EQS-News / 04/10/2019 / 10:14 UTC+8 *Credit Suisse is Positive about TCL Electronics' Overseas Business and Overseas Internet Business Growth* Credit Suisse (CS) issued a quick take on TCL Electronics' (the Company, 1070.HK) interim results. TCL Electronics' overseas TCL TV shipments grew 50% year-on-year to 7.1 mn sets in 1H19. Revenue grew 32% year-on-year. Compared with other TV brands such as Samsung, the collaboration with Roku and Google makes TCL brand TVs more attractive in the US and Europe markets. The Company's Mexico and Vietnam factories' capacities are sufficient to supply the US market. Besides the US, India is another country that has been raising tariff to promote local manufacturing. Considering India's annual 12 million TV unit market size, TCL Electronics has been building a factory there and aims to expand capacity to 6 million TV units. Despite the intensified competition in domestic market, TCL brand TV shipments grew by 7% in 1H19. Different from Xiaomi's focusing on the lower-end segment, TCL Electronics' strategy is closer to Huawei's strategy. It promotes better-spec TVs targeting consumers with higher consumption power. Internet revenue from Falcon Network Technology grew 63% YoY to HK$250 million in 1H19. Further, net margin improved from 20% in 2018 to 30.7% in 1H19. Internet new revenue from the collaboration with Roku and Google began with HK$96 million in 1H19. It expects good growth momentum from overseas Internet business with Roku and Google with the TV shipment growth in North America, South America and Europe. Document: http://n.eqs.com/c/fncls.ssp?u=YSOACPCRTQ [1] Document title: Credit Suisse is Positive about TCL Electronics' Overseas Business and Overseas Internet Business Growth 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=8ddc02821348e91ffc2e70c361baf02f&application_id=885295&site_id=vwd&application_name=news
(END) Dow Jones Newswires
October 03, 2019 22:14 ET (02:14 GMT)
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