TCL Electronics (01070) Surges Over 5% on Strong Profit Alert and Sony Partnership

Stock News02-03 15:08

TCL Electronics (01070) rose more than 5%, gaining 5.3% to HK$12.32 by the time of writing, with a turnover of HK$79.34 million. Last month, TCL Electronics announced the signing of a strategic cooperation memorandum of intent with Sony: the companies plan to establish a joint venture that will take over Sony's home entertainment business, with TCL holding a 51% stake and Sony holding 49%. The new company will conduct integrated business operations globally, covering products such as televisions and home audio systems, spanning from product development and design to manufacturing, sales, logistics, and customer service. Guosen Securities indicated that the collaboration between TCL Electronics and Sony is expected to achieve complementary advantages, accelerating the development of both Sony's and TCL's TV businesses in overseas markets. Previously, the company issued an announcement stating that it expects its adjusted net profit attributable to owners for the 2025 fiscal year to be between approximately HK$2.33 billion and HK$2.57 billion, representing a year-on-year increase of about 45% to 60%. Tianfeng Securities believes that TCL Electronics is a leading enterprise in the global color TV industry, continuously enhancing its capabilities in mid-to-high-end products and global operations, which is driving steady market share expansion in its TV business, while also strengthening growth drivers such as photovoltaics, full-category marketing, and internet services beyond its main operations. The company possesses both dividend attributes and technological potential; due to its profit alert announcement exceeding expectations, the adjusted net profit attributable to owners for 2025-2027 is forecasted to be HK$2.47 billion, HK$2.88 billion, and HK$3.45 billion, respectively.

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