TCL Smart Home(SZ:002668) Founder Securities·2024-08-10 13:13Investment Rating - The report maintains a "Recommended" rating for TCL Smart Home, indicating a positive outlook for the company's stock performance in the next 12 months [2][6]. Core Insights - TCL's performance in Q2 2024 exceeded market expectations, with revenue and net profit showing significant year-on-year growth of 24.9% and 36.1% respectively [1][2]. - The company is focusing on high-end washing and refrigeration products under its Hefei appliance brand while actively pursuing global expansion [2]. - The report projects a continuous increase in revenue and profit, with net profit estimates for 2024-2026 revised to 936 million, 1.047 billion, and 1.168 billion RMB respectively [2]. Financial Performance Summary - For H1 2024, TCL reported total revenue of 89.6 billion RMB, a year-on-year increase of 24.7%, and net profit of 5.59 billion RMB, up 32.7% [1]. - The revenue from refrigerators and washing machines in H1 2024 was 76.1 billion RMB and 12.8 billion RMB, reflecting year-on-year growth of 21.7% and 46.3% respectively [1]. - The company’s gross margin for H1 2024 was reported at 23.0%, with a slight increase in Q2 to 25.3% [2][3]. Market and Industry Analysis - The home appliance market, particularly refrigeration and washing machines, is experiencing robust growth, driven by high demand in both domestic and international markets [1]. - TCL's export sales for refrigerators remain strong, with a notable increase in shipments to emerging markets [2]. - The report highlights that TCL's growth outpaces industry averages, particularly in washing machines, where export volumes surged by 97.1% year-on-year [1].