The company released the 2024 semi-annual report:

24H1 revenue of 45.5 billion HKD (+30%), attributable to mother 0.65 billion (+147%), adjusted to mother (not deducted) 6.

5.4 billion (+147%) The company previously issued a forecast. The adjusted growth rate is expected to be 130-160%, and actual performance is at the center of the forecast.

Revenue: In addition to the slightly slower growth rate of Internet revenue, the core TV business met expectations, and businesses such as white power & photovoltaics exceeded expectations 2024H1 revenue split as follows:

① TV (large display): global sales +23%, sales +9%, average price +13%; domestic sales +21%, sales +5%, average price +15%; overseas sales +24%, sales +10%, average price +4%. The logic of domestic price increases and overseas sales is smooth.

② Mobile & Tablet (small to medium display): +11%. This year, the mobile phone business is required to be high-end, with volume reductions and price increases. As a result, mobile phone revenue remains flat, and tablets are growing normally.

③ White power distribution (all categories of marketing): Channel collaboration, black tape and white electricity growth, 24H1 revenue +28%.

④ PV: Channel promotion drives 24H1 revenue +213%.

⑤ Internet: +9%, domestic sales are under pressure from the State Administration of Radio, Film and Television restricts multiple charges, domestic sales -2%, and export sales +51%.

The profitability of the mobile phone and tablet business has improved, and the gross profit of a single TV station has decreased but the overall gross profit amount has increased ① Mobile & tablet business: This business has lost money in the past. 24H1 optimized low-end businesses and regions through the mobile phone structure upgrade to improve profitability.

② TV sector: Domestic sales price increases are lower than panel cost increases, and export sales focus on scale. The overall gross profit of a single TV station was 351 yuan (overall YOY -0.5%, domestic sales +2.4%, export sales -1.4%), but sales volume +9% led to an increase in TV gross profit.

Investment advice: The pullback is sufficient, the growth logic continues. It is recommended to “buy” ① Under short-term panel pressure, profits come from fee control, and the cost contribution exceeds the gross profit impact, reflecting the continuous improvement of the company's operations.

② In the medium term, we continue to be optimistic that the value of large screen+miniled will rise to the main line, and increase gross profit as the core of value creation. Year 24 was the first year of the share award program, and growth momentum remained strong.

③ The long-term overseas logic continues. The company has gradually entered the era of high-end overseas travel, facing competition with Samsung and LG. The company is expected to take the lead with high quality and cost ratio products, and go overseas to enter the stage of profit release.

We maintain our profit forecast. We expect net profit to be 1.35/1.68/2.05 billion HKD (YOY +82%, 24%, 22%, corresponding PE of 9, 7, 6X) for 24-26. The market value of the company was fully adjusted in the early stages, and the margin of safety was high, and a “buy rating” was given.

Risk warning: Increased domestic competition, increased overseas competition, continued increase in panel costs, foreign exchange fluctuations, and risks of untimely updates to research information.