HAIER SMART HOME(SH:600690) EBSCN·2024-09-09 23:40Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (600690.SH) with a current price of 25.05 CNY [2]. Core Insights - The company achieved revenue growth against the trend, with a historical high net profit margin in Q2 [2][7]. - For H1 2024, Haier reported operating revenue of 135.623 billion CNY, a year-on-year increase of 3%, and a net profit attributable to shareholders of 10.42 billion CNY, up 16.3% year-on-year [6][7]. - The company’s gross profit margin improved to 30.6% in H1 2024, with a net profit margin of 7.68%, marking a year-on-year increase of 0.9 percentage points [7][8]. Revenue Performance - Domestic and overseas businesses both experienced growth. Domestic revenue for H1 2024 was 64.8 billion CNY, up 2% year-on-year, while overseas revenue reached 70.8 billion CNY, up 4% year-on-year [7]. - The revenue breakdown by product for H1 2024 shows refrigerators, washing machines, air conditioners, kitchen appliances, and water appliances contributing 30%, 22%, 21%, 15%, and 6% respectively, with year-on-year growth rates of 1%, 5%, 4%, 2%, and 6% [7]. Profitability and Efficiency - The company’s digital transformation efforts have led to cost reductions and efficiency improvements, with a decrease in sales, management, and R&D expense ratios [7][8]. - The net cash flow from operating activities for H1 2024 was 7.8 billion CNY, a 15% increase year-on-year, primarily due to increased operating profit and improved operational efficiency [7]. Forecast and Valuation - The report projects net profits for 2024, 2025, and 2026 to be 19.1 billion CNY, 21.5 billion CNY, and 24.1 billion CNY respectively, with corresponding price-to-earnings ratios of 12, 11, and 10 [8].