TCL TECH.(000100)2024-10-30 17:00Group 1: Company Performance Overview - In the first three quarters of 2024, TCL Technology achieved operating revenue of CNY 123.03 billion and a net profit attributable to shareholders of CNY 1.525 billion [3] - The semiconductor display business generated revenue of CNY 76.956 billion, a year-on-year increase of 25.74%, with a net profit of CNY 4.443 billion, improving by CNY 6.067 billion [3] - The new energy photovoltaic business reported revenue of CNY 22.582 billion, a year-on-year decline of 53.6%, with a net loss of CNY 6.478 billion [3] Group 2: Market Trends and Demand - The demand for large-size panels remains sluggish due to a slowdown in global economic growth and weak consumer demand, but the competitive landscape is improving [3] - Domestic television sales are expected to grow rapidly due to the implementation of old-for-new subsidy policies, particularly for large-size products like 75-inch, 85-inch, and 98-inch panels [4] - The overall demand for television panels is anticipated to stabilize and improve in the fourth quarter and next year, driven by promotional seasons and continued subsidy policies [4] Group 3: Strategic Developments - TCL Huaxing plans to acquire 80% of LG Display (China) and 100% of LG Display (Guangzhou), which will enhance its semiconductor display production lines and technology portfolio [4] - The company is committed to a high-end strategy in its OLED business, achieving significant growth in revenue and shipment volume [4] - The company has maintained a stable dividend policy, with cumulative cash dividends of CNY 13.362 billion since 2011, averaging a payout ratio of approximately 38.52% [5] Group 4: Future Outlook - The industry is expected to see improved operating rates and panel prices in the fourth quarter due to increased downstream demand from appliance subsidy policies [4] - The mid-size panel business is projected to grow rapidly, with revenue expected to reach around 30% of total revenue in the coming years [5] - The photovoltaic industry is currently at a cyclical low but is expected to recover as supply-demand dynamics improve [5]