Guolian Securities·2024-08-28 08:03Investment Rating - The investment rating for Haier Smart Home (600690) is "Buy" (maintained) [6] Core Views - Haier Smart Home reported stable revenue and excellent performance in its 2024 mid-year report, with Q2 revenue of 66.645 billion yuan, a year-on-year increase of 0.13%, and a net profit attributable to shareholders of 5.647 billion yuan, up 13.15% year-on-year [3][10] - The company experienced pressure on domestic sales in Q2, while overseas markets showed steady growth. The gross profit margin and expense ratios improved, indicating strong operational momentum [3][10] - Looking ahead, domestic sales are expected to gradually improve due to policy support and proactive adjustments by manufacturers, while overseas markets are entering a period of interest rate cuts, leading to positive revenue and profit outlooks [11] Summary by Sections Financial Performance - In H1 2024, Haier achieved revenue of 135.623 billion yuan, a year-on-year increase of 3.03%, with a net profit of 10.420 billion yuan, up 16.26% year-on-year. The non-recurring net profit was 10.161 billion yuan, an increase of 18.09% year-on-year [3][10] - The gross margin improved by 0.17 percentage points in H1 2024, benefiting from digitalization and global supply chain collaboration [10][14] - The company’s Q2 net profit margin increased by 0.98 percentage points year-on-year, reflecting ongoing improvements in profitability [10][14] Market Dynamics - Domestic sales faced challenges, with H1 domestic revenue growing by 2.3%. However, the company’s overseas revenue increased by 3.7%, with notable growth in Europe [10][11] - The company is well-positioned to benefit from the domestic appliance replacement cycle driven by local policies, and its strong brand presence in overseas markets is expected to support continued growth [11][12] Future Outlook - The forecast for 2024 and 2025 indicates net profits of 18.920 billion yuan and 21.542 billion yuan, respectively, with current P/E ratios of 12.0 and 10.5 times [11][12] - The long-term strategy focuses on cost reduction, efficiency enhancement, and high-end product offerings, which are expected to drive sustained profit margin improvements [11][12]