Skyworth Digital Holdings (0751) AI Stock Analysis

• Market Cap: $6.04B
• Dividend Yield: 2.61%
• Average Volume (3M): 3.88M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.53
• Revenue Growth: -7.51%
• EPS Growth: -43.66%
• Country: HK
• Employees: 30,800
• Sector: Technology
• Sector Strength: 98
• Industry: Consumer Electronics
• EPS (TTM): 0.09
• Shares Outstanding: 1,892,004,800
• 10 Day Avg. Volume: 3,772,497
• 30 Day Avg. Volume: 3,876,538
• 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: 2.65
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: 6.29
• 1Y Price Target: $3.53
• Price Target Upside: 10.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$3.50 ▲(9.37% Upside)

Skyworth Digital Holdings has a moderate overall stock score, driven primarily by its mixed financial performance and reasonable valuation. The stock's technical indicators suggest a stable trend, but cash flow challenges and declining profitability are concerns. The absence of earnings call data and notable corporate events limits further insights.

Skyworth Digital Holdings Business Overview & Revenue Model

Company Description

Skyworth Digital Holdings (0751) is a leading Chinese manufacturer of consumer electronics and digital products. The company operates primarily in the television and set-top box sectors, producing a wide range of high-quality smart TVs, digital set-top boxes, and other multimedia devices. Skyworth is renowned for its innovation and commitment to developing cutting-edge technology that enhances the consumer viewing experience.

How the Company Makes Money

Skyworth Digital Holdings generates revenue primarily through the sale of its consumer electronics, particularly smart TVs and digital set-top boxes. The company leverages its robust research and development capabilities to continuously innovate and offer a diverse portfolio of products that cater to a wide range of consumer preferences and price points. Key revenue streams include direct sales to consumers, partnerships with telecommunications companies for set-top box distribution, and collaborations with content providers to offer integrated media solutions. Additionally, Skyworth benefits from its extensive distribution network, both domestically and internationally, which allows it to tap into various markets and increase its sales footprint. The company's strategic partnerships and focus on technology advancements also play a significant role in driving its revenue growth.

Skyworth Digital Holdings Financial Statement Overview

Summary

Skyworth Digital Holdings shows mixed financial performance. The income statement reveals declining revenue and profitability, while the balance sheet reflects moderate leverage and solid equity support. However, cash flow challenges present a concern, with negative operating and free cash flows. The company should focus on improving its cash flow management and profitability to enhance financial stability.

Income Statement

Skyworth Digital Holdings has experienced a decline in revenue from 2023 to 2024, with total revenue falling from HKD 69.03 billion to HKD 64.90 billion, indicating a negative revenue growth rate of -6.36%. Gross profit margin for 2024 is 13.40%, down from the previous year, highlighting potential cost pressures. The net profit margin also decreased to 0.88% from 1.55%, indicating a decline in profitability. However, the company's EBIT and EBITDA margins show resilience with relatively stable figures at 1.62% and 2.50%, respectively.

Balance Sheet

The debt-to-equity ratio is 0.90, reflecting a moderate level of leverage. Return on equity (ROE) decreased to 3.11% in 2024 from 5.89% in 2023, indicating less efficient use of equity. The equity ratio stands at 26.05%, suggesting a solid asset base supported by equity. The balance sheet shows stability, but with a decrease in equity and ROE, potential risks related to financial leverage should be monitored.

Cash Flow

Skyworth Digital Holdings faced challenges in cash flow with a negative operating cash flow of HKD -506 million and free cash flow of HKD -1.736 billion in 2024, compared to positive figures in 2023. This represents a significant deterioration in cash flow health. The free cash flow to net income ratio is also negative, indicating that the company is currently not generating enough free cash flow relative to its net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.01B	69.03B	62.20B	61.38B	45.05B
Gross Profit	8.81B	9.64B	9.54B	10.30B	8.05B
EBITDA	1.62B	3.45B	3.01B	3.63B	3.26B
Net Income	568.00M	1.07B	827.00M	1.63B	1.44B
Balance Sheet
Total Assets	70.01B	67.16B	72.32B	74.47B	63.65B
Cash, Cash Equivalents and Short-Term Investments	9.46B	9.83B	15.08B	17.45B	12.39B
Total Debt	16.40B	15.46B	17.24B	19.87B	16.09B
Total Liabilities	46.87B	44.40B	47.73B	48.68B	41.13B
Stockholders Equity	18.24B	18.14B	20.06B	22.07B	19.34B
Cash Flow
Free Cash Flow	-1.74B	660.00M	3.02B	-1.12B	1.58B
Operating Cash Flow	-506.00M	2.48B	5.89B	1.40B	3.45B
Investing Cash Flow	17.00M	-352.00M	-4.74B	-1.18B	-264.07M
Financing Cash Flow	-263.00M	-2.21B	-1.45B	3.27B	1.07B

Skyworth Digital Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0751, the sentiment is Positive. The current price of 3.2 is below the 20-day moving average (MA) of 3.21, above the 50-day MA of 3.18, and above the 200-day MA of 2.98, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 52.28 is Neutral, neither overbought nor oversold. The STOCH value of 45.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0751.

Skyworth Digital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1070	72 Outperform	HK$24.88B	13.63	10.36%	3.22%	25.75%	135.20%
1810	71 Outperform	$1.33T	39.02	14.98%	―	38.46%	72.44%
0927	65 Neutral	€306.60M	16.80	-6.99%	9.72%	-6.75%	-310.42%
0751	64 Neutral	$6.04B	12.00	3.12%	2.61%	-7.51%	-43.66%
1747	59 Neutral	HK$2.28B	116.84	10.51%	0.42%	6.02%	―
Sector *	57 Neutral	HK$14.16B	10.67	-2.83%	4.83%	9.36%	-49.67%
1401	55 Neutral	HK$1.47B	73.13	4.55%	―	2.36%	-50.00%

Skyworth Digital Holdings Corporate Events

Skyworth Group Issues Profit Warning Amid Market Challenges

Skyworth Group Limited has issued a profit warning, anticipating a 50% decrease in profit after tax for the first half of 2025 compared to the same period in 2024. This decline is attributed to the prolonged downturn in China’s real estate market, affecting the company’s construction development business, and increased competition in the smart systems technology sector, leading to reduced revenue and gross profit margins. The company is preparing its interim results, which may be subject to amendments, and advises caution for shareholders and potential investors.

Skyworth Digital Reports Significant Profit Decline in 2025 Interim Results

Skyworth Digital Co., Ltd. has announced its estimated interim results for 2025, revealing a significant decrease in net profit compared to the previous year. The decline, ranging from 65.35% to 76.35%, is attributed to a competitive market environment and a substantial drop in the sales unit price of smart devices, leading to reduced revenue and gross profit margins.

Skyworth Group Completes Significant Share Buyback

Skyworth Group Limited, a company listed on the Hong Kong Stock Exchange, has completed a cash offer to buy back up to 350 million shares at HK$3.11 per share. The completion of this offer resulted in the cancellation of 341,262,688 shares, reducing the total number of issued shares from 2,233,267,420 to 1,892,004,732. This buyback has significantly increased the shareholding percentage of the Wong Concert Party Group from 56.04% to 66.15%, potentially strengthening their control over the company.

Skyworth Completes Major Share Buy-Back

Skyworth Group Limited has successfully closed its cash offer to buy back up to 350,000,000 shares at HK$3.11 per share, with a total of 341,262,688 shares accepted, representing approximately 15.28% of the total issued shares. This buy-back, amounting to HK$1,061.3 million, is expected to impact the company’s share capital structure and potentially enhance shareholder value.

Skyworth Group Approves Share Buy-Back to Optimize Capital Structure

Skyworth Group Limited has announced the successful passing of an ordinary resolution at a Special General Meeting, allowing the company to proceed with a conditional cash offer to buy back up to 350 million shares at HK$3.11 per share. This move, facilitated by CLSA Limited, aims to enhance shareholder value and reflects the company’s strategic efforts to optimize its capital structure, which could positively impact its market positioning and stakeholder interests.

Skyworth Group Limited Passes All Resolutions at Annual General Meeting

Skyworth Group Limited successfully passed all proposed resolutions during its Annual General Meeting held on May 23, 2025. The resolutions included re-electing directors, authorizing the board to fix remuneration, re-appointing auditors, and granting mandates related to shares. This outcome reflects strong shareholder support and positions the company for continued strategic governance and operational decisions.