Changes in Hong Kong stocks | TCL Electronics (01070) rose more than 5%, and the company's profit was driven by an increase in the share of high-end overseas TV markets, and Citibank's first “buy” rating

The Zhitong Finance App learned that TCL Electronics (01070) rose more than 5%. As of press release, it had risen 4.52% to HK$17.1, with a turnover of HK$91.397 million.

According to the news, Citi released a research report stating that it initially gave TCL Electronics a “buy” rating. The target price was HK$22.9, which is the highest target price in the market. According to the report, TCL Electronics' adjusted net profit increased by 56% and 54% year-on-year respectively last year and the first half of this year, significantly outperforming the Hang Seng Index. TCL Electronics is currently trading to predict a price-earnings ratio of about 10 times over the next 12 months. Citi believes there is still room for further valuation and re-evaluation.

Citi said that TCL Electronics is the second-largest TV brand in the world, accounting for 14.9% of global shipments in the first half of 2026, and leading the industry's transformation to mini LEDs and large screens. The bank expects gross margin to reach 19.4% in 2028. Driven by an increase in the share of the overseas high-end TV market, the adjusted net profit compound annual growth rate will reach 25% from 2026 to 2028. Panel supplier integration and localized production capacity will help support a sustainable upward cycle.

Previously, TCL Electronics reported revenue of approximately HK$91 billion to HK$97.7 billion in the first three quarters of 2026, an increase of about 10% to 18% over the previous year; adjusted net profit for the first three quarters of 2026 was about HK$2.11 billion to HK$2.25 billion, an increase of about 45% to 55% over the previous year.