Industry leader Tcl Technology Group Corporation(000100) ( Tcl Technology Group Corporation(000100) . SZ) had a net profit of more than 10 billion last year.
Tcl Technology Group Corporation(000100) released the performance express on the evening of March 10. The company achieved an operating revenue of 163378 billion yuan in 2021, a year-on-year increase of 113.1%; The net profit attributable to shareholders of listed companies was 10.062 billion yuan, a year-on-year increase of 129.3%.
Tcl Technology Group Corporation(000100) performance growth mainly comes from the simultaneous rise in volume and price of semiconductor display panel (hereinafter referred to as panel) products. The downstream of the panel is TV, display, mobile phone and other products. In 2021, the demand for the downstream of the panel broke out, and Tcl Technology Group Corporation(000100) panel entered a rapid price rise cycle, and the price rise continued to exceed the market expectation.
Tcl Technology Group Corporation(000100) also said that the shipping area of semiconductor display business, average price of main products and product profit increased significantly year-on-year, and the optimization of business portfolio and customer structure further improved the contribution of product revenue.
However, affected by the fluctuation of supply chain and the adjustment of market demand in some regions of the world, Tcl Technology Group Corporation(000100) main large panel prices have been corrected since the third quarter of 2021. According to the data, the price of 55 inch panel reached the highest point in July 2021, about US $227 / piece, and then fluctuated downward. The latest price was US $110 / piece, less than half of the high point.
Figure: price change of 55 inch panel since the beginning of 2020
The impact of panel price change on Tcl Technology Group Corporation(000100) can also be seen from the performance of each quarter. In the first half of 2021, the company’s revenue and net profit increased significantly, and the growth rate of net profit far exceeded the growth rate of revenue. The company enjoyed the dividend of product price increase; However, in the third and fourth quarters of 2021, on the premise of no significant change in revenue, the net profit halved for two consecutive quarters, and the price increase dividend of products subsided.
Tcl Technology Group Corporation(000100) ‘s small and medium-sized panel business may face losses. In the first three quarters of 2021, the company’s small and medium-sized panels achieved an operating revenue of 16.97 billion yuan, an increase of 41% year-on-year, but the net profit was – 780 million yuan, and the loss range was expanded compared with the same period in 2020.
Figure: Tcl Technology Group Corporation(000100) first three quarters semiconductor display business composition figure source: Tcl Technology Group Corporation(000100) third quarter report
However, the revenue and net profit data of small and medium-sized panels have not been disclosed, and the specific situation still needs to wait for the Tcl Technology Group Corporation(000100) annual report.
Throughout the year, Tcl Technology Group Corporation(000100) still made a lot of money by virtue of the bonus of panel price rise. According to the performance express, the net profit of the company’s semiconductor display business increased by about 340% year-on-year in 2021. The company also said that the improvement of the long-term competition pattern of the semiconductor display industry has improved the overall profit margin of the industry, and the average price of products is still significantly higher than that in the same period of last year.
In addition to its own business, Tianjin Zhonghuan Semiconductor Co.Ltd(002129) ( Tianjin Zhonghuan Semiconductor Co.Ltd(002129) . SZ) has also become an important growth point for Tcl Technology Group Corporation(000100) performance.
Tianjin Zhonghuan Semiconductor Co.Ltd(002129) was included in the scope of the company’s consolidated statements in the fourth quarter of 2020. Benefiting from the high prospect of the photovoltaic industry in 2021, the revenue and profit of its semiconductor photovoltaic and semiconductor materials business increased significantly compared with that in 2020.
Tianjin Zhonghuan Semiconductor Co.Ltd(002129) also released the performance express on the evening of March 10. In 2021, the company achieved a total operating revenue of 41.025 billion yuan, a year-on-year increase of 115.28%; The net profit attributable to shareholders of listed companies was 4.020 billion yuan, a year-on-year increase of 269.14%, and the profitability increased significantly.
Judging from the stock price performance, Tcl Technology Group Corporation(000100) stock price has been falling endlessly recently and has hit a new low since June 2020.
