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 Analysis

Proven 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

Stable Share Price: 334 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

334

-3.9%

HK Tech

-3.3%

HK Market


1 Year Return

-28.6%

334

-9.0%

HK Tech

-9.6%

HK Market

Return vs Industry: 334 underperformed the Hong Kong Tech industry which returned -9% over the past year.

Return vs Market: 334 underperformed the Hong Kong Market which returned -9.6% over the past year.


Shareholder returns

334IndustryMarket
7 Day0%-3.9%-3.3%
30 Day0%-7.5%-3.8%
90 Day12.2%22.3%-0.2%
1 Year-28.6%-28.6%-7.9%-9.0%-6.3%-9.6%
3 Year-34.1%-36.8%-23.7%-28.8%11.2%-0.05%
5 Yearn/a-38.5%-50.9%12.7%-6.0%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 334 (HK$0.55) is trading below our estimate of fair value (HK$1.17)

Significantly Below Fair Value: 334 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 334 is poor value based on its PE Ratio (9.7x) compared to the Tech industry average (9.6x).

PE vs Market: 334 is good value based on its PE Ratio (9.7x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 334's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 334 is overvalued based on its PB Ratio (1.8x) compared to the HK Tech industry average (0.9x).


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 1 analyst?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 334's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: 334's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: 334's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 334's revenue is expected to decline over the next 3 years (-9.6% per year).

High Growth Revenue: 334's revenue is forecast to decline over the next 3 years (-9.6% 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 (11.6%).


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

Quality Earnings: 334 has a high level of non-cash earnings.

Growing Profit Margin: 334's current net profit margins (1.4%) are higher than last year (1.1%).


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 38.9%.


Return on Equity

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


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) exceed its short term liabilities (CN¥4.0B).

Long Term Liabilities: 334's short term assets (CN¥4.0B) exceed its long term liabilities (CN¥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 2.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

2.3yrs

Average management tenure


CEO

Hongping Ouyang (42yo)

0.9yrs

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's total compensation ($USD134.44K) is below average for companies of similar size in the Hong Kong market ($USD290.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hongping Ouyang
CEO & Executive Director0.9yrsCN¥944.00k0.66% CN¥7.9m
Xianzhen Wen
Finance Director & Executive Director1.9yrsCN¥792.82kno data
Clara Siu
Vice Director of Finance & Investor Relations0yrsno datano data
Bo Peng
Legal Manager0yrsno datano data
Hongjun Zhang
Marketing Director3.1yrsno datano data
Yudong Hu
Human Resources Director0.9yrsno datano data
Jun Zhao
Executive Director0.9yrsno datano data
Bo Man Cheung
Company Secretary2.8yrsno datano data

2.3yrs

Average Tenure

43yo

Average Age

Experienced Management: 334's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hongping Ouyang
CEO & Executive Director0.9yrsCN¥944.00k0.66% CN¥7.9m
Xianzhen Wen
Finance Director & Executive Director1.9yrsCN¥792.82kno data
Jun Zhao
Executive Director0.9yrsno datano data
Wai Man Hsu
Independent Non-Executive Director4.7yrsCN¥155.00kno data
Yan Xu
Independent Non-Executive Director4.5yrsCN¥155.00kno data
Yang Li
Independent Non-Executive Director4.5yrsCN¥155.00kno data
Qian Liao
Chairman3.1yrsno datano data

4.5yrs

Average Tenure

47yo

Average Age

Experienced Board: 334's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

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$1.184b
  • 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 mobile phones and tablets in Hong Kong, China, South Korea, and Taiwan. It is also involved in the development and sale of software, and provision of technical consultancy services. The company was formerly known as TCL Display Technology Holdings Limited and changed its name to China Display Optoelectronics Technology Holdings Limited in January 2017. The company was founded in 2004 and is headquartered in HuiZhou, the People’s Republic of China. China Display Optoelectronics Technology Holdings Limited is a subsidiary of Shenzhen China Star Optoelectronics Technology Co., Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:33
End of Day Share Price2020/02/27 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.