Huachuang Securities·2024-07-19 12:31Investment Rating - The report maintains a "Strong Buy" rating for Haier Smart Home (600690) [2][5] Core Views - The company plans to acquire Electrolux South Africa's water heater business for 2.45 billion South African Rand (approximately 980 million RMB), aiming to accelerate its expansion in emerging markets [2] - The acquisition is expected to enhance Haier's presence in the Middle East and Africa, leveraging the established Kwikot brand and its distribution network to boost market share for other home appliances [2] - Haier's market share in the Middle East and Africa is currently at 4.4%, significantly lower than other regions, and this acquisition is seen as a strategic move to address this gap [2] - The report highlights strong growth in home appliance exports, particularly in Southeast Asia and the Middle East, which is expected to contribute to revenue and profit growth [2] - The earnings per share (EPS) estimates for 2024, 2025, and 2026 have been slightly adjusted to 2.03, 2.30, and 2.59 RMB respectively, with corresponding price-to-earnings (PE) ratios of 13, 12, and 10 [2][3] Financial Summary - Main revenue (million RMB) for 2023 is projected at 261,428, with a year-on-year growth of 7.4% [3] - Net profit attributable to shareholders (million RMB) for 2023 is estimated at 16,597, reflecting a year-on-year growth of 12.8% [3] - The company’s total market capitalization is approximately 255.02 billion RMB, with a circulating market value of about 170.46 billion RMB [6]