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China Display Optoelectronics Technology Holdings Limited

0334.HKHKSE
Technology
Hardware, Equipment & Parts
HK$0.37
HK$0.005(1.37%)
Hong Kong Market opens in 35h 15m

China Display Optoelectronics Technology Holdings Limited Fundamental Analysis

China Display Optoelectronics Technology Holdings Limited (0334.HK) shows moderate financial fundamentals with a PE ratio of 4.94, profit margin of 1.80%, and ROE of 11.72%. The company generates $7.6B in annual revenue with strong year-over-year growth of 76.55%.

Key Strengths

PEG Ratio0.22

Areas of Concern

Operating Margin0.22%
Cash Position4.29%
We analyze 0334.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 58.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.

Fundamental Health Score

C
58.3/100

We analyze 0334.HK's fundamental strength across five key dimensions:

Efficiency Score

Weak

0334.HK struggles to generate sufficient returns from assets.

ROA > 10%
3.31%

Valuation Score

Excellent

0334.HK trades at attractive valuation levels.

PE < 25
4.94
PEG Ratio < 2
0.22

Growth Score

Moderate

0334.HK shows steady but slowing expansion.

Revenue Growth > 5%
76.55%
EPS Growth > 10%
4.08%

Financial Health Score

Excellent

0334.HK maintains a strong and stable balance sheet.

Debt/Equity < 1
0.00
Current Ratio > 1
1.05

Profitability Score

Weak

0334.HK struggles to sustain strong margins.

ROE > 15%
11.72%
Net Margin ≥ 15%
1.80%
Positive Free Cash Flow
No

Key Financial Metrics

Is 0334.HK Expensive or Cheap?

P/E Ratio

0334.HK trades at 4.94 times earnings. This suggests potential undervaluation.

4.94

PEG Ratio

When adjusting for growth, 0334.HK's PEG of 0.22 indicates potential undervaluation.

0.22

Price to Book

The market values China Display Optoelectronics Technology Holdings Limited at 0.56 times its book value. This may indicate undervaluation.

0.56

EV/EBITDA

Enterprise value stands at 3.50 times EBITDA. This is generally considered low.

3.50

How Well Does 0334.HK Make Money?

Net Profit Margin

For every $100 in sales, China Display Optoelectronics Technology Holdings Limited keeps $1.80 as profit after all expenses.

1.80%

Operating Margin

Core operations generate 0.22 in profit for every $100 in revenue, before interest and taxes.

0.22%

ROE

Management delivers $11.72 in profit for every $100 of shareholder equity.

11.72%

ROA

China Display Optoelectronics Technology Holdings Limited generates $3.31 in profit for every $100 in assets, demonstrating efficient asset deployment.

3.31%

Following the Money - Real Cash Generation

Operating Cash Flow

China Display Optoelectronics Technology Holdings Limited generates limited operating cash flow of $116.28M, signaling weaker underlying cash strength.

$116.28M

Free Cash Flow

China Display Optoelectronics Technology Holdings Limited generates weak or negative free cash flow of $-102.20M, restricting financial flexibility.

$-102.20M

FCF Per Share

Each share generates $-0.05 in free cash annually.

$-0.05

FCF Yield

0334.HK converts -15.02% of its market value into free cash.

-15.02%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

4.94

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

0.22

vs 25 benchmark

P/B Ratio

Price to book value ratio

0.56

vs 25 benchmark

P/S Ratio

Price to sales ratio

0.09

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.001

vs 25 benchmark

Current Ratio

Current assets to current liabilities

1.05

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.12

vs 25 benchmark

ROA

Return on assets percentage

0.03

vs 25 benchmark

ROCE

Return on capital employed

0.01

vs 25 benchmark

How 0334.HK Stacks Against Its Sector Peers

Metric0334.HK ValueSector AveragePerformance
P/E Ratio4.9433.94 Better (Cheaper)
ROE11.72%1002.00% Weak
Net Margin1.80%-48794.00% (disorted) Weak
Debt/Equity0.000.44 Strong (Low Leverage)
Current Ratio1.055.74 Neutral
ROA3.31%-288341.00% (disorted) Weak

0334.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.

Historical Growth Performance

5-Year Growth Trajectory

This section reviews China Display Optoelectronics Technology Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.

Revenue CAGR

-16.87%

Industry Style: Growth, Innovation, High Beta

Declining

EPS CAGR

25.41%

Industry Style: Growth, Innovation, High Beta

High Growth

FCF CAGR

265.51%

Industry Style: Growth, Innovation, High Beta

High Growth

Fundamental Analysis FAQ