TCL Electronics Holdings (1070) AI Stock Analysis

• Market Cap: $23.24B
• Dividend Yield: 3.12%
• Average Volume (3M): 7.44M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.63
• Revenue Growth: 21.26%
• EPS Growth: 94.52%
• Country: HK
• Employees: 30,510
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 0.42
• Shares Outstanding: 2,520,935,000
• 10 Day Avg. Volume: 5,779,261
• 30 Day Avg. Volume: 7,442,810
• PEG Ratio: 0.07
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 7.61
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: 6.97
• 1Y Price Target: $12.83
• Price Target Upside: 32.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$10.50 ▲(8.58% Upside)

The overall stock score is primarily influenced by strong financial performance, despite cash flow challenges. The technical analysis indicates bearish trends, while the valuation suggests the stock is fairly priced with a decent dividend yield.

TCL Electronics Holdings Business Overview & Revenue Model

Company Description

TCL Electronics Holdings Limited (1070) is a leading global consumer electronics company headquartered in Huizhou, China. Specializing in the design, manufacturing, and marketing of a wide range of electronic products, TCL operates primarily in the television, mobile, and home appliance sectors. The company's core offerings include smart TVs, smartphones, audio devices, and various home appliances, which are marketed under the TCL brand and other sub-brands. With a strong focus on innovation and technology, TCL has positioned itself as one of the top players in the global electronics market.

How the Company Makes Money

TCL Electronics generates revenue through multiple key streams primarily centered around its product sales. The largest segment of its revenue comes from the sale of televisions, particularly smart TVs, which leverage advanced display technologies like QLED and Mini-LED. Additionally, the company earns income from mobile devices, including smartphones and tablets, which contribute significantly to its overall revenue. TCL also engages in licensing agreements and partnerships with various technology firms to enhance its product offerings, such as collaborations with streaming service providers and tech companies for integrated solutions. Furthermore, TCL's expansion into home appliances and audio products provides additional avenues for revenue generation, supported by its growing presence in emerging markets. Overall, TCL's revenue model is bolstered by its wide product portfolio, strategic partnerships, and adaptive market strategies.

TCL Electronics Holdings Financial Statement Overview

Summary

TCL Electronics Holdings shows strong revenue and profit growth with a stable balance sheet. However, the company faces challenges with cash flow management, as indicated by zero free cash flow in 2024 and rising liabilities.

Income Statement

TCL Electronics Holdings demonstrates strong revenue growth with a significant increase from 2023 to 2024. The gross profit margin improved slightly, indicating efficient cost management. Net profit margin also increased, reflecting enhanced profitability. However, the EBIT margin is relatively low, suggesting potential inefficiencies in core operations. Nonetheless, the EBITDA margin shows better operational cash flow generation capabilities.

Balance Sheet

The company's balance sheet is relatively healthy with a stable equity ratio and a manageable debt-to-equity ratio, indicating a strong financial position. The return on equity demonstrates a solid return for shareholders. However, the total liabilities have increased, which may pose potential risks if the company cannot manage its debt effectively.

Cash Flow

Cash flow management appears weak as indicated by the zero free cash flow in 2024. While previous periods showed positive free cash flow, the lack of reported operating or investing cash flow in 2024 raises concerns about cash management practices. The company needs to ensure positive cash flow to sustain operations and investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.61B	99.32B	78.99B	71.35B	74.85B	50.95B
Gross Profit	16.17B	15.55B	13.67B	13.11B	12.53B	9.66B
EBITDA	2.49B	1.96B	3.12B	2.66B	2.82B	2.88B
Net Income	2.20B	1.76B	743.63M	446.98M	1.18B	3.60B
Balance Sheet
Total Assets	82.68B	76.37B	64.78B	55.11B	59.53B	52.34B
Cash, Cash Equivalents and Short-Term Investments	12.99B	11.63B	11.68B	10.78B	13.43B	11.47B
Total Debt	6.22B	4.97B	6.22B	5.87B	7.34B	5.79B
Total Liabilities	64.95B	58.69B	47.47B	38.23B	41.16B	35.60B
Stockholders Equity	17.22B	17.20B	16.71B	16.46B	17.96B	16.16B
Cash Flow
Free Cash Flow	1.44B	2.11B	1.03B	405.90M	-576.27M	1.62B
Operating Cash Flow	1.83B	2.63B	1.60B	1.37B	795.53M	2.53B
Investing Cash Flow	116.83M	-2.17B	21.61M	-771.57M	-822.24M	-177.78M
Financing Cash Flow	-1.55B	-2.34B	-246.31M	-2.24B	1.13B	-853.82M

TCL Electronics Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.67
• 50DMA: Negative
• 100DMA: Negative
• 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:1070, the sentiment is Neutral. The current price of 9.67 is above the 20-day moving average (MA) of 9.50, below the 50-day MA of 9.97, and above the 200-day MA of 9.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 79.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1070.

TCL Electronics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1810	71 Outperform	$1.10T	26.41	19.56%	―	35.67%	122.22%
1070	66 Neutral	$23.24B	10.34	13.06%	3.12%	21.26%	94.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0751	53 Neutral	$7.55B	26.63	1.76%	2.01%	6.10%	-70.77%

TCL Electronics Holdings Corporate Events

TCL Electronics Reports Strong Growth in First Half of 2025

TCL Electronics Holdings Limited reported a significant financial performance for the first half of 2025, with a 20.4% increase in revenue and a 60.5% rise in profit after tax compared to the same period in 2024. The company has benefited from the growing demand for large-screen and premium TVs, particularly those with Mini LED technology, amid a stabilizing global TV market. The Chinese market, supported by government policies, has shown robust growth in both the TV and photovoltaic sectors, indicating strong future prospects for TCL in these areas.

TCL Electronics to Announce Interim Results in August 2025

TCL Electronics Holdings Limited has announced that its board of directors will hold a meeting on August 22, 2025, to approve and publish the interim results for the first half of 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder interests.