EQS-News: Oriental Patron Reiterates 'Buy' rating on TCL Electronics and Raises its Target Price to HK$5.96

EQS-News / 04/10/2019 / 09:57 UTC+8 
 
*Oriental Patron Reiterates "Buy" rating on TCL Electronics and Raises its 
Target Price to HK$5.96* 
 
Oriental Patron (OP) has issued a research report for TCL Electronics (TCLE, 
1070.HK). According to the report, thanks to the 32.5% YoY growth in 
overseas sales of TCL brand TV, and the 4-month consolidation of Falcon 
Internet business, TCL Electronics released 1H19 results with revenue up 8% 
YoY to HK$ 22.7 billion. Overall gross profit margin improved 1.1 ppts to 
16.4% in 1H19 due to the lowered panel price as well as improved product 
mix. TCLE continued to perform stringent control over operating expense, as 
a result, TCLE achieved 33% YoY increase in profit attributable to owners of 
the parent after deducting one-time non-operating gain to HK$554 million, 
beating OP expectations by 10.2%. 
 
OP revised up TCLE's FY19/20E adjusted net profit estimates by 1.1%/3.2% to 
HK$1,015 million/HK$1,226 million respectively. OP also revised up TCLE's 
FY19/20 gross profit margin by 0.8ppts/0.9ppts to 16.1%/16.0% respectively 
as high margin Internet business contribution increasing. 
 
TCL Electronics declared an interim dividend of HK10.56 cents, representing 
45% payout ratio after deducting one-time non-operating gain. Its target 
price was raised from HK$5.80 to HK$5.96. 
 
OP sees a potential re-evaluation opportunity of TCLE on its Internet 
business given its asset-light model, high margin, and robust growth 
potential in both China and overseas markets. 
 
Document: http://n.eqs.com/c/fncls.ssp?u=RPRWRUPBRU [1] 
Document title: Oriental Patron Reiterates 'Buy' rating on TCL Electronics 
and Raises its Target Price to HK$5.96 
 
04/10/2019 Dissemination of a Financial Press Release, transmitted by EQS 
Group. 
The issuer is solely responsible for the content of this announcement. 
 
Media archive at www.todayir.com 
 
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=562873b16cc016fd2442672f07d6afbd&application_id=885293&site_id=vwd&application_name=news 
 

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October 03, 2019 21:57 ET (01:57 GMT)