Xin Lang Cai Jing·2025-05-01 14:45Core Viewpoint - Hisense Home Appliances reported strong financial performance for Q1 2025, with revenue and net profit exceeding expectations, driven by the recovery in central air conditioning and rapid growth in overseas sales of washing machines and refrigerators [1][4]. Financial Performance - Q1 2025 revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 24.8 billion, 1.1 billion, and 1.0 billion yuan, respectively, representing year-on-year growth of 6%, 15%, and 20% [1]. - The net cash flow from operating activities was 65.08 million yuan, down 58% year-on-year, primarily due to payment schedules and cash flow decline affected by exchange rates [1]. Profitability Metrics - Gross margin for Q1 2025 was 21.4%, an increase of 0.27 percentage points year-on-year, with both domestic and overseas sales margins expected to improve [3]. - The expense ratios for sales, management, R&D, and financial expenses were 9.6%, 2.4%, 3.3%, and 0.02%, showing a mixed performance with management expenses improving and financial expenses increasing due to exchange rate fluctuations [3]. - The net profit margin attributable to shareholders was 4.5%, up 0.36 percentage points year-on-year, indicating enhanced profitability with room for further improvement [4]. Investment Outlook - The company focuses on user-centered innovation in product technology, optimizing regional, channel, product, and supply chain structures, with a significant competitive advantage in the central air conditioning business [4]. - Rapid growth in home appliances and overseas diversification is expected to continue, supported by domestic subsidies and a commitment to sports marketing [4]. - Projected net profits for 2025 and 2026 are 3.8 billion and 4.3 billion yuan, respectively, with corresponding EPS of 2.8 and 3.1 yuan, leading to a current PE ratio of 10.1 and 8.9 times [4].