Recently, Shiyuan Electronic Technology (002841), Hikvision (002415), and TCL Electronics (01070.HK) released their third-quarter results, with all three companies achieving growth in performance.
▋ Shiyuan Electronic Technology: Q3 Revenue and Net Profit Hit Record Highs
On October 21, Shiyuan Electronic Technology disclosed its third-quarter report for 2026.
- In the first three quarters, the company achieved an operating revenue of CNY 25.252 billion, a year-on-year increase of 39.61%, surpassing the full-year level of 2025; the net profit attributable to the parent company reached CNY 2.477 billion, a year-on-year increase of 185.63%; the net profit attributable to the parent company after deducting non-recurring gains and losses was CNY 1.977 billion, a year-on-year increase of 189.37%.
In the third quarter alone, Shiyuan achieved an operating revenue of CNY 10.863 billion and a net profit attributable to the parent company after deducting non-recurring gains and losses of CNY 995 million, both hitting record highs for a single quarter in history.
Combined with the semi-annual report, the liquid crystal display (LCD) main control board business remains the core of Shiyuan's operations, maintaining the world's No. 1 shipment volume for many consecutive years. The home appliance controller business has covered the top five global white goods brands by revenue. In the first half of 2026, home appliance controllers and LCD main control boards together contributed over 40% of the total revenue.
In terms of component business, the automotive electronics and power electronics segments showed outstanding growth. Specifically, the revenue from the automotive electronics business surged by 371.48% year-on-year in the first half of the year, with designated projects such as cockpit, car lighting, and in-vehicle audio controllers being delivered sequentially and entering the mass production stage.
The power electronics business focuses on residential energy storage inverters and UPS (Uninterruptible Power Supply), expanding by relying on overseas demand and the implementation of key customer projects. In the terminal business segment, educational AI, the global expansion of the MAXHUB brand, and industrial computing business are key highlights.
The domestic market share of Seewo educational tablets increased to 45.5% in the first half of the year, and the business focus is evolving towards integrated smart classroom solutions that synergize computing power terminal applications.
MAXHUB's overseas revenue increased by 50.42% year-on-year in the first half of the year. Relying on ecosystem synergy with partners such as Microsoft, Zoom, Intel, and Tencent Tianlai, as well as the construction of localized service capabilities, it continues to steadily refine its overseas operation system. The SPESTECH brand has entered the industrial control and edge computing tracks; although its current scale is small, its development path is clear.
▋ Hikvision: Gross Profit Increases by CNY 6.916 Billion in the First Three Quarters
Recently, Hikvision released its performance for the first three quarters, with details as follows:
- In the first three quarters, the company achieved an operating revenue of CNY 74.044 billion, a year-on-year increase of 12.60%; the net profit attributable to shareholders of the listed company was CNY 12.911 billion, a year-on-year increase of 38.55%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was CNY 12.696 billion, a year-on-year increase of 41.52%.
Among them, the third quarter achieved an operating revenue of CNY 27.222 billion, a year-on-year increase of 13.71%; the net profit attributable to shareholders of the listed company was CNY 5.016 billion, a year-on-year increase of 36.97%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was CNY 4.984 billion, a year-on-year increase of 43.13%. In an investor Q&A session, Hikvision stated that its gross profit margin was 49.05%, and the gross profit in the first three quarters increased by CNY 6.916 billion year-on-year, while the three operating expenses only increased by CNY 916 million. The operating leverage drove the high growth in profit, and innovative businesses are the core source of gross profit increment.
From the perspective of the overall market, the external environment presents both opportunities and challenges: the AI transformation forces steady iteration in R&D, products, inventory, and operations; domestic demand shows a K-shaped divergence, mainly driven by stock replacement with weak recovery; overseas geopolitical risks persist, and the appreciation of the RMB against the US dollar and the euro in the third quarter also led to Hikvision's exchange losses in the third quarter being slightly higher than the same period last year (with an absolute value not exceeding CNY 200 million). In the medium to long term, Hikvision focuses on scenario digitalization and the Guanlan large model.
In the era of small models, applications are implemented through face and license plate recognition; large models broaden application boundaries with multimodal and complex reasoning capabilities, and the business enters an accelerated implementation cycle. Revenue from Guanlan-related products in the first half of the year exceeded the full-year total of last year, with a growth rate of over 50%, and is currently transitioning from pioneer users to practical customers. Industry implementation shows obvious divergence:
The EBG high-end manufacturing track (3C, PCB, semiconductor, lithium battery) has stronger replicability. Solutions such as SOP industrial cameras and X-ray inspection have been implemented, which can significantly reduce the defect rate of production lines; the semiconductor business focuses on peripheral multi-dimensional sensing quality inspection equipment (X-ray, ultrasonic, microscopic, etc.), without involving the core process of chips. Although the current scale is not large, the long-term space is considerable.
The PBG is mainly driven by replacement and upgrade demands, with regulatory-driven demands in transportation, environmental protection, food safety, etc., gradually being released; machine vision, infrared thermal imaging, AGV, and smart storage are the current main product lines for volume expansion.
▋ TCL Electronics: Net Profit Expected to Increase by 45%-55%
Recently, TCL Electronics Holdings Limited released its performance forecast for the first three quarters of 2026, expecting to achieve a revenue of approximately HKD 91 billion to HKD 97.7 billion, a year-on-year increase of about 10%-18%; the adjusted net profit attributable to the parent company is expected to be approximately HKD 2.11 billion to HKD 2.25 billion, a year-on-year increase of about 45%-55%.
The performance forecast shows that the significant growth in net profit attributable to the parent company is mainly attributed to the promotion of globalization and mid-to-high-end strategies. During the reporting period, the company steadily optimized product competitiveness and expanded global market coverage, driving steady improvement in profitability. Among them, the product structure of the TV business was optimized, further consolidating its market position; the revenue scale and profitability quality of the Internet business improved simultaneously; and the scale of innovative businesses maintained steady growth.
Focusing on the layout of globalization and high-end development, in March this year, TCL Electronics and Sony signed a transaction framework agreement in the field of home entertainment. The two parties will establish a joint venture to integrate their respective advantages in technology, brand, and supply chain to build a global home entertainment ecosystem, adding important strategic support for the group's overall high-end market; it is reported that the new company is expected to start operations in April 2027.
Looking ahead, regarding the global layout, TCL Electronics disclosed in its semi-annual report that it will follow the Globalization 3.0 strategy, evolving from product export to localized manufacturing, marketing, and in-depth channel operations, steadily consolidating its global market competitiveness; at the same time, in terms of cooperation, it will also build a home entertainment ecosystem with Sony to further solidify the group's competitive advantage in the global mid-to-high-end market.