TCL Electronics Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = HK$42.65b | Revenue (TTM) = HK$143.81b
Market Cap = HK$42.65b | Estimated Revenue = HK$134.73b
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = HK$45.76b | Revenue (TTM) = HK$143.81b
Enterprise Value = HK$45.76b | Forward Revenue = HK$134.73b
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
TCL Electronics Stock Analysis
Analyst Opinions
13 Analysts have issued a TCL Electronics forecast:
Analyst Opinions
13 Analysts have issued a TCL Electronics forecast:
TCL Electronics Events
Past Events
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AUG
21
Q2 2025 Earnings Call
about one year ago
|
StocksGuide Free
TCL Electronics — Q2 2025 Earnings Call
1. Management Discussion
We can [ review ] the 2025 interim results. This will be an amazing one. Well, without further ado, let's get to the 2025 interim results TCL Electronics Holdings Limited. Let's welcome Madam Du Juan, Chairman of the Board; Mr. Zhang Shaoyong, Executive Officer and the Chief Executive Officer; Mr. Peng Pan; Executive Director and Chief Financial Officer; and Mr. [ Li Hu Wei ] from; and Ms. Madam [indiscernible] and Mr. Hong Wei.
Thank you very much, our 6 representatives. While we will have 2 parts for the results presentation, our Board and our executives will introduce you the interim results and the second part is Q&A.
Now I will give the floor to Madam Du Juan, [indiscernible] of the Board, to open this presentation.
Distinguished representatives and partners, good afternoon. [indiscernible] seeing many hotspots right here in this industry. And we strive forward, and we also made a lot of dedications to strive forward and make better results. However, affected by the tax policy from the United States, we are a little behind our goals. However, we still meet the commitment we make for the markets.
Again, I would like to say thank you to all of you for your support. Later, [ CFR ] will introduce to you the results right here -- here to our last interim and annual results presentation.
Our panel are larger than ever before. The reason is that our business grow a little bit. So that is why it's the same with our panel.
All right. So let me give a forward to Mr. Zhang Shaoyong -- Mr. Pan Peng, Executive Director and the Chief Financial Officer. He will [indiscernible] to look back to our 2025 -- first half of 2025 and also give us an outlook in the next year.
Thank you very much, Madam Du. Thank you very much for your invitation. And on behalf of the management, I would like to introduce you the 2025 interim results.
Just like what we did in the past, there are 4 parts of our presentation: Market environment; overall results; segment performance; and the outlook.
So first is the market environment. The most important part is TV. As you can see that TV industry in the first half of this year has seen the very flat demand. While in the first half of this year, our shipment is 94.57 million sets and by 0.1%. However, we have seen the uneven performance in China, Latin America and also Middle East, Africa. They achieved growth of 2.4% to 5%, respectively. However, North America, Europe, Japan have declined by 3.7% to 6.9% year-on-year. And at the same time, it can be also seen that the concentration of the top brands continue to increase.
The first half of 2025, the concentration of the top 4 will further increase due 54.8%. Also, we have seen the structural opportunities are still very strong. The shipments -- the proportion of 65 inches and above in the global TV shipment size has increased from 14.5% in 2020 to 26.8% in the first half of this year. And the large screen, also the mini LED has seen a very amazing shipment. They reached 40%. And the growth rate overseas is positive. According to the current market investigation, global penetration rates of the mini LED is expected to exceed 12%.
And for the segmentation, we have seen the market growth for the PV is very competitive. However, the opportunities for the TV type in the market are still very large. In the first half of 2025, a new grid connected stored capacity for PV in this domestic market reached to 112 gigawatts. And of which, distributed PV network increased by 110%.
And then also, we have seen the new growth trend for the AR and the VR. In 2029, the AR/VR global market will be over USD 83 billion. And in the future, for the companion robots, where we have seen the large demand as well, it is expected that the future market growth potential is really huge. And for the air conditioner, we have also seen a very good growth space. In 2029, for the air conditioners and washing machines and also the refrigerators, we will see the growth rate around the 2.2% to 5%.
The next one is the global smartphone shipment. The global smartphone shipment of 682 million in 2025 first half of this year have been seen down by 1.2% year-on-year. And the global tablet shipments is 72.79 million, increased by 12.4% year-on-year.
And the next one is our overall results. Basically, our overall result is really good, especially in the mid to high end. The total revenue is HKD 54.78 billion, up by 20.4% year-on-year. Gross profit, HKD 8.37 billion, up by 16%. Profit after tax, HKD 1.05 billion, up by [ 60.5%. ] Adjusted profit attributable to owners of the partner -- of the parent, HKD 1.06 billion, up by 62% year-on-year. Overall expense ratio, 11.5% growth. Net gearing ratio remained at 7%. Cash and cash equivalent, up by 30% at HKD 11.44 billion. For the overall performance, our global shipments, 13.46 million sets, up by 7.6%; global market share, 14.2%, up by 0.9 percentage points. Global brand price index, 93, up by 1.7%; mini LED TV global shipment is 1.37 million, up by 176.1%; QLED TV global shipments, 3.04 million sets, up by 73.7%; inch 75 or above inch TV, global shipment, 1.91 million sets, up by 29.7%.
The annual dividend distribution for 2024, $0.318. Dividend payout ratio reached 50%.
And for our mid- to high-end strategy. It fits the quality-led growth in the display. So for -- so let's take a look at the large-size display business. The overall quality and the development of the display business have been seen in the first half of this year. Display business revenue was $33.4 billion, an increase of 10.9% year-on-year. Among them, the display revenue of large size was HKD 28.35 billion, an increase of 9.4% year-on-year. And the display revenue of small media size was HKD 4.56 billion year-on-year, increase of 21.3%. Smart commercial revenue was $500 million, increase of 9.4%. Overall gross profit for the display business increased by 11.4% to HKD 5.2 billion. The gross profit margin increased by 0.1%. And the gross profit margin for the large size displays increased by 0.5 percentage points.
The innovative business also maintained strong growth in scale and actively laid out in the new tracks. The revenue increased by 42.4% year-on-year to HKD 11.14 billion. Gross profit increased by 98.5% to HKD 1 billion. Relying on our steady development of overseas channel, revenue increased by 1.2% to 7.84%. And overseas revenue accounted for 60% smart connection and smart home revenue. HKD 900 billion gross profit margin increased by 3.5% to 23.6%.
So now we can see some specific data presentations. In research and development, we improved our competitiveness and also we explored the possibilities of smart home companionship. In terms of the AI and the company has launched an AR glasses with the shape in this industry. Also, we have increased -- improved our brand marketing and the retail and also the logistic services.
In 2025, first half of this year, we will again further select and merge and split the non sales and the non marketing center in North America, Latin America, Middle East and Europe. And also, they were merged into the corresponding overseas and common operating channels. And in the future, in our 6 regions, we will again lead our categories, and we hope that we can have the new breakthroughs.
In terms of marketing, we all know that in 2025, we announced to be the [ retake ] TCL was officially announced as the worldwide Olympic partner. And the Olympic spirit of faster, higher, stronger together aligns perfectly with our corporate spirit of embracing transformative innovation, pursuing excellence and is driving to inspire greatness,
Also, we have announced the new ambassador for our TCL in overseas market. In first half of this year, we focused on the [ AWE. ] We hope that we can spread the words and also we have more efforts in the communications. We hope that we can increase the global influence in -- Apart from the brand marketing, we also increase our efforts in channel management, retail management and user plus e-commerce management.
In terms of ESG, we focus on the society responsibility and adhere to business [ assets. ] The company has garnered widespread recognition and honors for its commitment to sustainability. We achieved [ Hansen ] ESG rating of A for 7 consecutive years from 2018 to 2024. We are selected as the constitute of Hansen corporate sustainability benchmark index from 2019 to 2024 for 6 consecutive years. Also, female employees account for over 40%. While employees from Hong Kong, Macau, Taiwan and overseas market represents on over 40% of the workforce. And also, we have achieved AA grade for [ wind ] ESG rating and also B grade for the core business awarded -- for the CDP climate change management.
And our TV is really brilliant in the first half of this year. This year, we -- our global sales performance is really good. The global shipments of TCL TV reached 13.46 million sets, up by 7.6%. The global revenue of TCL TV, 28.35 billion, up by 9.4%. TCL TV global average selling price, HKD 2,106, up by 1.7% year-on-year. For the mini QLED -- mini LED TV shipments, 1.37 million sets, up by 176.1%. Shipment proportion up by 10.8%. And for QLED, shipments is 3.04 million sets, up by 73.7%; shipments proportion, up by 24%. The shipments for 65-inch and above, 3.82 million sets and up by 28.4%. In terms of the shipment proportion for the 75-inch and above, shipment's 1.91 million sets; shipment proportion 14.2%. And also for our display products, large-sized display in PRC markets outpace the industry in scale, significantly improve our market share of retail sales value is 22.1%. Retail sales volume ranking #2; market share of sales and volume, 23.5%; retail sales revenue ranking #2.
And the TCL shipments, the total shipments up by 3.5%; industry shipments, 17.1 million sets, up 2.4%. Average shipment price, up by 0.8%. Revenue is HKD 8.72 billion, up by 4.4%. Gross profit and margin, 19.4%, up by 19.4%.
For the overseas market, TCL shipment total 8.7%. Industry shipments is 77.48 million sets, down by 0.4%. Average shipment price, up by 2.8%. Revenue is HKD 19.63 billion, up by 11.8%. Gross profit margin of 14.4%, up by 0.1 percentage points.
The trend for mini LED and the large screen further emerged in overseas market. Mini LED shipments up by 196.8%, and the QLED TV shipment's up by 77.9%, 65 TV shipments, up by 47.3%. 75-inch TV shipments, up by 57.9%.
Also, we have seen performance in the segmented market. North America markets in a significant structural improvement with market-leading scale average shipment price of TCL-branded TV up by 12.6%. TCL-branded TV price index up by 17.8%. TV larger than 65 TV shipments, 60.5%. And in the European market, we have seen the sustained scale expansion with breakthroughs in key channels across U.K. and Germany. Average shipment price of TCL branded TV, 13.3%. Emerging market is also really good. So for the market share ranking #2 in U.S., #2 in France, #3 in Sweden and the other regions.
And for the small and the medium sized display, we focus on the key markets. In the first half of this year, the revenue is up by at 21.3%. The gross profit, up by 2.7%. And also our total business revenue for the medium and the small display was 4.56 billion. For mobile phone and tablets, that is HKD 2.86 billion -- HKD 2.87 billion and HKD 1.69 billion, respectively.
The next one is Internet business. The global Internet business revenue, up by 20.3%. The total revenue is over HKD 1.47 billion -- HKD 1.46 billion, up by 20.3%. For the overseas market, revenue grew by 46.3%. Our profitability increased significantly. We also focus on the user experience in the Chinese market, focusing on TV, AI and interactive upgrades.
Our content is more than 30,000 hours. In the overseas market, we again deepened our cooperation with Google, [ Ruko ] and Netflix. We have breakthroughs in our commercial models. T cell channel has been upgraded so as our quality content. By the end of June 2025, the channel T-cell channel -- T cell channel has already covered more than 39.3 million users.
And for the photovoltaic, we are being excellent as well. We undertook a multidimensional expansion with profitability and the relative competitiveness continue [indiscernible] and enhancing an overseas business, advancing steadily. Our revenue is $11.14 billion; gross profit, $1.07 billion, and newly installed capacity 4.7 gigawatts, 290 cumulative industrial and commercial contracted projects.
And for our -- also our smart glasses and the companion robots empower the product intelligence. For the revenue of breakthrough in market share, we have seen the market share at 52%, 24 times year-on-year increase in sales revenue, and we are #1 in the XR category by sales volume across JD.com and the Tmall. Our Air 3S Pro XR has been launched. And also with our V3 sling AI and X3 Pro AI glasses for our IMEI, this is the world's first modular smart home companion robots, we can deliver the unique experience.
So now we can give you an outlook for our next half of this year. We'll always appear to business philosophy of strategic-leading innovation, and we drive the new categories along with our traditional channels. And so we are striving for the high-quality growth. We want to be the leading smart terminal enterprises in the world.
In terms of the business, the main channel is focusing on -- the main thing is focusing on the improvement of profitability. For the large screen, this large-sized display, we will adhere to the large size and also the mini LED and also the QLED. Also, the PV will maintain the steady growth. And all of our categories will drive the quality by our innovation, and we will achieve the growth rate of net profit. We hope that the growth rate of net profit will be greater in the next half of this year. We will again optimize our operational strategy. Focusing on the large screen and mini LED, we will improve the product mix and the channel mix. We'll control the operating expenses for all channels.
In terms of the efficiency, we'll improve the inventory. And also, we use AI to improve our HR efficiency. We'll also achieve and leapfrog development of full link operational excellency.
In terms of the organizational and human resources development, we will, again, improve our international talents building. We will stimulate the employees, motivate them and create a more efficient and dynamic organization.
Also, for the air conditioner, refrigerator and washing machine, we'll, again improve the product mix to target the market more precisely.
So that's all for our interim report in the first half of this year. Again, I would like to thank our investors for your continuous support.
Thank you very much, Mr. Peng, for your excellent sharing.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
Financial data from TCL Electronics
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Mar '26 |
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%
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| Revenue | 143,808 143,808 |
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100%
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| - Direct Costs | 121,189 121,189 |
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84%
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| Gross Profit | 22,619 22,619 |
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16%
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|
| - Selling and Administrative Expenses | 16,312 16,312 |
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11%
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| - Research and Development Expense | 3,235 3,235 |
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2%
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| EBITDA | - - |
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-
|
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| - Depreciation and Amortization | - - |
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-
|
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| EBIT (Operating Income) EBIT | 4,741 4,741 |
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3%
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| Net Profit | 2,854 2,854 |
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2%
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In millions HKD.
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Company Profile
TCL Electronics Holdings Ltd. operates as a holding company with interest in manufacturing of multimedia electronics. The company employs 32,603 full-time employees The firm operates its business through six business segments. The TV segment is engaged in the manufacture and sale of TVs. The Photovoltaic Business segment is engaged in the sale of photovoltaic power generation equipment and systems, provision of construction, operation and maintenance services and others. The All-Category Marketing segment distribution of air conditioners, refrigerators, washing machines and others. The Smart Mobile, Connective Devices and Services segment is engaged in the manufacture and sale of mobile phones, smart connective products and smart display and services. The Internet Business segment is engaged in the membership cards, video-on-demand, advertising, vertical application and others. The Smart Commercial Display, Smart Home and Other Businesses segment is engaged in the supply of smart commercial display and others.
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| Head office | Hong Kong |
| CEO | Mr. Zhang |
| Employees | 37,859 |
| Website | electronics.tcl.com |
