TCL Electronics (01070) shares rose more than 5% again, up 4.52% as of press time to HK$17.1, with turnover of HK$91.3997 million.
On the news front, Citigroup released a research report initiating coverage of TCL ELECTRONICS with a "Buy" rating and a target price of HK$22.9, the highest target price in the market. The report noted that TCL Electronics' adjusted net profit rose 56% and 54% year-on-year last year and in the first half of this year respectively, significantly outperforming the Hang Seng Index. TCL Electronics currently trades at about 10 times forward 12-month price-to-earnings ratio, and Citigroup believes there is still room for further valuation re-rating.
Citigroup stated that TCL ELECTRONICS is the world's second-largest TV brand, with a 14.9% global shipment market share in the first half of 2026, and is leading the industry's transition toward Mini LED and large-screen displays. The bank expects gross margin to reach 19.4% by 2028, driven by increased market share in overseas premium TVs, with adjusted net profit compound annual growth rate reaching 25% from 2026 to 2028. Panel supplier consolidation and localized production capacity will help support a sustainable upward cycle.
Previously, TCL ELECTRONICS issued a positive profit alert, expecting revenue of approximately HK$91 billion to HK$97.7 billion for the first three quarters of 2026, representing year-on-year growth of approximately 10% to 18%; adjusted net profit attributable to shareholders of approximately HK$2.11 billion to HK$2.25 billion for the first three quarters of 2026, representing year-on-year growth of approximately 45% to 55%.
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