TCL TECH.(000100) 天风证券·2025-03-12 11:05Investment 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 subsidies 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 192.28% year-on-year increase in net profit [1][7]. - The company is well-positioned to benefit from the ongoing demand for large-sized TV panels, supported by government recycling subsidies and a recovering market [3][4]. Summary by Sections Company Overview - TCL Technology focuses on semiconductor displays and new energy photovoltaics, aiming to become a leading high-tech industrial group globally [16][17]. - The company has a strong market presence, ranking second globally in TV panel shipments and first in photovoltaic silicon wafer market share [1][17]. Semiconductor Display Business - The semiconductor display segment is TCL's primary business, contributing 47.98% of total revenue in 2023, with a significant increase in profitability due to improved market conditions [27][29]. - TCL Huaxing, the subsidiary responsible for this segment, achieved a revenue of 498.77 billion CNY in the first half of 2024, a 40.39% increase year-on-year [29][36]. 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 [6][30]. - TCL Zhonghuan, the subsidiary for this segment, reported a revenue of 162.13 billion CNY in the first half of 2024, a decrease of 53.54% year-on-year, indicating current operational challenges [30][36]. Financial Performance - The company has shown a consistent improvement in financial metrics, with a significant increase in net profit and revenue over the past few years, driven by the recovery in the semiconductor display market [32][34]. - The gross margin for the semiconductor display business improved to 18.80% in the first half of 2024, reflecting better pricing and cost management [36][39]. Future Outlook - The report forecasts revenue growth for TCL Technology, estimating revenues of 1694.57 billion CNY, 1956.04 billion CNY, and 2172.38 billion CNY for 2024, 2025, and 2026 respectively [7]. - The company is expected to continue benefiting from government policies aimed at boosting consumer electronics demand, particularly in the TV panel market [3][4].