Core Viewpoint - The article discusses the significant shift in the global television market, highlighting the decline of Japanese brands and the rise of Chinese brands, particularly in Japan, where Chinese brands now hold nearly half of the market share [3][18][24]. Industry Overview - Japanese television brands, once dominant in the global market, have seen their global shipment share drop from 28% in 2010 to an estimated 9% in 2024 [15]. - The decline of Japanese brands is attributed to their slow adaptation to technological changes, particularly the shift to LCD technology, while competitors like Samsung and LG quickly embraced new technologies [14][12]. Market Dynamics - In 2024, Chinese television brands accounted for 30.2% of global shipments, surpassing Korean brands for the first time [20][22]. - Chinese brands, including Hisense, TCL, and Xiaomi, collectively hold a 31.3% market share, exceeding the combined total of Samsung and LG [20][22]. Competitive Strategies - Chinese brands have successfully penetrated the Japanese market by leveraging technology and localization strategies, such as optimizing products for local preferences and providing localized customer service [25][28]. - Hisense's self-developed X chip and TCL's ADS Pro technology have allowed them to meet specific Japanese consumer needs, enhancing their competitive edge [27][31]. Challenges and Opportunities - Japanese manufacturers face challenges due to their "path dependence" and slow decision-making processes, which hinder their ability to innovate and respond to market changes [16][39]. - The article suggests that for Japanese companies to regain competitiveness, they must break free from traditional practices and improve their decision-making speed [49]. Future Outlook - The shift in market dynamics indicates a broader trend of global manufacturing power moving towards China, driven by integrated supply chains and rapid innovation capabilities [50]. - The article concludes that the future of the television industry will depend on the ability of companies to adapt to changing market demands and technological advancements [48].

Core Viewpoint - Huawei has launched its second foldable smartphone, the Mate XTs, which features significant performance improvements and advanced display technology, marking a notable advancement in the foldable phone market [2][3]. Summary by Sections Product Features - The Huawei Mate XTs is powered by the Kirin 9020 chip and runs on HarmonyOS 5, claiming a 36% overall performance enhancement [3]. - It features a 10.2-inch OLED foldable display with a resolution of 2232×3184, supporting various refresh rates and brightness adjustments, along with advanced power-saving technologies [3]. - The device is available in four color options and three storage configurations, with prices reduced by 2000 yuan compared to its predecessor [5]. Challenges in Foldable Technology - The transition from dual-foldable to tri-foldable smartphones presents significant technical challenges, particularly in hinge design, screen durability, and overall device weight [6][7]. - The complexity of the hinge mechanism increases with tri-foldable designs, requiring high precision and durability to ensure smooth operation [6]. - The need for larger flexible screens with enhanced durability poses additional challenges, particularly in managing increased thickness and weight when folded [7]. Market Trends and Alternatives - Despite the challenges, the tri-foldable design is seen as a clearer technological path compared to alternative display technologies like rollable screens, which have yet to achieve mass commercialization [9][10]. - Rollable screens face significant hurdles in terms of durability, mechanical complexity, and production costs, making tri-foldable phones a more viable option for manufacturers [12]. Design Variants - The current tri-foldable designs are primarily categorized into "Z-shape" and "G-shape" configurations, each with its own advantages and disadvantages regarding screen exposure and protection [13][19]. - The Z-shape design allows for an external display but risks damage to the exposed screen, while the G-shape design offers better protection at the cost of increased complexity and weight [16][19]. Supply Chain Developments - The rise of tri-foldable smartphones is supported by advancements in flexible OLED technology from panel manufacturers, with companies like BOE and TCL leading the way in developing new display solutions [20][21]. - Partnerships between manufacturers and panel suppliers are crucial for the successful production and commercialization of tri-foldable devices [20]. Conclusion - The introduction of tri-foldable smartphones is revitalizing the market, but challenges related to technology, cost, and user experience remain [24][25]. - The competition between Z-shape and G-shape designs will shape the future of the tri-foldable market, with ongoing developments in panel technology influencing overall feasibility and consumer adoption [25].

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for the stock price in the next six months [4]. Core Insights - The company reported a revenue of 101.28 billion yuan for H1 2025, representing an 8.45% year-over-year increase, and a net profit of 3.25 billion yuan, up 42.15% year-over-year [1][2]. - The company's overall gross margin for H1 2025 was 14.41%, a decrease of 1.39 percentage points compared to the previous year [1]. - The company is expected to benefit from a recovery in the LCD market and an increase in demand for OLED products, particularly in the second half of 2025 [2]. Financial Performance Summary - For H1 2025, the company achieved a net cash flow from operating activities of 22.736 billion yuan, down 8.61% year-over-year [1]. - The company’s LCD TV panel shipments reached 33.2 million units in H1 2025, a 17% increase year-over-year, while the global LCD TV panel shipments grew by 2% [1]. - The flexible OLED shipments were approximately 71 million units in H1 2025, marking a 10.3% year-over-year increase, with a market share of 23.8% [2]. Future Projections - The company is projected to achieve revenues of 222.22 billion yuan, 244.37 billion yuan, and 268.51 billion yuan for the years 2025, 2026, and 2027, respectively [2]. - The expected net profits for the same years are 8.50 billion yuan, 12.35 billion yuan, and 14.95 billion yuan, with corresponding P/E ratios of 18.09, 12.45, and 10.29 [2].

Core Insights - The global smartphone panel market is experiencing moderate growth, with a projected shipment of approximately 1.09 billion units in the first half of 2025, reflecting a year-on-year increase of 1.6% [1] Segment Summaries Flexible OLED Market - The flexible OLED segment is benefiting from continuous cost optimization and penetration into mid-range smartphone models, with shipments nearing 300 million units in the first half of 2025, representing a year-on-year growth of approximately 5.2% [3] - The market share of flexible OLED is steadily increasing, driven by demand from various mid to low-end smartphone brands [3] a-Si LCD Market - The a-Si LCD segment is showing resilience in a volatile global economic environment, with shipments reaching approximately 640 million units in the first half of 2025, marking a year-on-year increase of about 14.2% [2] - The cost advantage of a-Si LCD panels is contributing to their growth in shipments [2] LTPS LCD Market - The LTPS LCD market is experiencing a significant decline, with shipments falling below 50 million units for the first time, totaling approximately 48 million units, a decrease of about 56.1% year-on-year [2] - Manufacturers are shifting production capacity towards automotive, tablet, and laptop segments to seek new growth opportunities [2] Rigid OLED Market - Rigid OLED shipments are projected to be around 100 million units in the first half of 2025, reflecting a year-on-year decline of approximately 12.8% [2] - The market share of rigid OLED is expected to continue decreasing as flexible OLED technology penetrates more mid-range smartphone models [2] Competitive Landscape - BOE remains the leading player in the global smartphone panel market, with a total shipment of approximately 260 million units in the first half of 2025, capturing a market share of 24.2% [6] - Samsung Display ranks second with total shipments exceeding 170 million units, holding a market share of 15.7% [6] - CSOT has shown significant growth, with total shipments of approximately 140 million units, a year-on-year increase of 50.5%, and a market share of 12.7% [6] Regional Insights - Korean manufacturers continue to dominate the high-end smartphone panel market, holding a total market share of 49.1% in the first half of 2025 [8] - Chinese manufacturers have captured a 50.9% share of the global OLED panel market, with flexible OLED shipments reaching approximately 190 million units, representing a market share of 62.3% [8] Future Outlook - The OLED industry is expected to follow a development path characterized by cost optimization, increased penetration rates, and expansion into new applications [10] - The demand for smartphone OLED panels is anticipated to continue growing due to favorable factors such as cost reductions and clearer production line planning [10]

Group 1: Financial Performance - In 2024, TCL achieved a revenue of 164.8 billion yuan, with a net profit of 1.56 billion yuan, and a net operating cash flow of 29.5 billion yuan, representing a year-on-year growth of 16.6% [1] - In Q1 2025, TCL reported a revenue of 40.1 billion yuan, a 0.4% increase year-on-year, and a net profit of 1.01 billion yuan, showing a significant growth of 322% [4] - The operating cash flow for Q1 2025 reached 12.1 billion yuan, up 83% year-on-year [4] Group 2: Semiconductor Display Business - In 2024, the semiconductor display segment generated 104.3 billion yuan in revenue, a 25% increase, with a net profit of 6.23 billion yuan, improving by 62.4% [2] - In Q1 2025, the semiconductor display business achieved 27.5 billion yuan in revenue, an 18% increase, and a net profit of 2.33 billion yuan, reflecting a 329% growth [4] - The average size of televisions increased by approximately 1.5 inches in Q1 2025, driving demand for larger panels [4][6] Group 3: New Energy and Semiconductor Materials - In 2024, the global photovoltaic installation maintained growth, but prices continued to decline, leading to losses across the industry [2] - TCL Zhonghuan reported a revenue of 28.4 billion yuan, a 52% decrease, with a net profit of -9.82 billion yuan [3] - In Q1 2025, TCL Zhonghuan's revenue was 6.1 billion yuan, with a net profit of -1.906 billion yuan, showing a 49% improvement compared to the previous quarter [4] Group 4: Market Trends and Outlook - The display industry is expected to see a stable supply-demand relationship, with the global LCD production capacity in mainland China projected to reach 88% by 2025 [6] - The demand for large-size panels is driven by both terminal sales and average size increases, with significant growth potential in the global market [6] - The "trade-in" policy is expected to boost demand across various product categories, including televisions, enhancing the trend towards larger screens [8] Group 5: OLED Business Development - TCL is focusing on high-end and differentiated strategies in the OLED market, with significant improvements in market share for flexible OLED panels [10] - The T4 production line is expected to maintain high operational efficiency, contributing to the overall improvement of the OLED business [10] Group 6: Depreciation Trends - Most of the 8th generation production lines have completed depreciation, but a slight increase in depreciation is expected in 2025 due to new capacity coming online [11] - The depreciation-to-revenue ratio is anticipated to decrease as new high-value production lines drive rapid revenue growth [11]