Investment Rating - The investment rating for Hisense Visual is maintained at "Buy-A" with a 12-month target price of 31.12 CNY [5]. Core Views - Hisense Visual reported a revenue of 42.83 billion CNY for the first three quarters of 2025, representing a year-over-year increase of 5.4%, and a net profit attributable to shareholders of 1.63 billion CNY, up 24.3% year-over-year [2][3]. - The company is expected to continue improving its profitability due to the optimization of its product structure and rapid growth in new display businesses [2][3]. - The company is actively expanding its overseas business, particularly in high-end channels in North America, and leveraging major sports events for integrated marketing [2][3]. Financial Performance Summary - Q3 2025 revenue reached 15.60 billion CNY, with a year-over-year growth of 2.7%, and a net profit of 570 million CNY, up 20.2% year-over-year [2][3]. - The net profit margin for Q3 increased by 0.5 percentage points year-over-year, driven by high-margin new display businesses and an increase in other income [3]. - The operating cash flow for Q3 decreased by 110 million CNY year-over-year, primarily due to increased cash payments for goods and services [3]. Financial Forecast - Revenue projections for 2025 to 2027 are 62.51 billion CNY, 67.24 billion CNY, and 72.05 billion CNY respectively, with net profits expected to be 2.62 billion CNY, 2.90 billion CNY, and 3.24 billion CNY [4][11]. - Earnings per share (EPS) are forecasted to be 2.01 CNY, 2.22 CNY, and 2.48 CNY for 2025, 2026, and 2027 respectively [4][11]. - The price-to-earnings (P/E) ratio is projected to decrease from 12.3 in 2025 to 9.9 in 2027, indicating potential value appreciation [4][11].

Core Viewpoint - Hisense Visual Technology Co., Ltd. has appointed Yan Qun as an independent director, enhancing the board's structure towards "professionalization and diversification," which is expected to inject innovative momentum into the company's display technology sector and strengthen its global leadership position [1][4]. Group 1: Appointment and Impact - The company held its first extraordinary general meeting of shareholders in 2025, where the proposal to appoint Yan Qun as an independent director was approved [1]. - Yan Qun's extensive experience in display technology, including over 20 years in the field and leadership roles in next-generation display technologies, aligns well with the company's strategic direction [2][3]. Group 2: Yan Qun's Background - Yan Qun has a comprehensive career in display technology, having worked at Oak Ridge National Laboratory and as the chief scientist at Panasonic's plasma display laboratory, and has contributed to the development and industrialization of high-performance PDP materials in China [2][3]. - He currently holds several prestigious positions, including a distinguished professor at Fuzhou University and the next global president of the Society for Information Display (SID) [2][3]. Group 3: Strategic Alignment - Hisense Visual Technology is focusing on a development path characterized by "technology platformization, product scene application, and market globalization," particularly in ULED, laser display, and Micro LED technologies [4]. - The company has successfully addressed the "two-core" challenge in the industrialization of RGB-MiniLED, setting a global benchmark for the display industry [4].

Group 1 - Hisense officially announced its third sponsorship of the World Cup on September 5, marking a significant move in both the sports and technology sectors [1] - The dual actions of sports marketing and technology innovation are part of Hisense's strategy for global expansion and brand enhancement [1] - Continuous sponsorship of top-tier events has led to substantial returns for Hisense, including a significant increase in overseas revenue and brand recognition [1] Group 2 - Hisense showcased its core competitiveness through technological research and development, presenting innovations such as RGB-MiniLED, laser displays, and AI large model intelligence at IFA [1] - The company is transitioning from a Chinese brand to a global leader by combining "on-field brand exposure" with "on-site technology experience" [1]

Core Insights - The financial reports of 64 listed companies in Qingdao show overall stable performance, with 40 companies achieving revenue growth and 29 companies achieving both revenue and net profit growth in the first half of the year [1][15] - Haier Smart Home leads in both revenue and profit among Qingdao listed companies, reporting revenue of 156.49 billion yuan and net profit of 12.03 billion yuan [1][9] - Emerging industries such as new-generation information technology and artificial intelligence are highlighted as key growth areas, supported by policies like "old-for-new" [3][20] Industry Performance - New-generation information technology and artificial intelligence are prioritized industries in Qingdao, with companies like Hisense achieving revenue of 27.23 billion yuan, a 6.95% increase, and net profit of 1.06 billion yuan, a 26.63% increase [3][16] - The logistics sector shows strong performance, with companies like LeCang Logistics achieving a revenue increase of 20% and a net profit increase of 898.4% [13][12] - The automotive market continues to thrive, with companies like Sanxiang Technology reporting revenue of 5.29 billion yuan, a 22.3% increase, and net profit of 0.39 billion yuan, an 88.9% increase [6][20] Emerging Industries - 36 out of 64 listed companies are involved in emerging industries such as smart connected new energy vehicles, green energy, and intelligent equipment, accounting for over 56% of the total [20] - In the green energy sector, companies like Teruid achieve revenue of 6.255 billion yuan, a 16.72% increase, and net profit of 0.327 billion yuan, a 69.32% increase [7][21] Advantageous Industries - The three main advantageous industries in Qingdao are smart home appliances, high-end chemicals and new materials, and modern light industry, which show strong resilience and stability [8][22] - The smart home appliance sector benefits from the "old-for-new" policy, with Haier Smart Home's overseas business growing significantly in regions like South Asia and the Middle East [9][22] Service Sector - The service sector contributes nearly 60% to Qingdao's economic growth, with financial and logistics industries maintaining growth, while the retail sector undergoes significant adjustments [12][13] - Qingdao Bank reports a net profit of 3.152 billion yuan, a 16.25% increase, reflecting stable growth in a complex market environment [12][13]

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]

Core Viewpoint - The Qingdao New Display Industry Park aims to become a leading hub for the new display industry, focusing on module strengthening, panel breakthroughs, terminal expansion, and technological innovation [1][3]. Group 1: Industry Development - The park covers an area of 14,304 acres and is designed to be a new growth pole for high-quality development in the national new display industry [1]. - As of now, the park has attracted major industry players such as BOE Technology Group, Fusion Optoelectronics, and Wanda Optoelectronics, with a total investment exceeding 50 billion yuan and 29 key projects established [3]. - In 2024, the Qingdao West Coast New Area's new display industry cluster was recognized as a provincial strategic emerging industry cluster, achieving an industrial output value of 44.9 billion yuan, a 14% year-on-year increase, and surpassing 50 billion yuan in operating revenue [3]. Group 2: Location Advantages - The park is strategically located in the center of Qingdao, with convenient transportation links, including proximity to Qingdao Jiaodong International Airport (32 km), Qingdao Station (27 km), and Qingdao Port (20 km) [4]. Group 3: Operational Mechanism - The park operates under a "5-in-1" work mechanism led by city-level chain leaders, with guidance from the city’s industrial chain special team and support from the West Coast New Area and Qingdao Development Zone [5]. - A comprehensive set of park planning, policies, and a joint investment promotion team has been established, along with three industrial funds totaling 12 billion yuan [5]. Group 4: Industrial Layout and Key Projects - The Module Panel Area (A Zone) spans 5,754 acres, focusing on attracting OLED and Micro OLED projects while enhancing local supply chain capabilities [7]. - The Materials and Equipment Area (B Zone) covers 7,650 acres, with projects like the Qingdao Optoelectronic Industry Park's first-phase equipment research institute aimed at overcoming domestic industry bottlenecks [7]. - The Terminal Application Area (C Zone) occupies 900 acres, leveraging Hisense Group to strengthen innovation in laser display technology [7]. Group 5: Infrastructure Development - Over 9 billion yuan has been invested in improving the park's infrastructure, including the construction and renovation of 22 kilometers of roads and 143 kilometers of pipelines [8]. - Supporting facilities such as the Innovation Park R&D center and various educational institutions are being developed to create a youth-friendly and integrated urban area [8]. Group 6: Investment Direction - The park is focused on attracting investments across the entire new display industry chain, including upstream materials, core equipment, semiconductor devices, midstream module and panel manufacturing, and downstream smart home appliances and consumer electronics [9].

Core Viewpoint - The article discusses how Hisense is leveraging technological innovation, such as laser display and AI models, to enhance its position in the high-end market and aims for the top global market share in the display industry [2]. Group 1: Globalization and Localization - Hisense emphasizes the importance of local talent development in its global operations, with over 80% of engineers in its Mexican factory being local hires, while only 1.5% of the workforce is from China [2][3]. - The company believes that a global brand must have a global manufacturing layout to effectively respond to diverse regional market demands and consumer needs [2][3]. - Hisense has established manufacturing bases in countries like Mexico, Slovenia, and South Africa, integrating production, sales, and research to adapt to local market dynamics [3][4]. Group 2: Long-term Strategy and Commitment - The company highlights the necessity of having a long-term strategic goal and positioning for sustainable development in foreign markets [4]. - Building trust with local teams is crucial, as demonstrated by Hisense's efforts to integrate with the local workforce in Mexico after acquiring a factory from Sharp [4][5]. - Hisense stresses the importance of localizing the supply chain and enhancing regional manufacturing competitiveness to ensure better growth prospects [5].