Caitong Securities has released a research report indicating that by 2026, TCL ELECTRONICS (01070) is expected to achieve structural optimization in its product portfolio and expand its sales channels, including premium channels in North America and the Media Market chain in Europe. The global rollout of new mid-to-high-end priced products is progressing smoothly. The firm forecasts adjusted net profit attributable to shareholders of HK$3.04 billion and HK$3.45 billion for 2026 and 2027, respectively, corresponding to a price-to-earnings (P/E) ratio of 11.5x and 10.1x. The "Buy" rating is maintained. Key points from Caitong Securities are as follows:
On April 19, 2026, the company released its preliminary first-quarter 2026 results. Revenue for the first quarter of 2026 is estimated to be between HK$27.8 billion and HK$30.4 billion, representing a year-on-year increase of 10% to 20%. Adjusted net profit attributable to shareholders is projected to be in the range of HK$360 million to HK$400 million, a significant increase of 125% to 150% compared to the same period last year.
Profit for the first half of 2026 is expected to show steady growth. Based on reverse calculation from the year-on-year growth rates, the adjusted net profit attributable to shareholders for the first quarter of 2025 was approximately HK$160 million, while the figure for the second quarter of 2025 was about HK$900 million. Assuming a profit growth of approximately 10% for the second quarter of 2026, the adjusted net profit attributable to shareholders for the first half of 2026 is forecasted to be between HK$1.35 billion and HK$1.39 billion, indicating a year-on-year growth of about 27% to 31%.
The key takeaway is not just the preliminary results but the accelerated pace of new television product launches. In the first quarter of 2026, domestic brands TCL and Hisense released 8 and 4 new TV models respectively, while overseas brands Samsung and LG released 0 and 2 new models respectively. TCL's number of new TV models has increased compared to the same period last year (which saw 7 models). In terms of technical specifications, six of TCL's new models—the Q9M Pro, T7M Pro, T7M Ultra, Q10M, Q10M Pro, and C12L—all feature SQD-MiniLED display technology with reflective film, alongside improvements in refresh rates and local dimming zones.
Risk warnings include political risks in Europe, uncertainties surrounding premium product sales in North America, and risks associated with insufficient domestic demand in China.
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