Telecom Digital Holdings Ltd (6033) AI Stock Analysis

• Market Cap: HK$270.51M
• Dividend Yield: 8.96%
• Average Volume (3M): 65.57K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.53
• Revenue Growth: -15.17%
• EPS Growth: -75.87%
• Country: HK
• Employees: 534
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Specialty Retail
• EPS (TTM): 0.06
• Shares Outstanding: 403,753,000
• 10 Day Avg. Volume: 98,000
• 30 Day Avg. Volume: 65,566
• PEG Ratio: -0.28
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.96
• 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: 67 Neutral
• Price Target: ―

Telecom Digital Holdings Ltd presents a mixed investment outlook. The company demonstrates strong valuation metrics, including an attractive P/E ratio and high dividend yield. However, financial performance highlights challenges in revenue growth and cash flow management. Technical analysis indicates potential continued bearish momentum, although the oversold RSI suggests a possible rebound. Investors should consider both the positive income potential and the underlying operational challenges.

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

Telecom Digital Holdings Ltd generates revenue primarily through the sale of mobile phones, accessories, and related products via its extensive retail and online sales channels. The company also earns income from providing various telecommunications services, including mobile service plans, repairs, and maintenance. Additionally, strategic partnerships with major telecommunications operators and manufacturers allow Telecom Digital Holdings Ltd to offer exclusive products and services, contributing significantly to its revenue streams.

Telecom Digital Holdings Ltd Financial Statement Overview

Summary

Telecom Digital Holdings Ltd shows a mixed financial performance with strengths in operational efficiency and a solid capital structure. However, challenges in revenue growth and cash flow generation need to be addressed to improve profitability and sustainability. Focusing on revenue growth and better cash management strategies will be crucial for future success.

Income Statement

Telecom Digital Holdings Ltd experienced a decline in total revenue from the previous year, contributing to a lower gross profit margin of 33.95%. The net profit margin also decreased to 4.11%, reflecting reduced profitability. However, the EBIT margin improved to 18.41%, indicating better operational efficiency. The company should focus on reversing the revenue decline to enhance overall profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 1.32, showing a moderate level of leverage. The return on equity decreased to 11.42%, indicating reduced efficiency in generating profits from shareholders' equity. The equity ratio at 40.29% suggests a stable capital structure, but there is room for improvement in debt management to enhance financial stability.

Cash Flow

Telecom Digital Holdings Ltd reported a healthy operating cash flow of HKD 157.66 million, maintaining a strong operating cash flow to net income ratio of 2.80. However, free cash flow decreased, with a free cash flow to net income ratio of 2.35, indicating potential challenges in generating cash from operations. The company should aim to enhance free cash flow generation to support growth.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.27B	1.37B	1.54B	1.51B	1.04B	1.09B
Gross Profit	433.37M	466.17M	499.04M	525.29M	499.54M	518.08M
EBITDA	165.12M	200.01M	207.59M	217.54M	241.14M	194.63M
Net Income	21.05M	56.38M	75.58M	113.06M	135.22M	80.20M
Balance Sheet
Total Assets	1.31B	1.23B	1.37B	851.01M	645.28M	647.66M
Cash, Cash Equivalents and Short-Term Investments	67.65M	59.58M	89.24M	192.09M	72.17M	41.64M
Total Debt	741.36M	652.03M	833.52M	345.26M	188.29M	208.31M
Total Liabilities	810.70M	731.72M	923.94M	440.71M	263.15M	288.87M
Stockholders Equity	499.58M	493.67M	448.29M	410.30M	382.12M	358.79M
Cash Flow
Free Cash Flow	67.86M	163.67M	169.45M	160.34M	164.11M	190.20M
Operating Cash Flow	93.73M	188.89M	176.73M	172.28M	184.60M	201.79M
Investing Cash Flow	-6.91M	86.04M	-640.73M	-154.86M	-223.00K	4.16M
Financing Cash Flow	-83.57M	-277.44M	382.05M	24.23M	-154.68M	-208.97M

Telecom Digital Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.66
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 0.66 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.66, and below the 200-day MA of 0.69, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 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
6033	67 Neutral	HK$270.51M	11.96	4.61%	8.96%	-15.17%	-75.87%
Sector *	62 Neutral	C$5.19B	8.81	20.23%	3.49%	3.08%	9.19%
GMELF	―	$112.81M	―		―	―	―
1D2	―	€16.90M	―	-293.07%	―	―	―
2420	74 Outperform	HK$1.67B	10.10	27.91%	3.58%	8.89%	―
0178	72 Outperform	HK$1.86B	24.19	6.39%	5.00%	1.20%	-49.31%
1280	51 Neutral	HK$7.16B	―		―	35.91%	-1025.54%

Telecom Digital Holdings Ltd Corporate Events

Telecom Digital Holdings Announces Continuing Connected Transactions with East-Asia and Sun Asia Groups

Telecom Digital Holdings Limited has announced its continuing connected transactions with East-Asia Group and Sun Asia Group for the year ending 31 March 2026. The company has entered into tenancy agreements with East-Asia Group, involving annual fees not exceeding HK$7,967,000 for properties leased from East-Asia and HK$2,112,000 for properties leased to East-Asia. These transactions are subject to certain compliance requirements under the Listing Rules but are exempt from independent shareholders’ approval. Similarly, transactions with Sun Asia Group, including property leasing and service provisions, have been capped at HK$7,000,000 for payments and HK$5,809,000 for receivables. These transactions also comply with the Listing Rules’ announcement and reporting requirements but do not require independent shareholders’ approval.

Telecom Digital Engages in Discloseable Decumulator Contracts with HSBC

Telecom Digital Holdings Limited, through its subsidiary MGL, has entered into two equity decumulator contracts with HSBC, with a total notional amount of approximately HK$16,366,500. These contracts are considered discloseable transactions under Hong Kong’s Listing Rules due to the aggregate applicable percentage ratios exceeding 5% but being less than 25%. The decumulator contracts involve the sale of HKEx shares at predetermined strike prices over a 12-month period, with settlement occurring bi-weekly. The contracts pose a risk due to limited secondary market liquidity and are subject to early termination under specific conditions.