TCL Group (000100) Company Financial Report Preview Comment: Interim Report Preview Meets Expectations, Deepens Transformation and Enhances Operational Efficiency

TCL Group (000100) Company Financial Report Preview Comment: Interim Report Preview Meets Expectations, Deepens Transformation and Enhances Operational Efficiency

Event: The company released an interim report performance forecast. It is expected that net profit in the first half of the year will increase by 52%-65%. Profit: 26 ppm-2.8 billion US dollars. Net profit attributable to mothers is expected to increase by 26%-39%. Profit:2 billion-2.2 billion.

Opinion: Interim report performance forecast is in line with expectations.

It is expected that the net profit of mothers in the first half of the year will range from 2 to 2.2 billion, with an annual increase of 26% to 39%, in line with expectations.

The net profit attributable to the mother in the second quarter of the single quarter was 12.


2.1 billion, an annual increase of 43% -66%.

The company deepened its transformation, optimized its business structure, and streamlined its organizational and management processes.

TCL Huaxing continued to reduce costs and increase efficiency through measures such as improving product technology capabilities, optimizing product structure, and taking advantage of intensive production bases. At the same time, small-sized businesses performed well.Net profit declined slightly.

The reporting company has received the full transaction price for the sale of major assets, and the net gains and losses from asset disposal and related taxes during the transition period have been accounted for in the reporting merger.


Focusing on semiconductor displays, Huaxing Optoelectronics continued to be fully productive.

Huaxing Optoelectronics achieved an expansion area of 5.56 million square meters in the first quarter, an increase of 17 per year.

1%; operating income 72.

50,000 yuan, an increase of 12 in ten years.

1%; net profit achieved 6.

8.3 billion, an increase of 35 from the fourth quarter of last year.


The t3 factory is fully sold and full production, expanding the area and growing.

29 times, sales revenue increased by 10 in ten years.

95 times, it is expected that the flexible AM-OLED factory (t4) will be positioned in the global high-end market with high-definition full-screen, flexible, foldable and other technologies on the scale of the four seasons of this year; continue to develop flexible flexible printed OLED display technology to further consolidate the technologyLeading edge.

Two of Huaxing Optoelectronics 8.

5th generation TFT-LCD production line—t1 and t2 continue to improve product research and development and process design processes. 32-inch product displacement ranks second in the world, 55-inch UD product volume ranks first in the world, and domestic first-line brand customers have ranked first in terms of substitution.One.


Through strategic reorganization, the Group’s main operating indicators have improved significantly.

From the second quarter of 2019, smart terminals and supporting businesses will be divested from listed companies and will no longer replace the scope of TCL Group’s consolidated statements.

The number of employees was reduced from 9 to 3; the organization, capital structure and financial situation of the company were further optimized.

Although the reorganization will bring the Group’s consolidated sales revenue growth, at least it will increase the newly-built capacity and investment output of Huaxing Optoelectronics, as well as the development of other business of the Group; it is expected that the sales revenue of several Groups will continue to increase in the future, and operating profits and cash flows will continueimprove.

The reorganization has increased the group’s financing capacity, and the subsequent construction and expansion of Huaxing Optoelectronics’ t4 and t6 and the construction of t7 will not require equity financing.


Investment suggestions 1) We expect the company’s 无锡夜网 total operating income in 2019, 2020 and 2021 after the reorganization will be 756 (excluding the terminal products and other sectors from 19Q2), US $ 68.3 billion, and net profit will be 41 and 42 respectively.

3, 45.

800 million.

EPS are 0.

3, 0.

31, 0.

34 yuan, corresponding to PE is 11 times, 10.

7 times, 9.

9 times, maintaining a highly recommended level. Risk warning: Sino-US trade frictions intensify, sluggish downstream demand, excess panel capacity, and changes in large customer orders