This article only represents the author's own views.
Household appliance stocks have long become yesterday’s news, fading into market obscurity with their lack of compelling growth stories. Yet TCL Electronics Holdings Ltd. (1070.HK), a top player in displays and TVs, recently found a place in the investor spotlight with an upbeat earnings forecast, breathing new life into its shares. The stock surged nearly 14% on Jan. 19, the day after the announcement, extending gains that have seen it rally 83% over the last 52 weeks.
According to its announcement, TCL Electronics expects to report its adjusted net profit last year ranged between HK$2.33 billion ($300 million) and HK$2.57 billion, representing a year-on-year increase of 45% to 60%. It attributed the growth primarily to its globalization and focus on premium products. It highlighted its achievements in the large-sized display segment, where it maintains a dominant position, and said high profitability from its internet services also helped to drive the strong profit growth.