HISENSE H.A.(SZ:000921) Guotai Junan Securities·2024-09-02 05:23Investment Rating - The report maintains a "Buy" rating for Hisense Home Appliances [5][23] - The target price is set at 42.00 CNY [5][23] Core Views - The company's performance in H1 2024 met expectations, with significant growth in overseas revenue despite pressure in domestic HVAC sales [3][4] - The company is expected to maintain rapid growth overseas in H2 2024, with domestic sales stabilizing [3][4] Summary by Sections Performance Overview - In H1 2024, Hisense achieved revenue of 48.642 billion CNY, a year-on-year increase of 13.27%, and a net profit of 2.016 billion CNY, up 34.61% [16][18] - Q2 2024 revenue was 25.156 billion CNY, reflecting a 6.98% year-on-year growth, with net profit increasing by 17.26% to 1.035 billion CNY [16][18] Revenue Growth - Domestic revenue grew by 4% while overseas revenue surged by 28% in H1 2024, with overseas white goods business increasing by 37% [17][18] - The overall share of overseas revenue reached 37.43%, up 4.28 percentage points year-on-year [17][18] - Revenue growth by region includes Europe (+14%), Americas (+40%), Asia-Pacific (+19%), Middle East and Africa (+27%), and ASEAN (+39%), with ASEAN showing a remarkable 64% growth in proprietary brand revenue [17][18] Cost and Profitability - The company's gross margin for H1 2024 was 21.28%, a decrease of 0.25 percentage points year-on-year, while the net margin improved by 0.44 percentage points to 6.23% [20][21] - The decline in gross margin was primarily due to lower export prices in the washing and refrigeration segment and increased shipping costs [20][21] - The recovery of minority interests contributed positively to net profit, with the proportion of minority interests in net profit decreasing from 38.9% to 30.7% [20][21] Cash Flow and Financial Position - The company reported cash and cash equivalents totaling 19.153 billion CNY, with net cash improving [22] - Operating cash flow for H1 2024 was 2.1 billion CNY, down 44.91% year-on-year, primarily due to rising copper prices and increased overseas shipping costs [22] Investment Recommendations - The report maintains profit forecasts for 2024-2026, projecting net profits of 3.567 billion CNY, 4.176 billion CNY, and 4.819 billion CNY, respectively, with corresponding EPS of 2.57 CNY, 3.01 CNY, and 3.48 CNY [23]