Huaxi Securities: Maintains a "buy" rating on TCL Technology, long-term value highlighted.

Huaxi Securities research report pointed out that TCL Technology's employee stock ownership plan and minority equity transfer highlight long-term value. The equity incentive includes 6 senior executives, covering 3600 employees, with a total capital not exceeding 800 million yuan. This phase of the stock ownership plan sets performance assessments, with a target of achieving a revenue of not less than 272.92 billion yuan or a net profit attributable to shareholders of not less than 2.96 billion yuan by 2025. Through the stock ownership plan, a sound mechanism of "risk sharing and benefit sharing" is established for middle and senior management personnel and outstanding core employees, enhancing the cohesion and development vitality of the company, fully inspiring employees' sense of mission and responsibility, continuously consolidating the company's industry position, further improving the compensation incentive system, and achieving long-term common interests and sustainable development through long-term incentives and equity, realizing value sharing between the company and employees. The panel industry benefits from stable overall panel prices due to on-demand production, and combined with the acquisition of multiple production lines, ensures stable performance in the display sector. TCL Huaxing is expected to continue to improve in 2025 after being affected by industry cycle fluctuations in 2024, maintaining profit forecasts. We continue to be optimistic about the improvement of the long-term competitive landscape in the display industry and the enhancement of strategic value along the industrial chain, maintaining a "buy" rating for the company.