Financial Performance - TCL reported a revenue of HKD 45.494 billion, representing a year-on-year increase of 30.3%[4] - Gross profit reached HKD 7.748 billion, up 19.2% compared to the previous period[4] - Net profit attributable to shareholders increased by 146.5% to HKD 650 million[4] - Adjusted net profit attributable to shareholders rose by 147.3% to HKD 654 million[4] - The company's revenue increased by 30.3% year-on-year from HKD 34.92 billion in H1 2023 to HKD 45.49 billion in H1 2024[28] - The gross profit rose by 19.2% from HKD 6.50 billion in H1 2023 to HKD 7.75 billion in H1 2024, with a gross margin of 17.0%, down 1.6 percentage points year-on-year[33] - Profit before tax increased by 110.0% from HKD 420 million in H1 2023 to HKD 882 million in H1 2024, attributed to significant improvements across multiple business lines including display, internet, and innovative businesses[42] - Net profit for the period increased by 106.6% from HKD 316 million in H1 2023 to HKD 653 million in H1 2024, with attributable net profit rising by 146.5% from HKD 264 million to HKD 650 million, driven by scale expansion and improved operational quality[44] Operational Efficiency - The company's operating efficiency improved, with administrative expense ratio decreasing by 1.1 percentage points to 4.1%[7] - Sales and distribution expense ratio declined by 0.9 percentage points to 9.6%[7] - The overall expense ratio decreased by 2.0 percentage points to 13.7%[7] - The inventory turnover days improved to 69 days, one day faster than the previous year[8] - Cash turnover days were reduced to 36 days, two days faster than the previous year[8] Business Segments Performance - In the first half of 2024, TCL's display business revenue increased by 21.3% year-on-year to HKD 30.135 billion, driven by an optimized product mix and a growing share of high-end products[9] - The internet business revenue grew by 8.9% year-on-year to HKD 1.212 billion, maintaining a high gross margin of 54.0%[10] - Innovative business revenue surged by 60.6% year-on-year to HKD 13.953 billion, with gross profit increasing by 64.1% to HKD 2.009 billion[10] - The photovoltaic business saw revenue and gross profit increase by 212.7% and 322.5% year-on-year, reaching HKD 5.269 billion and HKD 543 million, respectively[10] - The small and medium-sized display business revenue grew by 10.7% year-on-year to HKD 3.761 billion, with a gross profit margin of 16.7%[16] - The smart commercial display business revenue increased by 11.3% year-on-year to HKD 460 million, with a gross profit margin of 13.8%[17] Market Share and Shipment - TCL TV global shipment volume reached 12.52 million units in the first half of 2024, a year-on-year increase of 9.2%, significantly outperforming the industry average[9] - TCL's global TV market share increased by 0.9 percentage points year-on-year to 13.3%, ranking among the top two global TV brands[12] - In the Chinese market, TCL TV shipment volume grew by 5.4% year-on-year, with revenue increasing by 21.1% to HKD 8.353 billion[13] - The shipment volume of TCL Mini LED TVs in China surged by 120.1% year-on-year, significantly increasing its market share[13] - In the first half of 2024, TCL TV's international market shipment volume increased by 10.4% year-on-year, with revenue growing by 24.2% to HKD 17.561 billion[14] - The shipment volume of TCL TVs sized 75 inches and above increased by 46.9% year-on-year, accounting for 8.4% of total shipments in North America, where TCL's retail market share rose by 0.5 percentage points to 12.5%[14] - In emerging markets, TCL TV shipment volume grew by 4.0% year-on-year, outperforming the industry average, with TCL maintaining the top retail market share in Australia, the Philippines, and Myanmar[15] - In Europe, TCL TV shipment volume increased by 40.1% year-on-year, benefiting from major sporting events, with retail market share ranking in the top two in France, Sweden, and Poland[15] Research and Development - R&D expenses reached HKD 1.093 billion in the first half of 2024, focusing on advanced display technologies and innovative products[11] - The company is investing heavily in R&D, with a budget allocation of HKD 5 billion for the development of AI and AR technologies over the next two years[167] Strategic Initiatives - TCL aims to capture the high-end market segment, with a focus on the growing demand for 75-inch and larger TVs, projected to achieve a compound annual growth rate of 25.0% from 2023 to 2025[24] - The company plans to enhance its global brand and channel advantages to expand its all-category marketing business, leveraging its established TV brand and channel presence[24] - TCL is committed to driving high-quality development through a strategy focused on "expanding scale, strengthening operations, activating organization, and globalization" in the second half of 2024[25] - The company will continue to innovate and expand in the photovoltaic and AR/XR markets, which are experiencing rapid growth, to seize industry opportunities[25] Cash Flow and Financial Position - As of June 30, 2024, cash and cash equivalents totaled approximately HKD 9.85 billion, a decrease of 8.3% compared to December 31, 2023, with 48.5% in RMB and 36.3% in USD[49] - The company reported cash inflows from operating activities of HKD 1,140,688 thousand, an increase from HKD 931,258 thousand in the same period of 2023, representing a growth of approximately 22.4%[62] - The net cash inflow from operating activities for the first half of 2024 was HKD 802,266 thousand, compared to HKD 441,149 thousand in the first half of 2023, indicating a significant increase of 81.8%[62] - The company reported a net cash outflow from investing activities of HKD 2,408,045 thousand for the first half of 2024, a decrease from HKD 2,883,959 thousand in the same period of 2023, showing a reduction of 16.5%[63] - The company reported a net loss attributable to shareholders of HKD 1,079,714 thousand for the first half of 2024, compared to a net loss of HKD 110,584 thousand in the same period of 2023, indicating a significant increase in losses[65] Shareholder Information - As of June 30, 2024, TCL Electronics Holdings Limited had a total of 2,520,935,155 shares issued, with major shareholders holding significant stakes, including TCL Industrial Holdings with 54.54%[139] - The company reported that the beneficial ownership of its directors and senior management included a total of 2,864,075 shares held by Du Juan, representing approximately 0.11% of the issued shares[136] - The company highlighted that the ownership structure includes various controlled corporations, indicating a diversified shareholder base[140] - The report emphasized the importance of compliance with the Securities and Futures Ordinance regarding the disclosure of shareholdings[138] Compliance and Governance - The audit committee reviewed the interim report and the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[159] - All directors confirmed compliance with the standards of the company's securities trading code during the six months ended June 30, 2024[160] - The company received written confirmations from TCL Industrial Holdings and T.C.L. Industrial (Hong Kong) regarding compliance with the non-competition agreement during the specified period[161] Future Outlook - TCL Electronics anticipates a revenue growth forecast of 10% for the second half of 2024, supported by new product launches and market expansion initiatives[166] - The company is committed to sustainability, with plans to reduce carbon emissions by 30% by 2025 through energy-efficient product designs and manufacturing processes[164]

Investment Rating - The report maintains a rating of "Buy" for TCL Electronics [4][13]. Core Views - The ITC's initiation of a 337 investigation against TCL Electronics is characterized as a non-standard patent dispute, with limited impact on the company's operations in North America. The primary goal of the plaintiff, Maxell, is expected to be obtaining settlement compensation [4][10][13]. - The company is anticipated to benefit significantly from the domestic appliance replacement program, enhancing its position as a leading player in the black goods sector. The global competitiveness of TCL Electronics is continuously improving, entering a phase of quality enhancement and efficiency realization [4][13]. Summary by Sections Event Overview - On September 24, 2024, the ITC voted to initiate a 337 investigation concerning certain smart televisions, following a complaint filed by Maxell on August 22, 2024, alleging patent infringement related to several registered patents [9][10]. - The patents in question involve Bluetooth and Wi-Fi technologies, which are highly relevant to the interconnectivity of mobile devices and televisions [10]. Investment Recommendations - The report suggests that the ongoing patent dispute will not adversely affect TCL's sales in North America. The expected settlement costs are projected to be between USD 200,000 to 400,000 (approximately HKD 1.557 million to 3.114 million), assuming a one-time payment of USD 0.5 to 1 per TV sold [12][13]. - Earnings per share (EPS) forecasts for 2024-2026 are projected at HKD 0.56, 0.68, and 0.76, representing year-on-year growth of 90%, 21%, and 13% respectively [4][13].

Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of HKD 5.78, while the current stock price is HKD 4.40 [1]. Core Views - The report highlights that TCL Electronics has shown significant revenue growth, with a 30.3% year-over-year increase in H1 2024, reaching HKD 454.9 billion, and a net profit increase of 146.5% to HKD 6.5 billion [4][5]. - The company's large-size display and innovative businesses are driving rapid revenue growth, with the large-size display business growing by 23% in H1 2024 [4]. - The report emphasizes the potential for TCL's overseas television market share to increase due to enhanced brand marketing and channel coverage [5]. Summary by Sections Financial Performance - Main revenue for 2022 was HKD 713.5 million, projected to grow to HKD 999.2 million by 2024 [2]. - Net profit is expected to rise from HKD 4.5 million in 2022 to HKD 20.7 million by 2026 [3]. - Earnings per share (EPS) are projected to increase from HKD 0.2 in 2022 to HKD 0.8 in 2026 [3]. Profitability and Valuation - The price-to-earnings (P/E) ratio is expected to decrease from 24.6 in 2022 to 5.4 by 2026, indicating improved valuation [4]. - The report forecasts a net profit margin increase to 1.5% by 2026, up from 0.6% in 2022 [6]. Business Segments - Domestic large-size display revenue is projected to grow at rates of 18% in 2024, 8% in 2025, and 8% in 2026, with a gross margin of 21.5% in 2024 [8]. - Overseas large-size display revenue is expected to grow by 23% in 2024 and maintain a gross margin of 13.9% [8]. - The photovoltaic business is anticipated to see a revenue increase of 120% in 2024, with a gross margin of 12% [8]. Cash Flow and Valuation - The report estimates the equity value of TCL Electronics at HKD 164.6 billion, with a projected EPS of HKD 6.53 [14][15]. - The report uses a discounted cash flow (DCF) model to assess the company's value, with key assumptions including a risk-free rate of 3.8% and a market return of 1.7% [14]. Market Position - TCL Electronics is positioned as a leading player in the global television industry, focusing on high-end and global operations [5]. - The company is leveraging its brand strength and channel resources to enhance its market share in the overseas television market [5].

Investment Rating - The investment rating for TCL Electronics is "Buy" with a target price of 6.05 HKD, indicating a potential upside of 28.5% from the recent closing price of 4.71 HKD [3]. Core Insights - TCL Electronics experienced a significant revenue growth of 30.3% in 1H2024, reaching 45.49 billion HKD, driven by its focus on mid-to-high-end products and ongoing globalization efforts [1]. - The company's net profit attributable to shareholders was 650 million HKD, a year-on-year increase of 146.5%, reflecting a substantial improvement in core business profitability [1]. - The display business revenue grew by 21.3% to 30.14 billion HKD, supported by global market expansion and brand influence [1]. - The global market share for TCL TVs increased by 0.9 percentage points to 13.3%, ranking among the top two global TV brands [1]. - The solar business saw a remarkable revenue increase of 212.7%, reaching 5.27 billion HKD, with a gross margin improvement of 2.7 percentage points [2]. Summary by Sections Financial Performance - In 1H2024, TCL Electronics reported a gross margin of 17.0%, a decrease of 1.6 percentage points year-on-year, attributed to product line adjustments [1]. - The adjusted net profit for the same period was also 650 million HKD, marking a 147.3% year-on-year increase [1]. - The overall revenue for the full year is projected to continue growing across various segments, including large and small display products, internet services, and innovative businesses [2]. Market Position - TCL's global TV shipment volume increased by 9.2% to 12.52 million units, significantly outperforming the industry average [1]. - The company achieved substantial growth in the overseas market, particularly in the European region, where TV shipments rose by 40.1% due to major sporting events [1]. Business Segments - The all-category marketing business revenue increased by 27.7% to 7.75 billion HKD, with a gross margin improvement of 1.1 percentage points [2]. - The internet business revenue grew by 8.9% to 1.21 billion HKD, with international market revenue surging by 51.2% [2]. - The solar business has expanded its reach across 23 key provinces in China, with over 150 signed projects and more than 1,200 distributors [2].

Investment Rating - The report assigns a "Buy" rating to TCL Electronics with a target price of HKD 6.05, representing a 28.5% upside potential from the recent closing price of HKD 4.71 [2][3] Core Views - TCL Electronics' 1H2024 revenue grew 30.3% YoY to HKD 45.49 billion, driven by its mid-to-high-end product strategy and global expansion [1] - Net profit attributable to shareholders surged 146.5% YoY to HKD 650 million, with adjusted net profit up 147.3% YoY [1] - The company's display business revenue increased 21.3% YoY to HKD 30.14 billion, with global TV shipments up 9.2% YoY to 12.52 million units [1] - TCL's global TV market share rose 0.9 percentage points YoY to 13.3%, ranking second globally [1] - The company's photovoltaic business revenue soared 212.7% YoY to HKD 5.27 billion, with gross margin improving 2.7 percentage points to 10.3% [2] Business Segment Performance Display Business - 75-inch and larger TV shipments grew 34.5% YoY, with Mini LED TV shipments surging 124.7% YoY [1] - European market TV shipments increased 40.1% YoY, with retail market share ranking top five in multiple countries [1] - Display business gross margin declined 1.9 percentage points to 16.9% due to product mix changes and rising panel costs [1] All-Category Marketing Business - Revenue increased 27.7% YoY to HKD 7.75 billion, with gross margin improving 1.1 percentage points to 16.3% [2] - Smart products including air conditioners, refrigerators, and washing machines maintained rapid growth in global distribution [2] Internet Business - Revenue grew 8.9% YoY to HKD 1.21 billion, with international internet business revenue surging 51.2% YoY to HKD 342 million [2] Photovoltaic Business - The business has covered 23 key provinces and cities in China, with over 150 commercial projects signed and more than 70,000 farmer contracts [2] - The distribution network has expanded to over 1,200 dealers [2] Financial Projections - 2024E revenue is projected at HKD 94.48 billion, with net profit of HKD 1.28 billion [6] - 2025E revenue is forecasted at HKD 100.32 billion, with net profit of HKD 1.52 billion [6] - Gross margin is expected to stabilize around 17.3%-17.8% from 2024E to 2026E [6] - ROE is projected to improve from 6.9% in 2024E to 9.4% in 2026E [6] Valuation - The stock is trading at 9.3x 2024E PE and 0.6x 2024E PB, with a dividend yield of 5.4% [6] - The target price of HKD 6.05 is based on 12x 2024E PE [2]

Investment Rating - The report assigns a "Buy" rating to TCL Electronics with a target price of HKD 7.00, reflecting a positive outlook on the company's performance and growth potential [2]. Core Insights - TCL Electronics has shown significant revenue growth in its core TV business, achieving a revenue of HKD 454.9 billion for the first half of 2024, representing a year-on-year increase of 30.3% [2]. - The company's innovative business segments have also outperformed expectations, with overall revenue growth of 60.6% year-on-year, driven by strong performance in the photovoltaic sector [2]. - The report highlights the company's improved financial health, with a notable increase in net profit and adjusted net profit, alongside a stable net debt ratio [2]. Summary by Relevant Sections Revenue and Profitability - TCL Electronics reported a revenue of HKD 454.9 billion for the first half of 2024, up 30.3% year-on-year [2]. - The adjusted net profit reached HKD 6.5 billion, reflecting a significant improvement in profitability [2]. - The gross margin decreased by 1.6 percentage points to 17%, while the overall expense ratio improved [2]. Market Position and Sales Performance - The company achieved a TV market share of approximately 13.3%, ranking second globally, with total shipments increasing by 9.2% year-on-year [2]. - Domestic TV revenue grew by 21.3% to HKD 301.3 billion, while overseas shipments increased by 10.4% to 970 thousand units [2]. - The high-end product segment saw a substantial increase, with shipments of products over 75 inches rising by 34.5% [2]. Innovative Business Growth - The innovative business segment's revenue grew by 60.6% year-on-year, with photovoltaic business revenue increasing by 212.7% [2]. - The smart home business maintained stable revenue growth, contributing to the overall positive performance of the innovative segments [2]. Financial Forecasts - The report forecasts revenues of HKD 965 billion, HKD 1,082 billion, and HKD 1,197 billion for 2024, 2025, and 2026 respectively, with adjusted net profits projected to reach HKD 1,365 billion in 2024 [2][3]. - The earnings per share (EPS) is expected to grow from HKD 0.29 in 2022 to HKD 0.76 by 2026 [3].

家用电器/黑色家电 公 司 研 究 2024H1 业绩高增，彩电国内外业务量价双升 TCL 电子（01070.HK） 2024 年 08 月 26 日 ——港股公司信息更新报告 投资评级：买入（维持） | --- | --- | |--------------------|-------------| | 日期 | 2024/8/23 | | 当前股价(港元) | 4.560 | | 一年最高最低(港元) | 6.970/2.160 | | 总市值(亿港元) | 114.95 | | 流通市值(亿港元) | 114.95 | | 总股本(亿股) | 25.21 | | 流通港股(亿股) | 25.21 | | 近 3 个月换手率(%) | 17.34 | 股价走势图 TCL电子 恒生指数 -80% -40% 0% 40% 80% 2023-08 2023-12 2024-04 数据来源：聚源 相关研究报告 《显示业务经营改善+提质增效带动 2024H1 业绩高增—港股公司信息更 新报告》-2024.7.17 《2023H2 营收和利润改善，国内外 TV 营收增长稳健—港股公司信息更 新报告》-2024.3.3 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就本公告全部或任何部 份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 TCL ELECTRONICS HOLDINGS LIMITED TCL 電子控股有限公 司 （股份代號：01070） （於開曼群島註冊成立之有限公司） 截至2024年6月30日止六個月 業績公告 董事會欣然公告本集團截至2024年6月30日止六個月之未經審核綜合業績及財務 狀況，連同2023年同期之比較數字。 | --- | --- | --- | --- | |-----------------------------------------------------------------|--------------|---------------------|--------| | | | | | | 財務摘要 | 截至 6 月 30 | 日止六個月 | | | | 2024 年 | 2023 年 | 變動 | | | （未經審核） | （未經審核） | | | | 百萬港元 | 百萬港元 （經重列 ...

TCL 电子(1070.HK)/家电 证券研究报告/公司点评 2024 年 7 月 17 日 [Table_Industry] [Table_Title] 评级:买入(维持) 市场价格:5.3 元港币 分析师:姚玮 执业证书编号:S0740522080001 Email:yaowei@zts.com.cn 分析师:吴嘉敏 执业证书编号:S0740524060003 Email:wujm@zts.com.cn [Table_Profit] 基本状况 | --- | --- | |----------------------|--------| | 总股本(百万股) | 2,521 | | 流通股本(百万股) | 2,521 | | 市价(港币) | 5.30 | | 市值(百万元港币) | 13,361 | | 流通市值(百万元港币) | 13,361 | [Table_QuotePic] 股价与行业-市场走势对比 -60% -40% -20% 0% 20% 40% 60% 80% 100% TCL电子 恒生指数 2023-072023-082023-092023-102023-112023-122024-01 ...

TCL 电子(1070.HK)/家电 证券研究报告/公司点评 2024 年 7 月 17 日 [Table_Industry] [Table_Title] 评级:买入(维持) 市场价格:5.3 元港币 分析师:姚玮 执业证书编号:S0740522080001 Email:yaowei@zts.com.cn 分析师:吴嘉敏 执业证书编号:S0740524060003 Email:wujm@zts.com.cn [Table_Profit] 基本状况 | --- | --- | |----------------------|--------| | 总股本(百万股) | 2,521 | | 流通股本(百万股) | 2,521 | | 市价(港币) | 5.30 | | 市值(百万元港币) | 13,361 | | 流通市值(百万元港币) | 13,361 | [Table_QuotePic] 股价与行业-市场走势对比 -60% -40% -20% 0% 20% 40% 60% 80% 100% TCL电子 恒生指数 2023-072023-082023-092023-102023-112023-122024-01 ...