareholder TCL Technology, allowing group companies to engage TCL CSOT and its subsidiaries to provide research and development services at their discretion. The agreement, effective from 19 December 2025 to 31 December 2027, sets a framework under which specific service contracts will be concluded for individual R&D projects, and the resulting transactions are classified as continuing connected transactions under Hong Kong’s listing rules; while the deal is exempt from circular and shareholder approval requirements due to its size, it will still be subject to reporting, annual review and announcement obligations, underscoring the company’s ongoing reliance on TCL CSOT’s technological capabilities within a regulated connected-party framework.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.

China Display Optoelectronics Approves Key Resolution at SGM

China Display Optoelectronics Technology Holdings Ltd announced that a resolution regarding the Further Revised 2025 Sale Annual Cap was approved at a Special General Meeting held on December 4, 2025. The resolution received unanimous support from the shareholders who voted, with 100% of the votes cast in favor. The approval of this resolution is significant for the company as it aligns with its strategic objectives and may influence its market operations and stakeholder interests.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.

China Display Optoelectronics Approves Key Resolutions at SGM

China Display Optoelectronics Technology Holdings Ltd announced that all proposed resolutions were approved at their Special General Meeting held on November 28, 2025. The resolutions included the approval of Revised Annual Caps and various agreements, with significant shareholder TCL Technology abstaining from voting due to interests in the agreements. The approval of these resolutions is expected to impact the company’s financial agreements and sourcing strategies positively.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.

China Display Optoelectronics Appoints New Executive Director

China Display Optoelectronics Technology Holdings Ltd has announced the appointment of Mr. HAI Hong as an executive director effective from November 28, 2025. Mr. HAI Hong, who has a background in engineering and management within the company, is expected to contribute to the company’s strategic direction. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, potentially impacting its operational efficiency and market positioning.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.

China Display Optoelectronics Updates Board of Directors

China Display Optoelectronics Technology Holdings Ltd has announced the updated list of its board of directors and their roles, effective from November 28, 2025. This update includes the appointment of Mr. LIAO Qian as the Chairman and Mr. ZHANG Feng as the CEO, with various directors assigned to the Audit, Nomination, and Remuneration Committees. This restructuring is expected to influence the company’s strategic direction and governance, potentially impacting its market positioning and stakeholder relations.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.

China Display Optoelectronics Announces Special General Meeting for Revised 2025 Sale Cap

China Display Optoelectronics Technology Holdings Ltd has announced a Special General Meeting (SGM) to be held on December 4, 2025, to discuss and potentially approve the Further Revised 2025 Sale Annual Cap. This meeting will allow shareholders to vote on the proposed resolutions, which could impact the company’s financial strategies and stakeholder interests.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.

China Display Optoelectronics Announces Special General Meeting for Key Resolutions

China Display Optoelectronics Technology Holdings Ltd has announced a special general meeting to be held on November 28, 2025, to discuss and approve several key resolutions. These include the approval of Revised Annual Caps, the Master Financial Services Agreement for 2026-2028, and the Master Sourcing Agreement for 2025-2027. The resolutions aim to authorize directors to execute necessary actions for these agreements, reflecting the company’s strategic initiatives to enhance financial and sourcing operations, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.

China Display Optoelectronics Revises 2025 Sale Cap to Meet Demand

China Display Optoelectronics Technology Holdings Ltd has announced a further revision of its 2025 Sale Annual Cap under the Master Sale and Purchase (2025-2027) Agreement with TCL Technology. This revision is necessary to meet the anticipated demand and involves no changes to the terms for 2026 and 2027. The revision is subject to shareholder approval due to its classification as a continuing connected transaction under Hong Kong’s Listing Rules, given TCL Technology’s significant shareholding in the company.

The most recent analyst rating on (HK:0334) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on China Display Optoelectronics Technology Holdings Ltd stock, see the HK:0334 Stock Forecast page.