HK Stock Market Move | TCL ELECTRONICS (01070) rose by over 4% again, the acquisition of Sony's TV business is expected to further boost the high-end transformation of TCL.

Tens of thousands of electronics (01070) rose by more than 4% again. As of the time of publication, it increased by 3.74% to 12.75 Hong Kong dollars, with a turnover of 1.17 billion Hong Kong dollars. On the news front, on January 20, TCL Electronics signed a memorandum of understanding for strategic cooperation with Sony: it plans to establish a joint venture company to take over Sony's home entertainment business, with TCL holding 51% and Sony holding 49%. The new company will operate integrated business operations globally, including product development, design, manufacturing, sales, logistics, and customer service for products such as televisions and home audio. Galaxy Securities released a research report stating that the establishment of the joint venture company will significantly increase TCL Electronics' revenue scale. On the other hand, by leveraging Hisense's successful integration of Toshiba's color TV business and profitability, the bank expects that in the future, the joint venture company will leverage TCL's globalization scale, supply chain, cost advantages, while retaining Sony's "Sony" and "Bravia" brands and core technology. This will significantly increase the profitability of the joint venture company.