Investment Rating - The investment rating for TCL Electronics is "Buy" with a target price of 6.05 HKD, indicating a potential upside of 28.5% from the recent closing price of 4.71 HKD [3]. Core Insights - TCL Electronics experienced a significant revenue growth of 30.3% in 1H2024, reaching 45.49 billion HKD, driven by its focus on mid-to-high-end products and ongoing globalization efforts [1]. - The company's net profit attributable to shareholders was 650 million HKD, a year-on-year increase of 146.5%, reflecting a substantial improvement in core business profitability [1]. - The display business revenue grew by 21.3% to 30.14 billion HKD, supported by global market expansion and brand influence [1]. - The global market share for TCL TVs increased by 0.9 percentage points to 13.3%, ranking among the top two global TV brands [1]. - The solar business saw a remarkable revenue increase of 212.7%, reaching 5.27 billion HKD, with a gross margin improvement of 2.7 percentage points [2]. Summary by Sections Financial Performance - In 1H2024, TCL Electronics reported a gross margin of 17.0%, a decrease of 1.6 percentage points year-on-year, attributed to product line adjustments [1]. - The adjusted net profit for the same period was also 650 million HKD, marking a 147.3% year-on-year increase [1]. - The overall revenue for the full year is projected to continue growing across various segments, including large and small display products, internet services, and innovative businesses [2]. Market Position - TCL's global TV shipment volume increased by 9.2% to 12.52 million units, significantly outperforming the industry average [1]. - The company achieved substantial growth in the overseas market, particularly in the European region, where TV shipments rose by 40.1% due to major sporting events [1]. Business Segments - The all-category marketing business revenue increased by 27.7% to 7.75 billion HKD, with a gross margin improvement of 1.1 percentage points [2]. - The internet business revenue grew by 8.9% to 1.21 billion HKD, with international market revenue surging by 51.2% [2]. - The solar business has expanded its reach across 23 key provinces in China, with over 150 signed projects and more than 1,200 distributors [2].
TCL电子：受益于中高端与全球化，中期业绩大幅改善