HK Stock Market Move | TCL ELECTRONICS (01070) increases by over 5%, the company is expected to further advance towards a global multi-category smart home platform.

TCL ELECTRONICS (01070) rose more than 5%, as of the time of writing, it rose 4.8% to 15.94 Hong Kong dollars, with a turnover of 66.9342 million Hong Kong dollars. On the news front, TCL ELECTRONICS plans to acquire 51% equity of TCL's air conditioning business. China Securities Co., Ltd. pointed out that the target air conditioning business has strong growth momentum, with export scale ranking among the top of domestic brands. This transaction is expected to directly increase the company's revenue and profits in the short term, with a projected increase of over 30% in income after consolidation; in the long term, it can release synergies in global channels, R&D technology, and supply chain, driving the company towards a full range of smart home platform transformation. Huayuan Securities also pointed out that TCL ELECTRONICS plans to acquire a 51% stake in TCL's air conditioning business, with the cooperation scope expected to extend from distribution to research and development, procurement, and manufacturing. With the gradual progress of subsequent integration, the company is expected to further move from a global leading display enterprise towards a global multi-category smart home platform; the medium and long-term profit center is expected to improve, and valuation levels are expected to recover.