HAITONG INT'L: Maintains TCL ELECTRONICS (01070) "outperform" rating. Enhances global brand competitiveness through partnership with Sony.

HAITONG INT'L released a research report stating that it maintains a "better than market" rating for TCL ELECTRONICS (01070), with a target price of HK$15.60. The company's global operational structure continues to improve, with clear growth targets set in equity incentive plans. Collaboration with SONY is helping to advance the company's globalization strategy. In terms of its own business, the company is focusing on high-end display technology, maintaining high-quality expansion in the global market. The Mini LED products are driving overall scale expansion, optimizing the company's product structure, improving overall profitability, and achieving outstanding performance in both revenue and profit. Key points from HAITONG INT'L include: - The company has announced forecasted performance growth for 2025. - It is expected that the adjusted net profit attributable to shareholders will reach HK$2.33-2.57 billion in 2025, an increase of 45%-60% compared to 2024. The company will continue to adhere to its globalization and high-end development strategies in 2025, with strong growth in global business and continuously improving profitability. The company leads in the large-screen display market, maintains high profitability in internet business, and continues to expand its innovative business. The company is also exploring AI in new scenarios and strengthening its deployment in cutting-edge technology. - Strategic cooperation between TCL ELECTRONICS and SONY. The company announced a strategic cooperation intention with SONY in the field of home entertainment, signing a memorandum of understanding. The plan includes establishing a joint venture company with the company holding 51% and SONY holding 49%, to take over SONY's home entertainment business and operate related businesses globally, including television and home audio products. The joint venture company is expected to leverage the company's advanced display technology and global scale advantage, continue expanding its business with the empowerment of the SONY and BRAVIA brands. Reference to Sigmaintell data shows that in 2025, global TV shipments reached 220 million units, a decrease of 0.7% year-on-year. TCL's shipments reached 30.4 million units, an increase of 5.4% year-on-year, with a market share of 13.8%, up 0.8 percentage points year-on-year, ranking second globally; Sony's shipments reached 4.1 million units, a decrease of 14.2%, with a market share of 1.9% (down 0.3 percentage points), ranking tenth globally. The bank predicts that in 2026, with events such as the "World Cup" driving demand, global TV shipments are expected to remain stable or increase steadily. In addition, the penetration rates of 85+ large screens and MiniLEDs continue to rise, with leading companies like TCL driving the expansion of the market share of Chinese brands globally. Risk warning: - End demand lower than expected - Geopolitical risks