HK Stock Market Move | TCL ELECTRONICS (01070) surged more than 4% in late trading, acquiring TCL Air Conditioning to optimize its business structure, and the company's valuation is expected to be reshaped.

TCL ELECTRONICS (01070) rose over 4% in late trading, with a year-to-date cumulative increase approaching 70%. As of press time, it was up 4.45%, priced at HKD 16.68, with a transaction volume of HKD 127 million. In news, TCL ELECTRONICS previously announced plans to invest HKD 5.61 billion to acquire a 51% stake in TCL's air conditioning business, achieving control over the air conditioning operations and incorporating them into the listed company system. Huatai noted that the target group's air conditioning sales are expected to exceed 22 million units by 2025, with operating revenue around HKD 33.8 billion and net profits exceeding HKD 1.9 billion, indicating strong profitability. CMSC stated that TCL ELECTRONICS was previously positioned as a pure television manufacturer, and its valuation was constrained by the cyclical fluctuations of the television industry; after the incorporation of air conditioning, it will transform into a black goods + white goods integrated platform, aligning its business structure more closely with Midea and Haier, with an expectation for its valuation level to recover from the television discount to a reasonable range for a comprehensive home appliance company.