Ge Long Hui·2025-11-04 20:45Core Viewpoint - The company reported a revenue of 77.6 billion yuan in Q3 2025, a year-on-year increase of 10%, with a net profit attributable to shareholders of 5.3 billion yuan, up 13% year-on-year, and a net profit excluding non-recurring items of 5.2 billion yuan, up 15% year-on-year [1] Group 1: Overseas Market Performance - Revenue from overseas markets continued to grow, with a year-on-year increase of 8.25% in Q3 2025 and a cumulative growth of 10.5% in the first three quarters [1] - In North America, despite a weak real estate market and cautious consumer trends, the company maintained operational resilience through product structure upgrades and expansion in air and water businesses [1] - In Europe, the quality of white goods business in Western and Eastern Europe improved, with market share steadily expanding, particularly in the UK, Italy, France, and Spain [1] - Emerging markets saw significant revenue growth in the first three quarters, with South Asia, Southeast Asia, and the Middle East and Africa growing by 25%, 15%, and 60% respectively [1] Group 2: Domestic Market Resilience - The domestic market showed significant resilience, outperforming the industry, with the Chinese home appliance industry retail sales down 3% year-on-year in Q3 2025, while the company’s domestic revenue increased by 11% [2] - The air conditioning sector saw a notable increase, with home air conditioning revenue up over 30% year-on-year in Q3 2025, while other sectors like refrigerators and washing machines achieved stable growth [2] - The growth resilience is attributed to the continuous development of popular products, competitive suite products, and deepening digital inventory and marketing optimization [2] Group 3: Financial Performance - The gross profit margin for the first three quarters of 2025 was 27.2%, up 0.1 percentage points year-on-year, with a focus on extreme cost control in the domestic market and a commitment to a high-end brand strategy in overseas markets [2] - The sales expense ratio was 10.6%, optimized by 0.1 percentage points year-on-year, with digital transformation efforts in the domestic market and global resource integration in overseas markets [2] - The net operating cash flow for the first three quarters was 17.5 billion yuan, a year-on-year increase of 21%, indicating robust growth [2] Group 4: Profit Forecast and Valuation - The company is positioned as a leading global home appliance brand, with expectations for steady increases in market share both domestically and internationally [3] - The forecast for net profit attributable to shareholders for 2025-2027 is 21.5 billion, 24.3 billion, and 27.3 billion yuan respectively, with corresponding PE ratios of 12, 10, and 9 times [3] - The target price is maintained at 35.54 yuan, with a "buy" rating [3]