Investment Rating - The report maintains a "Strong Buy" investment rating for TCL Electronics [1][3]. Core Views - The company is experiencing high short-term growth due to domestic subsidy policies and the resolution of uncertainties regarding export tariffs. The long-term outlook is positive, with expectations for continued market share growth in the global high-end market, advantages in global supply chain layout, and expansion of innovative businesses alongside cost efficiency improvements [1][6]. Financial Performance - In H1 2025, TCL Electronics achieved revenue of HKD 54.777 billion, a year-on-year increase of 20.4%. The net profit attributable to shareholders grew by 67.8% to HKD 1.09 billion, driven by significant growth in innovative businesses, particularly in the photovoltaic sector, and robust performance in the display business [6][12]. - The company's revenue is projected to reach HKD 79.111 billion in 2023, with a year-on-year growth of 11%, and is expected to grow to HKD 158.475 billion by 2027, reflecting a compound annual growth rate (CAGR) of approximately 15% [2][13]. Business Segments - The display business has shown significant results from its high-end strategy, with global TV shipments increasing by 7.6% to 13.46 million units in H1 2025. The Mini LED TV segment saw a remarkable growth of 176.1%, capturing a 28.7% market share globally [6][12]. - The innovative business segment, particularly the photovoltaic sector, reported a staggering revenue increase of 111.3% to HKD 11.136 billion, accounting for 20.4% of total revenue [6][12]. Valuation Metrics - The report indicates that the projected price-to-earnings (PE) ratio for 2025 is approximately 8.6x, and for 2026, it is expected to be around 7.1x, suggesting that the stock is undervalued relative to its growth prospects [2][14].
TCL电子（01070）：中高端战略现成效，创新业务超预期