TCL ELECTRONICS (01070) rose more than 4% again, extending its recent upward trend. At the time of writing, the stock was up 3.63%, trading at HK$12.83, with a turnover of HK$208 million. The surge follows the release of the company's full-year financial report for 2025, which showed revenue reaching HK$114.583 billion, a 15.4% year-on-year increase. Adjusted net profit attributable to shareholders climbed to HK$2.512 billion, marking a significant rise of 56.5% compared to the previous year. The company maintained its high dividend policy, proposing a final dividend of HK$0.498 per share, representing a payout ratio of approximately 50% of the adjusted net profit.
Analysis from China Securities pointed out that the robust revenue growth was primarily driven by increases in both sales volume and average selling price of televisions, supplemented by contributions from internet services and innovative business segments. Despite stable gross margins, the company achieved rapid profit growth through effective cost reduction, quality improvements, operational efficiency gains, and stringent control over expense ratios, leading to steady operational performance.
The establishment of a joint venture with Sony is expected to combine the technological and resource strengths of both companies, potentially reshaping the competitive landscape of the global television market. This partnership is also anticipated to directly boost TCL ELECTRONICS's consolidated revenue and enhance its profit margins and valuation levels.
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