| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.48 | 145 |
| Intrinsic value (DCF) | 6.41 | -45 |
| Graham-Dodd Method | 3.96 | -66 |
| Graham Formula | n/a |
Skyworth Digital Co., Ltd. is a leading Chinese technology company specializing in digital television and smart home solutions. Founded in 1997 and headquartered in Shenzhen, the company has established itself as a key player in the global communication equipment sector. Skyworth's core business encompasses the manufacturing and distribution of set-top boxes for broadcasting, Android TV, and RDK platforms, alongside broadband customer premises equipment including GPON ONTs, routers, and LTE/PLC products. The company has strategically expanded into the smart home market and operates a sophisticated video operation support system, providing end-to-end systems integration services to streamline operators' video operations. Operating in the highly competitive technology sector, Skyworth leverages its strong R&D capabilities and manufacturing expertise to serve customers worldwide. With a market capitalization of approximately CNY 15.8 billion, the company maintains a significant presence in China's thriving digital entertainment and telecommunications infrastructure markets, positioning itself at the intersection of consumer electronics, broadcasting technology, and IoT connectivity.
Skyworth Digital presents a mixed investment profile with several attractive fundamentals offset by notable challenges. The company demonstrates solid profitability with net income of CNY 251 million on revenue of CNY 8.7 billion, translating to a healthy net margin. The dividend yield appears reasonable with a payout of CNY 0.13 per share, indicating shareholder-friendly capital allocation. Financially, Skyworth maintains a strong liquidity position with CNY 3.3 billion in cash against total debt of CNY 869 million, providing financial flexibility. However, the negative capital expenditures of CNY -448 million suggest significant ongoing investment requirements, which may pressure near-term cash flows. The beta of 0.467 indicates lower volatility compared to the broader market, potentially appealing to risk-averse investors. Key risks include intense competition in the digital TV equipment space, margin pressures from component cost fluctuations, and dependence on the cyclical consumer electronics and telecommunications infrastructure markets.
Skyworth Digital operates in a highly competitive landscape within the digital TV and broadband equipment sectors. The company's competitive positioning is built on several key advantages, including its established manufacturing scale in China, long-standing relationships with telecommunications operators, and integrated product portfolio spanning set-top boxes, broadband equipment, and smart home solutions. Skyworth's vertical integration capabilities allow for cost efficiencies and quality control across its product lines. The company's video operation support system represents a strategic differentiator, creating sticky customer relationships through software-enabled service offerings. However, Skyworth faces intense competition from both domestic Chinese manufacturers and international technology giants. The company's mid-market positioning exposes it to pressure from low-cost producers while simultaneously challenging its ability to compete on innovation with premium brands. Skyworth's reliance on the Chinese market, while providing home-field advantages, also creates concentration risk amid evolving regulatory environments and economic conditions. The transition to cloud-based streaming services represents both a threat to traditional set-top box demand and an opportunity for Skyworth to evolve its product offerings toward more advanced connected home solutions. The company's R&D focus on Android TV and RDK platforms demonstrates strategic alignment with industry standards, but requires continuous investment to maintain technological relevance against well-funded competitors.