Technological breakthroughs and global layout resonance, TCL Electronics sees double growth in volume and price in Q1, achieving a strong start

On April 27, TCL ELECTRONICS (01070) released its global television sales data for the first quarter of 2025. The data shows that in Q1 2025, TCL ELECTRONICS' global television shipments reached 6.51 million units, a year-on-year increase of 11.4%, with sales revenue soaring 22.3% year-on-year, achieving both volume and price growth, continuing the strong momentum of its "mid-to-high-end + large screen" strategy. This performance not only validates the synergistic effect of its global layout and technology-driven approach but also highlights its leading position in structural opportunities in the high-end market.

From a financial perspective, since TCL ELECTRONICS announced its 2024 performance, the market has reacted strongly, believing that its performance development exceeded expectations. According to Wind data, as of the first quarter of 2025, mainland public funds held TCL ELECTRONICS shares worth 785 million yuan, accounting for 3.60% of the circulating shares, a year-on-year increase of 189.25%. With the increase in public fund holdings, TCL ELECTRONICS' stock price has also surged, with a cumulative increase of 52.28% this year, significantly outperforming the Hang Seng Index, and the stock price has reached a nearly 20-year high.

In the view of Zhitong Finance APP, investors are increasing their buying power for TCL ELECTRONICS stocks, focusing on the company's long-term winning ability in global competition.

Deepening Global Strategy, Multiple Regional Markets Flourishing

In 2016, TCL ELECTRONICS shifted its strategic focus to overseas markets, gradually enhancing brand influence through local television service providers. In its global layout, TCL ELECTRONICS insists on localized arrangements in various aspects such as organizational structure, supply chain, channels, and marketing to achieve global leadership.

In terms of organizational structure, in 2023, TCL ELECTRONICS completed structural optimization adjustments, splitting into six major marketing headquarters: China, North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa, reducing decision-making chains, improving the efficiency of differentiated management, and enhancing the company's end-to-end operational capabilities globally.

In terms of production capacity and supply chain, TCL ELECTRONICS has established production bases globally, with bases in Vietnam and Mexico serving North America and the Asia-Pacific region, while Poland, Brazil, and Pakistan serve Europe, Latin America, and the Middle East and Africa, facilitating quick delivery.

In terms of channels and marketing, the company focuses on key global regions and channels, with its business covering over 95% of the top 50 global channels; at the same time, TCL ELECTRONICS insists on localizing its global brand strategy, enhancing the global reputation of the TCL brand through precise marketing in various fields such as sports, esports, film and television, and exhibitions, supporting the continuous expansion of its global business scale. Additionally, TCL ELECTRONICS' precise layout in sports marketing, strategic event sponsorship, and systematic construction of a global customer management system has significantly improved global marketing effectiveness and promoted performance in international markets.

In Q1 2025, the "value" of TCL ELECTRONICS' global strategy is still on the rise, and the global operational system is further releasing its effectiveness.

In February 2025, TCL ELECTRONICS officially announced its status as a global partner of the Olympics, providing comprehensive technical, product, and professional service support for the Olympic Games in the fields of television, air conditioning, refrigerators, washing machines, and other smart terminals, further enhancing its global brand awareness and influence In the first quarter of 2025, TCL TV's international market shipments increased by 11.6% year-on-year, with large-size TV shipments experiencing rapid growth. Shipments of TCL TVs sized 65 inches and above increased by 48.5% year-on-year, while shipments of TCL TVs sized 75 inches and above surged by 86.8% year-on-year.

Regionally, the European market achieved rapid breakthroughs through precise regional channel network layouts with a "one country, one policy" approach, resulting in a year-on-year increase of 15.8% in TCL TV shipments in the first quarter. Notably, shipments of TCL TVs sized 75 inches and above skyrocketed by 74.4% year-on-year. In terms of market share, TCL ranked among the top two in retail sales in France, Poland, and Sweden, and among the top three in Spain, Romania, Greece, and the Czech Republic.

In emerging markets, the company further improved its sports marketing matrix in markets including Asia-Pacific, Latin America, and the Middle East and Africa, accelerating enhancements in terminal and retail channels. In the first quarter, TCL TV shipments in these markets grew by 18.8% year-on-year, with shipments of TCL TVs sized 75 inches and above doubling with a year-on-year increase of 100.5%. In terms of market share, Australia and the Philippines ranked first in retail sales; Brazil, Pakistan, Saudi Arabia, Thailand, and Myanmar ranked in the top two; and Argentina, Vietnam, and South Korea ranked third.

In the North American market, TCL Electronics focused more on breakthroughs in mid-to-high-end channels such as BestBuy, actively adjusting its product structure and increasing the shipment proportion of large-size and high-end TV products. Thanks to the implementation of the mid-to-high-end strategy, the trend towards larger screens is significant, with shipments of TCL TVs sized 75 inches and above in North America increasing by 79.3% year-on-year, and the shipment proportion also rising by 5.8 percentage points to 12.5%. TCL TVs continue to hold a strong position among the top two in retail market share in the U.S.

Having been overseas for over 25 years, TCL Electronics has built a competitive advantage through globalization, achieving a qualitative change from scale expansion to value enhancement in the global TV industry landscape through a dual-track approach of "mid-to-high-end market breakthroughs + localized operations." The data from the first quarter of 2025 confirms the effectiveness of its strategy, providing a vivid example for the global smart technology industry.

The "Mid-to-High-End + Large Screen" Strategy Precisely Captures Market Trends

According to Zhitong Finance APP, benefiting from the continued stimulus of national subsidies, the overall retail volume of the domestic TV market in the first quarter of this year saw a narrowing decline, while structural differentiation became more pronounced—Mini LED exploded, and large-size TVs became more widespread.

According to data from Zhongyikang's all-channel report, the overall retail volume of the domestic TV industry in the first quarter slightly declined by 3.0% compared to the same period last year, but the overall market retail volume of Mini LED TVs increased by more than three times year-on-year, with penetration rates rising from 4.4% last year to 20.4% this year, achieving a significant explosion.

TCL Electronics is one of the earliest manufacturers to bet on Mini LED TVs globally. In Q1, multiple new products covered the mid-to-high-end market, with the company's Mini LED TV shipments globally surging by 232.9% to 550,000 units in the first quarter. Notably, shipments of Mini LED TVs in the domestic market increased by 341.1% year-on-year, with the shipment proportion significantly rising by 13.2 percentage points to 17.6% TCL Electronics' high-end products are gaining traction, thanks to the company's continuous investment in research and development in display technology, application scenarios, and artificial intelligence. Its launched Mini LED "Wànxiàng Fēnqū" technology can achieve a "one area controls multiple areas" light control effect, presenting a ten-thousand-level picture quality with a thousand-level partition. In addition, TCL Electronics is actively collaborating with upstream and downstream enterprises in the industry chain to jointly promote technological innovation and application, further enhancing the core competitiveness of its products.

In the view of Zhitong Finance APP, TCL Electronics' "mid-to-high-end + large screen" product strategy effectively frees its products from low-price, homogenized competition, enhances profitability, and is beneficial for the company to create more resources to deepen user experience and build a mental brand.

Conclusion

Against the backdrop of slowing overall industry growth, TCL Electronics is reshaping the global television industry competitive landscape with its structural high-end breakthroughs and globalization operations as dual engines. Its "good start" performance in the first quarter of 2025 is not only a stage victory declaration but also marks that this technology company, armed with cutting-edge technologies like Mini LED and shielded by intelligent manufacturing efficiency, has entered the critical phase of its global campaign.

It is noteworthy that the company's recently launched equity incentive plan is equivalent to bringing a "shot in the arm" to the market, anchoring future profit targets: based on 2024, the adjusted net profit growth trigger values for 2025-2027 are set at 25%/50%/75%, with target values aiming for a continuous leap of 45%/75%/100%, injecting certainty and momentum into the long-term strategy of "technological breakthrough + market expansion" through deep binding of core team interests.

This strategic layout coincides with the golden window period for the global display industry upgrade. As consumption upgrades accelerate the trend towards larger screens, TCL Electronics is leveraging its first-mover advantage in quantum dot and Mini LED technology matrices, combined with a multi-dimensional channel network established in North America, Europe, and emerging markets, to continuously pry open high-end market share. The enthusiastic feedback from the capital market confirms this development logic; since the company announced its equity incentive on April 9, 2025, TCL Electronics' stock price has risen by as much as 45.41%. Institutions like CITIC Securities, based on the "technology iteration + globalization operation" dual-driven model, emphasize the profit elasticity space brought by the increase in Mini LED penetration rate under the expectation of accelerated display technology upgrades due to national subsidy policies, giving a "buy" rating with multiple endorsements