TCL TECH.(000100) Guoxin Securities·2024-02-25 16:00Investment Rating - The investment rating for TCL Technology is "Buy" [4][17]. Core Views - The company's net profit for 2023 is expected to increase significantly by 704%-857%, driven by the semiconductor display business, particularly the high prices of LCD TV panels in the second half of 2023 [1][10]. - The revenue for 2023 is projected to grow by 4%-6% to between 173.55 billion and 177.35 billion yuan, with a net profit forecasted to be between 2.1 billion and 2.5 billion yuan [1][10]. - The semiconductor display business is anticipated to enter a stable profit phase, with a net profit of 3.1 billion to 3.45 billion yuan expected in the second half of 2023 [1][10]. - The company is focusing on high-end large-size strategies and expanding into mid-size IT and automotive sectors, while also strengthening its position in the small-size market and exploring VR/AR and specialized display markets [1][10]. Financial Performance Summary - The expected financial performance for TCL Technology includes: - Revenue (in million yuan): 2023E: 177,223, 2024E: 189,135, 2025E: 215,236, with year-on-year growth rates of 6.4%, 6.7%, and 13.8% respectively [2][10]. - Net Profit (in million yuan): 2023E: 2,387, 2024E: 4,707, 2025E: 7,258, with year-on-year growth rates of 813.3%, 97.2%, and 54.2% respectively [2][10]. - Earnings per Share (EPS): 2023E: 0.13, 2024E: 0.25, 2025E: 0.39 [2][10]. - Price-to-Earnings (P/E) ratio: 2023E: 34.3, 2024E: 17.4, 2025E: 11.3 [2][10]. Business Segments Overview - The semiconductor display segment is expected to see revenue growth of 20.2% in 2023, with a projected revenue of 78.986 billion yuan, and a gross margin improvement [7][8]. - The renewable energy photovoltaic segment is forecasted to experience a decline in revenue in 2023, with a slight recovery expected in 2025 [7][8]. - The distribution business is projected to decline by 7.0% in 2023, with a gradual recovery in subsequent years [7][8].