Investment Rating - The report assigns a "Buy" rating to TCL Electronics with a target price of HKD 6.05, representing a 28.5% upside potential from the recent closing price of HKD 4.71 [2][3] Core Views - TCL Electronics' 1H2024 revenue grew 30.3% YoY to HKD 45.49 billion, driven by its mid-to-high-end product strategy and global expansion [1] - Net profit attributable to shareholders surged 146.5% YoY to HKD 650 million, with adjusted net profit up 147.3% YoY [1] - The company's display business revenue increased 21.3% YoY to HKD 30.14 billion, with global TV shipments up 9.2% YoY to 12.52 million units [1] - TCL's global TV market share rose 0.9 percentage points YoY to 13.3%, ranking second globally [1] - The company's photovoltaic business revenue soared 212.7% YoY to HKD 5.27 billion, with gross margin improving 2.7 percentage points to 10.3% [2] Business Segment Performance Display Business - 75-inch and larger TV shipments grew 34.5% YoY, with Mini LED TV shipments surging 124.7% YoY [1] - European market TV shipments increased 40.1% YoY, with retail market share ranking top five in multiple countries [1] - Display business gross margin declined 1.9 percentage points to 16.9% due to product mix changes and rising panel costs [1] All-Category Marketing Business - Revenue increased 27.7% YoY to HKD 7.75 billion, with gross margin improving 1.1 percentage points to 16.3% [2] - Smart products including air conditioners, refrigerators, and washing machines maintained rapid growth in global distribution [2] Internet Business - Revenue grew 8.9% YoY to HKD 1.21 billion, with international internet business revenue surging 51.2% YoY to HKD 342 million [2] Photovoltaic Business - The business has covered 23 key provinces and cities in China, with over 150 commercial projects signed and more than 70,000 farmer contracts [2] - The distribution network has expanded to over 1,200 dealers [2] Financial Projections - 2024E revenue is projected at HKD 94.48 billion, with net profit of HKD 1.28 billion [6] - 2025E revenue is forecasted at HKD 100.32 billion, with net profit of HKD 1.52 billion [6] - Gross margin is expected to stabilize around 17.3%-17.8% from 2024E to 2026E [6] - ROE is projected to improve from 6.9% in 2024E to 9.4% in 2026E [6] Valuation - The stock is trading at 9.3x 2024E PE and 0.6x 2024E PB, with a dividend yield of 5.4% [6] - The target price of HKD 6.05 is based on 12x 2024E PE [2]
TCL电子：受益於中高端与全球化，中期业务大幅改善