Technical breakthrough and global layout resonance, TCL Electronics (01070) started the year with a bang in Q1 with double growth in volume and price.

On April 27, TCL ELECTRONICS (01070) released the global TV sales data for the first quarter of 2025. The data shows that in Q1 2025, TCL ELECTRONICS' global TV shipments reached 6.51 million units, an increase of 11.4% year-on-year. Sales revenue increased by a strong 22.3% year-on-year, achieving a simultaneous increase in volume and price, continuing the strong momentum of its "mid-to-high-end + large screen" strategy. This performance not only confirms the synergistic effect of its globalization layout and technology-driven strategy, but also highlights its leading position in the high-end market's structural opportunities. From a financial perspective, since TCL ELECTRONICS announced its 2024 performance, the market has reacted strongly, believing that its performance development has exceeded expectations. According to data from Wind, as of the first quarter of 2025, mainland public funds held 785 million yuan in TCL ELECTRONICS, accounting for 3.60% of the circulating shares, an increase of 189.25% compared with the previous period. With the increase in public fund holdings, TCL ELECTRONICS' stock price has also soared, with a cumulative increase of 52.28% year-to-date, significantly outperforming the Hang Seng Index, and reaching a new high in nearly 20 years. It is believed that investors are increasing their buying in TCL ELECTRONICS' stock, focusing on the company's ability to achieve long-term success in global competition. Deepening globalization strategy, regional markets blooming In 2016, TCL ELECTRONICS shifted its strategic focus to overseas markets, gradually increasing brand influence through local TV service providers overseas. In terms of global layout, TCL ELECTRONICS sticks to localization in organizational structure, supply chain, channels, and marketing to achieve global leadership. In terms of organizational structure, in 2023, TCL ELECTRONICS completed organizational optimization adjustments, splitting into six marketing headquarters for China, North America, Latin America, Europe, Asia Pacific, and Middle East Africa, reducing decision-making chains, enhancing the efficiency of differentiated management, and strengthening the company's operational capabilities globally. In terms of production capacity and supply chain, TCL ELECTRONICS established production bases worldwide, with production bases in Vietnam and Mexico radiating North America and Asia Pacific, while Poland, Brazil, Pakistan, and others radiating Europe, Latin America, and Middle East Africa, facilitating quick delivery. In terms of channels and marketing, the company focuses on key regions and channels globally, with business coverage in over 95% of the top 50 channels worldwide; at the same time, TCL ELECTRONICS adheres to global brand strategy localization, enhancing TCL brand global reputation through precise marketing in sports, e-sports, film and television, exhibitions, and other fields, helping the continuous expansion of global business scale. Meanwhile, TCL ELECTRONICS' precise layout of sports marketing, strategic event sponsorship, and systematic construction of a global customer management system have significantly improved global marketing efficiency and promoted international market performance. In the first quarter of 2025, the "value" of TCL ELECTRONICS' globalization strategy is still on the rise, further unleashing the efficiency of its global operational system. In February 2025, TCL ELECTRONICS officially announced becoming a global partner of the Olympics, providing comprehensive technical, product, and professional service support for the Olympic Games in the fields of TV, air conditioning, refrigerators, washing machines, and other smart terminals, further enhancing its global brand awareness and influence. In the first quarter of 2025, TCL TV's international market shipments increased by 11.6% year-on-year, with shipments of large-sized TVs growing rapidly, with shipments of TCL TVs 65 inches and above increasing by 48.5% year-on-year, and shipments of TCL TVs 75 inches and above increasing by even more at 86.8%. Looking at regions, in the European market, through precise layout of regional channel networks, with the "one country, one strategy" strategy, rapid breakthroughs have been achieved, with TCL TV shipments in Q1 increasing by 15.8% year-on-year, with shipments of TCL TVs 75 inches and above soaring by 74.4% year-on-year. In terms of market share, retail volumes in France, Poland, and Sweden remained in the top two, while retail volumes in Spain, Romania, Greece, and the Czech Republic ranked in the top three. In emerging markets, the company has further improved its sports marketing matrix in markets including Asia-Pacific, Latin America, and Middle East Africa, accelerating the upgrade of terminals and retail channels, with TCL TV shipments increasing by 18.8% year-on-year in the first quarter, and shipments of TCL TVs 75 inches and above doubling by 100.5% year-on-year. In terms of market share, retail volumes in Australia and the Philippines ranked first; Brazil, Pakistan, Saudi Arabia, Thailand, and Myanmar ranked second; and Argentina, Vietnam, and South Korea ranked third. In the North American market, TCL ELECTRONICS focuses more on breaking through high-end channels like Best Buy, actively adjusting product structures and increasing the proportion of shipments of large-sized and high-end TV products. Benefiting from the implementation of the mid-to-high-end strategy, the trend towards larger screens is significant, with shipments of TCL TVs 75 inches and above in the North American market increasing by 79.3% year-on-year, and the proportion of shipments also increasing by 5.8 percentage points to 12.5% year-on-year, with TCL TV's retail volume market share in the United States still ranking in the top two. After more than 25 years of going global, TCL ELECTRONICS has built a three-dimensional competitive advantage through deepening globalization, achieving a qualitative change from scale expansion to value leap in the global TV industry through the dual track of "breaking through the mid-to-high-end market + deeply cultivating local operations," with the first quarter data of 2025 confirming its strategic penetration and providing a vivid example for the global smart technology industry. The precise implementation of the "mid-to-high-end + large screen" strategy accurately captures market trends It is worth noting that, benefiting from the continued stimulus of the government's subsidies, in the first quarter of this year, the overall retail volume of the domestic TV market experienced a narrowing decline, and structural differentiation has become more apparentMini LED breakthroughs and the acceleration of large-size popularization. According to data from All View Channels, the overall retail volume of the domestic TV industry in the first quarter of this year experienced a slight 3.0% decline compared to the same period last year, but Mini LED.The overall retail sales volume of the TV market increased by more than three times year-on-year, with the penetration rate also rising from 4.4% last year to 20.4% this year, achieving a major breakthrough.TCL ELECTRONICS is the earliest global manufacturer to bet on Mini LED TVs. In Q1, multiple new products covered the mid-to-high-end market, with the company's Mini LED TV shipments worldwide increasing by 232.9% to 550,000 units in the first quarter. In the domestic market, the shipment volume of Mini LED TVs increased by 341.1% year-on-year, with the shipment volume ratio significantly increasing by 13.2 percentage points to 17.6%. TCL ELECTRONICS' high-end products have seen a surge in sales, benefiting from the company's continuous increase in research and development investment in display technology, application scenarios, artificial intelligence, and other fields. Its Mini LED "Infinite Zone" technology can achieve "one zone over multiple zones" light control effect, presenting a picture quality at the levels of thousands of zones. In addition, TCL ELECTRONICS actively cooperates with companies in the upstream and downstream of the industry chain to jointly promote the innovation and application of technology, further enhancing the core competitiveness of its products. In the view of TCL ELECTRONICS, the "mid-to-high-end + large screen" product strategy effectively breaks away from low-price, homogenized competition, enhances profitability, and helps the company to create more resources to deepen user experience and build a brand in the minds of consumers. In conclusion: Against the backdrop of slowing industry growth globally, TCL ELECTRONICS, with structural breakthrough in the high-end market and a dual engine of globalization operations, is reshaping the global TV industry competitive landscape. Its "opening red" performance in the first quarter of 2025 is not only a declaration of phase victory, but also marks the beginning of the company's global battle with Mini LED and other cutting-edge technologies as the spear, and intelligent manufacturing efficiency as the shield. Of note, the company's recent launch of an equity incentive plan is equivalent to a "strong needle" brought to the market, anchoring future profit goals: with 2024 as the baseline, the adjusted net profit growth rate triggers for 2025-2027 are set at 25%/50%/75%, with target values aiming for continuous ascend by 45%/75%/100%. By deeply linking core team interest, it injects certainty momentum for the long-term strategy of "technological breakthrough + market expansion". This strategic layout coincides with the golden window period of global display industry upgrade. With the accelerated trend of consumption upgrades driving the surge of large screens, TCL ELECTRONICS, relying on the early advantage of Quantum Dot and Mini LED technology matrix, coupled with the three-dimensional distribution network built in North America, Europe, and emerging markets, is continuously leveraging its share in the high-end market. The enthusiastic feedback from the capital market confirms this development logic. Since the company's equity incentive plan was announced on April 9, 2025, TCL ELECTRONICS' stock price has cumulatively increased by 45.41%. Institutions like CITIC SEC, based on the dual driving model of "technological iteration + global operations", under the expectation of policy support accelerating display technology upgrade, emphasize the profitability elasticity brought by the increase in Mini LED penetration rate, giving multiple endorsements of a "buy" rating.