TCL Electronics won another award, and many giants accelerated their layout of Mini LED!

TCL Electronics (01070.HK) said that TCL Mini LED 4K Smart Screen 75C935 and TCL Mini LED 4K Smart Screen 75C835 won the CES 2023 Innovation Award for their innovative engineering design and advanced Mini LED display technology.

CES Innovation Awards is an annual technology event sponsored by CTA (Consumer Electronics Manufacturers Association), the owner and organizer of CES (International Consumer Electronics Show). It is the world's largest and most influential annual technology event to recognize the world's outstanding design and engineering technology consumer electronics products that year.

TCL Electronics’ fundamentals

At the end of 2018, TCL Group (000100.SZ) announced a reorganization and packaged and sold the equity of a total of 8 companies in its home appliances, communications, consumer electronics and other smart terminals and related supporting businesses to TCL Holdings for 4.76 billion yuan. TCL Electronics is a company owned by TCL Holdings.

According to the 2022 interim report released by TCL Electronics, in the first half of 2022, TCL Electronics will implement the strategic deployment of "brand leading value, relative cost advantage" and continue to focus on the development of mid-to-high-end, global markets and new tracks. Relying on TCL's global brand power, vertical integration advantages across the entire industry chain, and complete global channel advantages, TCL Electronics' mid-to-high-end breakthrough strategy has achieved results in the first half of 2022. Its products have become more high-end and large-screen, and its operating quality has significantly improved. At the same time, the group has actively The expansion of business boundaries and the rapid development of innovative businesses will bring more growth momentum to the group.

The interim report shows that as of June 2022, TCL Electronics' revenue in the first half of the year reached HK$33.679 billion, a slight year-on-year decrease of 3.6%; benefiting from the improvement of the group's product structure and the reduction of raw material costs, gross profit increased by 3.9% year-on-year to HK$5.782 billion, and the overall gross profit margin increased by 1.3 percentage points year-on-year to HK$5.782 billion. 17.2%; R&D expenses increased by 4.0% year-on-year to HK$1.070 billion, and the R&D expense rate reached 3.2%, an increase of 0.3 percentage points from the same period in 2021. As of June 30, 2022, TCL Electronics' net profit before non-attributed profits reached HK$257 million, a year-on-year increase of 4.9%.

TCL Electronics’ display business’s global market position Continuing to lead is the company's most important business. In terms of market position, TCL's smart screen market share ranks third in the world, and its market share ranks among the top five in more than 20 countries and regions around the world and is steadily increasing. Its smart Android tablet market share ranks fifth in the world, and its mobile phones rank third and fourth in Canada and the United States respectively.

The interim report shows that in the first half of 2022, TCL Electronics' display business revenue reached HK$26.971 billion. Among them, the revenue of small and medium-sized display business and smart commercial display business increased by 16.4% and 71.2% respectively year-on-year. At the same time, thanks to the focus on operational quality, the overall gross profit margin of the display business increased by 1.2 percentage points year-on-year to 16.6%.

On October 21, TCL Electronics announced global sales data for the first three quarters of 2022. During this period, global sales of TCL smart screens reached 1,662 million units, of which sales in the third quarter reached 6.47 million units, a significant increase of 11.8% year-on-year. In the third quarter of this year, TCL’s smart screen sales in the Chinese market increased by 46.6% year-on-year. In terms of products, in the first three quarters of this year, TCL’s large-size smart screen sales increased significantly. Sales of 65-inch and above smart screens increased by 63.6% year-on-year, and their share also increased by 6.9 percentage points year-on-year to 17.1%.

It is worth mentioning that with the popularity of the new energy track, TCL Electronics will officially enter the photovoltaic field in the second quarter of 2022 in collaboration with TCL Zhonghuan (002129.SZ). Through TCL Central, the leading photovoltaic industry chain and project operation experience, TCL Electronics quickly entered the photovoltaic track; at the same time, TCL Electronics relied on its channel coverage and penetration advantages in China to accelerate the implementation of distributed photovoltaic B2B and B2C (business-to-business and business-to-customer).

TCI Electronics stated in its 2022 interim report, "The Group officially launched its photovoltaic business in the second quarter of 2022, achieving both volume and profit in a single quarter. In the first half of 2022, the Group's photovoltaic business achieved revenue of HK$172 million, and monthly installation orders and revenue grew exponentially."

Mini LED has received widespread attention from giants

TCL Electronics is an important giant in the Mini LED field and has leading product innovation capabilities. In the first half of 2022, in TCL Electronics' display business, TCL Mini LED smart screen X12 and X11 series won the 2022 German "Red Dot Award", and TCL ODZero Mi ni LED 8K TV X925 PRO won the International Consumer Electronics Show (CES) "2021-2022 Mini LED Display Technology Innovation Award" with its multiple technical advantages; in terms of innovative business, TCLP73 series and 93 series home theater stereo surround speakers, TCL NXTWEAR AIR smart glasses all won the 2022 German "iF Design Award", and TCL Fresh Air Air Conditioner Little Blue Wing won the 2022 German "Red Dot Award" ". Various smart new products have won multiple awards, reflecting TCL Electronics' leading strength in cutting-edge display and smart technology.

In addition, the interim report shows that in the first half of 2022, TCL Mini LED smart screen sales increased by 31.2% year-on-year, and the retail sales of TCL Mini LED smart screens and TCL quantum dot smart screens both ranked first in all channels in China.

Whether it is the strength of innovative products or sales data, TCL Electronics has outstanding performance in the field of Mini LED.

Mini LED, also known as "sub-millimeter light-emitting diode", refers to LEDs with a grain size of 50 microns to 200 microns. The lamp bead spacing and chip size are between small-pitch LEDs and Micro LEDs.

Mini LED currently has two development paths: backlight and direct display. Direct display is still in the small-scale mass production stage, and backlight technology is already in a mature stage of commercialization.

portant;">Guosen Securities believes that Mini LED backlights have cost advantages in medium and large sizes, and the display effect is comparable to OLED. In addition to monitors and personal computers, VR/AR is also expected to become one of the key application areas of Mini LED backlights.

Dongguan Securities pointed out that in the case of Micro LED's technical bottlenecks that prevent rapid development, Mini LED It has become a breakthrough for the development of various LED companies.

According to the "Mini/Micro LED Display Industry White Paper" released in October 2022, Mini/Micro LED, as the next generation of new display technology, has received strong policy support from various places, and industry chain investment and financing are also becoming more popular. Between January and August 2022, more than 30 companies invested in the Mini/Micro LED industry, involving 41.5 billion yuan.

Mini LED has received widespread attention from giants in recent years. Major terminal manufacturers represented by Apple and Samsung have accelerated their layout in the field of Mini LED.

In April 2022, Apple’s spring new product launch conference released iPad Pro (11-inch and 12.9-inch) equipped with M1 chip. The 12.9-inch version used Mini LED backlight technology for the first time. In October, Apple released two MacBook Pro models, both with Mini LED screens.

Samsung spent 40 billion won in 2020 to build more than 50 Mini LED backlight TV production lines in Vietnam. It will release the first Mini LED TV in the country in March 2022 and plans to ship 2 million units throughout the year.

According to the above-mentioned "White Paper" data, Mini LED backlight has achieved large-scale mass production. IT and TV medium and large sizes are the core application markets, and automotive applications are gradually gaining scale. Judging from the current application maturity, Mini LED backlight technology is more mature and has been favored by many brands such as Apple, Samsung, and TCL, and has achieved large-scale mass production. White paper data shows that medium-sized IT is the largest application market for Mini LED backlights. In 2021, 7.4 million medium-sized Mini LED backlight panels will be shipped globally. In 2022, the overall market demand will be Against the background of poor demand, it is expected to continue to achieve rapid growth to 13.8 million pieces, a year-on-year increase of 86%. Among them, Apple accounts for more than 95%, and will face the challenge of Apple's mid-size AMOLED technology transformation in the future.

According to the official website of the Top 100 Hong Kong Stock Exchanges, the 10th "Top 100 Hong Kong Stock Exchanges" event will be held on February 24, 2023. At the same time, the tenth "Top 100 Hong Kong Stock Exchanges" main list and sub-list companies will be announced. Against the background of the increasingly popular development of Mini LED, TCL Electronics, as an important giant in this field, has a prominent industry position. What ranking might TCL Electronics receive in the upcoming 10th Hong Kong Stocks Top 100 event? Worth the wait.

It is reported that the "Top 100 Hong Kong Stocks" is an annual Hong Kong stock influence selection event. The event started in 2012 and was jointly sponsored by Tencent and Caihua News. It aims to use big data and a series of scientific and fair evaluation indicators to analyze and calculate various data of Hong Kong listed companies in the previous year, select and publish the list of outstanding listed companies and award awards.