SEHK:334

Stock Analysis Report

China Display Optoelectronics Technology Holdings

Executive Summary

China Display Optoelectronics Technology Holdings Limited, an investment holding company, engages in the research, development, manufacture, distribution, and sale of liquid crystal display modules for mobile phones and tablets in Hong Kong, China, South Korea, and Taiwan.

Snowflake

Fundamentals

Solid track record and fair value.

Share Price & News

How has China Display Optoelectronics Technology Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.6%

334

-2.6%

HK Tech

0.9%

HK Market


1 Year Return

-11.7%

334

-22.7%

HK Tech

0.6%

HK Market

Return vs Industry: 334 exceeded the Hong Kong Tech industry which returned -22.7% over the past year.

Return vs Market: 334 underperformed the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

334IndustryMarket
7 Day-3.6%-2.6%0.9%
30 Day-15.9%-5.5%0.5%
90 Day-5.4%-7.1%-4.3%
1 Year-11.7%-11.7%-22.0%-22.7%4.2%0.6%
3 Year-30.0%-32.9%-3.5%-12.1%15.6%4.0%
5 Yearn/a-32.8%-46.1%20.0%-0.08%

Price Volatility Vs. Market

How volatile is China Display Optoelectronics Technology Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is China Display Optoelectronics Technology Holdings undervalued compared to its fair value and its price relative to the market?

9.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 334 (HK$0.53) is trading above our estimate of fair value (HK$0.43)

Significantly Below Fair Value: 334 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 334 is good value based on its PE Ratio (9.4x) compared to the Tech industry average (9.8x).

PE vs Market: 334 is good value based on its PE Ratio (9.4x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: 334 is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: 334 is overvalued based on its PB Ratio (1.8x) compared to the HK Tech industry average (1x).


Next Steps

Future Growth

How is China Display Optoelectronics Technology Holdings forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

37.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 334's forecast earnings growth (37% per year) is above the savings rate (2%).

Earnings vs Market: 334's earnings (37% per year) are forecast to grow faster than the Hong Kong market (11.3% per year).

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

Revenue vs Market: 334's revenue (9.4% per year) is forecast to grow slower than the Hong Kong market (10.3% per year).

High Growth Revenue: 334's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 334's Return on Equity is forecast to be low in 3 years time (15.8%).


Next Steps

Past Performance

How has China Display Optoelectronics Technology Holdings performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 334's earnings have grown by 1.8% per year over the past 5 years.

Accelerating Growth: 334's earnings growth over the past year (191.3%) exceeds its 5-year average (1.8% per year).

Earnings vs Industry: 334 earnings growth over the past year (191.3%) exceeded the Tech industry 4%.


Return on Equity

High ROE: 334's Return on Equity (17.8%) is considered low.


Return on Assets

ROA vs Industry: 334 has a higher Return on Assets than the Tech industry average last year.


Return on Capital Employed

ROCE Improving: 334 has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is China Display Optoelectronics Technology Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 334's short term assets (CN¥4.0B) exceeds its short term liabilities (CN¥4.0B)

Long Term Liabilities: 334's short term assets (4.0B) exceeds its long term liabilities (40.8M)


Debt to Equity History and Analysis

Debt Level: 334's debt to equity ratio (197.6%) is considered high

Reducing Debt: 334's debt to equity ratio has increased from 43.4% to 197.6% over the past 5 years.

Debt Coverage: 334's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 334's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet

Inventory Level: 334 has a high level of physical assets or inventory.

Debt Coverage by Assets: 334's debt is covered by short term assets (assets are 2.838010x debt).


Next Steps

Dividend

What is China Display Optoelectronics Technology Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%2.3%markettop25%6.3%industryaverage3.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 334's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 334's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 334's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 334's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 334 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 334's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

What is the CEO of China Display Optoelectronics Technology Holdings's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Hongping Ouyang (42yo)

0.6yrs

Tenure

CN¥944,000

Compensation

Mr. Hongping Ouyang served as the Chief Operating Officer at China Display Optoelectronics Technology Holdings Limited until March 7, 2019 and serves as its Chief Executive Officer since March 7, 2019. Mr. ...


CEO Compensation Analysis

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

Compensation vs Earnings: Hongping's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.9yrs

Average Tenure

43yo

Average Age

Experienced Management: 334's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

4.2yrs

Average Tenure

47yo

Average Age

Experienced Board: 334's board of directors are considered experienced (4.2 years average tenure).


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

SellCN¥107,890,61002 Nov 18
Ko Yuen Lau
EntityIndividual
Shares126,930,029
Max PriceCN¥0.85
BuyCN¥60,000,04701 Nov 18
TCL Corporation
EntityCompany
Shares70,588,235
Max PriceCN¥0.85
BuyCN¥3,809,84131 Oct 18
TCL Corporation
EntityCompany
Shares5,496,000
Max PriceCN¥0.69
BuyCN¥1,311,40330 Oct 18
TCL Corporation
EntityCompany
Shares2,000,000
Max PriceCN¥0.66
BuyCN¥953,40329 Oct 18
TCL Corporation
EntityCompany
Shares1,496,000
Max PriceCN¥0.64
BuyCN¥616,59926 Oct 18
TCL Corporation
EntityCompany
Shares1,000,000
Max PriceCN¥0.62

Ownership Breakdown


Management Team

  • Jun Zhao (47yo)

    Executive Director

    • Tenure: 0.6yrs
  • Hongping Ouyang (42yo)

    CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥944.00k
  • Clara Siu

    Vice Director of Finance & Investor Relations

    • Tenure: 0yrs
  • Bo Peng

    Legal Manager

    • Tenure: 0yrs
  • Bo Man Cheung (30yo)

    Company Secretary

    • Tenure: 2.5yrs
  • Xianzhen Wen (47yo)

    Finance Director & Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥792.82k
  • Yudong Hu (43yo)

    Human Resources Director

    • Tenure: 0.6yrs
  • Hongjun Zhang (43yo)

    Marketing Director

    • Tenure: 2.8yrs

Board Members

  • Helen Hsu (49yo)

    Independent Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: CN¥155.00k
  • Jun Zhao (47yo)

    Executive Director

    • Tenure: 0.6yrs
  • Hongping Ouyang (42yo)

    CEO & Executive Director

    • Tenure: 0.6yrs
    • Compensation: CN¥944.00k
  • Yan Xu (55yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥155.00k
  • Yang Li (50yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: CN¥155.00k
  • Qian Liao (39yo)

    Chairman

    • Tenure: 2.8yrs
  • Xianzhen Wen (47yo)

    Finance Director & Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥792.82k

Company Information

China Display Optoelectronics Technology Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: China Display Optoelectronics Technology Holdings Limited
  • Ticker: 334
  • Exchange: SEHK
  • Founded: 2004
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: HK$1.120b
  • Shares outstanding: 2.11b
  • Website: https://www.tcldisplay.com

Number of Employees


Location

  • China Display Optoelectronics Technology Holdings Limited
  • No.23, ZhongKai High-Tech District
  • HuiZhou
  • Guangdong Province
  • 516006
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
334SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2015
PJJ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2015

Biography

China Display Optoelectronics Technology Holdings Limited, an investment holding company, engages in the research, development, manufacture, distribution, and sale of liquid crystal display modules for mob ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 12:33
End of Day Share Price2019/10/21 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.