Telecom Digital Holdings Ltd (6033) AI Stock Analysis

• Market Cap: HK$246.29M
• Dividend Yield: 7.94%
• Average Volume (3M): 41.33K
• Price to Earnings (P/E): 64.9
• Beta (1Y): 0.53
• 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$0.64 ▼(-1.54% Downside)

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

Free Cash Flow Strength

Sustained free cash flow growth provides durable internal funding for capex, dividends, and debt paydown. Over 2–6 months this strengthens strategic flexibility, supports reinvestment in network or digital offerings, and cushions the business against revenue volatility.

Diversified Revenue Streams

A mix of subscriptions, equipment sales, advertising and value-added/cloud services builds recurring revenue and cross-sell opportunities. This diversification reduces single-market reliance and improves medium-term revenue predictability and resilience to sector-specific shocks.

Positive Revenue Growth

Latest positive top-line growth signals ongoing market demand and product adoption. Over the coming months this supports operating leverage opportunities and scale benefits, giving management scope to focus on margin recovery and expand higher-margin digital services.

Negative Factors

High Leverage

Elevated debt levels increase interest and refinancing risk, constraining financial flexibility. With pressure on margins, leverage heightens the danger that cash flow volatility will force tougher trade-offs between servicing debt, investing in networks, or maintaining shareholder distributions.

Declining Profitability Margins

Sustained margin erosion indicates cost or pricing pressure that weakens return on capital. Over a multi-month horizon falling margins reduce retained earnings, limit reinvestment capacity, and make it harder to absorb operating shocks unless structural cost improvements are executed.

Weaker Cash Conversion Efficiency

Lower operating cash conversion means reported earnings are producing less cash, increasing reliance on free cash flow items or external funding. This trend can strain liquidity, hinder capex funding and slow deleveraging unless operating working capital or collection efficiency improves.

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

The company generates revenue through multiple streams including subscription-based services for mobile and internet connectivity, one-time fees for equipment sales, and advertising revenue from digital platforms. Key revenue drivers include monthly service plans for individual and corporate clients, value-added services such as cloud and data management, and partnerships with content providers that enhance their service offerings. Additionally, the company may benefit from strategic alliances with other technology firms and telecom operators that expand its market reach and service capabilities.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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: Neutral
• 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 Neutral. The current price of 0.65 is above the 20-day moving average (MA) of 0.61, above the 50-day MA of 0.62, and below the 200-day MA of 0.66, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.57 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$1.55B	8.48	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$246.29M	64.89	0.78%	7.94%	1.69%	-81.96%
0178	56 Neutral	HK$1.83B	19.34	8.44%	4.75%	-3.18%	-36.46%
0493	43 Neutral	HK$745.74M	-0.08	―	―	49.53%	22.07%
6188	42 Neutral	HK$354.58M	-0.23	―	―	-4.97%	-92.27%
1280	38 Underperform	HK$5.23B	-1.02	―	―	27.68%	-973.10%

Telecom Digital Holdings Ltd Corporate Events

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.

Telecom Digital Holdings Reports Decline in Interim Profits

Telecom Digital Holdings Limited reported its interim financial results for the six months ending September 30, 2025, showing a decrease in revenue to HK$498,241,000 from HK$538,745,000 in the previous year. The company’s profit before tax also declined significantly to HK$6,715,000 from HK$28,415,000, with a notable drop in profit attributable to owners, indicating challenges in maintaining profitability amidst rising costs and fluctuating financial asset values.

The most recent analyst rating on (HK:6033) stock is a Hold with a HK$0.50 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 Holdings Faces Further Delay in Acquisition Circular Dispatch

Telecom Digital Holdings Limited announced a further delay in the dispatch of a circular related to a discloseable and connected transaction concerning an acquisition. The delay is due to pending approval from HSBC International Trustee Limited, which is necessary for the inclusion of the Target Company in the KW Cheung Family Trust. The new expected dispatch date is no later than 31 January 2026.

The most recent analyst rating on (HK:6033) stock is a Hold with a HK$0.50 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 Holdings Issues Profit Warning Amid Market Challenges

Telecom Digital Holdings Limited has issued a profit warning, indicating a significant decrease in profit for the six months ending September 30, 2025. The expected profit drop to no less than HK$3.9 million, from HK$22.8 million the previous year, is attributed to a challenging market environment, reduced gross profit, lower fair value gains on financial assets, and decreased expenses. The company’s interim results are yet to be finalized, and stakeholders are advised to exercise caution.

The most recent analyst rating on (HK:6033) stock is a Hold with a HK$0.50 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 Holdings Schedules Board Meeting for Interim Results

Telecom Digital Holdings Limited has announced that its board of directors will meet on November 28, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider the payment of a dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:6033) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Telecom Digital Holdings Ltd stock, see the HK:6033 Stock Forecast page.