Investment Rating - The investment rating for Hisense Home Appliances is "Buy" with a target price not specified [5] Core Views - The central view indicates that the central air conditioning (CAC) business is under pressure due to weak real estate trends, while the white goods segment shows operational resilience [3][2] - Future cost reduction and product structure optimization are expected to drive profit improvement [3] Financial Performance Summary - For the first three quarters of 2025, the company achieved operating revenue of 71.53 billion yuan, a year-on-year increase of 1.4%, and a net profit attributable to shareholders of 2.81 billion yuan, up 0.7% [1] - In Q3 2025, the company reported operating revenue of 22.19 billion yuan, a 1.2% increase, but a net profit of 735 million yuan, down 5.4% [1] - The CAC business is expected to continue facing challenges, while the home appliance segment shows strong growth, particularly in the refrigerator and washing machine categories, with profits up 35% year-on-year [2] Segment Performance Summary - **CAC**: The CAC business is under pressure, but maintains a leading market share despite domestic sales challenges [2] - **Home Appliances**: The home appliance segment saw a 41% increase in domestic sales but a 20% decrease in exports [2] - **Refrigerators and Washers**: This segment experienced steady growth with a profit increase of 35% year-on-year, leading the industry in growth rates [2] - **Kitchen Appliances**: Revenue increased by 50% year-on-year, with offline channels also showing significant growth [2] Financial Projections - Projected net profits for 2025, 2026, and 2027 are 3.49 billion yuan, 3.45 billion yuan, and 3.68 billion yuan respectively, with corresponding dynamic valuations of 10.2x, 10.3x, and 9.7x [3]

Core Insights - The home appliance industry has witnessed a significant innovation with Hisense refrigerator launching the world's first magnetic light curtain door panel, which has been recognized in the 2025 International CMF Design Awards [1][5] - This breakthrough technology addresses the long-standing user pain point of glass door refrigerators being aesthetically pleasing yet unable to hold magnets, redefining the design standards for high-end refrigerators [1][5] Group 1: Technological Innovation - Hisense's magnetic light curtain door panel integrates a unique magnetic medium composite technology within the glass, allowing for strong magnetic adhesion without compromising aesthetics, flatness, or insulation performance [5][6] - The door panel enables users to attach family photos, travel mementos, and reminders, transforming the refrigerator into a center for family memories and emotional connections [5][6] Group 2: Aesthetic and Functional Attributes - The magnetic light curtain door panel features the industry's first SMI magnetic composite technology, offering various texture options that enhance visual appeal and home compatibility while providing practical attributes like antibacterial properties, high hardness, fingerprint resistance, and ease of cleaning [6] - This innovation represents Hisense's commitment to user-centered design and continuous technological advancement, balancing external user experience with internal preservation technology [6] Group 3: Market Performance - Hisense's third-quarter report indicates strong performance in refrigerator sales, ranking first in sales across 11 global markets, showcasing the company's product strength, brand power, and global operational capabilities [7] - The successful integration of user-centric innovations, from the magnetic light curtain to vacuum preservation technology, has garnered positive feedback from global consumers, affirming Hisense's competitive edge in the high-end market [7]

Core Viewpoint - Hisense Home Appliances has been awarded the Most Investment Value Award at the 2024 Golden Bull Awards, marking the third consecutive year the company has received this recognition, reflecting its strong market performance and governance capabilities [1][3][6]. Group 1: Awards and Recognition - The Golden Bull Award is a prestigious financial brand established by China Securities Journal, aimed at promoting the healthy development of listed companies [3]. - Hisense Home Appliances has won the Most Investment Value Award, which is one of the highest recognition categories, based on strict criteria including company scale, profitability, debt repayment ability, and innovation capacity [3]. Group 2: Company Performance - Over the past decade, Hisense Home Appliances has achieved a compound annual growth rate (CAGR) of 16% in revenue and a remarkable 21% in net profit attributable to shareholders [5]. - The company emphasizes a long-term development philosophy and has established a robust corporate governance mechanism to enhance operational efficiency and quality [5]. Group 3: Innovation and Technology - Hisense is committed to technological innovation, focusing on creating emotional value and satisfaction for users through advanced technology [5]. - The company is advancing its AI strategy, utilizing its self-developed Star Sea model to create five major AI categories, enhancing smart living experiences and home management [5]. Group 4: Sustainability Initiatives - Hisense integrates ESG principles throughout its operations, focusing on employee growth, investor returns, and public welfare to create long-term value [6]. - The company has responded to the national "dual carbon" strategy by publishing its 2024 Carbon Neutrality White Paper, aiming for carbon neutrality in its operations by 2050 [6].

Core Insights - The global TV shipment volume is projected to drop below 50 million units for the first time in history in Q3 2025, reaching approximately 49.75 million units, a 6% quarter-on-quarter increase but a 4.9% year-on-year decrease [2] - The decline is attributed to extended consumer purchase cycles, changes in international circumstances leading to demand shifts, and the diminishing effects of subsidy policies in the Chinese market [2] - Despite challenges, a promotional peak in the U.S. and significant sales events in China are expected to boost Q4 shipments to approximately 53.21 million units, a 7.3% quarter-on-quarter increase [2] Shipment Performance - In Q3, the top five brands by shipment volume were Samsung, Hisense, TCL, LGE, and Xiaomi, collectively holding a market share of 64.3% [3] - Hisense's Q3 shipments reached 7.66 million units, a 9.7% quarter-on-quarter increase, allowing it to reclaim the global second position with a market share of 15.4%, the highest for the same period historically [3] Size Trends - The penetration rate of large-sized TVs (60 inches and above) has reached 28.2% for the first time, driven by increasing demand and subsidy policies in China [4] - Samsung and Hisense dominate the 65-inch and 75-inch markets with market shares of 26% and 22%, respectively, while TCL leads the 98-inch segment [4] - The overall shipment volume for 65-inch TVs remains higher than that for 70-inch and above by approximately 12 percentage points, indicating sustained demand for mid-to-high-end large sizes [4] Market Strategy Shift - The focus of brands is shifting from merely increasing size to upgrading product specifications, emphasizing differentiation through advanced features like RGB Mini LED, high refresh rates, and AI integration [5]

Investment Rating - Industry rating: Recommended [8] Core Insights - The report highlights that the export production of major home appliances (air conditioners, refrigerators, and washing machines) in November 2025 outperformed domestic sales, with total production of 28.47 million units, a year-on-year decrease of 17.7% [17] - Air conditioner exports showed resilience with a production of 7.46 million units, down 13.8% year-on-year, while domestic production fell by 21.2% to 5.3 million units [17] - Refrigerator production for domestic sales was 3.76 million units, down 10.9% year-on-year, while exports were 4.02 million units, down 1.5% [2][18] - Washing machine exports increased by 5.0% year-on-year to 3.75 million units, while domestic production decreased by 2.6% to 4.18 million units [3][18] - The overall air conditioner export volume for the cold year 2025 reached 88.02 million units, an increase of 12.3% year-on-year, with export value at $16.97 billion, up 13.7% [19] Summary by Sections 1. Weekly Topic: November Production Performance - Air conditioners, refrigerators, and washing machines showed stronger export performance compared to domestic sales, with significant production declines in domestic markets due to high inventory and cost pressures [17] - The report attributes the decline in domestic production to factors such as inventory management, high raw material costs, and the impact of previous government subsidy policies [17] 2. Company Announcements - Hisense Home Appliances reported a revenue of 71.533 billion yuan for Q1-Q3 2025, a year-on-year increase of 1.35%, with a net profit of 2.812 billion yuan, up 0.67% [21] - Midea Group's revenue for Q1-Q3 2025 was 364.7 billion yuan, a 14% increase year-on-year, with a net profit of 37.9 billion yuan, up 20% [24] - Haier Smart Home reported a revenue of 234.1 billion yuan for Q1-Q3 2025, a 10% increase year-on-year, with a net profit of 17.4 billion yuan, up 15% [25] 3. Data Tracking - Raw material prices showed slight increases, with copper and aluminum prices rising by 0.9% and 1.1% respectively as of October 31, 2025 [28] - Shipping rates increased, with the CCFI composite index rising by 2.89% [30] - Real estate data indicated a decline in sales area and construction activity, with year-on-year decreases of 5.5% and 15.3% respectively for the first nine months of 2025 [33]

Group 1 - The core innovation in the home appliance industry is the launch of Hisense's magnetic light curtain door panel, which addresses the user pain point of traditional glass door refrigerators being aesthetically pleasing but lacking magnetic attachment capabilities [4][5] - Hisense's magnetic light curtain door panel technology utilizes a unique magnetic composite technology within the inner layer of special glass, allowing for strong magnetic adhesion without compromising the panel's aesthetics, flatness, or insulation performance [4] - The new door panel design enhances the refrigerator's role as an emotional center in the home, allowing users to attach personal items like photos and notes, thus integrating functionality with emotional significance [4] Group 2 - Hisense's exploration of aesthetics continues with the introduction of the magnetic light curtain door panel, which features the industry's first SMI magnetic composite technology, offering various texture options and practical attributes such as antibacterial properties, high hardness, fingerprint resistance, and ease of cleaning [5] - According to Hisense's third-quarter report, the refrigerator segment has shown strong performance, ranking first in sales across 11 countries globally, indicating a significant enhancement in product strength, brand power, and global operational capabilities [5] - Hisense's user-centered innovation approach, from the magnetic light curtain to vacuum technology for preserving food freshness, is receiving positive feedback from global consumers [5]

Investment Rating - The investment rating for Hisense Home Appliances is "Accumulate" [1] Core Views - The company achieved revenue of 71.533 billion yuan in the first three quarters of 2025, a year-on-year increase of 1.35%, with a net profit attributable to shareholders of 2.812 billion yuan, up 0.67% year-on-year [2] - In Q3 2025, the company reported revenue of 22.192 billion yuan, a year-on-year increase of 1.16%, but the net profit attributable to shareholders decreased by 5.40% to 735 million yuan [2] - The central air conditioning business is under pressure due to the impact of real estate renovations, while the ice washing segment shows strong growth with a profit increase of over 35% year-on-year [3] - The gross margin remained stable at 21.08% for the first three quarters of 2025, with a slight increase in sales expense ratio [4] - The company is focusing on technological innovation and brand expansion, sponsoring major international sports events to enhance its global brand influence [5] Financial Summary - Revenue projections for 2025-2027 are adjusted to 94.687 billion yuan, 101.099 billion yuan, and 107.838 billion yuan respectively, with net profit estimates of 3.406 billion yuan, 3.831 billion yuan, and 4.219 billion yuan [6] - The earnings per share (EPS) for 2025-2027 are expected to be 2.46 yuan, 2.77 yuan, and 3.05 yuan respectively, with corresponding price-to-earnings (PE) ratios of 10, 9, and 8 [6] - The company maintains a gross margin of around 20.9% to 21.2% over the forecast period [8]

Core Viewpoint - Hisense Home Appliances' stock price has shown fluctuations, with a recent increase amidst a year-to-date decline, indicating potential market interest and investment opportunities [1][2]. Company Overview - Hisense Home Appliances, established on April 21, 1997, and listed on July 13, 1999, is located in Shunde District, Foshan City, Guangdong Province. The company specializes in manufacturing and selling refrigerators, air conditioners, and home appliances [2]. - The main revenue composition includes HVAC (48.02%), washing machines and refrigerators (31.20%), other main businesses (13.40%), and supplementary revenue (7.38%) [2]. Financial Performance - For the period from January to September 2025, Hisense Home Appliances achieved a revenue of 71.533 billion yuan, reflecting a year-on-year growth of 1.35%. The net profit attributable to shareholders was 2.812 billion yuan, with a growth of 0.67% [2]. - The company has distributed a total of 6.964 billion yuan in dividends since its A-share listing, with 3.823 billion yuan distributed over the past three years [3]. Stock Performance - As of October 31, the stock price increased by 2.27% to 25.71 yuan per share, with a trading volume of 217 million yuan and a turnover rate of 0.93%. The total market capitalization reached 35.605 billion yuan [1]. - Year-to-date, the stock price has decreased by 7.09%, with a recent 5-day increase of 3.59% and a 20-day decline of 4.60% [2]. Shareholder Information - As of September 30, 2025, the number of shareholders increased to 46,300, a rise of 12.25%. The average circulating shares per person remained at 0 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited holds 26.8905 million shares, a decrease of 1.3286 million shares from the previous period [3].

Investment Rating - The investment rating for Hisense Home Appliances is maintained as "Buy" [7] Core Views - The report highlights that Hisense's global layout is entering a harvest period, with significant synergy effects from its multi-brand matrix [1] - The company's Q3 performance was below expectations, primarily due to weak demand for central air conditioning and declining profitability in home appliances [7] - Despite short-term pressures, the report anticipates that emerging markets will become a major growth driver for the company, with overseas revenue expected to increase [7] Financial Data and Earnings Forecast - Total revenue for 2025 is projected at 93.995 billion yuan, with a year-on-year growth rate of 1.3% [6] - Net profit attributable to the parent company is forecasted to be 3.467 billion yuan in 2025, reflecting a year-on-year increase of 3.6% [6] - The report indicates a decrease in earnings forecasts for 2025-2027, now estimated at 34.7 billion yuan, 39.4 billion yuan, and 43.5 billion yuan respectively [7] - The company's gross margin is expected to improve gradually from 21.3% in 2025 to 22.1% in 2027 [6] Market Data - As of October 30, 2025, the closing price of Hisense shares is 25.14 yuan, with a market capitalization of 23,082 million yuan [2] - The stock has a price-to-book ratio of 2.1 and a dividend yield of 4.89% [2]

Group 1 - Hisense Home Appliances (00921.HK) experienced a decline of nearly 6%, with a current drop of 5.75%, trading at HKD 22.62 [2] - The trading volume reached HKD 103 million [2]