Core Viewpoint - TCL Technology has successfully completed a significant acquisition, enhancing its position in the display business by acquiring a 21.5311% stake in Shenzhen Huaxing Semiconductor, bringing its total ownership to 84.2105% [1][4][5] Group 1: Acquisition Details - The acquisition of Shenzhen Huaxing Semiconductor was valued at 115.62 billion yuan, with 72.03 billion yuan paid in cash and 43.59 billion yuan through the issuance of new shares [4] - The company will issue approximately 986 million new shares, which are set to be listed on July 10 [4] - Following the transaction, Shenzhen Major Industry Development Fund will become a major shareholder with a 4.99% stake, while the chairman's shareholding will be diluted from 6.74% to 6.40% [4] Group 2: Strategic Focus - TCL Technology is focusing on three core business areas: semiconductor display, new energy photovoltaic, and semiconductor materials, with the semiconductor display business becoming a primary revenue source [1][5] - The company aims to strengthen its core competitiveness in the semiconductor display industry through this acquisition, reinforcing its leading position [5] Group 3: Financial Performance - In the first quarter of 2025, TCL Technology reported a net profit attributable to shareholders of 9.58 billion yuan, marking a year-on-year increase of 1254.24% [2][11] - The company achieved a revenue of 401.19 billion yuan in the first quarter of 2025, a slight increase of 0.43% year-on-year [11] Group 4: Market Position - TCL Technology has established itself as a leader in the global display market, particularly in large-size panels, holding the number one market share for TV panels over 98 inches [9][11] - The company has invested over 260 billion yuan in its semiconductor display business, establishing a strong global presence with multiple high-generation panel lines and module factories [10]

Core Viewpoint - TCL Technology expects a significant increase in net profit for the first half of 2025, driven by strong performance in its semiconductor display business [1] Financial Performance - The company forecasts operating revenue between 82.6 billion and 90.6 billion yuan, representing a year-on-year growth of 3% to 13% [1] - Net profit attributable to shareholders is projected to be between 1.8 billion and 2 billion yuan, indicating a year-on-year increase of 81% to 101% [1] - After excluding non-recurring gains and losses, the net profit attributable to shareholders is expected to be between 1.5 billion and 1.65 billion yuan, reflecting a year-on-year growth of 168% to 195% [1] Business Segments - The growth in performance is primarily attributed to the semiconductor display business, which is expected to generate over 4.6 billion yuan in net profit, marking a year-on-year increase of over 70% [1] - The acquisition of a 21.5311% stake in Shenzhen Huaxing Optoelectronics Semiconductor Display Technology Co., Ltd. is anticipated to enhance the company's competitive advantage [1]

Group 1 - TCL Technology has made substantial progress in acquiring a 21.5311% stake in Shenzhen Huaxing Semiconductor, with a total transaction value of 11.562 billion yuan, combining cash and shares for payment [1][2] - The cash component of the transaction amounts to 7.203 billion yuan, with approximately 4.359 billion yuan raised through a targeted issuance to no more than 35 specific investors [1][2] - Post-transaction, TCL Technology's ownership in Shenzhen Huaxing Semiconductor will increase from 62.68% to 84.21%, enhancing control over core semiconductor display assets [1][2] Group 2 - Shenzhen Huaxing Semiconductor will become a major shareholder of TCL Technology, holding a 4.99% stake, while TCL Technology's chairman and his associates will see their stake diluted from 6.74% to 6.40% [2] - The acquisition is expected to strengthen TCL Technology's main business and enhance profitability, solidifying its competitive position in the semiconductor display industry [2] - TCL Technology focuses on three main sectors: semiconductor displays, new energy photovoltaics, and semiconductor materials, following a significant restructuring in 2018 [2] Group 3 - The semiconductor display business of TCL Technology is projected to achieve a revenue growth of 24.6% year-on-year in 2024, reaching 104.3 billion yuan, with a net profit turnaround from a slight loss to a profit of 6.23 billion yuan [3] - TCL Huaxing is the second-largest panel manufacturer in mainland China, with large-size LCD TV panels as its core strength, contributing approximately 50% of its revenue [3] - Shenzhen Huaxing Semiconductor operates the T6 and T7 factories, which are critical for producing ultra-large size displays, with significant investments in these production lines [3][4] Group 4 - Shenzhen Huaxing Semiconductor was established in June 2016 and initially fully owned by TCL Huaxing, later introducing external shareholders like the Shenzhen Major Industry Development Fund and Samsung Display [4] - Following the recent transaction, the Major Industry Fund's stake will decrease to 10.77%, while TCL Technology's total stake will rise to 84.21%, with Samsung Display retaining 5.0239% of the shares [4]

Core Viewpoint - TCL Technology Group Co., Ltd. is issuing new shares at a price of 4.42 CNY per share to acquire a 21.5311% stake in Shenzhen Huaxing Semiconductor, while also raising supporting funds through a private placement [1][5][7]. Transaction Overview - The transaction consists of two parts: issuing shares and paying cash to acquire assets, and raising supporting funds [4][5]. - The total consideration for the acquisition of the stake in Shenzhen Huaxing Semiconductor is 1,156,209.33 million CNY, with cash payment amounting to 720,268.22 million CNY [5][10]. - After the transaction, TCL will control 84.2105% of Shenzhen Huaxing Semiconductor [4][5]. Fundraising Details - The company plans to raise up to 435,941.11 million CNY through the issuance of shares to no more than 35 specific investors [5][12]. - The funds raised will be used entirely for the cash consideration of the acquisition, after deducting intermediary fees and related taxes [16][17]. Share Issuance and Pricing - The number of new shares issued will be 986,292,106, increasing the total shares to 19,765,372,873 [1][18]. - The issuance price of 4.42 CNY per share is compliant with regulations, being no less than 80% of the average trading price over specified periods [7][12]. Impact on Company Structure - The transaction will not change the company's controlling shareholder or actual controller status, maintaining its structure as a company without a controlling shareholder [4][21]. - The shareholding structure will see the new major shareholder, the Major Industry Fund, holding 4.99% post-transaction [21]. Financial Implications - The transaction is expected to enhance the company's core competitiveness in the semiconductor display industry without altering its main business focus [21][22]. - The total assets will remain unchanged, but liabilities will increase due to the cash payment, while equity will see a rise in the proportion of ownership in the acquired company [21][22]. Governance and Compliance - The company has adhered to all necessary legal and regulatory requirements throughout the transaction process, ensuring no adverse effects on governance mechanisms [22]. - There are no new related party transactions arising from this acquisition, maintaining compliance with existing regulations [22].

Group 1 - The core transaction involves TCL Technology Group issuing shares and paying cash to acquire a 21.5311% stake in Shenzhen Huaxing Semiconductor, with a total transaction value of 1,156,209.33 million RMB [2][3][10] - The company will control a total of 84.2105% of Shenzhen Huaxing Semiconductor after the transaction [2][3] - The fundraising through share issuance is capped at 435,941.11 million RMB, which is 100% of the asset purchase price [2][10] Group 2 - The share issuance price is set at 4.42 RMB per share, which complies with the regulatory requirement of being no less than 80% of the average trading price over specified periods [5][10] - The issuance will not affect the company's control structure, as there will be no change in the largest shareholder or actual controller [2][3] Group 3 - The cash payment for the transaction will be funded through the proceeds from the share issuance, and if the fundraising is insufficient, the company will use its own funds [12][13] - The transaction has undergone all necessary approvals and procedures as of the date of the independent financial advisor's opinion [15][16] Group 4 - The transaction has been executed with the transfer of the stake completed and registered with the relevant authorities [15] - The company has fulfilled its information disclosure obligations throughout the transaction process [15][16]

Core Points - The second batch of IPO现场检查名单 for 2025 has been released, with 12 companies selected for inspection [1] - Among the 12 IPO companies, 8 are planning to list on the Shanghai Stock Exchange, while 4 are targeting the Shenzhen Stock Exchange [2] - The total fundraising amounts for the 12 IPO projects range from 600 million to 8.5 billion yuan, with notable projects including 惠科股份 and 浙江振石新材料股份 [3][4] Group 1: IPO Companies and Their Details - The 12 selected companies include 长裕控股集团, 易思维, 恒运昌, 芯密科技, 埃泰克, 田园生化, 振石新材料, 康瑞新材料, 未来材料, 电科蓝天, 慧谷新材, and 惠科股份 [1][2] - 惠科股份 is the only company among the 12 that has previously withdrawn an IPO application, having terminated its创业板 IPO in August 2023 [4][5] Group 2: Underwriting and Review Status - The 12 IPO projects involve 9 different underwriters, with 中信证券 sponsoring 3 projects and 中金公司 sponsoring 2 [2] - Out of the 12 IPOs, 10 are in the accepted status, while 易思维 and 长裕集团 are in the inquiry status [2][4] Group 3: Fundraising Amounts - 惠科股份 aims to raise 8.5 billion yuan, while 浙江振石新材料股份 is targeting approximately 3.98 billion yuan [3][4] - The fundraising amounts for the other companies vary, with 5 projects exceeding 1 billion yuan and 4 projects above 600 million yuan [3][4] Group 4: Company Performance - 惠科股份 has shown a growth trend in revenue and net profit from 2022 to 2024, with revenues of 27.134 billion yuan, 35.797 billion yuan, and 40.31 billion yuan respectively [5] - The company ranks third globally in TV panel shipments and fourth in monitor panel shipments for 2024 [5]

Investment Rating - The report assigns a "Buy" rating to the company, TCL Technology [6][78]. Core Views - TCL Technology is positioned as a global leader in semiconductor display and photovoltaic sectors, with significant investments and acquisitions enhancing its competitive edge [2][10]. - The semiconductor display business is experiencing substantial revenue growth and profitability improvements, while the photovoltaic segment is expected to recover [4][59]. Summary by Sections 1. Semiconductor Display and Photovoltaic Leadership - TCL Technology focuses on core business development in semiconductor displays and renewable energy, aiming for global leadership [10]. - TCL Huaxing is a leading player in the semiconductor display market, with significant investments and production capacity [2][25]. 2. Semiconductor Display Business Performance - The company achieved a revenue of 1,043 billion yuan in 2024 for its semiconductor display business, marking a 25% year-on-year increase, with a net profit of 62.3 billion yuan [4][19]. - TCL Huaxing ranks second globally in TV panel shipments, with a leading market share in large-size panels [25][29]. - The company is expanding its product offerings in mid-size and small-size displays, achieving significant market shares in various segments, including esports monitors and LTPS technology [3][38]. 3. Photovoltaic Business Outlook - TCL Zhonghuan, the photovoltaic arm, is the global leader in silicon wafer shipments, with a projected output of 125.8 GW in 2024, reflecting a 10.5% increase [59][71]. - The photovoltaic segment is expected to improve as industry conditions stabilize, with a revenue forecast of 284 billion yuan in 2024 [64][71]. 4. Financial Projections and Investment Recommendations - The report forecasts revenues of 1,848.61 billion yuan, 2,017.89 billion yuan, and 2,192.17 billion yuan for 2025, 2026, and 2027, respectively, with corresponding net profits of 61.57 billion yuan, 90.78 billion yuan, and 104.21 billion yuan [4][74]. - The company's valuation is considered low compared to peers, justifying the "Buy" rating based on projected earnings growth and market position [78].

Core Viewpoint - Huike Co., Ltd. plans to raise 8.5 billion CNY through its IPO, with a valuation range between 56 billion CNY and 85 billion CNY. The valuation may be considered high when compared to the panel industry average PB ratio of approximately 1.2, which suggests a valuation around 40 billion CNY, indicating a potential overvaluation of 16 billion to 45 billion CNY [1][3][6]. Fundraising and Project Allocation - The company has reduced its fundraising target from 9.5 billion CNY to 8.5 billion CNY for its IPO on the Shenzhen Stock Exchange. The funds will be allocated as follows: 2.5 billion CNY for OLED R&D upgrades, 3 billion CNY for Oxide R&D and industrialization, 2 billion CNY for Mini-LED smart manufacturing, and 1 billion CNY for working capital and bank loan repayment [1][2]. Valuation Analysis - The company's valuation has significantly increased from approximately 30 billion CNY during its first IPO attempt to an estimated 66 billion CNY by the end of 2024. The current IPO fundraising suggests a valuation between 56.7 billion CNY and 85 billion CNY, which is substantially higher than the previous estimates [3][4][6]. Industry Context - The panel industry is characterized by cyclical nature and heavy asset investment, leading to the common use of PB valuation methods. The current PB ratio for major competitors like BOE and TCL Technology is around 1.28, which indicates that Huike's valuation may be inflated compared to its peers [5][6][8]. Financial Health and Risks - Huike's net assets are reported at 30 billion CNY, with over 10 billion CNY in minority interests, raising questions about the quality of its net assets and potential "hidden debt" issues. The company's inventory turnover has been declining over the past five years, while its inventory impairment provision is significantly lower than industry standards, suggesting possible discrepancies in financial reporting [11][16][19]. Revenue and Profitability Trends - The company has experienced fluctuating revenues, with reported figures of 271.34 billion CNY, 357.97 billion CNY, and 403.10 billion CNY over the past three years. Net profits have also varied, with a notable loss in 2019 and a recovery to 36.73 billion CNY in 2024, reflecting a 29.96% year-on-year increase [20][21][23]. Customer Dependency and Market Dynamics - Huike's sales to major customer Samsung have sharply declined, with revenue dropping from 4.2 billion CNY in 2023 to 2.6 billion CNY in 2024. This decline raises concerns about customer stability and the company's reliance on a few key clients [28][29].

Core Viewpoint - TCL Technology has completed the transfer of 21.5311% equity in Shenzhen Huaxing Optoelectronics Semiconductor Display Technology Co., Ltd. for a transaction price of 11.562 billion yuan, enhancing its control in the semiconductor display industry [1][3]. Group 1: Company Overview - Shenzhen Huaxing Semiconductor primarily engages in the production, processing, and sales of large-sized TFT-LCD display devices, with a focus on TFT-LCD display devices and semiconductor display supporting materials [2]. - The company operates two panel factories in Shenzhen, utilizing G11 generation line technology, with glass substrate dimensions of 3370mm × 2940mm, achieving a high glass utilization rate of over 90% [2]. Group 2: Financial Performance - In 2022 and 2023, Shenzhen Huaxing Semiconductor achieved operating revenues of 16.703 billion yuan and 21.902 billion yuan, respectively. For the first ten months of 2024, the operating revenue reached 19.821 billion yuan, with a net profit of 2.149 billion yuan [2][3]. - The financial data for the first ten months of 2024 shows an operating profit of 239.631 million yuan and a total profit of 239.366 million yuan, indicating a significant improvement compared to previous years [3]. Group 3: Shareholding Structure - Prior to the transfer, TCL Technology controlled 62.6794% of Shenzhen Huaxing Semiconductor through TCL Huaxing and its subsidiaries. After the transfer, TCL's shareholding increased to 84.2105% [3]. - The remaining shares were held by the Major Industry Fund (32.2967%) and Samsung Display (5.0239%) [3]. Group 4: Strategic Implications - The completion of this transaction is expected to strengthen TCL Technology's core business, enhance its profitability, and improve its competitive position in the semiconductor display industry [3].

Core Viewpoint - Huike Co., Ltd. has submitted its prospectus for an IPO on the Shenzhen Stock Exchange, aiming to raise 8.5 billion yuan for various projects and operational needs [1][3]. Group 1: Company Overview - Huike Co., Ltd. was established in December 2001, originally as Huike Electronics (Shenzhen) Co., Ltd., with a registered capital of approximately 6.568 billion yuan [2]. - The company specializes in the semiconductor display sector, focusing on the R&D, manufacturing, and sales of display panels and smart display terminals [8]. - Huike ranks third globally in TV panel shipment area, fourth in display panel shipment area, and third in smartphone panel shipment area for the year 2024 [8]. Group 2: Financial Performance - The company's revenue for 2022, 2023, and 2024 is approximately 27.134 billion yuan, 35.797 billion yuan, and 40.310 billion yuan, respectively, with net profits of -2.097 billion yuan, 2.826 billion yuan, and 3.673 billion yuan [8][9]. - The company's asset-liability ratio as of the end of 2022, 2023, and 2024 is approximately 69.10%, 69.47%, and 68.78%, respectively [9][10]. Group 3: Fundraising and Investment Plans - The company plans to use the raised funds for several projects, including 2.5 billion yuan for the Changsha OLED R&D upgrade project, 3 billion yuan for the Changsha Oxide R&D and industrialization project, and 2 billion yuan for the Mianyang Mini-LED smart manufacturing project [2][3]. - A total of 10 billion yuan will be allocated to supplement working capital and repay bank loans [3][10]. Group 4: Shareholding Structure - The major shareholders include Shenzhen Huike Investment Holding Co., Ltd. (50.45%) and Shenzhen Jinfengyang Investment Co., Ltd. (18.25%) [4][6]. - Wang Zhiyong, the chairman and general manager, controls 52.31% of the voting rights through Huike Investment Holding and Shenzhen Huitong [6][8].