Zhi Tong Cai Jing·2026-03-27 08:39Core Viewpoint - The report from Citi indicates a downward revision of Haier Smart Home's net profit forecasts for the next two years by 25% and 21% due to weakening demand in China and the United States, while maintaining a "outperform" rating on the stock [1] Financial Performance - Haier Smart Home's revenue in the fourth quarter of last year decreased by 7% year-on-year to 68 billion RMB [1] - The net profit for the same period fell by 39% to 2.2 billion RMB, which was below the bank's expectations [1] Market Analysis - Revenue from the Chinese market dropped by 15% year-on-year, primarily due to the early release of demand driven by the trade-in policy [1] - Sales in the United States remained relatively stable, but the company was unable to pass on rising costs, including tariffs, to consumers, resulting in a significant decline in profit margins [1] Target Price Adjustments - The target price for Haier Smart Home's A-shares was lowered from 34 RMB to 28 RMB [1] - The target price for its H-shares was reduced from 32 HKD to 25 HKD [1] Strategic Outlook - Despite the current challenges, the company is still viewed positively for its high-end positioning, but it needs to navigate through the cyclical downturn in the two major markets to realize its value [1]