Investment Rating - The investment rating for Hisense Home Appliances is "Buy" and is maintained [5]. Core Views - The company achieved a revenue of 92.746 billion yuan in 2024, representing a year-on-year growth of 8.35%. The net profit attributable to shareholders reached 3.348 billion yuan, up 17.99% year-on-year, and the net profit excluding non-recurring items was 2.606 billion yuan, an increase of 10.65% year-on-year [3][9]. - In Q4 2024, the company reported a revenue of 22.167 billion yuan, a year-on-year increase of 7.08%, with a net profit attributable to shareholders of 555 million yuan, up 34.91% year-on-year, and a net profit excluding non-recurring items of 317 million yuan, an increase of 8.24% year-on-year [3][9]. - The company plans to distribute a cash dividend of 12.30 yuan per 10 shares (tax included) to all shareholders, without issuing new shares or capitalizing reserves [3][9]. Revenue and Profit Analysis - The company's revenue structure shows a decline in domestic sales, with domestic revenue at 47.994 billion yuan, down 2.12% year-on-year, while foreign sales reached 35.629 billion yuan, up 27.59% year-on-year. The growth in foreign sales is attributed to the increasing influence of its overseas brands [9]. - The air conditioning segment generated revenue of 40.284 billion yuan, a growth of 4.22% year-on-year, while the ice washing segment saw revenue of 30.839 billion yuan, up 18.29% year-on-year [9]. - The overall gross margin for 2024 decreased by 0.43 percentage points to 20.78%. The air conditioning segment's gross margin was 28.55%, down 1.32 percentage points, while the ice washing segment's gross margin was 17.56%, down 0.74 percentage points [9]. Future Outlook - The company is expected to maintain a trend of scale and efficiency improvement, with projected net profits for 2025, 2026, and 2027 at 3.858 billion yuan, 4.401 billion yuan, and 5.025 billion yuan, respectively, corresponding to PE ratios of 9.9, 8.7, and 7.6 times [9].

Core Viewpoint - The company reported a revenue of 92.75 billion yuan for 2024, reflecting a year-on-year increase of 8.3%, and a net profit attributable to shareholders of 3.35 billion yuan, up 18% year-on-year [3] Group 1: Financial Performance - In Q4 2024, the company achieved a revenue of 22.17 billion yuan, a year-on-year increase of 7.1%, with a net profit of 550 million yuan, up 34.9% year-on-year [3] - The profit distribution plan for 2024 includes a cash dividend of 12.30 yuan per 10 shares (including tax), totaling 1.7 billion yuan, with a cash dividend ratio of 51% [3] Group 2: Sales Performance - Domestic sales revenue for 2024 was 48 billion yuan, down 2.1% year-on-year, while foreign sales revenue reached 35.6 billion yuan, up 27.6% year-on-year [4] - The HVAC business generated 40.3 billion yuan in revenue, a year-on-year increase of 4.2%, with significant growth in foreign sales, particularly in the Middle East and ASEAN markets [4] - The home appliance segment achieved a revenue of 19.5 billion yuan, up 18.5% year-on-year, driven by national subsidies and a recovery in domestic sales [4] - The ice washing business reported a revenue of 30.8 billion yuan, an increase of 18.3% year-on-year, benefiting from national subsidy policies [4] Group 3: Profitability and Margins - The overall gross margin for 2024 was 20.8%, a decrease of 1.3 percentage points year-on-year, with domestic gross margin at 30.7% and foreign gross margin at 11.4% [5] - The gross margin for the HVAC business was 28.5%, down 2.1 percentage points year-on-year, while the ice washing business gross margin was 17.6%, down 1.5 percentage points [5] - The net profit margin for 2024 was 3.6%, an increase of 0.3 percentage points year-on-year, with expectations for gradual improvement driven by equity incentives [5] Group 4: Research and Development - The company increased its R&D investment, with R&D expense ratio rising by 0.5 percentage points, indicating a focus on innovation and enhancing competitiveness [5] - The company is transitioning from being a compressor supplier to a comprehensive thermal management system supplier for electric vehicles, indicating a strategic shift in business focus [4]

Investment Rating - The report maintains an "Accumulate" rating for Hisense Home Appliances (000921.SZ) with a current price of 29.71 CNY [1] Core Views - The company achieved a revenue of 92.75 billion CNY in 2024, representing a year-over-year increase of 8.3%, and a net profit attributable to shareholders of 3.35 billion CNY, up 18% year-over-year [5] - The company’s revenue for Q4 2024 was 22.17 billion CNY, with a year-over-year growth of 7.1%, and a net profit of 550 million CNY, reflecting a significant increase of 34.9% year-over-year [5] - The profit distribution plan for 2024 includes a cash dividend of 12.30 CNY per 10 shares, totaling 1.7 billion CNY, with a cash dividend ratio of 51% [5] Revenue Performance - Domestic sales revenue for 2024 was 48 billion CNY, down 2.1% year-over-year, while overseas sales revenue reached 35.6 billion CNY, up 27.6% year-over-year [6] - The HVAC business generated 40.3 billion CNY in revenue, a 4.2% increase year-over-year, with significant growth in overseas markets for central air conditioning [6] - The home appliance segment saw revenue of 19.5 billion CNY, an 18.5% increase, driven by government subsidies and improved domestic sales performance [6] - The ice washing business reported revenue of 30.8 billion CNY, up 18.3% year-over-year, benefiting from government policies [6] Profitability and Cost Structure - The overall gross margin for 2024 was 20.8%, a decrease of 1.3 percentage points year-over-year, with domestic gross margin at 30.7% and overseas gross margin at 11.4%, which increased by 1.2 percentage points [7] - The company’s net profit margin for 2024 was 3.6%, an increase of 0.3 percentage points year-over-year, with expectations for gradual improvement due to stock incentive plans [7] Financial Forecast and Valuation - The report projects net profits of 3.79 billion CNY for 2025 and 4.28 billion CNY for 2026, with a new forecast for 2027 at 4.71 billion CNY [8] - The current price corresponds to a price-to-earnings (P/E) ratio of 11/10/9 for the years 2025-2027 [8] - The report maintains the "Accumulate" rating based on the company's strong performance in the HVAC sector and the successful cost reduction and efficiency improvements at its subsidiary, Hisense Hitachi [8]

Industry Overview - The Chinese home appliance industry is undergoing a strategic transformation from scale-driven to value-driven amidst profound changes in global manufacturing [1] - The 2024 performance of the industry shows a stark contrast, with leading companies like Midea, Haier, and Hisense achieving revenue and profit growth, while Skyworth faces significant declines due to structural imbalances [1] Midea Group - Midea Group reported total revenue of 409.1 billion yuan in 2024, a year-on-year increase of 9.44%, and a net profit of 38.5 billion yuan, up 14.29%, marking a historical high [2][3] - The company’s cash flow from operating activities reached 60.5 billion yuan, 1.56 times its net profit, indicating strong profitability [2] - Midea has successfully established a dual-driven model of "smart home + commercial and industrial solutions," with ToB business revenue exceeding 100 billion yuan for the first time, reaching 104.5 billion yuan, a 6.9% increase [3][4] Haier Smart Home - Haier Smart Home achieved revenue of 285.98 billion yuan in 2024, a 4.29% increase, and a net profit of 18.74 billion yuan, up 12.92%, reflecting improved operational quality [5][6] - The Casarte brand continues to lead in the high-end market, with significant growth in revenue, particularly in the fourth quarter [6][7] - Haier's overseas revenue reached 143.81 billion yuan, a 5.43% increase, with emerging markets showing strong performance [7] Hisense Home Appliances - Hisense reported total revenue of 92.75 billion yuan in 2024, an 8.35% increase, and a net profit of 3.35 billion yuan, up 17.99%, showcasing strong profitability [8][9] - The company’s kitchen appliance segment grew by 72%, with significant advancements in product innovation [10] - Hisense's overseas revenue surpassed 35.6 billion yuan, a 28% increase, with a notable rise in market share in Europe and South Africa [11] Skyworth Group - Skyworth's total revenue for 2024 was 65.01 billion yuan, a decrease of 5.8%, with net profit dropping by 46.9% to 568 million yuan, indicating significant operational challenges [12][13] - The company remains heavily reliant on its smart home and photovoltaic businesses, which account for over 80% of total revenue [12][15] - The photovoltaic segment saw a revenue decline of 13.1%, attributed to market challenges and policy uncertainties [15][16] Future Outlook - The home appliance industry is experiencing structural changes, with leading companies strengthening competitive barriers through technological innovation and global expansion [17] - The integration of AI technology into home appliances is reshaping the competitive landscape, with significant market share growth expected for AI-enabled products [17] - The trend of increasing overseas revenue and brand output among leading companies indicates a shift from product export to brand export, with emerging markets becoming key growth drivers [17][18]

Core Viewpoint - Hisense Home Appliances reported a revenue of 92.7 billion yuan and a net profit attributable to shareholders of 3.3 billion yuan for 2024, reflecting year-on-year increases of 8% and 18% respectively [1] Financial Performance - The revenue for 2024 was 92.7 billion yuan, with a net profit of 3.3 billion yuan and a net profit excluding non-recurring items of 2.6 billion yuan, showing year-on-year growth of 8%, 18%, and 11% respectively [1] - In Q4 2024, the revenue was 22.2 billion yuan, net profit was 560 million yuan, and net profit excluding non-recurring items was 320 million yuan, with year-on-year growth of 7%, 35%, and 8% respectively [1] Dividend Policy - The company proposed a cash dividend of 12.3 yuan per 10 shares, totaling 1.7 billion yuan, with a dividend payout ratio of 50.9% [1] Product Performance - In 2024, revenue from HVAC, washing machines, and other main products was 40.3 billion yuan, 30.8 billion yuan, and 12.5 billion yuan respectively, with year-on-year growth of 4%, 18%, and 2% [2] - Hisense Hitachi's revenue was 20.7 billion yuan, down 6% year-on-year; excluding Hisense Hitachi, air conditioning revenue grew by 18.5% [2] Regional Performance - Domestic revenue in 2024 was 48 billion yuan, down 2% year-on-year, with a decline of 8% in H2 compared to H1 [4] - Overseas revenue reached 35.6 billion yuan, up 28% year-on-year, with white goods revenue increasing by 36% [4] Profitability - The overall gross margin for 2024 was 20.8%, a decrease of 0.43 percentage points year-on-year, with significant improvement in overseas gross margin [5] - The sales expense ratio was 9.7%, down 0.29 percentage points year-on-year, while R&D expense ratio increased [5] - The net profit margin attributable to shareholders was 3.6% for 2024, an increase of 0.3 percentage points year-on-year [6] Investment Outlook - The company is focused on user-centered innovation, optimizing regional, channel, product, and supply chain structures, with significant competitive advantages in central air conditioning and rapid growth in home appliances and washing machines [6] - Projected net profits for 2025 and 2026 are 3.8 billion yuan and 4.2 billion yuan respectively, with corresponding EPS of 2.7 yuan and 3.1 yuan [6]

Investment Rating - The report maintains a "Strong Buy" rating for Hisense Home Appliances [3]. Core Views - The company's 2024 performance exceeded expectations, with revenue projected to grow by 8% to reach 92.7 billion yuan and net profit expected to increase by 18% to 3.35 billion yuan, surpassing market forecasts [1][2]. - The company has achieved a dividend payout of 1.7 billion yuan, representing a 51% payout ratio and a dividend yield of 4.3% [1]. - The report emphasizes the strong growth potential for the company, particularly driven by government-supported consumption initiatives and the expected improvement in performance through 2025 [7]. Financial Data and Valuation - Revenue for 2023 is reported at 85.6 billion yuan, with projections of 92.7 billion yuan for 2024, 101.5 billion yuan for 2025, and continuing growth through 2027 [2][13]. - The company's net profit for 2023 is 2.84 billion yuan, with forecasts of 3.35 billion yuan for 2024, 3.75 billion yuan for 2025, and 4.97 billion yuan for 2027 [2][13]. - The report indicates a PE ratio of 14.8 for 2023, decreasing to 12.5 for 2024, and further down to 8.4 by 2027, suggesting an attractive valuation [14]. - The company’s return on equity (ROE) is projected to remain strong, with values of 21.7% for 2023 and 23.3% for 2027 [3][14]. Segment Performance - In 2024, the HVAC segment is expected to decline by 6%, while home air conditioning is projected to grow by 19%, with a notable improvement in net profit margin [7]. - The report highlights a 36% increase in overseas appliance revenue, with significant growth in regions such as Europe (35%) and the Americas (46.5%) [7]. - The overall gross margin is expected to slightly decrease by 0.56 percentage points, attributed to faster growth in overseas sales compared to domestic demand [7]. Investment Recommendations - The report suggests a strong outlook for the company, with expected net profits of 3.8 billion yuan in 2025, 4.3 billion yuan in 2026, and 5 billion yuan in 2027, indicating a growth rate of 12% to 15% [7].

Core Viewpoint - Hisense Group's home appliance subsidiaries, Hisense Home Appliances and Hisense Visual Technology, reported strong financial performance for 2024, driven by government subsidy policies and effective sports marketing strategies, particularly in overseas markets [1][2][5]. Financial Performance - Hisense Home Appliances achieved revenue of 92.746 billion yuan, a year-on-year increase of 8.35%, and a net profit of 3.348 billion yuan, up 17.99% [1]. - Hisense Visual Technology reported revenue of 58.530 billion yuan, a 9.17% increase, and a net profit of 2.246 billion yuan, up 7.17% [1]. - The fourth quarter of 2024 showed significant growth for both companies, with Hisense Home Appliances' revenue reaching 22.167 billion yuan, a 7.08% increase, and a net profit of 555 million yuan, up 34.91% [1]. Market Analysis - Domestic revenue for Hisense Home Appliances declined by 2.12%, while overseas revenue surged by 27.59%, accounting for nearly 40% of total revenue [1]. - The overall market for central air conditioning in China saw a 12.5% decline, indicating ongoing pressure in the domestic market despite some recovery in the fourth quarter [2][3]. Strategic Initiatives - The implementation of the "trade-in for new" policy has helped stabilize the domestic market, although challenges remain [2]. - Hisense's focus on sports marketing has enhanced brand recognition and sales in overseas markets, with a reported global TV market share of 13.95%, an increase of 0.99 percentage points [5][6]. Product Development - Hisense has made significant advancements in product categories, with a 72% year-on-year revenue growth in kitchen appliances and a 58% market share in large-screen TVs [3][5]. - The company is also investing in smart home technology, launching its self-developed AI solutions to enhance its product offerings [3]. Future Outlook - Continued government subsidies and the recovery of public construction orders are expected to support revenue stabilization in the domestic market [4]. - The transition of sports marketing from brand recognition to brand reinforcement will be crucial for improving overseas market margins and enhancing high-end product sales [7].

Investment Rating - The report assigns a "Buy-A" investment rating to Hisense Home Appliances, with a target price of 38.78 CNY over the next six months, representing a dynamic P/E ratio of 14 times for 2025 [3][5]. Core Views - Hisense Home Appliances reported a revenue of 92.75 billion CNY for 2024, reflecting a year-on-year increase of 8.3%, and a net profit of 3.35 billion CNY, up 18.0% year-on-year. The fourth quarter of 2024 saw a revenue of 22.17 billion CNY, a 7.1% increase year-on-year, and a net profit of 550 million CNY, up 34.9% year-on-year. The growth was attributed to the "old-for-new" policy and strong external sales performance in Q4 [1][2]. Summary by Sections Financial Performance - In Q4 2024, Hisense's air conditioning and refrigerator segments showed significant growth, with domestic sales increasing by 17.8% and 2.9% respectively, while external sales surged by 55.4% and 10.4% [1]. - The gross profit margin for Q4 2024 was reported at 19.7%, down 2.3 percentage points year-on-year, primarily due to increased domestic price competition and rising raw material costs. However, the net profit margin improved by 0.5 percentage points to 2.5% [2]. Market Position and Growth Potential - The central air conditioning market is identified as a growth sector within the home appliance industry, with Hisense expected to benefit from increased downstream demand. The integration of Sanlian Electric Holdings has led to improved profitability levels [3]. - Revenue projections for 2025 and 2026 are estimated at 102.59 billion CNY and 115.56 billion CNY respectively, with net profits expected to reach 3.83 billion CNY and 4.36 billion CNY [4][12]. Valuation Metrics - The report forecasts earnings per share (EPS) of 2.77 CNY for 2025 and 3.14 CNY for 2026, with a projected price-to-earnings (P/E) ratio decreasing from 14.8 in 2023 to 10.9 in 2025 [4][12]. - The net profit margin is expected to gradually improve from 3.6% in 2024 to 3.8% in 2026, indicating enhanced operational efficiency [4][12].

Investment Rating - The investment rating for Hisense Home Appliances is "Outperform the Market" [5] Core Views - The company achieved a revenue of 92.75 billion RMB in 2024, representing an 8.3% increase year-on-year, with a net profit attributable to shareholders of 3.35 billion RMB, up 18.0% [1] - The fourth quarter showed a recovery in domestic sales, with revenue of 22.17 billion RMB, a 7.1% increase, and a net profit of 550 million RMB, up 34.9% [1] - The company plans to distribute a cash dividend of 12.3 RMB per 10 shares, corresponding to a dividend yield of 4.1% based on the closing price on March 28 [1] - The overseas sales continue to drive growth, with a 27.6% increase in foreign sales revenue to 35.63 billion RMB [3] - The company maintains its profit forecast for 2025-2027, expecting net profits of 3.78 billion, 4.19 billion, and 4.63 billion RMB, respectively, with corresponding PE ratios of 11.1, 10.0, and 9.0 [3] Summary by Sections Financial Performance - In 2024, the revenue from HVAC (Heating, Ventilation, and Air Conditioning) increased by 4.2% to 40.28 billion RMB, with a notable decline in Hisense Hitachi's revenue by 6.4% to 20.74 billion RMB [2] - The revenue from washing machines and refrigerators grew by 18.3% to 30.84 billion RMB, with a profit margin of 3.6% [2] - The three electric segments reported a revenue increase of 2.5% to 183.8 billion JPY (approximately 8.5 billion RMB) [2] Overseas Growth - The overseas white goods revenue increased by 36%, with significant growth in various regions: Europe (35%), Americas (47%), Middle East and Africa (27%), Asia-Pacific (15%), and ASEAN (32%) [3] - The gross margin for foreign sales improved by 1.9 percentage points to 11.4% [3] Profitability and Valuation - The company’s net profit margin increased by 0.3 percentage points to 3.6% [3] - The forecasted earnings per share for 2024 is 2.42 RMB, with a projected increase in net profit margins over the next few years [4]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's profitability continues to improve steadily, with significant growth in overseas markets. In 2024, the company achieved a revenue of 92.75 billion yuan (up 8.3% year-on-year) and a net profit attributable to shareholders of 3.35 billion yuan (up 18.0%) [5][12] - The report highlights that the domestic market is under pressure, but overseas sales are performing well, particularly in the white goods sector, which has seen a growth of 36% [5][29] Summary by Sections 1. Business Performance - In 2024, the company's revenue from air conditioning was 40.28 billion yuan (up 4.2%), while the revenue from washing machines and refrigerators was 30.89 billion yuan (up 18.5%) [5][17] - The company’s domestic revenue was 47.99 billion yuan (down 2.1%), while overseas revenue reached 35.63 billion yuan (up 27.6%), with significant growth in Europe (35%) and the Americas (47%) [29][31] 2. Profitability and Operational Efficiency - The gross margin for 2024 was 20.8%, with a quarterly gross margin of 19.7% in Q4 2024 [34][35] - The net profit margin for 2024 was 3.6%, with a net profit margin of 2.5% in Q4 2024 [42][46] - The company’s net operating cycle improved to -60.4 days, a reduction of 27.9 days year-on-year, indicating good operational efficiency [47][50] 3. Financial Forecast and Investment Recommendations - The company has revised its profit forecasts for 2025-2026 downwards but has introduced a new forecast for 2027, expecting net profits of 3.754 billion yuan, 4.190 billion yuan, and 4.599 billion yuan for 2025, 2026, and 2027 respectively [52] - The current stock price corresponds to a price-to-earnings ratio of 11.2, 10.0, and 9.1 for the years 2025, 2026, and 2027 respectively, indicating a favorable valuation [52]