Guoxin Securities·2024-07-19 10:30Investment Rating - The report maintains an "Outperform" rating for the company [3][9]. Core Views - The acquisition of Electrolux's South African water heater business is expected to enhance Haier's sales and after-sales service capabilities in the region, leveraging Kwikot's established brand and distribution network [2][4][7]. - Haier's strong supply chain and technological advantages are anticipated to enrich Kwikot's product line, thereby increasing its competitiveness in the market [2][7]. - The report forecasts Haier's net profit for 2024-2026 to be 19 billion, 21.6 billion, and 24.4 billion RMB, representing year-on-year growth of 15%, 14%, and 13% respectively, with corresponding P/E ratios of 13, 12, and 10 times [2][9]. Summary by Sections Company Overview - Kwikot, a leading water heater manufacturer in South Africa, has a strong sales and after-sales service system, established over its 120-year history [2][5]. - The company offers a diverse range of products, including storage electric water heaters, solar water heaters, gas water heaters, and heat pumps, supported by a modern manufacturing facility certified to ISO 9001 standards [5][7]. Strategic Acquisition - The acquisition is valued at 2.45 billion South African Rand (approximately 980 million RMB) and is expected to be completed by Q4 2024, pending regulatory approval [4][9]. - This strategic move is part of Haier's broader international expansion strategy, which has seen the company grow significantly in overseas markets, with international revenue accounting for a substantial portion of its total income [2][9]. Financial Projections - The report projects Haier's revenue growth to be steady at around 7% annually for the next few years, with operating income expected to increase from 261.4 billion RMB in 2023 to 318.2 billion RMB by 2026 [11]. - Key financial metrics indicate a positive trend, with net profit margins and return on equity expected to improve gradually over the forecast period [11].