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TCL Electronics Holdings
(1070)
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Rating:67Neutral
Price Target:
HK$17.50
▲(11.82% Upside)
Action:Downgraded
Date:10/18/26
The score is driven primarily by improving financial performance—especially the strong 2025 cash flow and better profitability—supported by an attractive valuation (low P/E and decent dividend yield). These positives are tempered by weaker near-term technical momentum (below key short-term moving averages with low RSI/Stoch) and the company’s historically thin margins and earnings volatility, with a 2025 uptick in debt to monitor.
Positive Factors
Revenue Expansion
The substantial multi-year increase in revenue indicates that TCL Electronics has expanded its commercial scale and customer reach. Continued growth provides a broader base for operating leverage, supports investment in products and distribution, and strengthens the company’s ability to compete across international consumer-electronics markets.
Negative Factors
Thin Net Margins
A net margin of about 2.2% leaves limited room for higher costs, weaker product mix, or execution setbacks to be absorbed without affecting earnings. Thin profitability also means that substantial revenue growth may produce only modest absolute profit unless margins improve sustainably.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Expansion
The substantial multi-year increase in revenue indicates that TCL Electronics has expanded its commercial scale and customer reach. Continued growth provides a broader base for operating leverage, supports investment in products and distribution, and strengthens the company’s ability to compete across international consumer-electronics markets.
Read all positive factors
TCL Electronics Holdings (1070) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$38.32B
Dividend Yield3.28%
Average Volume (3M)5.13M
Price to Earnings (P/E)9.4
Beta (1Y)0.66
Revenue Growth13.78%
EPS Growth33.46%
CountryHK
Employees34,308
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)1.62
Shares Outstanding2,520,935,000
10 Day Avg. Volume5,804,562
30 Day Avg. Volume5,126,407
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.37
Price to Sales (P/S)0.23
P/FCF Ratio6.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$21.31Price Target Upside36.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.3
Revenue Forecast (FY)HK$131.72B
TCL Electronics Holdings Business Overview & Revenue Model
Company Description
TCL Electronics Holdings Limited, an investment holding company, operates as a consumer electronics company in Mainland China, Europe, North America, and internationally. It operates through six segments: TV; Internet Business; Smart Mobile, Conne...
How the Company Makes Money
The company primarily makes money by selling TCL-branded consumer electronics to customers through a mix of retail and distribution channels, with revenue recognized mainly from product sales. A key revenue stream is the sale of televisions and la...
TCL Electronics Holdings Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 152.12B | 114.58B | 99.32B | 78.99B | 71.35B | 74.85B |
| Gross Profit | 25.11B | 17.90B | 15.55B | 13.67B | 13.11B | 12.53B |
| EBITDA | 5.93B | 3.75B | 2.53B | 3.12B | 2.65B | 2.83B |
| Net Income | 4.00B | 2.50B | 1.76B | 743.63M | 446.98M | 1.18B |
Balance Sheet | ||||||
| Total Assets | 102.27B | 91.73B | 76.37B | 64.78B | 55.11B | 59.53B |
| Cash, Cash Equivalents and Short-Term Investments | 17.76B | 16.39B | 11.63B | 11.68B | 10.78B | 13.43B |
| Total Debt | 8.91B | 6.54B | 4.97B | 6.22B | 5.87B | 7.34B |
| Total Liabilities | 81.07B | 71.84B | 58.69B | 47.47B | 38.23B | 41.16B |
| Stockholders Equity | 20.45B | 19.20B | 17.20B | 16.71B | 16.46B | 17.96B |
Cash Flow | ||||||
| Free Cash Flow | 4.94B | 3.97B | 2.11B | 1.03B | 405.90M | -576.27M |
| Operating Cash Flow | 5.52B | 4.92B | 2.63B | 1.60B | 1.37B | 795.53M |
| Investing Cash Flow | -2.76B | 139.96M | -2.17B | 21.61M | -771.57M | -822.24M |
| Financing Cash Flow | 685.00M | -481.83M | -2.34B | -246.31M | -2.24B | 1.13B |
TCL Electronics Holdings Technical Analysis
Negative
15.65
Price Trends
16.73
Negative
15.72
Negative
14.12
Positive
Market Momentum
-0.33
Positive
37.13
Neutral
9.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1070, the sentiment is Negative. The current price of 15.65 is below the 20-day moving average (MA) of 16.82, below the 50-day MA of 16.73, and above the 200-day MA of 14.12, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 9.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1070.
TCL Electronics Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$38.32B | 9.38 | 20.29% | 3.28% | 13.78% | 33.46% | |
66 Neutral | HK$676.65B | 17.69 | 12.35% | ― | 5.72% | -10.32% | |
62 Neutral | HK$598.10M | 13.01 | 1.26% | 3.59% | -9.35% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | HK$6.06B | 5.92 | 4.82% | 2.76% | 5.05% | 241.01% | |
43 Neutral | HK$212.07M | -7.89 | -5.13% | 4.82% | -14.71% | 37.97% | |
42 Neutral | HK$177.08M | -1.77 | -5.19% | 0.57% | -16.64% | 55.52% |
* Technology Sector Average
HK:1070
TCL Electronics Holdings
15.20
6.32
71.15%
HK:0751
Skyworth Digital Holdings
3.21
-0.73
-18.53%
HK:2369
Coolpad Group
0.45
-0.65
-59.17%
HK:0099
Wong's International Holdings
1.25
>-0.01
-0.32%
HK:1810
Xiaomi
26.48
-16.72
-38.70%
HK:0927
Fujikon Industrial Holdings Limited
0.42
-0.24
-36.64%
TCL Electronics Holdings Corporate Events
TCL Electronics Shareholders Approve Key Deals and Supply Framework at EGM
Oct 9, 2026
Shareholders of TCL Electronics Holdings Limited have overwhelmingly approved all resolutions at an extraordinary general meeting held on 9 October 2026, with voting conducted by poll and supervised by Tricor Investor Services Limited. The strong ...
TCL Electronics Reshapes Governance With New Joint Company Secretary
Sep 4, 2026
TCL Electronics Holdings has announced a senior corporate governance change, with Mr. Chen Ming stepping down as joint company secretary and secretary to the board effective 4 September 2026, while remaining a director of certain subsidiaries to c...
TCL Electronics Rides Premium TV and AI Trends to Strong First-Half 2026 Results
Aug 28, 2026
TCL Electronics Holdings reported robust interim results for the six months ended 30 June 2026, benefiting from a rebound in global TV demand and ongoing premiumisation in the sector. Revenue rose 16.4% year-on-year to HK$63.76 billion, while gros...
TCL Electronics Weighs Spin-Off of Photovoltaic Business to Sharpen Focus on Smart Home Appliances
Aug 24, 2026
TCL Electronics is exploring a potential spin-off and separate listing of its photovoltaic business through a distribution in specie to shareholders. The move is intended to sharpen the group’s strategic focus on its core global smart home a...
TCL Electronics Seeks Shareholder Approval for Major Acquisition and Supply Deal
Aug 24, 2026
TCL Electronics Holdings has called an extraordinary general meeting in Hong Kong on 9 October 2026, seeking shareholder approval for a major acquisition and related share issuance. The company plans to acquire the entire issued share capital of a...
TCL Electronics Sets August Board Meeting to Approve Interim 2026 Results
Jul 29, 2026
TCL Electronics Holdings has scheduled a board meeting for 28 August 2026 to review and approve its interim financial results for the six months ended 30 June 2026. The company plans to publish these interim results on both the Hong Kong Stock Exc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.