TCL Multimedia on track to hit its 15.2m units sales target

Its TV shipments reached a record 1.9m units in September.

Here's more from Maybank Kim Eng:

September sales update. TCLM’s TV shipments in September reached a record high of 1.9m units (up 44% YoY), underpinned by  robust growth both in China (up 37% YoY) and overseas markets (up 56% YoY).

For the first nine months of 2012, TCLM delivered a total of 10.8m units (up 52% YoY), exceeding 10m units. With a current achievement ratio of 71%, the company remains on track to hit its 2012 sales target of 15.2m units (+40%YoY). TCLM will report 3Q12 results on 26 October.

Domestic shipments growth on track. Riding on its extensive sales network in China (~30,000 POS in FY12F), TCLM’s TV shipments there climbed 37% YoY to 1.2m units in September, thanks to growing restocking demand among retailers ahead of the long Chinese holiday.  

Apart from that, escalating anti-Japanese sentiment during the period also resulted in leading Chinese TV makers like TCLM capturing market share from the Japanese TV brands.

Increasing proportion of high-end TVs in the sales mix. The sales contribution of 3D TVs rose to 31% (8M12: 27%),continuing to close the gap with leading players such as Skyworth, where 3D TVs make up 33% of sales on average. The sales proportion of smart TVs was 47% (8M12: 39%), boding well for TCLM’s overall profitability.

Looking into 4Q12, along with a continuous increase in the supply of large-sized LCD panels which are generally  equipped with more functionalities (like 3D features) from its parent, we expect ongoing improvements of product mix to high-end TV as well as better profitability.