TCL TECH.(SZ:000100) Ge Long Hui A P P·2025-08-29 15:59Core Viewpoint - TCL Technology Group reported strong financial performance for the first half of 2025, with significant growth in revenue and net profit, driven by its semiconductor display business and strategic acquisitions [1][3]. Financial Performance - In the first half of 2025, TCL Technology achieved operating revenue of 85.6 billion yuan, a year-on-year increase of 6.7% [1]. - The net profit attributable to shareholders reached 1.88 billion yuan, marking a substantial year-on-year growth of 89.3% [1]. - Operating cash flow surged by 115.9% to 27.3 billion yuan [1]. Semiconductor Display Business - TCL's subsidiary, TCL Huaxing, reported operating revenue of 50.43 billion yuan, up 14.4% year-on-year, with a net profit of 4.32 billion yuan, reflecting a 74% increase [1]. - The net profit attributable to TCL Technology shareholders was 2.63 billion yuan, a 51% increase compared to the previous year [1]. Market Position and Competitive Advantage - The company maintained a strong competitive edge in the LCD sector, achieving a market share of 24% in large-size products, an increase of 4 percentage points year-on-year [1]. - TCL's competitiveness in small and medium-sized products has rapidly improved, with sales growth across various segments including monitors, laptops, automotive displays, mobile phones, and specialized displays [1]. OLED Business Growth - TCL Huaxing's OLED business continued to grow, with product sales increasing by 8.7% year-on-year [2]. - The company ranked fourth globally in flexible OLED mobile phone shipments and maintained a top-three position in foldable product shipments [2]. - The G6 OLED production line in Wuhan is operating at industry-leading capacity utilization and financial performance metrics [2]. Strategic Acquisitions - TCL completed two major acquisition projects in the first half of the year, including the acquisition of LGD's Guangzhou panel and module factory, enhancing operational performance [3]. - The completion of the second phase of the Guangzhou t9 project is expected to create synergies with the t11 project, boosting competitiveness in the small and medium-sized business segment [3]. - The acquisition of a 21.53% stake in Shenzhen Huaxing Semiconductor is anticipated to increase net profit attributable to shareholders and enhance the profitability of the semiconductor display business [3]. Market Outlook - The pricing of major display products is expected to stabilize, supported by a favorable competitive landscape and a demand-driven production strategy [3]. - The trend towards larger display sizes is projected to drive continued growth in demand, with stable profitability anticipated for the industry [3]. - As a leading player in the display industry, TCL Huaxing is well-positioned to lead value chain upgrades and enhance operational efficiency [3].