TCL TECH.(SZ:000100) Western Securities·2025-09-15 06:26Investment Rating - The investment rating for TCL Technology is "Buy" [5][10]. Core Views - TCL Technology announced the construction of an 8.6-generation printed OLED production line, with a total investment of approximately RMB 29.5 billion, expected to start construction in November 2025 [2][3]. - The project aims to enhance TCL's competitive advantage in the OLED display industry, leveraging self-owned technology to capture market growth and improve operational efficiency [3]. - The semiconductor display business is expected to benefit from improved industry supply-demand dynamics, with projected revenue growth from RMB 1,933.81 billion in 2025 to RMB 2,589.79 billion in 2027, and net profit increasing from RMB 6.377 billion to RMB 12.066 billion in the same period [3][4]. Summary by Sections Company Overview - TCL Technology, through its subsidiary TCL Huaxing, is collaborating with the Guangzhou government to establish a new OLED production line, which will have a monthly processing capacity of approximately 22,500 glass substrates [2]. Financial Projections - Revenue projections for TCL Technology are as follows: RMB 1,933.81 billion in 2025, RMB 2,274.23 billion in 2026, and RMB 2,589.79 billion in 2027, with corresponding net profits of RMB 6.377 billion, RMB 9.325 billion, and RMB 12.066 billion [4][9]. - The company is expected to see significant growth in earnings per share (EPS), from RMB 0.31 in 2025 to RMB 0.58 in 2027 [4][9]. Market Position - The 8.6-generation printed OLED project is seen as a strategic move to position TCL as a leader in the display industry, transitioning from a follower to a frontrunner in technology [3]. - The project is anticipated to enhance TCL's market share in high-end products and optimize its operational efficiency [3].