TCL Technology — The Turning Point Is Near (Valuation Not Expensive)

TCL Technology (000100.SZ) has evolved from a single display panel manufacturer into a global group focused on two core high-tech industries: semiconductor displays and new energy photovoltaic. Its investment value is shifting from cyclical fluctuations to technological growth attributes, mainly reflected in the establishment of performance turning points, a dual-driven growth logic, and relatively low valuation levels.

• Core Business Analysis

TCL Technology’s business structure is supported by two main pillars, with the semiconductor display business being the current main growth driver.

1. Semiconductor Display Business (Core Growth Engine)

As the company’s primary profit source, this business is led by subsidiary TCL China Star Optoelectronics Technology (CSOT), which holds an important position in the global panel industry.

Strong performance: In the first three quarters of 2025, TCL CSOT achieved a net profit of 6.1 billion yuan, a year-on-year increase of 53.5%, with continuous improvement in profitability.

Leading in large-size segments: In large-size panels such as TVs and commercial displays, market share has steadily increased to 25%, ranking among the top globally. The company has led the trend toward larger and higher-end TV panels, with 65-inch and 75-inch products holding the top global market share.

Growth in small and medium sizes: The small and medium-sized display business has become a key growth engine.

IT sector: The shipment volume of monitor panels ranks second globally, and the e-sports monitor market share is first worldwide; laptop sales are growing rapidly.

Mobile and automotive: Shipment volume and market share of mobile LCD panels continue to rise; automotive display panel shipments increased by 47% year-on-year, with a market share reaching 11%.

Forward-looking technology positioning: OLED: Flexible OLED smartphones rank fourth globally in shipment volume. Printed OLED: The company has started construction of the world’s first high-generation printed OLED production line, which is expected to surpass current display technologies in the next generation.

2. New Energy Photovoltaic Business (Important Strategic Pillar)

Led by subsidiary TCL Zhonghuan, this is a leading enterprise in the global silicon wafer industry.

Industry position: The company’s export market share of photovoltaic silicon wafers ranks first worldwide, with the highest silicon wafer shipments globally in 2024.

Current status: Despite facing challenges in 2024 due to industry cycles, its leading position and scale advantages remain significant, making it an important part of the company’s diversified layout.

• Investment Value Core Logic

Based on current market analysis, TCL Technology’s investment value mainly lies in the following three aspects:

1. Performance turning point established, fundamentals continue to improve

Profitability surge: The company’s performance has emerged from a trough. In the first three quarters of 2025, net profit attributable to parent company reached 3.047 billion yuan, a year-on-year increase of 99.75%; net profit excluding non-recurring gains and losses surged by 233.33%, indicating a strong recovery in core business.

Cash flow abundant: Operating cash flow in the first three quarters of 2025 reached 33.84 billion yuan, a year-on-year increase of 53.8%, providing solid support for technological R&D and capacity expansion.

2. Clear growth logic, dual-driven future

Semiconductor displays: Industry supply-demand pattern optimization, bargaining power of leading manufacturers enhanced. TCL CSOT leverages advantages in large-size panels and rapid breakthroughs in small and medium sizes to form a resonant growth pattern driven by cycles.

Global layout: Progress in overseas localization, such as the upcoming mass production of a new module factory in Vietnam and doubled sales in the Indian market, opening new growth space for the company.

3. Attractive valuation, widespread institutional optimism

Low valuation: Compared to the historical industry PE valuation center of 15-20 times, many institutions forecast TCL Technology’s 2026 forward PE at only about 10-14 times, leaving significant room for valuation recovery.

Positive institutional ratings: Recently, multiple institutions including China Post Securities and Huatai Securities have given TCL Technology “Buy” or “Hold” ratings, optimistic about its long-term development potential.