HAIER SMART HOME(SH:600690) KAIYUAN SECURITIES·2024-11-01 08:02Investment Rating - The investment rating for Haier Smart Home (600690.SH) is "Buy" (maintained) [1] Core Views - The company achieved operating revenue of 202.97 billion yuan in Q1-Q3 2024, a year-on-year increase of 2.2%, and a net profit attributable to shareholders of 15.15 billion yuan, up 15.3% year-on-year. In Q3 2024 alone, the operating revenue was 67.35 billion yuan, a 0.5% increase, with a net profit of 4.73 billion yuan, up 13.2% year-on-year. The company has made significant progress in efficiency improvement and cost reduction, leading to sustained profit growth. The profit forecast for 2024-2026 has been raised, with expected net profits of 19.3 billion, 21.62 billion, and 24.19 billion yuan respectively, corresponding to EPS of 2.04, 2.29, and 2.56 yuan, with current stock prices reflecting P/E ratios of 11.7, 10.4, and 9.3 times [1][5][6]. Summary by Sections Revenue and Profitability - For Q1-Q3 2024, the company reported operating revenue of 202.97 billion yuan, a 2.2% increase year-on-year, and a net profit of 15.15 billion yuan, up 15.3% year-on-year. In Q3 2024, the operating revenue was 67.35 billion yuan, a 0.5% increase, with a net profit of 4.73 billion yuan, up 13.2% year-on-year [1][5]. Market Performance - The company is expected to see steady growth in exports, with emerging markets growing faster than developed markets. For instance, the South Asian market is projected to grow over 30%. The company is well-positioned globally, anticipating that the current interest rate reduction cycle will enhance external demand and drive overseas revenue growth [1]. Digital Transformation and Cost Efficiency - The gross margin for Q3 2024 was 31.3%, a 0.1 percentage point increase, primarily due to domestic digital transformation and global supply chain collaboration. The expense ratio for Q3 2024 was 23.5%, a decrease of 0.4 percentage points. The net profit margin for Q3 2024 was 7.2%, an increase of 0.9 percentage points, driven by improved operational efficiency and reduced asset impairment losses [1][6].