tiprankstipranks
Trending News
More News >
TCL Electronics Holdings Limited (HK:1070)
:1070
Advertisement

TCL Electronics Holdings (1070) AI Stock Analysis

Compare
5 Followers

Top Page

HK

TCL Electronics Holdings

(OTC:1070)

Rating:72Outperform
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 (1070) vs. iShares MSCI Hong Kong ETF (EWH)

TCL Electronics Holdings Business Overview & Revenue Model

Company DescriptionTCL Electronics Holdings Limited, an investment holding company, operates as a consumer electronics company in the People's Republic of China, Europe, North America, and internationally. It operates through four segments: Smart screen; Internet Business; Smart Mobile, Connective Devices, and Service; and Smart Commercial Display, Smart Home, and Other Businesses. The company manufactures and sells color television (TV) sets under the TCL brand; provides advertising vertical application, video-on-demand, and membership card services. It also engages in the manufacture and sale of smart mobile, smart connective devices, smart commercial display, smart home products, and other household products; trading of TV products, components, and white goods; research and development of software on smart TV devices, and mobile devices; and operation of the Internet platform, as well as distribution of mobile devices and components. The company was formerly known as TCL Multimedia Technology Holdings Limited and changed its name to TCL Electronics Holdings Limited in June 2018. The company is based in Sha Tin, Hong Kong. TCL Electronics Holdings Limited is a subsidiary of TCL Technology Group Corporation.
How the Company Makes MoneyTCL 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
85
Very Positive
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
78
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue99.32B78.99B71.35B74.85B50.95B
Gross Profit15.55B14.76B13.11B12.53B9.66B
EBITDA1.96B3.12B2.66B2.82B2.88B
Net Income1.76B743.63M446.98M1.18B1.89B
Balance Sheet
Total Assets76.37B64.78B55.11B59.53B52.34B
Cash, Cash Equivalents and Short-Term Investments11.63B11.68B12.88B14.75B11.47B
Total Debt4.97B6.22B5.87B7.34B5.79B
Total Liabilities58.69B47.47B38.23B41.16B35.60B
Stockholders Equity17.20B16.71B16.46B17.96B16.16B
Cash Flow
Free Cash Flow0.001.03B405.90M-576.27M1.62B
Operating Cash Flow2.63B1.60B1.37B795.53M2.53B
Investing Cash Flow0.00-711.74M-771.57M-822.24M-177.78M
Financing Cash Flow0.00-246.31M-2.24B1.13B-853.82M

TCL Electronics Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.68
Price Trends
50DMA
9.68
Positive
100DMA
8.76
Positive
200DMA
7.18
Positive
Market Momentum
MACD
0.13
Negative
RSI
60.43
Neutral
STOCH
64.92
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 10.68 is above the 20-day moving average (MA) of 9.39, above the 50-day MA of 9.68, and above the 200-day MA of 7.18, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 60.43 is Neutral, neither overbought nor oversold. The STOCH value of 64.92 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$25.26B13.8410.36%3.15%25.75%135.20%
63
Neutral
$34.26B5.42-11.67%1.85%5.30%-18.55%
$774.72M13.133.12%2.28%
$190.52B43.5314.98%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1070
TCL Electronics Holdings
10.68
5.65
112.50%
SWDHF
Skyworth Digital Holdings
0.45
0.09
25.00%
XIACF
Xiaomi
7.30
5.15
239.53%

TCL Electronics Holdings Corporate Events

TCL Electronics Announces Performance-Linked Share Awards
Apr 9, 2025

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
Mar 21, 2025

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
Mar 21, 2025

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
Feb 19, 2025

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
Feb 17, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 20, 2025