HISENSE H.A.(SZ:000921) Tianfeng Securities·2025-03-30 05:13Investment Rating - The investment rating for the company is "Buy" with a target price indicating a potential return of over 20% within the next six months [8][19]. Core Insights - The company achieved a revenue of 92.746 billion RMB in 2024, representing a year-on-year growth of 8.35%, and a net profit of 3.348 billion RMB, up 17.99% year-on-year [1][5]. - The fourth quarter of 2024 saw revenues of 22.167 billion RMB, a 7.08% increase year-on-year, with a net profit of 555 million RMB, marking a significant 34.91% growth [1]. - The company plans to distribute a cash dividend of 12.30 RMB per 10 shares, with a payout ratio of 51% [1]. Revenue and Profit Analysis - The air conditioning and washing machine segments saw revenue growth of 4.2% and 18.3% respectively, while the revenue from Hisense Hitachi declined by 6.4%. Excluding Hitachi, the air conditioning revenue growth was 18.5% [2]. - The external sales of white goods showed remarkable growth, with a 36% increase year-on-year, particularly strong in Europe (+35%), the Americas (+46.5%), and ASEAN (+32%) [2]. Profitability Metrics - The company's gross margin for 2024 was 20.78%, a decrease of 1.31 percentage points year-on-year, while the net margin was 5.53%, down 0.07 percentage points [3]. - In Q4 2024, the gross margin was 19.69%, down 2.35 percentage points year-on-year, but the net margin improved by 0.32 percentage points to 4.33% [3]. Expense Management - The sales expense ratio decreased significantly to 9.71%, down 1.17 percentage points year-on-year, primarily due to changes in accounting standards [4]. - The management and R&D expense ratios saw slight increases, while the financial expense ratio improved marginally [4]. Cash Flow and Balance Sheet - The company's cash and cash equivalents, along with trading financial assets, totaled 20.607 billion RMB, a 13.65% increase year-on-year [5]. - However, the net cash flow from operating activities dropped by 51.64% to 5.132 billion RMB, attributed to increased cash payments for goods and services [5]. Future Projections - The company is expected to continue improving its profitability in the air conditioning and white goods sectors, with projected net profits of 3.85 billion RMB, 4.36 billion RMB, and 4.89 billion RMB for 2025, 2026, and 2027 respectively [5]. - The projected price-to-earnings ratios for 2025, 2026, and 2027 are 10.87x, 9.61x, and 8.56x respectively, indicating a favorable valuation outlook [5].