TCL Electronics' stock experienced a significant intraday plummet of 6.19% on Tuesday, as selling pressure intensified during the trading session.

The sharp decline appears to be driven by profit-taking activity, as the stock price had significantly exceeded institutional target prices, creating a notable valuation premium. According to market analysis, CICC maintained its Outperform rating but raised its target price only to 11.8 HKD, while the stock was trading around 14.63 HKD - approximately 24% above this target.

The stock had previously rallied to a 52-week high with substantial year-to-date gains, supported by strong Q1 results that showed earnings surging 140% year-over-year. However, the divergence between the current market price and broker targets prompted investors to lock in profits, leading to the sell-off.