TCL Electronics Holdings (1070) AI Stock Analysis

• Market Cap: HK$24.10B
• Dividend Yield: 1.59%
• Average Volume (3M): 7.99M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.69
• Revenue Growth: 25.75%
• EPS Growth: 135.20%
• Country: HK
• Employees: 30,510
• Sector: Technology
• Sector Strength: 79
• Industry: Consumer Electronics
• EPS (TTM): 0.71
• Shares Outstanding: 2,520,935,000
• 10 Day Avg. Volume: 8,448,464
• 30 Day Avg. Volume: 7,989,591
• PEG Ratio: 0.03
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.74
• 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

• Rating: 72 Outperform
• Price Target: ―

TCL Electronics Holdings shows strong financial performance with notable revenue and profit growth. However, the increase in liabilities and cash flow challenges present potential risks. The technical analysis indicates a positive market trend, but valuation metrics suggest the stock is fairly priced. The absence of recent earnings call and corporate events data limits additional insights. Overall, the stock demonstrates solid fundamentals but requires careful monitoring of financial health.

TCL Electronics Holdings Business Overview & Revenue Model

Company Description

TCL Electronics Holdings Limited (1070) is a leading global consumer electronics company specializing in the design, manufacturing, and marketing of a wide range of electronic products. The company's core offerings include televisions, audio devices, and other home appliances, serving both domestic and international markets. TCL is renowned for its innovation in smart TV technology, consistently ranking among the top television manufacturers worldwide.

How the Company Makes Money

TCL Electronics generates revenue primarily through the sale of its consumer electronics products, with televisions being a significant contributor to its earnings. The company's revenue model is based on producing and selling a diverse range of electronic goods including smart TVs, sound systems, and home appliances. TCL leverages its extensive distribution network and partnerships with major retailers and online platforms to reach a broad consumer base. Additionally, the company invests in research and development to enhance its product offerings and maintain competitiveness in the rapidly evolving electronics market. Revenue is also supplemented through strategic partnerships and licensing agreements, further boosting its financial performance.

TCL Electronics Holdings Financial Statement Overview

Summary

TCL Electronics Holdings shows a robust growth trajectory with strong revenue and profit growth. The balance sheet is stable, but rising liabilities require careful monitoring. Cash flow management needs significant improvement to ensure the company can continue to finance its growth and operations sustainably. Overall, the financial health is positive, but potential cash flow challenges must be addressed.

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
88.81B	99.32B	78.99B	71.35B	74.85B	50.95B
	Gross Profit
16.36B	15.55B	14.76B	13.11B	12.53B	9.66B
	EBIT
-1.79B	1.54B	819.24M	1.32B	227.28M	1.24B
	EBITDA
-934.01M	1.96B	3.12B	2.66B	2.82B	2.88B
	Net Income Common Stockholders
578.28M	1.76B	743.63M	446.98M	1.18B	1.89B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.96B	11.63B	11.68B	12.88B	14.75B	11.47B
	Total Assets
21.03B	76.37B	64.78B	55.11B	59.53B	52.34B
	Total Debt
2.14B	4.97B	6.22B	5.87B	7.34B	5.79B
	Net Debt
-1.82B	-3.80B	-4.52B	-3.52B	-4.17B	-4.59B
	Total Liabilities
14.35B	58.69B	47.47B	38.23B	41.16B	35.60B
	Stockholders Equity
6.58B	17.20B	16.71B	16.46B	17.96B	16.16B
Cash Flow		Free Cash Flow
1.32B	0.00	1.03B	405.90M	-576.27M	1.62B
	Operating Cash Flow
1.84B	2.63B	1.60B	1.37B	795.53M	2.53B
	Investing Cash Flow
-2.47B	0.00	-711.74M	-771.57M	-822.24M	-177.78M
	Financing Cash Flow
-2.32B	0.00	-246.31M	-2.24B	1.13B	-853.82M

TCL Electronics Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.56
• 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:1070, the sentiment is Positive. The current price of 9.56 is below the 20-day moving average (MA) of 10.21, above the 50-day MA of 9.49, and above the 200-day MA of 6.88, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1070.

TCL Electronics Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2020	81 Outperform	$259.84B	15.49	28.11%	2.61%	11.51%	47.88%
2313	75 Outperform	$80.72B	11.93	18.17%	4.84%	12.76%	34.50%
1211	74 Outperform	$1.01T	23.65	23.91%	3.25%	33.89%	45.52%
1070	72 Outperform	HK$24.10B	13.21	10.36%	1.59%	25.75%	135.20%
2382	65 Neutral	$69.31B	23.58	11.45%	0.85%	18.80%	142.93%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%

TCL Electronics Holdings Corporate Events

TCL Electronics Announces Performance-Linked Share Awards

TCL Electronics Holdings Limited announced the grant of 91,497,900 awarded shares with performance-linked vesting conditions to 860 selected individuals, including directors and key personnel. This initiative aligns management interests with the company’s performance goals, emphasizing a commitment to sustainable growth. The company will instruct trustees to purchase shares in the open market, reflecting confidence in its future performance and aligning with capital market trends.

TCL Electronics Declares Final Dividend for 2024

TCL Electronics Holdings Limited announced a final ordinary dividend of HKD 0.318 per share for the financial year ending December 31, 2024. This announcement reflects the company’s financial health and commitment to returning value to shareholders, with the dividend payment scheduled for July 30, 2025, following shareholder approval in June.

TCL Electronics Reports Strong Financial Growth in 2024

TCL Electronics Holdings Limited announced its financial results for the year ending December 31, 2024, reporting a significant increase in revenue and profit. The company’s revenue grew by 25.7% to HK$99,322 million, and profit attributable to owners surged by 136.6% to HK$1,759 million. The global TV industry saw a 3.7% growth in shipments, with large-screen and Mini LED TVs driving market expansion. Despite economic uncertainties, TCL maintained its strategies and improved operational efficiency, benefiting from China’s economic progress and increased demand in the PRC market.

TCL Electronics Announces Board Meeting for Annual Results Approval

TCL Electronics Holdings Limited has announced a board meeting scheduled for March 21, 2025, to approve the annual results for the year ended December 31, 2024, and consider a final dividend. This meeting is significant as it will determine the company’s financial performance and potential shareholder returns, impacting its market position and stakeholder interests.

TCL Electronics Projects Significant Profit Growth for 2024

TCL Electronics Holdings Limited announced an expected increase in their adjusted profit attributable to owners for 2024, anticipating a rise of 62% to 112% compared to 2023. This growth is driven by strategic initiatives in global capacity building, optimizing product mix, and enhancing operational efficiency, which have led to increased global market share and record high revenues in their TV business. The company has improved cost effectiveness through enhanced logistics and warehousing, while maintaining stringent control over expenses, resulting in a reduced overall expense ratio.