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TCL Technology’s second-quarter results far exceeded expectations, panel business profits contributed to core growth, and photovoltaic losses continued to narrow (UBS)

2026-07-16·ima-daily5min-0716-36-14b07ba6ef

Street Signal | TCL Technology’s second-quarter results far exceeded expectations, panel business profits contributed to core growth, and photovoltaic losses continued to narrow (UBS)

TCL Technology's performance in the second quarter of 2026 exceeded expectations, and net profit attributable to the parent company achieved substantial growth both year-on-year and quarter-on-quarter. The key contribution came from the panel business, while losses in the photovoltaic business narrowed month-on-month.

The company also plans to acquire a 45% stake in TCL CSOT Guangzhou. UBS expects that the panel business will maintain a stable profit contribution, the photovoltaic business will continue to reduce losses, and net profit will achieve a 14% month-on-month growth in the second half of the year.

This is in contrast to the market's previous concerns about the peak of the panel cycle, and the performance proves the resilience of panel profitability. Key data: Net profit attributable to the parent company increased significantly year-on-year and month-on-month; net profit in the second half of the year increased by 14% month-on-month.

The logic behind it is the structural improvement of the panel business and the clearing of the photovoltaic business. At present, some of the good news has been digested, but the sustained profit recovery that exceeds expectations has not yet been fully priced in.

One-sentence conclusion: TCL Technology is shifting from a single-engine drive for panels to a two-wheel drive of "steady panel growth + photovoltaic loss reduction". The profit turning point has been established, and there is a high probability of continued month-on-month improvement in the second half of the year.

Positive/negative: Positive for TCL Technology (000100). The overall prosperity of the panel sector is supported. Price in situation: Q2 performance has exceeded expectations in part, but the expected 14% month-on-month growth in the second half and the photovoltaic loss reduction trend have not yet been fully factored in. Catalysts:

1) TCL CSOT Guangzhou’s 45% equity acquisition progress;

2) Q3 panel price trends;

3) Photovoltaic business losses further narrowed.

Full text

TCL Technology’s second-quarter results far exceeded expectations, panel business profits contributed to core growth, and photovoltaic losses continued to narrow (UBS)

TCL Technology's performance in the second quarter of 2026 exceeded expectations, and net profit attributable to the parent company achieved substantial growth both year-on-year and quarter-on-quarter. The key contribution came from the panel business, while losses in the photovoltaic business narrowed month-on-month. The company also plans to acquire a 45% stake in TCL CSOT Guangzhou. UBS expects that the panel business will maintain a stable profit contribution, the photovoltaic business will continue to reduce losses, and net profit will achieve a 14% month-on-month growth in the second half of the year. This is in contrast to the market's previous concerns about the peak of the panel cycle, and the performance proves the resilience of panel profitability. Key data: Net profit attributable to the parent company increased significantly year-on-year and month-on-month; net profit in the second half of the year increased by 14% month-on-month. The logic behind it is the structural improvement of the panel business and the clearing of the photovoltaic business. At present, some of the good news has been digested, but the sustained profit recovery that exceeds expectations has not yet been fully priced in. One-sentence conclusion: TCL Technology is shifting from a single-engine drive for panels to a two-wheel drive of "steady panel growth + photovoltaic loss reduction". The profit turning point has been established, and there is a high probability of continued month-on-month improvement in the second half of the year. Positive/negative: Positive for TCL Technology (000100). The overall prosperity of the panel sector is supported. Price in situation: Q2 performance has exceeded expectations in part, but the expected 14% month-on-month growth in the second half and the photovoltaic loss reduction trend have not yet been fully factored in. Catalysts: 1) TCL CSOT Guangzhou’s 45% equity acquisition progress; 2) Q3 panel price trends; 3) Photovoltaic business losses further narrowed.

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