TCL Multimedia's TV shipment jumped 53% in January

But will it continue its momentum?

According to Maybank Kim Eng, TCLM released January shipments yesterday after market closed. Driven by strong contribution from China division (up 92% YoY), the total TV shipment rose 53% YoY to 2m sets in January. 

Here's more:

Implication: We believe the robust figures were due to the strong demand ahead of the Chinese New Year (CNY) holiday. Therefore, we expect the numbers in coming months will be soft. High-end TV product mix (3D TV and smart TV) in China is around 51% in January.

TCLM will release its 2013 year target during FY12F results announcement due in February. We expect the growth rate to be low-teens in 2013. 

Action: Although the shipment figures look pretty strong, we believe it has already in the price, following recent share price rally. The counter is now trading at 9x FY13F PER, with 3% forward yield. The stock has surpassed our previous target price of HKD5.05 and we will review our recommendation and TP postFY12F results announcement.

While we expect Skyworth to report similar set of strong shipment numbers, we also suggest investors to take profit on TCLM and shift to Haier Electronics, which offer more upside in our view.