Shares of TCL ELECTRONICS (01070) climbed more than 4% in late trading, pushing the stock's year-to-date increase to nearly 70%. At the time of writing, the stock was trading at HKD 16.68, up 4.45%, with a turnover of HKD 127 million.

On the news front, the company recently announced a plan to acquire a 51% stake in the TCL air-conditioning business for HKD 5.61 billion. This move will give TCL ELECTRONICS controlling interest in the air-conditioning unit and bring it under the listed company's umbrella.

Huatai Securities noted that the target group sold more than 22 million air-conditioning units in 2025, generating revenue of approximately HKD 33.8 billion and net profit exceeding HKD 1.9 billion, highlighting strong profitability.

China Merchants Securities added that TCL ELECTRONICS was previously viewed purely as a television manufacturer, with its valuation weighed down by the cyclical nature of the TV industry. By integrating air-conditioning operations, the company transforms into a comprehensive platform combining both black and white goods, aligning its business structure with that of Midea and Haier. As a result, its valuation could shift from a TV discount to a more reasonable multiple for a diversified home appliance company.