TCL Technology Profit Jumps Over 67% in 2020 on Firming Panel Prices
What’s New: TCL Technology Group Corp. (000100.SZ), one of China’s three leading makers of display panels, reported its revenue rose 33.9% last year to 76.7 billion yuan ($11.8 billion). Its profit rose at double that rate, up 67.6% to about 4.4 billion yuan.
The company’s primary business unit, TCL CSOT, saw its revenue grow 37.6% to 46.8 billion yuan, accounting for more than 60% of the company’s total. Its profit more than doubled, rising 152% to 2.4 billion yuan.
The company said in its report that it benefited from climbing prices for large LCD display panels in the second half of the year.
Background: TCL is one of the world’s largest manufacturers of display panels, including both liquid crystal (LCDs) and light-emitting diode (LED) displays, which are a key component in many electronic devices from smartphones to PCs and televisions.
China has rapidly built up its industry over the last decade to move up the high-tech value chain, with TCL emerging as one of three major players, alongside BOE Technology and Tianma Microelectronics.
Partly as a result of China’s rapid buildup, the industry, which is already relatively cyclical, has suffered from oversupply in recent years, including the latest down-cycle in 2019. But prices stabilized and began to show healthy gains last year, helping TCL to improve its performance.
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