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1070

TCL Electronics Holdings SEHK:1070 Stock Report

Last Price

HK$2.81

Market Cap

HK$7.0b

7D

-7.6%

1Y

-28.7%

Updated

27 Sep, 2022

Data

Company Financials +
1070 fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health3/6
Dividends2/6

1070 Stock Overview

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.

TCL Electronics Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for TCL Electronics Holdings
Historical stock prices
Current Share PriceHK$2.81
52 Week HighHK$5.74
52 Week LowHK$2.57
Beta0.81
1 Month Change-28.13%
3 Month Change-25.27%
1 Year Change-28.68%
3 Year Change-28.50%
5 Year Change-25.46%
Change since IPO-88.41%

Recent News & Updates

Sep 16
Is TCL Electronics Holdings (HKG:1070) Using Too Much Debt?

Is TCL Electronics Holdings (HKG:1070) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

Shareholder Returns

1070HK Consumer DurablesHK Market
7D-7.6%-7.1%-3.5%
1Y-28.7%-47.6%-25.2%

Return vs Industry: 1070 exceeded the Hong Kong Consumer Durables industry which returned -47.6% over the past year.

Return vs Market: 1070 underperformed the Hong Kong Market which returned -25.2% over the past year.

Price Volatility

Is 1070's price volatile compared to industry and market?
1070 volatility
1070 Average Weekly Movement9.7%
Consumer Durables Industry Average Movement6.8%
Market Average Movement6.3%
10% most volatile stocks in HK Market12.8%
10% least volatile stocks in HK Market3.0%

Stable Share Price: 1070 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 1070's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
n/a26,965Shaoyong Zhanghttps://electronics.tcl.com

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.

TCL Electronics Holdings Fundamentals Summary

How do TCL Electronics Holdings's earnings and revenue compare to its market cap?
1070 fundamental statistics
Market CapHK$7.02b
Earnings (TTM)HK$391.82m
Revenue (TTM)HK$73.59b

17.9x

P/E Ratio

0.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1070 income statement (TTM)
RevenueHK$73.59b
Cost of RevenueHK$60.84b
Gross ProfitHK$12.75b
Other ExpensesHK$12.36b
EarningsHK$391.82m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.16
Gross Margin17.33%
Net Profit Margin0.53%
Debt/Equity Ratio41.4%

How did 1070 perform over the long term?

See historical performance and comparison

Dividends

5.9%

Current Dividend Yield

102%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 1070 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1070?

Other financial metrics that can be useful for relative valuation.

1070 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.08x
Enterprise Value/EBITDA-7.7x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does 1070's PE Ratio compare to its peers?

1070 PE Ratio vs Peers
The above table shows the PE ratio for 1070 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average39.1x
751 Skyworth Group
5x7.2%HK$8.6b
1478 Q Technology (Group)
8.7x36.3%HK$4.4b
3882 Sky Light Holdings
136.7xn/aHK$810.3m
912 Suga International Holdings
6.3xn/aHK$356.0m
1070 TCL Electronics Holdings
17.9x55.1%HK$7.0b

Price-To-Earnings vs Peers: 1070 is good value based on its Price-To-Earnings Ratio (17.9x) compared to the peer average (39.1x).


Price to Earnings Ratio vs Industry

How does 1070's PE Ratio compare vs other companies in the HK Consumer Durables Industry?

Price-To-Earnings vs Industry: 1070 is expensive based on its Price-To-Earnings Ratio (17.9x) compared to the Hong Kong Consumer Durables industry average (7.3x)


Price to Earnings Ratio vs Fair Ratio

What is 1070's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1070 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.9x
Fair PE Ratio23.2x

Price-To-Earnings vs Fair Ratio: 1070 is good value based on its Price-To-Earnings Ratio (17.9x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).


Share Price vs Fair Value

What is the Fair Price of 1070 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1070 (HK$2.81) is trading above our estimate of fair value (HK$2.17)

Significantly Below Fair Value: 1070 is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


55.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1070's forecast earnings growth (55.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 1070's earnings (55.1% per year) are forecast to grow faster than the Hong Kong market (17.2% per year).

High Growth Earnings: 1070's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1070's revenue (13.5% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 1070's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1070's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

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

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1070 has a large one-off gain of HK$889.9M impacting its June 30 2022 financial results.

Growing Profit Margin: 1070's current net profit margins (0.5%) are lower than last year (3.5%).


Past Earnings Growth Analysis

Earnings Trend: 1070's earnings have grown by 11.7% per year over the past 5 years.

Accelerating Growth: 1070's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1070 had negative earnings growth (-83.8%) over the past year, making it difficult to compare to the Consumer Durables industry average (-4.9%).


Return on Equity

High ROE: 1070's Return on Equity (2.8%) is considered low.


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Financial Health

How is TCL Electronics Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1070's short term assets (HK$47.3B) exceed its short term liabilities (HK$39.6B).

Long Term Liabilities: 1070's short term assets (HK$47.3B) exceed its long term liabilities (HK$1.8B).


Debt to Equity History and Analysis

Debt Level: 1070 has more cash than its total debt.

Reducing Debt: 1070's debt to equity ratio has increased from 25.4% to 41.4% over the past 5 years.

Debt Coverage: 1070's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1070's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.94%

Current Dividend Yield

Dividend Yield vs Market

TCL Electronics Holdings Dividend Yield vs Market
How does TCL Electronics Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (TCL Electronics Holdings)5.9%
Market Bottom 25% (HK)2.9%
Market Top 25% (HK)8.6%
Industry Average (Consumer Durables)4.8%
Analyst forecast in 3 Years (TCL Electronics Holdings)5.2%

Notable Dividend: 1070's dividend (5.94%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.95%).

High Dividend: 1070's dividend (5.94%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.6%).


Stability and Growth of Payments

Stable Dividend: 1070's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1070's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (102.5%), 1070's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 1070 is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Shaoyong Zhang (44 yo)

1.08yrs

Tenure

HK$4,779,000

Compensation

Mr. Shaoyong Zhang is Chief Executive Officer at TCL Electronics Holdings Limited from since August 20, 2021 and served as its Co-Chief Executive Officer since August 09, 2021 until August 20, 2021. He ser...


CEO Compensation Analysis

Shaoyong Zhang's Compensation vs TCL Electronics Holdings Earnings
How has Shaoyong Zhang's remuneration changed compared to TCL Electronics Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

HK$392m

Mar 31 2022n/an/a

HK$788m

Dec 31 2021HK$5mHK$487k

HK$1b

Compensation vs Market: Shaoyong's total compensation ($USD608.80K) is about average for companies of similar size in the Hong Kong market ($USD591.92K).

Compensation vs Earnings: Insufficient data to compare Shaoyong's compensation with company performance.


Leadership Team

Experienced Management: 1070's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1070's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1070 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SEHK:1070 Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
30 Aug 22BuyHK$21,553,974TCL Technology Group CorporationCompany6,070,000HK$3.55
23 Aug 22SellHK$1,235,400Cheng WangIndividual290,000HK$4.26
15 Jul 22BuyHK$8,377,817TCL Technology Group CorporationCompany2,197,000HK$3.81
12 Jul 22BuyHK$2,659,998Juan DuIndividual700,000HK$3.80
08 Jul 22BuyHK$1,158,001Juan DuIndividual300,000HK$3.86
20 Jun 22SellHK$2,479,169Xiaolin YanIndividual688,003HK$3.60
20 Jun 22SellHK$380,882Shaoyong ZhangIndividual123,981HK$3.07
20 Jun 22SellHK$1,025,532Cheng WangIndividual284,599HK$3.60
09 Jun 22SellHK$162,782Robert Maarten WesterhofIndividual44,778HK$3.64
19 May 22BuyHK$10,946,700TCL Technology Group CorporationCompany3,070,000HK$3.57
09 Jan 22SellHK$916Xiaolin YanIndividual221HK$4.14
09 Jan 22SellHK$289,480Cheng WangIndividual69,602HK$4.16
09 Jan 22SellHK$39,431Shaoyong ZhangIndividual9,481HK$4.16

Ownership Breakdown

What is the ownership structure of 1070?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders10,169,3060.4%
Institutions93,406,1783.7%
General Public367,687,43114.7%
Private Companies697,700,00027.9%
Public Companies1,330,817,28853.2%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 85.22% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
53.24%
TCL Technology Group Corporation
1,330,817,288HK$3.7b2.35%no data
13.96%
LeEco Group
348,850,000HK$980.3m0%no data
13.96%
Shenzhen LETV Bridge Merger Acquisition Fund Investment Management Enterprise
348,850,000HK$980.3m0%no data
0.9%
The Vanguard Group, Inc.
22,461,454HK$63.1m1.27%no data
0.87%
Dimensional Fund Advisors LP
21,864,608HK$61.4m0.07%no data
0.55%
BlackRock, Inc.
13,758,300HK$38.7m-0.51%no data
0.4%
Norges Bank Investment Management
9,948,675HK$28.0m0%no data
0.27%
AXA Investment Managers S.A.
6,753,000HK$19.0m0%0.01%
0.17%
Acadian Asset Management LLC
4,245,915HK$11.9m-7.64%0.01%
0.15%
Grantham Mayo Van Otterloo & Co. LLC
3,843,000HK$10.8m-28.21%no data
0.13%
Cheng Wang
3,276,079HK$9.2m0%no data
0.11%
Xiaolin Yan
2,720,429HK$7.6m-20.19%no data
0.078%
Li Sun
1,954,635HK$5.5m-19.51%no data
0.066%
Boston Partners Global Investors, Inc.
1,659,000HK$4.7m0%no data
0.054%
State Street Global Advisors, Inc.
1,353,988HK$3.8m0.22%no data
0.049%
Juan Du
1,214,009HK$3.4m359.72%no data
0.048%
Corner Banca SA, Asset Management Arm
1,200,000HK$3.4m0%0.27%
0.046%
GAM Holding AG
1,157,000HK$3.3m0%0.01%
0.044%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,107,000HK$3.1m33.21%no data
0.029%
Jiyu Wu
727,623HK$2.0m0%no data
0.024%
Strategic Advisers LLC
590,994HK$1.7m-0.01%no data
0.021%
Schroder Investment Management Limited
512,512HK$1.4m0%no data
0.02%
First Trust Advisors LP
510,545HK$1.4m2.78%no data
0.02%
Lemanik S.A., Asset Management Arm
500,000HK$1.4m0%0.07%
0.02%
American Century Investment Management Inc
491,000HK$1.4m36.01%no data

Company Information

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


Key Information

  • Name: TCL Electronics Holdings Limited
  • Ticker: 1070
  • Exchange: SEHK
  • Founded: NaN
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Implied Market Cap: HK$7.024b
  • Shares outstanding: 2.50b
  • Website: https://electronics.tcl.com

Number of Employees


Location

  • TCL Electronics Holdings Limited
  • Building 22E
  • 7th Floor
  • Sha Tin
  • New Territories
  • Hong Kong


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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/27 00:00
End of Day Share Price2022/09/27 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.