Telecom Digital Holdings Ltd (6033) AI Stock Analysis

• Market Cap: HK$234.18M
• Dividend Yield: 7.94%
• Average Volume (3M): 41.33K
• Price to Earnings (P/E): 18.5
• Beta (1Y): 0.52
• Revenue Growth: 1.69%
• EPS Growth: -81.96%
• Country: HK
• Employees: 534
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 403,753,000
• 10 Day Avg. Volume: 49,600
• 30 Day Avg. Volume: 41,326
• PEG Ratio: -0.21
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 3.11
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.61 ▼(-6.46% Downside)
• Action: Reiterated Date: 12/31/25
• Date: Action: Reiterated 12/31/25

The score is driven mainly by mixed financial performance (revenue growth and solid free cash flow but pressured margins and high leverage). Technicals are supportive but look overbought, while valuation is a key headwind due to a very high P/E despite the attractive dividend yield.

Positive Factors

Latest revenue growth

Sustained revenue growth in the latest period indicates the company can expand market reach and support scale economics. Over 2–6 months this underpins capacity to invest in distribution and product mix improvements, helping stabilize top-line resilience despite margin pressures.

Strong free cash flow

Healthy free cash flow growth provides durable internal funding for dividends, capex, and debt reduction. That cash conversion ability supports financial flexibility, allowing the company to navigate cyclical retail demand and invest in strategic initiatives without sole reliance on external financing.

Stable equity ratio / balanced asset structure

A relatively stable equity ratio signals that asset composition hasn't shifted toward excessive fragility. This balanced structure offers some cushion versus shocks, preserving borrowing capacity and supporting medium-term financing options while management addresses leverage and profitability weaknesses.

Negative Factors

High leverage

Significant debt-to-equity increases financial risk and interest burden, constraining capital allocation. Over a multi-month horizon high leverage reduces strategic flexibility, magnifies earnings volatility from margin pressure, and limits the company's ability to withstand adverse demand or cost shocks.

Declining profitability margins

Eroding gross and net margins signal structural cost or pricing pressure, reducing funds available for reinvestment and debt service. If persistent, margin compression impairs return on capital and weakens the firm's ability to rebuild reserves or fund growth without raising prices or cutting costs.

Weaker cash generation efficiency

A declining operating cash flow to net income ratio indicates lower quality of reported earnings and less cash per unit of profit. This trend can strain liquidity management, making it harder to service debt or sustain dividends, and limits the company’s ability to deleverage or fund investments from operations.

Telecom Digital Holdings Ltd Business Overview & Revenue Model

Company Description

Telecom Digital Holdings Limited, an investment holding company, engages in the telecommunications and related businesses in Hong Kong and the People's Republic of China. The company operates through Retail Business, Distribution Business, Operation Services, and Other segments. The Retail Business segment sells mobile phones and other consumer goods, as well as provides related services. The Distribution Business segment distributes mobiles phones; and offers related services. The Operation Services segment is involved in the provision of operation services. The company also provides installation, maintenance, and management services for paging transmission stations; technical support services; paging and other telecommunication services; and management consultancy and professional services. In addition, it is involved in e-commerce business; and invests in properties. As of March 31, 2022, it operated 82 retail shops. The company was founded in 1974 and is headquartered in Kowloon Bay, Hong Kong. Telecom Digital Holdings Limited is a subsidiary of CKK Investment Limited.

How the Company Makes Money

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Telecom Digital Holdings Ltd Financial Statement Overview

Summary

Mixed fundamentals: latest revenue growth and strong free cash flow are positives, but profitability margins have declined and high leverage increases financial risk.

Income Statement

Telecom Digital Holdings Ltd has shown a mixed performance in its income statement. The gross profit margin has decreased over the years, indicating pressure on cost management. The net profit margin has also declined, reflecting challenges in maintaining profitability. However, the company has managed to achieve positive revenue growth in the latest period, which is a positive sign. The EBIT and EBITDA margins have shown fluctuations, suggesting some instability in operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which could pose financial risks. Return on equity has decreased over the years, reflecting reduced profitability for shareholders. The equity ratio has remained relatively stable, suggesting a balanced asset structure. Overall, the balance sheet shows a need for improved financial stability and risk management.

Cash Flow

The cash flow statement indicates a strong free cash flow growth rate in the latest period, which is a positive development. The operating cash flow to net income ratio has decreased, suggesting a potential decline in cash generation efficiency. However, the free cash flow to net income ratio remains healthy, indicating good cash conversion. Overall, the cash flow position is relatively strong, but there is room for improvement in operational cash generation.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.69B	1.33B	1.37B	1.54B	1.51B	1.04B
Gross Profit	180.86M	399.15M	466.17M	499.04M	525.29M	499.54M
EBITDA	111.34M	161.70M	200.01M	207.59M	217.54M	241.14M
Net Income	3.72M	22.62M	56.38M	75.58M	113.06M	135.22M
Balance Sheet
Total Assets	1.18B	1.21B	1.23B	1.37B	851.01M	645.28M
Cash, Cash Equivalents and Short-Term Investments	49.91M	57.45M	59.58M	89.24M	192.09M	72.17M
Total Debt	626.66M	629.00M	652.03M	833.52M	345.26M	188.29M
Total Liabilities	694.63M	721.14M	731.72M	923.94M	440.71M	263.15M
Stockholders Equity	480.55M	486.49M	493.67M	448.29M	410.30M	382.12M
Cash Flow
Free Cash Flow	140.12M	89.66M	163.67M	169.45M	160.34M	164.11M
Operating Cash Flow	156.07M	123.64M	188.89M	176.73M	172.28M	184.60M
Investing Cash Flow	7.99M	-4.84M	86.04M	-640.73M	-154.86M	-223.00K
Financing Cash Flow	-238.48M	-123.39M	-277.44M	382.05M	24.23M	-154.68M

Telecom Digital Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6033, the sentiment is Negative. The current price of 0.65 is above the 20-day moving average (MA) of 0.59, above the 50-day MA of 0.61, and below the 200-day MA of 0.66, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6033.

Telecom Digital Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2420	77 Outperform	HK$1.99B	3.39	27.30%	4.07%	23.59%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6033	60 Neutral	HK$234.18M	18.51	3.10%	7.94%	1.69%	-81.96%
0178	56 Neutral	HK$2.02B	9.74	8.16%	4.75%	-3.18%	-36.46%
0493	43 Neutral	HK$652.52M	-0.15	―	―	49.53%	22.07%
6188	42 Neutral	HK$359.02M	-0.65	104.65%	―	-4.97%	-92.27%
1280	38 Underperform	HK$4.16B	-74.78	-1156.74%	―	27.68%	-973.10%

Telecom Digital Holdings Ltd Corporate Events

Telecom Digital Ends CKK Cafe Lease, Resets Cap on Sun Asia Group Rentals

Telecom Digital Holdings Limited announced that its subsidiary OIL has signed a surrender agreement with CKK Cafe, a wholly owned subsidiary of connected party Sun Asia, to terminate an existing tenancy for the fourth floor of Telecom Digital Tower in Kwun Tong. CKK Cafe will return the premises with vacant possession on 15 February 2026, after which the tenancy will be fully terminated and all parties released from further liabilities, while other leases with Sun Asia Group entities, including offices and restaurant premises, will continue on arm’s-length, market-based terms. As the Sun Asia Group is controlled by the Cheung family, the arrangement constitutes a continuing connected transaction under Hong Kong listing rules, triggering announcement, annual review and reporting obligations but remaining exempt from independent shareholders’ approval due to its size, with a revised annual cap set for rental income from Sun Asia Group leases.

The most recent analyst rating on (HK:6033) stock is a Hold with a HK$0.58 price target. To see the full list of analyst forecasts on Telecom Digital Holdings Ltd stock, see the HK:6033 Stock Forecast page.

Telecom Digital Further Delays Circular on Connected Acquisition Pending Trustee Approval

Telecom Digital Holdings Limited has announced a further delay in sending a shareholder circular related to a previously disclosed acquisition and connected transaction. The circular, originally expected by 31 January 2026, is now anticipated to be dispatched no later than 31 March 2026, as the company continues to seek approval from HSBC International Trustee Limited, trustee of the KW Cheung Family Trust, to accept the target company as part of the trust property, a step that is important given the trust’s indirect control of a majority stake in Telecom Digital.

The most recent analyst rating on (HK:6033) stock is a Hold with a HK$0.57 price target. To see the full list of analyst forecasts on Telecom Digital Holdings Ltd stock, see the HK:6033 Stock Forecast page.