TCL TECH.(SZ:000100) 2 1 Shi Ji Jing Ji Bao Dao·2025-07-15 01:13Core Viewpoint - TCL Technology is strategically positioning itself in the semiconductor display industry, with significant growth in revenue and profit driven by its subsidiary TCL Huaxing's performance in the semiconductor display sector [1][12]. Financial Performance - For the first half of the year, TCL Technology expects revenue between 82.6 billion to 90.6 billion yuan, a year-on-year increase of 3% to 13%, and a net profit between 1.8 billion to 2 billion yuan, reflecting a growth of 81% to 101% [1]. - In Q1, TCL Technology reported revenue of 40.1 billion yuan, a 0.4% increase year-on-year, and a net profit of 1.01 billion yuan, a 322% increase year-on-year [8]. Business Expansion and Acquisitions - TCL Huaxing has established a comprehensive display product system in the LCD and OLED sectors through mergers and acquisitions, including the recent acquisition of LG's Guangzhou factory [2][3]. - The acquisition of LG's LCD panel factory and module factory has solidified TCL Huaxing's position in the large-size LCD panel market, with plans to complete the consolidation by Q2 2025 [2][3]. Production Capacity and Technology - TCL Huaxing currently operates 10 panel lines and 7 module factories, with an overall production capacity exceeding 50 million pieces [5]. - The newly acquired LG factory (T11) has a monthly production capacity of 180,000 pieces, focusing on large-size LCD displays for the Chinese and Southeast Asian markets [4]. Market Trends and Pricing - The average size of televisions is expected to increase, with a projected rise of approximately 1 inch globally in 2024 and 1.5 inches by Q1 2025 [8]. - There has been a price increase for large-size panel products, with 55-65 inch products rising by about $1 per piece and 75-85 inch products by $2 [9]. Strategic Vision - TCL Huaxing is seen as a key player in TCL Technology's global display strategy, focusing on high-tech, capital-intensive industries [13]. - The company aims to enhance its market penetration with a full range of products, including flexible OLEDs, and has achieved significant market share in various segments [13]. Financial Health and Investment - As of the end of 2024, TCL Technology's asset-liability ratio was 64.92%, with short-term borrowings of 8.193 billion yuan [14]. - The company has made substantial investments, leading to cash outflows, but is optimistic about the long-term benefits of its strategic investments [15].