HAIER SMART HOME(SH:600690) Guotou Securities·2024-10-30 03:23Investment Rating - The investment rating for Haier Smart Home is maintained at "Buy - A" with a 12-month target price of 36.96 CNY, compared to the current stock price of 30.53 CNY [4][7]. Core Insights - Haier Smart Home reported a revenue of 202.97 billion CNY for the first nine months of 2024, a year-on-year increase of 2.2%, and a net profit attributable to shareholders of 15.15 billion CNY, up 15.3% year-on-year [1][2]. - The company's Q3 2024 revenue was 67.35 billion CNY, reflecting a slight year-on-year growth of 0.5%, while the net profit for the same period was 4.73 billion CNY, up 13.2% year-on-year [1][2]. - The digital transformation efforts are showing positive results, contributing to an upward trend in profitability despite challenges in domestic consumption [1][3]. Financial Performance Summary - Q3 2024 gross margin was 31.3%, an increase of 0.1 percentage points year-on-year, driven by digital transformation in procurement, R&D, and manufacturing [2]. - The net profit margin for Q3 2024 was 7.0%, up 0.8 percentage points year-on-year, with a notable reduction in sales and management expense ratios [3]. - The company expects domestic business to benefit from the old-for-new appliance subsidy policy and anticipates improved overseas performance due to potential demand growth from U.S. interest rate cuts [1][2]. Future Earnings Projections - EPS estimates for Haier Smart Home are projected at 2.06 CNY, 2.31 CNY, and 2.51 CNY for 2024, 2025, and 2026 respectively [7]. - The company is expected to see revenue growth from 269.57 billion CNY in 2024 to 300.65 billion CNY in 2026, with net profit increasing from 16.60 billion CNY to 23.57 billion CNY over the same period [8][12].