Caitong Securities: Large-size and high-end MiniLED promotes high-end domestic TVs to deepen channel layout in North America

The Zhitong Finance App learned that Caitong Securities released a research report saying that the trend of large-scale TV in the North American TV market continues, and online channels have become an important sales scenario, providing a window for domestic brands with high product strength to increase their share. TCL and Hisense have developed advantages in dimensions such as large size, high refresh rate, mini LED penetration, and advanced backlight technology, and are moving towards high-end technology. As the advantages of online products are replicated to offline channels, domestic brands are expected to achieve channel penetration and a simultaneous increase in global share and average product price. It is recommended to focus on leading domestic black electronics companies TCL Electronics (01070) and Hisense Video (600060.SH).

The main views of Caitong Securities are as follows:

Best Buy focuses on the high-end, Walmart has balanced coverage, and Amazon focuses on the entry-level market

BestBuy focuses on the high-end market, with products above $1,500, 55 inches and above, and Mini LED accounting for 35.99%/81.47%/36.85% respectively; Walmart's price bands account for 20.51% to 28.57%, focusing on mainstream big screens; Amazon's under $800 and LED products account for 54.60%/39.05%, respectively, positioning the entry market. On the sales side, the best-selling products from the three channels are concentrated below $800, and are mainly small to medium sized, LED, and cost-effective QLED.

Domestic brands have caught up in multiple dimensions

Samsung and LG have 355 and 263 SKUs respectively, ahead of TCL and Hisense's 170 and 133 models; Samsung and LG account for 38.03% and 35.74% of products above $1,500, respectively, and TCL is 34.71%, and the high-end product structure is close to overseas brands. In terms of size, TCL and Hisense's 97-inch or larger products account for 14.81% and 13.27% respectively, exceeding Samsung and LG, which both account for single digits; in terms of technology, TCL and Hisense's mini LED-related products both account for 50%, and domestic brands have formed an advantage in terms of large screens and advanced backlighting technology.

Online advantages and high-end products are expected to be replicated offline: in the QLED field and miniLED field, domestic brands have outstanding cost performance

On this basis, domestic brands have further deployed advanced technologies such as QD-mini LED, SQDmini LED, and RGBmini LED. Among them, the TCLRGBmini LED price limit has reached about 25,000 US dollars. With the introduction of strong product strength and high-end products to offline channels, the large screen, high refresh rate, and high-end Mini LED advantages formed by domestic brands online are expected to be transformed into offline competitiveness, driving sales growth, channel penetration, and increased market share and product price centers.

Risk warning: risk that demand recovery is weaker than expected, risk of raw material price fluctuations, risk of technology iteration falling short of expectations, risk of overseas new product launches falling short of expectations