China Display Optoelectronics Technology Holdings (Red Chip)

China Display Optoelectronics Technology Holdings Limited, formerly TCL Display Technology Holdings Limited, is a Hong Kong-based investment holding company principally engaged in flat panel display products-related businesses. The main businesses of the Company include the manufacture and sales of liquid crystal display (LCD) modules for computers and mobile phones, as well as flat panel display products, such as thin-film transistor (TFT)-LCDs. The Company operates businesses in Hong Kong, China and Korea.
  • Ticker00334
  • ISINBMG2120L1072
  • ExchangeHong Kong Stock Exchange
  • SectorTechnology Hardware & Equipment
  • CountryBermuda

Analysts

UOB
Charles Wong Kok Min ...
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Julia Pan Mengyao
  • Lee Yuk Kei

Greater China Daily: Thursday, July 18, 2019

KEY HIGHLIGHTS CHINA Sector Education Online K12 AST regulations have minimal impact on leading K12 AST players. Small/Mid Cap Highlights China Display Optoelectronics Technology (334 HK/HOLD/HK$0.57/Target: HK$0.65) Margin squeeze concern; processing agreement with parent company. TRADERS’ CORNER CNBM (3323 HK): Trading Buy Range Minth Group (425 HK): Trading Buy Range

UOB
Julia Cheung Pui Man ...
  • Lee Yuk Kei

IT Hardware - Restriction on Huawei component imports from the US – Negative to handset component makers but positive to telecom equipment names.

In a bid to stay ahead in the 5G technology race, the US government has put Huawei on a restricted list that may prevent Huawei from procuring US components. Although Huawei has some technology reserves as backup, its supply chain would inevitably be disrupted. We believe Huawei's smartphone component suppliers such as Sunny and Q Tech would be negatively affected while domestic telecom equipment plays like ZTE and CCS would benefit. Maintain MARKET WEIGHT on the handset component sector and OVERWEIGHT on the telecom equipment sector.

UOB
Julia Cheung Pui Man ...
  • Lee Yuk Kei

IT Hardware - Handset components: 2018 results wrap-up.

Handset component players ended the year 2018 with dismal results, hit by gross margin contraction and forex losses. For 2019, most guided positively on margin recovery and shipment growth. Based on the positive guidance and recent positive data flows, our earnings forecasts have factored in a mild recovery scenario. However, we maintain our thesis that smartphone end-demand should be sluggish in 2019, so upside catalysts are limited. Maintain MARKET WEIGHT.

UOB
Julia Cheung Pui Man ...
  • Lee Yuk Kei

China Display Optoelectronics Technology - 2018: Results above expectations on new customer win.

Boosted by a substantial order from a new customer in 2H18, CDOT delivered strongerthan- expected 2018 results, with net profit falling merely 29% yoy on the back of a stunning 52% jump in revenue. The strong order volume greatly improved utilisation and in turn gross margin in 2H18. We lift our 2019-20 net profit forecasts substantially to reflect CDOT’s continued market share gain in handset display modules. Maintain HOLD as the stock is fairly valued. Target price: HK$1.12. Entry price: HK$0.90.

UOB
Daisy Chen ...
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Lee Yuk Kei
  • Robin Yuen
  • Shaun Tan

Greater China Daily: Wednesday, March, 20, 2019

KEY HIGHLIGHTS CHINA Results Ausnutria Dairy Corporation (1717 HK/BUY/HK$9.97/Target: HK$12.00) 2018: Outlook for 2019 remains robust. China Display Optoelectronics Technology (334 HK/HOLD/HK$1.02/Target: HK$1.12) 2018: Results above expectations on new customer win. China Jinmao Holdings (817 HK/BUY/HK$4.48/Target: HK$5.30) 2018: In line with expectations; “City Operator” model to take flight. TRADERS’ CORNER Swire Properties (1972 HK): Trading Buy Range HSBC (5 HK): Trading Buy Range

UOB
Julia Cheung Pui Man ...
  • Lee Yuk Kei

China Display Optoelectronics Technology - 2018: Results above expectations on new customer win.

Boosted by a substantial order from a new customer in 2H18, CDOT delivered strongerthan- expected 2018 results, with net profit falling merely 29% yoy on the back of a stunning 52% jump in revenue. The strong order volume greatly improved utilisation and in turn gross margin in 2H18. We lift our 2019-20 net profit forecasts substantially to reflect CDOT’s continued market share gain in handset display modules. Maintain HOLD as the stock is fairly valued. Target price: HK$1.12. Entry price: HK$0.90.

UOB
Daisy Chen ...
  • Julia Cheung Pui Man
  • Kader Farhan Bin Kader Ridzwan
  • Lee Yuk Kei
  • Leow Huey Chuen
  • Malaysia Research Team
  • Philip Wong
  • Raphon Prima
  • Robin Yuen
  • Shaun Tan
  • Singapore Research Team
  • Thananchai Jittanoon
  • Vincent Khoo Boo Aik

Regional Morning Notes - Wednesday, March 20, 2019

CHINA Results Ausnutria Dairy Corporation (1717 HK/BUY/HK$9.97/Target: HK$12.00): 2018: Outlook for 2019 remains robust. China Display Optoelectronics Technology (334 HK/HOLD/HK$1.02/Target: HK$1.12): 2018: Results above expectations on new customer win. China Jinmao Holdings (817 HK/BUY/HK$4.48/Target: HK$5.30): 2018: In line with expectations; “City Operator” model to take flight. INDONESIA Update Bank Rakyat Indonesia (BBRI IJ/HOLD/Rp3,990/Target: Rp4,300): 10% share price rally ytd almost pricing in 2019 earnings; downgrade to HOLD. MALAYSIA Strategy Sensing Opportunities In Mid Caps: Cent...

UOB
Johnny Yum ...
  • Jovin Anwar
  • Ken Lee
  • Kong Ho Meng
  • Lee Yuk Kei
  • Philip Wong
  • Singapore Research Team
  • Thunya Sutavepramochanon

Regional Morning Notes - Thursday, January 10, 2019

CHINA Sector Automobile: New stimulus coming through. Small/Mid Cap Highlights China Display Optoelectronics Technology (334 HK/HOLD/HK$0.49/Target: HK$0.53): More optimistic outlook with new major smartphone customer. INDONESIA Update Japfa Comfeed Indonesia (JPFA IJ/HOLD/Rp2,230/Target: Rp2,400): Pressure on cost; 5.7% earnings growth expected in 2019. Downgrade to HOLD. MALAYSIA Sector Rubber Gloves: More rational valuations emerge from steep sell-down; upgrade Kossan and Top Glove to HOLD from SELL. Yinson (YNS MK/BUY/RM4.20/Target: RM5.00): We assume FY20 earnings headwinds from: a) poten...

UOB
Charles Wong Kok Min ...
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Julia Pan Mengyao
  • Lee Yuk Kei

Greater China Daily: Thursday, July 18, 2019

KEY HIGHLIGHTS CHINA Sector Education Online K12 AST regulations have minimal impact on leading K12 AST players. Small/Mid Cap Highlights China Display Optoelectronics Technology (334 HK/HOLD/HK$0.57/Target: HK$0.65) Margin squeeze concern; processing agreement with parent company. TRADERS’ CORNER CNBM (3323 HK): Trading Buy Range Minth Group (425 HK): Trading Buy Range

UOB
Daisy Chen ...
  • Joyce Chan Pui Lai
  • Julia Cheung Pui Man
  • Lee Yuk Kei
  • Robin Yuen
  • Shaun Tan

Greater China Daily: Wednesday, March, 20, 2019

KEY HIGHLIGHTS CHINA Results Ausnutria Dairy Corporation (1717 HK/BUY/HK$9.97/Target: HK$12.00) 2018: Outlook for 2019 remains robust. China Display Optoelectronics Technology (334 HK/HOLD/HK$1.02/Target: HK$1.12) 2018: Results above expectations on new customer win. China Jinmao Holdings (817 HK/BUY/HK$4.48/Target: HK$5.30) 2018: In line with expectations; “City Operator” model to take flight. TRADERS’ CORNER Swire Properties (1972 HK): Trading Buy Range HSBC (5 HK): Trading Buy Range

UOB
Johnny Yum ...
  • Ken Lee
  • Lee Yuk Kei

Greater China Daily: Thursday, January, 10, 2019

KEY HIGHLIGHTS CHINA Sector Automobile New stimulus coming through. Small/Mid Cap Highlights China Display Optoelectronics Technology (334 HK/HOLD/HK$0.49/Target: HK$0.53) More optimistic outlook with new major smartphone customer. TRADERS’ CORNER Hisense Home Appliances (921 HK): Trading Buy Range China EB Int’l (257 HK): Trading Buy

UOB
Julia Cheung Pui Man ...
  • Lee Yuk Kei

IT Hardware - Restriction on Huawei component imports from the US – Negative to handset component makers but positive to telecom equipment names.

In a bid to stay ahead in the 5G technology race, the US government has put Huawei on a restricted list that may prevent Huawei from procuring US components. Although Huawei has some technology reserves as backup, its supply chain would inevitably be disrupted. We believe Huawei's smartphone component suppliers such as Sunny and Q Tech would be negatively affected while domestic telecom equipment plays like ZTE and CCS would benefit. Maintain MARKET WEIGHT on the handset component sector and OVERWEIGHT on the telecom equipment sector.

UOB
Julia Cheung Pui Man ...
  • Lee Yuk Kei

IT Hardware - Handset components: 2018 results wrap-up.

Handset component players ended the year 2018 with dismal results, hit by gross margin contraction and forex losses. For 2019, most guided positively on margin recovery and shipment growth. Based on the positive guidance and recent positive data flows, our earnings forecasts have factored in a mild recovery scenario. However, we maintain our thesis that smartphone end-demand should be sluggish in 2019, so upside catalysts are limited. Maintain MARKET WEIGHT.

UOB
Julia Cheung Pui Man ...
  • Lee Yuk Kei

IT Hardware - Handset components: 2018 results preview.

Handset component players will release their 2018 results in the coming weeks. We expect 2H18 profit of the handset component sector to dip yoy, mainly due to the sluggish smartphone market, weak specs upgrades, stiffer competition and renminbi depreciation. We believe the weak 2H18 results should have been priced in and the market focus will be on companies’ 2019 guidance. Maintain MARKET WEIGHT.

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