In the first half of the year, the cost-side power was the most significant: the company's overall revenue in the first half of 2021 surged by 10.37% year-on-year to HK $349.3 billion (plus 60.1% year-on-year increase in TCL messaging), gross profit and parent profit increased by 57.6% and 12.29% to HK $5.57 billion and HK $1.04 billion respectively, deducting non-maternal profit decreased by 459% to HK $2.4 billion. The main reason for the decline in profitability is the sharp increase in the full range of upstream panels.

The global market is strong: the performance of overseas markets in the first half of the year is still healthy. According to the statistics of Omdia and Group Intelligence Research, in the first quarter and the first half of 2021, the company's TV volume increased by 1.5ppts and 1.0ppts respectively, ranking among the top three in the world. In the first half of the year, overseas sales increased by 22.2% compared with the same period last year, while overseas market revenue surged 61.4% to HK $166.6 billion. Among them, heavy market North American regional volume and sales volume increased by 3.8% and 31.6% respectively compared with the same period last year, Asia regional volume and sales volume increased by 83.2% and 140.8% respectively, and new market sales volume and sales increased by 27% and 74.9% respectively over the same period last year. The overall performance of the bank in China was poor, and the company's domestic output also decreased by 15.8% compared with the same period last year. However, through the high-end products and promotion of special injection products, ASP increased by 75.8%. In the first half of the year, China's market intelligence screen operating income still increased by 47.9% to 6.43 billion Hong Kong dollars. According to Zhongyi Kang pipeline data, the company ranked third and second respectively in terms of domestic market turnover and sales volume in the first half of the year.

The high growth of mutual trading services continued: the global revenue from mutual trading services increased by 3.83% to 7.2 billion Hong Kong dollars in the first half of the year compared with the same period last year. Among them, domestic mining revenue increased by 49.6% to 6.0 billion Hong Kong dollars over the same period last year, the number of domestic monthly active users and ARPU increased by 13.8% and 31.5% respectively compared with the same period last year. Although the base of overseas mutual transactions is still relatively small, the global cooperation between the company and overseas mutual transactions will continue, especially the deepening cooperation with Google in the global Android TV launch, and more revenue and profits are expected in the second half of the year and in the near future.

At HK $6.50, the company's global hardware business is still stable, and the high growth rate of mutual trade can be maintained. we believe that the certainty of long-term growth with the smart screen as the core is still high. However, in the short and mid-term examination, there is still a high expectation period for large-size screens, and the shortage of non-screen costs such as chips still has an impact on the cost side of the company's hardware services. we adjusted the company's deduction of non-profit-making discounts from 2021-2023 to HK $1.170 billion in 2021-2023, adjusted its previous 12 months to HK $6.50, and maintained a premium price-to-earnings ratio corresponding to 24-13-10, 2021-2023.

Hints: 1) domestic power market financial situation has changed; 2) overseas market performance is not as expected.