TCL Smart Home(SZ:002668) Guoxin Securities·2024-08-11 03:00Investment Rating - The investment rating for TCL Smart Home (002668.SZ) is "Outperform the Market" [2][4][10]. Core Views - The company reported a revenue of 8.96 billion with a year-on-year growth of 24.7% and a net profit attributable to shareholders of 0.56 billion, reflecting a growth of 32.7% in the first half of 2024. The second quarter alone saw revenues of 4.76 billion, up 24.9%, and a net profit of 0.33 billion, up 36.1% [2]. - The high demand for refrigerator and freezer exports continues, with a 25% increase in external sales in the first half of 2024. The company’s revenue growth is driven by strong performance in emerging markets and low overseas inventory levels [2]. - The washing machine segment also showed significant growth, with a 46.3% increase in revenue to 1.28 billion in the first half of 2024, contributing to the overall positive performance of the company [2]. Financial Performance Summary - For the first half of 2024, the company achieved a revenue of 89.6 billion, a 24.7% increase year-on-year, and a net profit of 5.6 billion, which is a 32.7% increase. The adjusted net profit was also 5.6 billion, reflecting a 42.2% increase [2][3]. - The company’s refrigerator and freezer sales volume reached 8.34 million units, a 22.9% increase, with an average price of 913 yuan per unit, showing a slight decline of 1% year-on-year [2]. - The net profit margin for the second quarter reached 7.0%, an increase of 0.6 percentage points year-on-year, indicating improved profitability [2][3]. Earnings Forecast and Valuation - The earnings forecast for the company has been raised, with projected net profits for 2024-2026 at 0.96 billion, 1.07 billion, and 1.17 billion respectively, reflecting year-on-year growth of 22%, 11%, and 10% [2][3]. - The price-to-earnings (PE) ratio is projected to be 10, 9, and 8 times for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation compared to historical performance [2][3].