TCL Group (000100): The advent of the UHD era, China Star is expected to enter the Huawei TV supply chain
Event: Ministry of Industry and Information Technology and other issues issued the “Ultra HD Video Industry Development Action Plan (2019-2022)” 1.
The plan was introduced, ushering in the era of the ultra-high-definition video. The content of this plan clearly proposed the “4k first, taking into account 8k” general technical route and the full expansion of 4k TV in 2022. The number of ultra-high-definition users reached 200 million, and the scale of the 西安耍耍网 ultra-high-definition industry reached 4 trillionThe goal of the plan is to break through the localization of core devices, including chips, devices, panels, and cameras. At the same time, it also proposes to explore the application of 5G in ultra-high-definition video transmission, focusing on the development of TV, culture, education, security, and medical applications.
We believe that the proposed plan will have a profound impact on the domestic ultra-high-definition video ecosystem, and the domestic video service ecosystem has entered the ultra-high-definition era.
Huawei is expected to release TV products in April. Huaxing Optoelectronics is expected to enter the supply chain’s “Securities Daily”. According to the judgment of corresponding experts, Huawei TV products are expected to be released in April. We believe 西安夜网 Huawei’s technological advantages in 5G, chips, and cloud computingIt will bring major breakthroughs and changes in the product form of Huawei TV and usher in an industry inflection point.
With the launch of the Huaxing Optoelectronics G11 belt line, we expect Huaxing to rapidly increase its competitiveness in the field of ultra-large LCD screens and is expected to enter the Huawei TV supply chain.
32 / 43-inch LCD is expected to show a bottom reversal trend. Qunzhi Consulting predicts that the price of 32 / 43-inch LCD will increase by 1 US dollar in March, which is in line with our previous judgment on the bottom reversal of LCD prices. We believe that global LCD panel prices will appear in 2019.32 / 43-inch structural upward price trend: (1) large-screen social trends will drive a new cycle of TV replacement, (2) the absolute value of the current price of 32 / 43-inch panels is very close to the cash cost price of Korean factories, (3)Korean plants ‘LCD production capacity is gradually withdrawing. (4) Subsequent supplementary LCD production lines are dominated by high-generation lines, which have a relative impact on 32 / 43-inch supply. (5) The trade environment has eased, and inventory demand has accelerated and bottomed out.
US $ 600 billion in equipment, mobile phones, televisions and other terminal businesses, focusing on the semiconductor display industry. TCL Group’s existing business covers three areas: semiconductor display, smart terminal products and emerging businesses. According to the company’s announcement on December 22, 2018, the company intends to47.
The 6 million cash consideration puts out related assets such as home appliances, mobile phones and TV terminals, and concentrates resources to develop the semiconductor display industry.
Investment recommendations We maintain the company’s profit forecast and target estimates: (1) Before the reorganization, the net profit attributable to the mother in 19-20 is estimated to be 41.
3 trillion; (2) After the reorganization, it is estimated that the net profit to be returned to the mother in 19-20 will be 42/52 trillion respectively. Maintain the BUY rating.
Risk warning: terminal demand is less than expected; risk of underlying asset guarantee; restructuring suspension or termination risk; Huaxing’s entry into Huawei TV supply chain is less than expected risk;