{"text":[[{"start":9.2,"text":"This article only represents the author's own views."}],[{"start":13.59,"text":"Household appliance stocks have long become yesterday’s news, fading into market obscurity with their lack of compelling growth stories. Yet TCL Electronics Holdings Ltd. (1070.HK), a top player in displays and TVs, recently found a place in the investor spotlight with an upbeat earnings forecast, breathing new life into its shares. The stock surged nearly 14% on Jan. 19, the day after the announcement, extending gains that have seen it rally 83% over the last 52 weeks."}],[{"start":54.47,"text":"According to its announcement, TCL Electronics expects to report its adjusted net profit last year ranged between HK$2.33 billion ($300 million) and HK$2.57 billion, representing a year-on-year increase of 45% to 60%. It attributed the growth primarily to its globalization and focus on premium products. It highlighted its achievements in the large-sized display segment, where it maintains a dominant position, and said high profitability from its internet services also helped to drive the strong profit growth."}],[{"start":95.06,"text":"Extending the positive news, the company announced a major partnership with Japanese consumer electronics giant Sony (SONY.US; 6758.T) just two days after the upside profit alert. It said the two sides would establish a joint venture, with TCL Electronics holding 51% and Sony 49%. The venture will take over Sony’s home entertainment division, managing integrated global operations for products like TVs and home audio systems. TCL Electronics emphasized the alliance will draw on both sides’ strengths, combining resources to amplify their competitive edges using both the Sony and Bravia brands."}],[{"start":138.5,"text":"Listed on the Hong Kong Stock Exchange in 1999, TCL Electronics was originally a subsidiary of the Shenzhen-listed TCL Technology Group Corp. (000100.SZ), whose operations spanned home appliances, photovoltaics, and other areas. The parent company’s display business was spun off to TCL Electronics following a major asset reorganization in 2019. Following that move, TCL Electronics’ current core segments include displays, internet services and innovative businesses. Its controlling shareholder has also shifted from the former TCL Group to TCL founder Li Dongsheng, one of China’s earliest tech entrepreneurs."}],[{"start":188.13,"text":"Second globally in TV shipments"}],[{"start":191.32,"text":"TCL's underlying performance has been particularly strong on booming sales for a new generation of big-screen TVs. It shipped 13.46 million TVs in the first half of last year, up 7.6% year-on-year, securing its position as the world’s second-largest TV maker. Its shipments in China rose 3.5%, while its overseas sales grew nearly twice as fast, rising by 8.7%. It credits the growth to its ongoing focus on mid- to high-end large screen models, which it sells under both the TCL and Falcon names."}],[{"start":232.85,"text":"Its Mini LED TVs have been especially popular in Europe and North America. Offering high contrast ratios, precise light control and minimal halo-effect, these large-screen TVs also boast high brightness, exceptional reliability, and extended lifespans, traits that resonate strongly with consumers."}],[{"start":256.15,"text":"Research firm Sigmaintell projects the penetration rate for Mini LED TVs will rise to 9.5% of the global market in 2026, as the models gain popularity. TCL reported explosive growth in this segment, with its global Mini LED TV shipments soaring 153% year-on-year to 2.24 million units in the first three quarters of 2025. Within that figure, its overseas shipments more than tripled, rising 235%. A recent report by China Galaxy Securities said that TCL Electronics could achieve parity with Korean giants Samsung Electronics (005930.KS) and LG (066570.KS) in Europe and North America within just three years."}],[{"start":308.24,"text":"Augmented reality: A second growth engine"}],[{"start":312.79,"text":"While the Sony joint venture’s impact remains to be seen, another potential growth area for the company could be RayNeo Innovation, a TCL-invested company that focuses on augmented reality (AR) glasses. Commanding nearly 40% of the Chinese consumer AR glasses market, RayNeo made headlines in early January by closing a major new financing round worth more than 1 billion yuan. Notably, the round drew investment from leading wireless carriers China Mobile and China Unicom, a first-time bet by both on the smart glasses category, underscoring the big potential for AR eyewear."}],[{"start":354.72,"text":"A distinct category from earlier wearable gadgets, a new generation of AR glasses could become a more indispensable product in the future as round-the-clock personal information hubs. Market watchers estimate the sector’s current annual value at 23.1 billion yuan, nearly double the previous year. Some projections predict the market could crack the 100 billion yuan threshold by 2030, hitting 118.7 billion yuan by that time."}],[{"start":386.17,"text":"While those newer areas looking exciting, investors should also note the potential for softening demand for TCL’s TVs in China over the near-term as the government scales back an earlier trade-in program that subsidized domestic appliance sales, including TVs. Despite that, strong demand in Europe and North America is expected to fuel a 15% rise in the company’s sales to 135.3 billion yuan in 2026, according to analyst projections. As that happens, they forecast the company’s net profit could climb over 20% this year to nearly 3 billion yuan."}],[{"start":427.65000000000003,"text":"In terms of its valuations, rival Haier Smart Home (6690.HK; 600690.SH) currently trades at a projected price-to-earnings (P/E) ratio of 7.6 times 2026 forecast earnings, while Hisense Home Appliances (0921.HK; 000921.SZ) trades at 9.5 and Midea Group (0300.HK; 000333.SZ) at 13 times. Midea’s premium stems partly from its industrial robotics business. TCL Electronics is currently valued at an estimated 11 times 2026 earnings, putting it at the higher end of the pack but not overly rich."}],[{"start":477.18000000000006,"text":"Augmented reality eyewear represents a strategic frontier that could potentially call for investors to take a new look at TCL Electronics. RayNeo’s commanding market share in a market still in its early phases, coupled with the strategic Sony deal, could offer some compelling upside potential for the stock."}],[{"start":506.41,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1769503392_8022.mp3"}