Investment Rating - The report maintains an "Overweight" rating for the company [7] Core Views - The company achieved a revenue of 27.231 billion RMB in H1 2025, representing a year-on-year increase of 6.95%, and a net profit attributable to shareholders of 1.056 billion RMB, up 26.6% year-on-year. The second quarter saw revenue growth of 8.59% and net profit growth of 36.72%, indicating continuous improvement in profitability [1][7] - The company is expected to maintain its competitive edge in the industry through product upgrades, diversification into new businesses, and global capacity expansion [1] Summary by Sections Television Business - The company's television business remains robust, holding the largest retail market share in China. The brand's price index has improved, indicating competitiveness in mid-to-high-end products. In Q3, online and offline retail sales showed year-on-year increases of 20.3% and 6.89%, respectively, with retail prices rising by 12.5% and 17.4% [2] - Despite a 5% year-on-year decline in the domestic television export value in H1 2025, the company has mitigated this through capacity adjustments in Mexico and Vietnam, as well as a focus on large-screen products. The export decline has narrowed to 0.5% in July 2025, with signs of recovery in Europe and Oceania [2] New Display and New Business - In H1 2025, the new display business generated revenue of 3.434 billion RMB, a year-on-year increase of 7.43%. The laser display applications are expanding into commercial and automotive sectors, showing potential for new growth. Overseas revenue from commercial displays grew by 43% year-on-year, highlighting global expansion potential [3] - The company is also advancing in cloud services and AI-related products, with plans to launch AI smart headphones and lightweight AI glasses [3] Profitability and Financial Metrics - The gross margin for H1 2025 was 16.37%, up 1.01 percentage points year-on-year, benefiting from an increased proportion of Mini LED products and stable panel prices. Despite rising marketing expenses, the net profit margin improved by 0.6 percentage points year-on-year [4] - The report forecasts net profits of 2.59 billion RMB, 2.89 billion RMB, and 3.23 billion RMB for 2025, 2026, and 2027, respectively, with corresponding EPS of 1.99 RMB, 2.22 RMB, and 2.48 RMB [5]

Group 1 - The company announced the approval of multiple proposals, including the 2025 semi-annual report and its summary, during the 15th meeting of the 10th board of directors [2]

Group 1 - The core point of the announcement is that Hisense Visual has declared a cash dividend of 0.88 yuan per share (including tax) for the year 2024 [1] - The record date for the dividend is set for August 7, 2025, with the ex-dividend date and payment date both on August 8, 2025 [1]

Investment Rating - The report maintains a "Buy" rating for the company [8] Core Views - The company is experiencing strong global growth momentum with a focus on high-end strategies, as evidenced by a 11.4% year-on-year increase in global TV shipments in Q1 2025, reaching 6.507 million units, and a 22.3% increase in TV sales revenue [1] - The management's confidence in sustained profit optimization is highlighted by the issuance of performance-based restricted shares, with adjusted net profit targets for 2025-2027 set at HKD 2.33 billion, HKD 2.81 billion, and HKD 3.21 billion respectively [4] - The company is expected to benefit from domestic policy incentives and structural upgrades, leading to a 10.8% year-on-year increase in domestic TV shipments in Q1 2025, alongside a 35.4% increase in sales revenue [2] - Internationally, the company is successfully navigating challenges such as US tariffs, with a 11.6% year-on-year increase in international TV shipments in Q1 2025, and significant growth in large-screen product sales [3] Summary by Sections Domestic Market - In Q1 2025, domestic TV shipments increased by 10.8% year-on-year, driven by replacement policies, with Mini LED shipments surging by 341.1%, accounting for 17.6% of total shipments [2] - The average selling price rose by 22.2%, contributing to a 35.4% increase in domestic TV sales revenue [2] International Market - The company achieved a 11.6% year-on-year increase in international TV shipments in Q1 2025, with Europe growing by 15.8% and North America by 3.8% [3] - Large-screen product sales saw significant growth, with shipments of 65 inches and above increasing by 48.5% year-on-year [3] Profit Forecasts - The report has revised profit forecasts upwards, projecting adjusted net profits of HKD 2.26 billion, HKD 2.71 billion, and HKD 3.03 billion for 2025-2027, reflecting increases of 11%, 19%, and 19% respectively [5] - The target price for the company is set at HKD 10.80, based on a 12x PE ratio for 2025 [5]