On the evening of April 27, TCL Electronics (01070.HK) released the global TV sales data for the first quarter of 2025.

Data shows that TCL Electronics' global television shipments in the first quarter of 2025 exceeded 6.51 million units, a year-on-year increase of 11.4%. Benefiting from the increased proportion of mid-to-high-end products in its television business, the sales revenue of its television business saw a significant year-on-year growth of 22.3%.

TCL Electronics' Q1 2025 Shipment Volume Data (Unaudited) Source: TCL Electronics Investor Relations

It is reported that TCL Electronics adheres to the "mid-to-high-end + large-screen" strategy, investing heavily in cutting-edge technologies such as high-end display and artificial intelligence, which has earned global favor from users. In the first quarter, its mid-to-high-end products, specifically Mini LED TVs, performed impressively with a shipment of 550,000 units, representing a year-over-year increase of 232.9%. According to the latest data from Omdia, in 2024, TCL's Mini LED TV global shipment market share reached 28.8%, ranking it first globally.

Recently, CITIC Securities released a research report on TCL Electronics, stating that TCL Electronics' "mid-to-high-end + large screen" strategy has been highly effective, with its black electric main business experiencing both volume and price increases, and its innovative businesses flourishing in multiple areas. With the subsequent national subsidy catalysis and the global high-end breakthrough trend, TCL Electronics possesses both short-term performance elasticity and long-term growth certainty, making its investment opportunity noteworthy. The report gives a "buy" rating.

Notably, TCL Electronics announced a new round of incentive equity grant plan with performance-based vesting conditions in early April. The plan is to grant approximately 91 million incentive shares to 860 incentive targets, including company executives and core staff members. Based on the adjusted net profit attributable to shareholders in 2024, the threshold values (unlocking 80% of the incentive shares) for 2025/2026/2027 correspond to adjusted net profit growth rates of 25%/50%/75%, while the target values (unlocking 100% of the incentive shares) correspond to growth rates of 45%/75%/100%, demonstrating strong confidence.

Meanwhile, CITIC Securities' report also pointed out that in the future domestic market, driven by national subsidy policies, the penetration rate of Mini LED TVs will rapidly increase. The accelerated adoption of large-size and Mini LED products is expected to boost the industry's average price, contributing to profit elasticity for enterprises. As a leading player in the industry, TCL Electronics is poised to benefit more significantly.