| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 24.82 | 0 |
| Intrinsic value (DCF) | 20.46 | -18 |
| Graham-Dodd Method | 10.37 | -58 |
| Graham Formula | 29.14 | 17 |
Hisense Visual Technology Co., Ltd. (600060.SS) is a leading Chinese display technology company specializing in advanced visual solutions. Formerly known as Hisense Electric Co., Ltd., the company rebranded in 2019 to reflect its focused expertise in display technologies. Headquartered in Qingdao, China, and founded in 1969, Hisense Visual Technology researches, develops, manufactures, and sells innovative display products including cutting-edge laser TVs, premium ULED televisions, and social TVs that integrate smart connectivity features. As a key player in the global consumer electronics sector, the company leverages China's manufacturing prowess and technological innovation to compete in the highly competitive display market. Hisense Visual Technology's product portfolio addresses the growing demand for high-quality home entertainment solutions, positioning the company at the intersection of consumer electronics, smart home technology, and visual innovation. The company's transition from its former parent Hisense Company Limited has allowed it to specialize in display technologies while maintaining strong industry connections and supply chain advantages.
Hisense Visual Technology presents a mixed investment case with several positive fundamentals offset by competitive pressures. The company demonstrates solid financial performance with CNY 58.5 billion in revenue and CNY 2.25 billion net income, translating to a healthy diluted EPS of 1.72 CNY. The company maintains a reasonable debt level of CNY 1.11 billion against cash reserves of CNY 2.68 billion, indicating strong balance sheet management. A dividend of 0.88 CNY per share provides income appeal, while a beta of 0.576 suggests lower volatility than the broader market. However, investors should consider intense competition in the global display market, margin pressures from price competition, and the capital-intensive nature of technology R&D. The company's focus on premium display technologies like laser and ULED TVs positions it in higher-margin segments, but execution risk remains in maintaining technological leadership against well-funded global competitors.
Hisense Visual Technology operates in a highly competitive global display market where it must compete against both established multinational giants and aggressive domestic competitors. The company's competitive positioning is strengthened by its specialized focus on visual technologies, particularly in laser TV and ULED segments where it has developed proprietary expertise. Hisense benefits from China's manufacturing ecosystem and supply chain advantages, allowing cost-effective production while maintaining quality standards. The company's historical connection to Hisense Group provides brand recognition and distribution advantages, particularly in Asian markets. However, Hisense Visual Technology faces significant challenges in competing with global leaders who have larger R&D budgets, stronger brand recognition in premium segments, and more established global distribution networks. The company's competitive advantage lies in its targeted innovation in specific display technologies rather than competing across the entire consumer electronics spectrum. Its laser TV technology represents a differentiated product category where it has established early leadership, though this niche market faces scaling challenges. The company's ULED technology competes directly with OLED and QLED technologies from larger competitors, requiring continuous innovation to maintain relevance. Hisense's domestic market strength provides a stable revenue base, but international expansion faces barriers including brand perception, patent landscapes, and established competitor relationships with retailers and content providers.