TCL Electronics (1070) H2 2024 earnings summary

Executive summary

• Revenue grew 25.7% year-on-year to HK$99.32 billion, driven by global sales, mid-to-high-end strategy, and innovative businesses.

• Profit attributable to owners rose 136.6% to HK$1,759 million, with adjusted profit doubling to HK$1,606 million.

• Mini LED TV business revenue surged 104.4% year-over-year, with global shipment up 194.5%.

• Operational efficiencies improved, with selling and distribution expense ratio at 7.6% and administrative expense ratio at 4.2%.

• Maintained a 50% dividend payout ratio, proposing a final dividend of HK31.80 cents per share.

Financial highlights

• Gross profit increased 13.8% to HK$15.55 billion; gross profit margin was 15.7%, down 1.6 percentage points year-over-year.

• Innovative business revenue rose 44.9% to HK$27.01 billion, with photovoltaic business revenue up 104.4% to HK$12.87 billion.

• Inventory turnover days improved to 65; net gearing ratio remained at 0%.

• Basic EPS was HK72.39 cents, up from HK30.65 cents in 2023.

• R&D costs reached HK$2,335 million, up 0.3%.

Outlook and guidance

• Focus on large-size displays, Mini LED strategies, and expansion in North America and overseas markets.

• Plans to strengthen core capacities, invest in R&D, and pursue high-end product breakthroughs in 2025.

• Commitment to sustainable development, operational efficiency, and global competitiveness.

• Expansion in innovative areas like photovoltaic, AR/XR smart glasses, and AI companion robots to drive new growth.

• Aims for net profit growth to outpace gross profit and revenue.