HISENSE H.A.(SZ:000921)2024-09-09 11:08Investment Rating - The report does not explicitly state an investment rating for Hisense Home Appliances Core Viewpoints - Hisense Home Appliances has achieved a revenue CAGR of 18.9% from 2018 to 2023, significantly outperforming major competitors in the white goods sector [1] - The company's air conditioning segment is the largest revenue driver, contributing 45.2% of total revenue in 2023, with a CAGR of 21% from 2018 to 2023 [8][12] - Despite a strong domestic performance, Hisense's overseas business has a low gross margin, consistently in single digits, indicating challenges in brand positioning and pricing power in international markets [20][22] Summary by Sections Company Background - Hisense Home Appliances is a local state-owned enterprise that underwent mixed ownership reform in 2020, with a diversified shareholding structure [4] - The company operates under eight brands, including Hisense, Rongsheng, and Kelon, covering various product segments such as HVAC, refrigeration, and kitchen appliances [6] Financial Performance - In 2023, Hisense Home Appliances reported a revenue of 856 billion, with a net profit of 28.4 billion, marking a 98% increase from the previous year [30] - The company's gross margin improved to 22% in 2023, although it remains lower than competitors like Haier and Gree [30] Business Segments - The HVAC segment generated 387 billion in revenue in 2023, with central air conditioning being the primary growth driver [8][12] - The refrigeration and washing segment achieved a revenue of 261 billion in 2023, with a focus on high-end and embedded products [16][19] Overseas Expansion - Over 30% of Hisense's revenue comes from international markets, with a CAGR of 21% from 2018 to 2023 [22] - The overseas sales model is based on a buyout approach, leading to lower gross margins compared to domestic sales [20][22] Market Position - Hisense's central air conditioning products hold a significant market share, particularly in the multi-split air conditioning segment, which accounted for 48.7% of the market in 2023 [14] - The company has been expanding its presence in emerging markets, particularly in the Americas and Asia-Pacific regions [22]