| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.28 | 770 |
| Intrinsic value (DCF) | 1.24 | -56 |
| Graham-Dodd Method | 1.41 | -49 |
| Graham Formula | 7.16 | 157 |
Ten Pao Group Holdings Limited is a Hong Kong-based manufacturer specializing in power supply solutions and electric charging products. Founded in 1979, the company operates across six segments: Telecommunication, Media and Entertainment, Electrical Home Appliances, Lighting, Smart Chargers and Controllers, and Others. Its diverse product portfolio includes switching power supply units, quick chargers, wireless chargers, LED power supply products, electric vehicle chargers, and power inverters serving global clients in security, industrial automation, machinery, and communication applications. Operating internationally across Asia, the United States, Europe, and Africa, Ten Pao leverages its manufacturing expertise to serve the growing demand for energy-efficient power solutions and EV charging infrastructure. As a key player in the electrical equipment sector, the company benefits from the global transition toward electrification and sustainable energy solutions, positioning itself at the intersection of industrial manufacturing and clean technology innovation.
Ten Pao presents a mixed investment case with several positive fundamentals offset by sector-specific challenges. The company demonstrates solid profitability with HKD 383.9 million net income on HKD 5.39 billion revenue, representing healthy margins in the competitive power supply manufacturing sector. Strong operating cash flow of HKD 813.7 million provides financial flexibility, though substantial capital expenditures of HKD 388.2 million indicate ongoing investment needs. The company's low beta of 0.517 suggests defensive characteristics relative to the broader market. However, operating in the highly competitive electrical equipment manufacturing space with thin margins presents ongoing challenges. The dividend yield of approximately 3% (based on current share price) provides income appeal, but investors should monitor the company's ability to maintain growth amid global supply chain pressures and increasing competition in the EV charging segment.
Ten Pao Group operates in the highly fragmented and competitive power supply manufacturing industry, where scale, technological capability, and cost efficiency determine competitive positioning. The company's primary competitive advantage lies in its diversified product portfolio spanning multiple applications including consumer electronics, industrial equipment, and emerging electric vehicle charging solutions. This diversification provides revenue stability across economic cycles. Their manufacturing presence in China offers cost advantages, though this also exposes them to geopolitical and supply chain risks. The company's long-standing industry presence since 1979 has likely established durable customer relationships and manufacturing expertise. However, Ten Pao faces intense competition from larger global players with greater R&D budgets and scale advantages. The power supply market is characterized by price sensitivity and rapid technological evolution, requiring continuous innovation investment. Ten Pao's move into EV charging represents a strategic positioning toward growth markets, but this segment is becoming increasingly crowded with specialized competitors. The company's moderate market capitalization of HKD 2.36 billion suggests it operates as a mid-tier player rather than a market leader, requiring strategic focus on niche applications or customer relationships to maintain relevance against larger competitors.