HK Stock Market Move | TCL ELECTRONICS (01070) rose nearly 5% with the new round of equity incentive plan showing confidence. Institutional investors believe the opportunity is worth paying attention to.

TCL ELECTRONICS (01070) rose nearly 5%, as of the time of publication, up 4.86% to HK$9.27, with a turnover of HK$143 million. On the news front, recently, TCL ELECTRONICS announced the launch of a stock incentive plan with performance conditions attached for 2025, granting approximately 91.498 million shares to 860 core employees. The performance target is for a step-by-step growth in non-GAAP net profit from 2025 to 2027 compared to 2024 (HK$1.61 billion). CITIC SEC pointed out that TCL ELECTRONICS has unveiled a new round of stock incentive plan, surpassing operational targets and demonstrating confidence. The company's strategy of mid-to-high end and large-screen TVs has been effective, with both volume and price of home appliances rising, and innovative businesses flourishing. Given the subsequent catalysis of national subsidies and the global high-end breakthrough trend, the short-term performance elasticity and long-term growth certainty are both noteworthy, and the potential for investment is worth considering, maintaining a "buy" rating. A recent research report by Tianfeng stated that TCL ELECTRONICS is a leading enterprise in the global color TV industry. The continuous improvement of mid-to-high-end and global operational capabilities has driven steady expansion of the TV business share. At the same time, the company has also laid a solid foundation for growth in areas outside the main business, such as photovoltaics, marketing of full product categories, and internet business. The recent disturbance in the external trade environment has caused an overreaction in the stock price, but the company and the group continue to improve their global industrial layout, shifting from exporting products to co-building industrial capabilities with local partners, which is expected to achieve appropriate production and sales allocation and robust responses.