TCL电子：TV份额逆势增长，创新业务超预期

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].