DB:TC2A

Stock Analysis Report

TCL Electronics Holdings

Executive Summary

TCL Electronics Holdings Limited, an investment holding company, manufactures, distributes, and sells color television sets in the People’s Republic of China, Europe, North America, and internationally.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.

Share Price & News

How has TCL Electronics Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.1%

TC2A

-1.3%

DE Consumer Durables

1.4%

DE Market


1 Year Return

20.3%

TC2A

-6.6%

DE Consumer Durables

3.7%

DE Market

Return vs Industry: TC2A exceeded the German Consumer Durables industry which returned -6.6% over the past year.

Return vs Market: TC2A exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

TC2AIndustryMarket
7 Day-4.1%-1.3%1.4%
30 Day-5.2%-2.7%1.3%
90 Day-6.2%-10.2%3.4%
1 Year23.8%20.3%-4.4%-6.6%7.0%3.7%
3 Year3.6%-9.1%-12.5%-19.6%18.5%8.3%
5 Year72.4%50.0%27.0%9.9%42.2%22.9%

Price Volatility Vs. Market

How volatile is TCL Electronics Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TCL Electronics Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TC2A (€0.42) is trading below our estimate of fair value (€1.15)

Significantly Undervalued: TC2A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TC2A is good value based on its PE Ratio (5x) compared to the Consumer Durables industry average (16.9x).

PE vs Market: TC2A is good value based on its PE Ratio (5x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: TC2A's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TC2A is good value based on its PB Ratio (0.8x) compared to the DE Consumer Durables industry average (1.6x).


Next Steps

Future Growth

How is TCL Electronics Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-13.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TC2A's earnings are forecast to decline over the next 3 years (-13.4% per year).

Earnings vs Market: TC2A's earnings are forecast to decline over the next 3 years (-13.4% per year).

High Growth Earnings: TC2A's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TC2A's revenue (10.5% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: TC2A's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TC2A's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has TCL Electronics Holdings performed over the past 5 years?

58.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TC2A has become profitable over the past 5 years, growing earnings by 58.3% per year.

Accelerating Growth: TC2A's earnings growth over the past year (40.4%) is below its 5-year average (58.3% per year).

Earnings vs Industry: TC2A earnings growth over the past year (40.4%) exceeded the Consumer Durables industry -21.1%.


Return on Equity

High ROE: TC2A's Return on Equity (15.3%) is considered low.


Return on Assets

ROA vs Industry: TC2A has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: TC2A has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is TCL Electronics Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TC2A's short term assets (HK$23.0B) exceeds its short term liabilities (HK$16.8B)

Long Term Liabilities: TC2A's short term assets (23.0B) exceeds its long term liabilities (132.5M)


Debt to Equity History and Analysis

Debt Level: TC2A's debt to equity ratio (7.6%) is considered satisfactory

Reducing Debt: TC2A's debt to equity ratio has reduced from 63.2% to 7.6% over the past 5 years.

Debt Coverage: TC2A's debt is well covered by operating cash flow (294.1%).

Interest Coverage: TC2A's interest payments on its debt are well covered by EBIT (14.4x coverage).


Balance Sheet

Inventory Level: TC2A has a high level of physical assets or inventory.

Debt Coverage by Assets: TC2A's debt is covered by short term assets (assets are 26.873240x debt).


Next Steps

Dividend

What is TCL Electronics Holdings's current dividend yield, its reliability and sustainability?

5.22%

Current Dividend Yield


Upcoming Dividend Payment

Purchase TCL Electronics Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.2%marketbottom25%1.5%markettop25%3.8%industryaverage3.3%forecastin3Years6.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TC2A's dividend (5.22%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: TC2A's dividend (5.22%) is in the top 25% of dividend payers in the German market (3.83%)

Stable Dividend: TC2A's dividend payments have been volatile in the past 10 years.

Growing Dividend: TC2A's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.2%), TC2A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TC2A's dividends in 3 years are forecast to be well covered by earnings (42.6% payout ratio).


Next Steps

Management

What is the CEO of TCL Electronics Holdings's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average board tenure


CEO

Kevin Wang (45yo)

2yrs

Tenure

HK$8,725,000

Compensation

Mr. Cheng Wang, also known as Kevin, serves as Senior Vice President of TCL Corp. He has been the Chief Executive Officer of TCL Multimedia Technology Holdings Limited since October 1, 2017 and has been i ...


CEO Compensation Analysis

Compensation vs. Market: Kevin has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the German market.

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.


Board Age and Tenure

2.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: TC2A's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellHK$58,17208 Apr 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares114,000
Max PriceHK$0.51
SellHK$2,56808 Apr 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares5,000
Max PriceHK$0.51
SellHK$450,18708 Apr 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares881,000
Max PriceHK$0.51
SellHK$1,081,79828 Mar 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares2,000,000
Max PriceHK$0.54
SellHK$12,97528 Mar 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares24,000
Max PriceHK$0.54
SellHK$14,78122 Mar 19
Robert Maarten Westerhof
EntityIndividual
Role
Member of the Board of Directors
Independent Non Executive Director
Shares30,000
Max PriceHK$0.49
SellHK$42204 Jan 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,250
Max PriceHK$0.34
SellHK$57504 Jan 19
Xiaolin Yan
EntityIndividual
Role
Member of the Board of Directors
CTO & Executive Director
Shares1,701
Max PriceHK$0.34
BuyHK$149,55204 Jan 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares450,000
Max PriceHK$0.33
BuyHK$185,48204 Jan 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares550,000
Max PriceHK$0.34
SellHK$6904 Jan 19
Cheng Wang
EntityIndividual
Role
Chief Executive Officer
CEO, COO & Executive Director
Shares203
Max PriceHK$0.34
SellHK$61604 Jan 19
Xubin Huang
EntityIndividual
Shares1,822
Max PriceHK$0.34
BuyHK$142,56402 Jan 19
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares429,000
Max PriceHK$0.33
BuyHK$437,95928 Dec 18
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares1,312,000
Max PriceHK$0.33
BuyHK$7,22018 Dec 18
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares21,000
Max PriceHK$0.34
BuyHK$224,80213 Dec 18
Dong Li
EntityIndividual
Role
Chairman of the Board
Founder & Chairman
Shares667,000
Max PriceHK$0.34

Ownership Breakdown


Management Team

  • Dong Li (62yo)

    Founder & Chairman

    • Tenure: 1.6yrs
    • Compensation: HK$4.73m
  • Morgan Chen (47yo)

    SVP, GM - Business & Supply Chain Management Center and GM - CRT Business Unit

    • Tenure: 0yrs
  • Jin mei Li (49yo)

    Vice President and Human Resource Director

    • Tenure: 0yrs
  • Kai Sing Wong (69yo)

    Senior Vice President and General Manager of Home Network Business Unit

    • Tenure: 0yrs
  • Yonghong Song (52yo)

    Senior Vice President and General Manager of Global Product Center

    • Tenure: 0yrs
  • Shanshui Zhang (53yo)

    Executive Vice President and General Manager of Global Industrial Center

    • Tenure: 0yrs
  • Xiaolin Yan (53yo)

    CTO & Executive Director

    • Tenure: 6.2yrs
    • Compensation: HK$782.00k
  • Michael Wang (42yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$5.54m
  • Kevin Wang (45yo)

    CEO, COO & Executive Director

    • Tenure: 2yrs
    • Compensation: HK$8.73m
  • Lihua Hu (46yo)

    Chief Financial Officer

    • Tenure: 0.7yrs

Board Members

  • Kevin Lau (61yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$567.00k
  • Dong Li (62yo)

    Founder & Chairman

    • Tenure: 1.6yrs
    • Compensation: HK$4.73m
  • Albert Thomas da Rosa (65yo)

    Non Executive Director

    • Tenure: 19.9yrs
    • Compensation: HK$391.00k
  • Robert Maarten Westerhof (76yo)

    Independent Non Executive Director

    • Tenure: 13.1yrs
    • Compensation: HK$466.00k
  • Carter Tseng (70yo)

    Independent Non-Executive Director

    • Tenure: 8.3yrs
  • Yijiang Wang (66yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: HK$466.00k
  • Xiaolin Yan (53yo)

    CTO & Executive Director

    • Tenure: 6.2yrs
    • Compensation: HK$782.00k
  • Michael Wang (42yo)

    Executive Director

    • Tenure: 2.1yrs
    • Compensation: HK$5.54m
  • Kevin Wang (45yo)

    CEO, COO & Executive Director

    • Tenure: 2yrs
    • Compensation: HK$8.73m
  • Yuhao Li (37yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: HK$80.00k

Company Information

TCL Electronics Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TCL Electronics Holdings Limited
  • Ticker: TC2A
  • Exchange: DB
  • Founded: 1981
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: HK$9.025b
  • Listing Market Cap: HK$1.033b
  • Shares outstanding: 2.36b
  • Website: https://electronics.tcl.com

Number of Employees


Location

  • TCL Electronics Holdings Limited
  • TCL Electronics Holdings Limited Building
  • 9th Floor
  • Shenzhen
  • Guangdong Province
  • 518067
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCLH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 1999
1070SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 1999
TC2ADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 1999
1070SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1999
1070SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 1999

Biography

TCL Electronics Holdings Limited, an investment holding company, manufactures, distributes, and sells color television sets in the People’s Republic of China, Europe, North America, and internationally. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:01
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.