Orient: Global black electronics market share re-balanced, TCL ELECTRONICS (01070) performance exceeded expectations.

Orient released a research report stating that the household appliance industry is entering a phase of global market share rebalancing, and the time window for Chinese brands to vie for the top spot globally is opening. Household appliance brands led by TCL ELECTRONICS (01070) are continuing to implement strategies for globalization and mid-to-high-end market positioning. If the industry's net profit margin continues to improve, the valuation center is expected to rise. Key points highlighted by Orient include: - The certainty of the household appliance industry entering a phase of global market share rebalancing - The concentration and operating rates of Chinese upstream panel suppliers ensure prices will "moderately fluctuate, trend upwards, and converge", allowing brands to anticipate margins without having to accumulate panels due to market cycles. With increased demand for large-sized and MiniLED displays, structural demand is accelerating and will resonate with the "sports bonanza" of the 2026 World Cup, paving the way for the opportunity for Chinese brands to dominate the global market. - TCL ELECTRONICS is expected to significantly surpass performance expectations by 2025, with its strategies for globalization and mid-to-high-end market positioning continuing to bear fruit. - TCL ELECTRONICS has achieved high-quality growth in the global market through a dual-driven strategy of "globalization" and "mid-to-high-end market positioning", resulting in strengthened profitability. By 2025, the company is expected to achieve a 15.4% year-on-year increase in revenue to HK$114.58 billion, with adjusted net profit attributable to shareholders increasing by 56.5% to HK$2.51 billion compared to the previous year. In 2025, TCLTV's global market share reached 14.7%, up 0.8 percentage points year-on-year, ranking among the top two global TV brands. The proportion of globally shipped TCL MiniLED TVs with relatively high gross margins increased by 6.8 percentage points to 13.0% year-on-year, with a market share of 31.1%, maintaining its position as the global leader. - Continuous improvement in net profit margins for leading household appliance companies is crucial for performance realization. The key risks mentioned include the continuing uptrend of raw material prices, decreasing marginal stimulus for trade-in subsidies, and risks of tariff disruptions.