Xin Lang Cai Jing·2025-12-15 12:44Core Viewpoint - TCL Technology is accelerating its acquisition of minority stakes in high-generation production lines, which is expected to further enhance the net profit attributable to the parent company [1][6]. Company Summary - On December 15, TCL Technology announced that its subsidiary, TCL Huaxing Optoelectronics Technology Co., Ltd., plans to acquire a 10.7656% stake in Shenzhen Huaxing Semiconductor Display Technology Co., Ltd. for cash of 6.045 billion yuan. After the transaction, TCL's total control over Shenzhen Huaxing Semiconductor will increase from 84.2105% to 94.9761%, which is anticipated to effectively improve the company's profitability [1][6]. - Shenzhen Huaxing Semiconductor focuses on the semiconductor display business and operates two G11 display panel production lines, primarily producing large-size TFT-LCD display devices. The acquisition is expected to strengthen TCL's core competitiveness in the semiconductor display industry [3][8]. Financial Performance - As of December 31, 2024, Shenzhen Huaxing Semiconductor reported total assets of 68.04 billion yuan and net assets of 44.85 billion yuan, with projected revenue of 24.158 billion yuan and net profit of 2.807 billion yuan for the same year. By June 30, 2025, total assets are expected to be 64.769 billion yuan, with net assets of 46.564 billion yuan, and revenue of 12.023 billion yuan with a net profit of 1.709 billion yuan. The decreasing asset-liability ratio and increasing net profit margin indicate a strengthening of the asset's profitability and quality [3][9]. Industry Outlook - The large-size semiconductor display industry has seen an optimization in its structure, with a healthier supply-demand relationship. The market for television panels is entering a stocking peak season, and prices are expected to stabilize in December according to TrendForce [4][9]. - The Central Economic Work Conference has outlined plans to optimize the "Two New" policy by 2026, which includes large-scale equipment updates and a "national subsidy" for consumer goods. This is expected to boost demand for consumer electronics and display panels [4][9]. - The upcoming FIFA World Cup in 2026, hosted by the USA, Canada, and Mexico, is anticipated to significantly drive demand for large-size television panels, benefiting Shenzhen Huaxing Semiconductor, which specializes in this market [5][10].