Guotai Junan: Maintain “overweight” target price of HK $5.43 on TCL Electronics (01070)

2022-06-17 0 By

Zhitong financial APP learned that Guotai Junan issued a research report, maintaining TCL Electronics (01070) “overweight” rating, 2021 performance in line with market expectations, the main business to maintain growth, showing that product structure upgrade is expected to promote profit improvement, Internet business continued high growth, but considering that there are commodity prices continue to rise,Panel prices are expected to rebound after bottoming, as well as innovation business needs investment in the early stage, is expected to EPS 0.54/0.6/0.65 Hong Kong dollars in 2022-24, reference industry comparable companies, give 10 times PE in 2022, the target price of HK $5.43.According to the report, the company achieved revenue of HK $74.85 billion in 2021, +46.9% year on year;Net profit of HK $1.18 billion.Display business revenue was 49.27 billion Hong Kong dollars, +24.3% year on year, volume market share was 11.5%, +0.8 PCT year on year;Internet business revenue of HK $1.85 billion, +49.9%;Innovative business smart connection revenue of HK $1.56 billion, +34.2% year-on-year, smart home revenue of HK $610 million, +78.9% year-on-year.The bank mentioned that high-end product structure and upgrading, high-speed growth of Internet business.In 2021, the company will accelerate the layout of large-screen and high-end strategy. In 2021, the average sales size of the company will be 52.4 inches, up 2.5 inches year on year, and the proportion of 65-inch and above large-screen will increase by 8.3 PCT to 27%. Meanwhile, the company’s quantum dot and Mini LED smart screen will rank first in the all-channel sales in The Chinese market.Guotai Junan said TCL’s electronic Internet business is growing rapidly.In 2021, The revenue of Thunderbird Technology was 1.52 billion HK dollars, up 59.2% year on year. Monthly active users in China increased 11% year on year to 19.88 million, and ARPU increased 43.4% year on year to 76.2 HK dollars.Overseas, TCL Channel has continued to promote its commercial transformation, with a total of 7.05 million subscribers worldwide.This article is from Zhitong Financial network