HAIER SMART HOME(SH:600690) Tai Ping Yang Zheng Quan·2025-03-29 11:13Investment Rating - The investment rating for Haier Smart Home is "Buy" with a target price based on the last closing price of 27.16 [1][7]. Core Views - The report highlights a steady performance in Q4 2024, with a focus on the potential of AI and emerging market opportunities [1][7]. - The company achieved total revenue of 285.98 billion yuan in 2024, representing a year-on-year growth of 4.29%, and a net profit of 18.74 billion yuan, up 12.92% [4][9]. - The report anticipates continued growth in revenue and net profit for the years 2025 to 2027, with projected net profits of 21.04 billion yuan, 23.50 billion yuan, and 26.02 billion yuan respectively [9][12]. Financial Performance - In Q4 2024, the company reported total revenue of 83.01 billion yuan, a 9.88% increase year-on-year, and a net profit of 3.59 billion yuan, up 3.96% [4][5]. - The gross margin for 2024 was 27.8%, reflecting a 0.3 percentage point increase, while the net margin for Q4 was 4.99%, down 0.53 percentage points [6][12]. - The company plans to distribute a cash dividend of 9.65 yuan per 10 shares, totaling 8.997 billion yuan, with a dividend payout ratio of 48.01% [4][7]. Market and Product Insights - The report indicates that the domestic market is benefiting from a trade-in policy, which is expected to boost short-term demand, while emerging markets present structural opportunities [7][9]. - The revenue growth for major product categories in 2024 was as follows: refrigerators +1.96%, washing machines +2.87%, air conditioners +7.44%, kitchen appliances -1.15%, and water appliances +4.93% [5][6]. - The company’s domestic revenue reached 141.68 billion yuan, growing 3.12% year-on-year, while overseas revenue was 142.90 billion yuan, up 5.32% [5][6]. Future Projections - The report projects revenue growth rates of 7.20%, 5.60%, and 5.20% for the years 2025, 2026, and 2027 respectively [9][12]. - The expected earnings per share (EPS) for 2025, 2026, and 2027 are 2.24 yuan, 2.50 yuan, and 2.77 yuan respectively, with corresponding price-to-earnings (PE) ratios of 12.11, 10.84, and 9.79 [9][12].