HK Stock Market Move | TCL ELECTRONICS (01070) Rises Over 5% Again; Company's Profit Driven by Increased Market Share of Overseas High-End TVs; Citi Initiates with "Buy" Rating

TCL ELECTRONICS (01070) rose over 5% again, up 4.52% as of press time to HK$17.1, with turnover of HK$91.3997 million. On the news front, Citi issued a research report initiating coverage on TCL ELECTRONICS with a "Buy" rating and a target price of HK$22.9, the highest target price in the market. The report noted that TCL ELECTRONICS' adjusted net profit rose 56% and 54% year-on-year last year and in the first half of this year, respectively, significantly outperforming the Hang Seng Index. TCL ELECTRONICS currently trades at about 10x forward 12-month P/E, and Citi believes there is still room for further valuation re-rating. Citi said TCL ELECTRONICS is the world's second-largest TV brand, with a 14.9% global shipment market share in the first half of 2026, and is leading the industry's transition toward Mini LED and large-size screens. The bank expects gross margin to reach 19.4% by 2028, driven by increased market share in overseas high-end TVs, with adjusted net profit compound annual growth of 25% from 2026 to 2028. Panel supplier consolidation and localized capacity help support a sustainable upcycle. Previously, TCL ELECTRONICS issued a positive profit alert, expecting revenue of approximately HK$91 billion to HK$97.7 billion for the first three quarters of 2026, up about 10% to 18% year-on-year; and adjusted net profit attributable to shareholders of approximately HK$2.11 billion to HK$2.25 billion for the first three quarters of 2026, up about 45% to 55% year-on-year.