HAIER SMART HOME(SH:600690) Tianfeng Securities·2025-03-29 09:30Investment Rating - The investment rating for Haier Smart Home is "Buy" with a target price reflecting a potential return of over 20% within six months [6][17]. Core Views - The company achieved a revenue of 285.98 billion yuan in 2024, a year-on-year increase of 4.3%, and a net profit attributable to shareholders of 18.74 billion yuan, up 12.9% year-on-year [1]. - The company is focusing on digital transformation and optimizing costs, which has led to a gross margin improvement of 0.3 percentage points to 27.8% in 2024 [3]. - Cash flow remains strong, with net cash flow from operating activities reaching 26.5 billion yuan in 2024, indicating robust cash generation capabilities [4]. Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of 73.24 billion yuan, with a net profit of 3.59 billion yuan, reflecting a 4.0% year-on-year increase [1]. - The company plans to distribute a dividend of 9.65 yuan per 10 shares, totaling 9 billion yuan, with a dividend payout ratio of 48% [1]. Revenue Growth - The company experienced a revenue growth of 4% year-on-year, with specific product categories showing varied performance: air conditioning (+7%), refrigeration (+2%), washing machines (+3%), and kitchen appliances (-1%) [2]. - Domestic retail growth was driven by trade-in programs, with significant growth in the high-end brand Casarte, which saw over 30% growth [2]. Cost Optimization - The company has successfully reduced its sales, management, and R&D expense ratios, contributing to overall efficiency improvements [3]. - The financial expense ratio increased slightly due to rising interest expenses from overseas rate hikes [3]. Cash Flow and Balance Sheet - The company reported a net cash flow from operating activities of 26.5 billion yuan for the year, maintaining a high level of cash flow generation [4]. - Contract liabilities increased by 40% year-on-year, indicating a growing revenue and performance reservoir [4]. Future Outlook - The company is expected to continue its growth trajectory, with projected net profits of 21.44 billion yuan, 24.11 billion yuan, and 26.64 billion yuan for 2025, 2026, and 2027, respectively [5]. - The company is enhancing its global competitiveness through core module manufacturing capabilities and overseas acquisitions [4].