Investment Rating - The investment rating for TCL Electronics is maintained as "Buy" [2][28]. Core Views - The report highlights that TCL Electronics has shown revenue and profit improvement in 2023H2, with a robust growth in domestic and international TV revenues. The company achieved a total revenue of HKD 79 billion in 2023, representing an 11% year-on-year increase, and a net profit of HKD 744 million, which is a 66.4% increase. In 2023H2, the revenue reached HKD 44.1 billion, up 17%, and the net profit was HKD 480 million, reflecting a 142% increase [12][28]. Summary by Sections 1. Revenue and Profit Improvement - In 2023, TCL Electronics reported a revenue of HKD 79 billion (+11% YoY) and a net profit of HKD 744 million (+66.4%). For 2023H2, the revenue was HKD 44.1 billion (+17%) and the net profit was HKD 480 million (+142%) [12][28]. 1.1 Revenue Breakdown - Domestic TV revenue in 2023 was HKD 16.016 billion (+5%), while international TV revenue was HKD 32.616 billion (+9%). In 2023H2, domestic TV revenue was HKD 9.12 billion (+3%) and international TV revenue was HKD 18.47 billion (+11%). The internet business revenue for 2023 was HKD 2.763 billion (+20%) and HKD 1.65 billion (+22%) in 2023H2. The solar business revenue surged to HKD 6.299 billion (+1820%) in 2023 and HKD 4.614 billion (+2861%) in 2023H2 [4][14][28]. 2. Profitability Improvement - The gross margin for 2023 was 18.7% (+0.3 percentage points), while for 2023H2 it was 18.7% (-0.7 percentage points). The report indicates that the TV business faced cost pressures, but the internet and full-category marketing segments saw significant gross margin improvements [5][17][21]. 2.1 Profitability Metrics - The report details that the net profit margin for 2023 was 0.9% (+0.3 percentage points) and for 2023H2 it was 1.1% (+0.6 percentage points). The adjusted net profit margin for 2023 was 1.0% and for 2023H2 it was 1.2% [17][21]. 3. Earnings Forecast and Investment Recommendations - The earnings forecast for 2024-2026 predicts net profits of HKD 915 million, HKD 1.114 billion, and HKD 1.309 billion respectively. The report suggests that the current stock price corresponds to a price-to-earnings ratio of 7.7 for 2024, 6.3 for 2025, and 5.4 for 2026, indicating a strong long-term outlook for TCL's smart screen business [28].
港股公司信息更新报告：2023H2营收和利润改善，国内外TV营收增长稳健