TCL TECH.(000100) 天风证券·2025-03-12 12:23Investment Rating - The report assigns a "Buy" rating for TCL Technology with a target price of 5.93 CNY, based on its strong market position and growth potential in the semiconductor display and photovoltaic sectors [9]. Core Insights - TCL Technology is a global leader in semiconductor displays and photovoltaic silicon wafers, with a strong profitability outlook driven by government subsidy policies and strategic share buybacks [1][2]. - The company has shown significant revenue growth, with a projected revenue of 802.24 billion CNY for the first half of 2024, representing a year-on-year increase of 192.28% in net profit [1][36]. - The company is well-positioned to benefit from the ongoing demand for large-sized TV panels and the recovery of the OLED market, as well as the anticipated rebound in the photovoltaic industry [3][5][6]. Summary by Sections Company Overview - TCL Technology focuses on semiconductor displays and renewable energy, aiming to become a leading high-tech industrial group globally. The company has a strong market presence in TV panels and flexible OLEDs, ranking among the top in the industry [16][17]. Semiconductor Display Business - The semiconductor display segment is TCL's primary business, contributing 47.98% of total revenue in 2023. The company has seen a 40.39% year-on-year increase in revenue for this segment in the first half of 2024, with net profit improving significantly [27][29][36]. - The large-size panel market is benefiting from government subsidies, which are expected to drive demand and stabilize prices. TCL's market share in TV panels remains strong, with a focus on high-generation production lines [3][4]. Photovoltaic Business - The photovoltaic segment, while facing short-term challenges due to supply-demand imbalances, is expected to recover as the industry undergoes a restructuring phase. TCL's market share in photovoltaic silicon wafers is the highest in the industry [6][30]. - The company is committed to technological innovation and cost reduction to enhance its competitive edge in the photovoltaic sector [6][30]. Financial Performance - TCL Technology's financial health has improved, with a significant increase in operating income and net profit. The company reported a net profit of 9.95 billion CNY in the first half of 2024, marking a substantial increase from the previous year [1][36]. - The company has maintained a stable expense ratio while increasing its R&D investment, which reached 103.09 billion CNY in 2023, representing 5.91% of its revenue [42][44].