TCL Electronics Holdings (1070) AI Stock Analysis

• Market Cap: HK$31.21B
• Dividend Yield: 2.96%
• Average Volume (3M): 7.44M
• Price to Earnings (P/E): 13.9
• Beta (1Y): 0.53
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$14.34
• Price Target Upside: 36.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$13.00 ▲(23.69% 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.

Positive Factors

Revenue Growth

Sustained double-digit revenue growth indicates expanding product adoption and market penetration for TCL-branded TVs and connected products. Durable top-line momentum supports scale advantages, better supplier terms, and the ability to invest in product development and channel expansion over 2–6 months.

Balance Sheet Health

A stable equity ratio and manageable leverage provide financial flexibility to fund operations, capex, and strategic initiatives without immediate refinancing stress. This resilience helps the company navigate cyclical consumer demand and sustain investments in areas like smart-home and premium TV segments.

Margin Improvements

Rising gross and net margins plus a healthy EBITDA margin reflect improving cost management and product mix gains. Sustained margin expansion enhances free cash generation potential and buffers profitability against component cost volatility, supporting durable earnings quality.

Negative Factors

Weak Free Cash Flow

Zero reported free cash flow in 2024 signals limited internal funding for capex, working capital, dividends, or debt reduction. Over several quarters this can force external financing or cutbacks, constraining strategic flexibility and increasing execution risk for product and channel investments.

Rising Liabilities

Growing liabilities raise leverage and interest exposure, which can strain cash flow if earnings or margins weaken. Persistent increases in obligations reduce balance sheet optionality, elevate refinancing needs, and heighten vulnerability to interest rate or demand shocks over the medium term.

Low EBIT Margin

A relatively low EBIT margin points to operating inefficiencies or cost pressures in core TV manufacturing and distribution. Without structural improvement, limited operating leverage reduces resilience to input-cost inflation and constrains reinvestment capacity, affecting sustainable profitability.

TCL Electronics Holdings Business Overview & Revenue Model

Company Description

TCL 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 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: Positive
• Last Price: 10.51
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 10.51 is below the 20-day moving average (MA) of 11.15, below the 50-day MA of 10.80, and above the 200-day MA of 10.01, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 65.65 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
1810	70 Outperform	HK$945.88B	19.57	19.56%	―	35.67%	122.22%
1070	66 Neutral	HK$31.21B	13.89	13.06%	2.96%	21.26%	94.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0751	53 Neutral	HK$13.39B	46.94	1.76%	―	6.10%	-70.77%

TCL Electronics Holdings Corporate Events

TCL Electronics Plans Sony-Branded Home Entertainment Joint Venture With Sony

TCL Electronics has signed a non-binding memorandum of understanding with Sony Corporation to explore forming a global home entertainment joint venture that would take over Sony’s home entertainment operations, including product development, design, manufacturing, sales, logistics and customer service for televisions and home audio equipment. Under the proposed structure, TCL would hold 51% and Sony 49% of the joint venture, which plans to combine Sony’s picture and audio technologies, brand value and operational expertise with TCL’s display capabilities, scale and cost efficiencies; the products are expected to continue using the Sony and BRAVIA brands, potentially strengthening both companies’ positioning in the global TV and home audio market, while negotiations remain subject to due diligence and definitive agreements within an exclusivity period running to 31 March 2026.

The most recent analyst rating on (HK:1070) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on TCL Electronics Holdings stock, see the HK:1070 Stock Forecast page.

TCL Electronics Expects 45%–60% Jump in 2025 Adjusted Profit on Global, High-End Push

TCL Electronics has flagged a sharp rise in profitability for 2025, expecting adjusted profit attributable to owners of the parent to reach between HK$2.33 billion and HK$2.57 billion, up about 45% to 60% from 2024, based on preliminary unaudited management accounts. Management attributes the surge mainly to quality growth across its worldwide operations, with its large-sized display segment consolidating its industry leadership in mid-to-high-end markets, sustained high profitability in its internet business, and scaling of its innovative business lines. The group also cites improved operating efficiency from AI-driven digitalisation, a stronger global supply chain and channel layout, and organisational changes focused on global operations and talent incentives as key drivers of the improved margin profile. The announcement underscores TCL’s efforts to deepen its globalisation and AI strategy and signals a stronger earnings trajectory ahead of the full 2025 results release expected in March 2026, though the figures remain subject to audit and review.

The most recent analyst rating on (HK:1070) stock is a Hold with a HK$10.50 price target. To see the full list of analyst forecasts on TCL Electronics Holdings stock, see the HK:1070 Stock Forecast page.