July 16, Beijing Time, China Touch Screen News, TCL's first half of the year's good performance LCD TV sales did not continue to be affected by last year's "cold winter"? TCL issued a performance forecast announcement for the first half of 2018, showing TCL's revenue, business scope and product sales in the first half of this year. Among them, sales of TCL LCD TV increased year-on-year, so it seems that after 2017, which is known as "the coldest winter of household appliances", TCL did not continue to accept it in the first half of the year.Direct impact.

The announcement disclosed that TCL had achieved a total LCD TV sales of 13.51 million units (including commercial displays) in the first half of this year, an increase of 37.8% over the same period last year. Among them, smart TV sales amounted to 9.383 million units, up 53.3% year-on-year.
It is understood that TCL achieved a cumulative LCD TV sales of 9.805 million units in the first half of last year, an increase of 11.3% over the same period last year. Among them, the sales volume of smart network TV is 6.158 million, an increase of 36.7% over the same period of last year.
From the data, we can see that TCL has increased compared with this year in terms of both total LCD TV sales and smart network TV sales. For the change of sales volume, TCL explained that sales volume increased steadily in the first half of this year because TCL continuously increased the proportion of high-end products, optimized sales channels and increased the average price of brand sales.
It is worth noting that the color TV market in 2017 was impacted by the rising cost of raw materials and other factors, which made the overall sales of color TV drop to the largest extent since 2003, known as the coldest year of color TV, TCL color TV was also affected.
However, from the current situation, TCL's situation improved in the first half of the year, LCD TV sales increased a lot year on year. Can TCL LCD TV sales continue to maintain the status quo in the second half of the year to make up for the regrets of 2017? This is worth looking forward to.
Comments on TCL Group's 18H1 Performance Forecast: Huaxing Optoelectronics Operating Robust Color TV Business as a Growth Spot
Event company issued a performance forecast for the first half of 2018: 1) The company expects to achieve net profit of 1.67 billion yuan to 1.82 billion yuan in January-June 2018, of which denominated net profit of 1.55 billion yuan to 1.65 billion yuan, up 50% to 60% from the same period last year. 2) Among them, Q2 quarter is expected to achieve net profit of 88 to 103 million yuan, down 10.8% to increase, Q2 quarter is expected to achieve net profit of 82 to 920 million yuan, up 39.8% to 56.8%.
The merger of minority shareholders'rights and interests in Huaxing promotes profits. The acquisition of 10.04% stake in Huaxing Optoelectronics by TCL Communications, a company with significant year-on-year loss reduction, was completed at the end of December 17. At present, it directly holds 85.71% stake. We expect to increase net profit of about 120 million yuan in Q2 quarter. The cumulative investment of 18H1 Huaxing photoelectric T1 and T2 production lines in glass substrates increased by 7.49% year on year. According to WitsView data, the overall panel price in the 18Q2 quarter decreased by about 15% to 20% year on year, but the company's cost decline will hedge the impact of some panel price declines. We expect Huaxing Optoelectronics Q2 quarter profit ring is basically flat compared with Q1 quarter, and has a decline year on year. In addition, the company's T3 full screen production line will open up long-term growth space.
At the same time, we expect the overall loss of TCL communication business Q2 to drop to about 200 million yuan in the quarter. We expect that 18Q2 will affect the net profit of the attributable parent by about 100 million yuan, and the net profit of the attributable parent by about 120 million yuan in the first half of the year. In the first half of this year, TCL Group achieved a total LCD TV sales of 13.51 million units (including commercial displays), an increase of 37.8% over the same period of last year, including 9.383 million smart TV sales, an increase of 53.3% over the same period of last year. At the same time, thanks to the decrease of panel costs in the first half of the year, we expect gross domestic and foreign sales interest rates to increase significantly. We expect TCL Electronics to contribute about RMB 2 - 300 million net profit in the first half of the year. TCL Multimedia changed its name to TCL Electronics at the end of Q2 quarter and acquired 100% equity of TCL Commercial Information. The adjustment of the overall business structure of the group is steadily advancing, and the level of operation will continue to improve in the future. Recently, the company issued a global partnership and incentive plan to achieve the interests of senior management and core backbone, which is conducive to the long-term stable development of the group.
Investment proposal company business structure adjustment continued, Huaxing optoelectronic high-quality asset value highlighted. As production capacity climbs and costs fall, we expect panel prices to stabilize somewhat in Q3. Over the past 18 years, the company's domestic and foreign sales of color TV continued to grow, while the upgrading of high-end product structure led to the increase of average price and gross profit rate. Communications business operations have improved significantly, and we expect a substantial reduction in losses in 18 years. Based on the current panel price trend, we adjusted the net profit of the company from 40.1, 50.4 and 6.02 billion yuan to 37.5, 45.5 and 54.8 billion yuan in 18-20 years, and adjusted the growth rate of net profit from 50.4%, 25.2%, 19.5% to 40.6%, 21.6% and 20.4% in 18-20 years, corresponding to 10.3, 8.5 and 7.0 xPE in 18-20 years, respectively, to maintain the purchase rating.
Risk hints: business adjustment is not as expected; panel price fluctuation risk; macroeconomic fluctuation risk.

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