HAIER SMART HOME(SH:600690) Guoxin Securities·2025-03-31 09:13Investment Rating - The investment rating for Haier Smart Home (600690.SH) is "Outperform the Market" [6] Core Views - The report highlights accelerated revenue growth in both domestic and international markets in the second half of the year, with Q4 showing a revenue increase of 9.9% year-on-year [1] - The company reported a total revenue of 285.98 billion with a year-on-year growth of 4.3%, and a net profit attributable to shareholders of 18.74 billion, reflecting a 12.9% increase [1][5] - The report notes that the company's profitability was slightly affected by foreign exchange losses, acquisition costs, and increased interest expenses [1] Revenue Breakdown - Domestic revenue reached 142.2 billion, growing by 3.2%, while overseas revenue increased by 5.4% to 143.8 billion [2] - Emerging markets showed strong performance, with South Asia revenue growing by 21.1% and Middle East and Africa revenue increasing by 38.2% [2] - The company’s air conditioning segment performed well, with revenue of 49.1 billion, up 7.4%, while kitchen appliances saw a decline of 1.2% [2] Profitability and Cost Management - The gross margin improved by 0.3 percentage points to 27.8%, driven by digital transformation and product upgrades domestically, and a high-end strategy overseas [3] - Operating profit for the year was 20.23 billion, a 15.8% increase year-on-year, with a net profit margin of 6.6% [3] - The report indicates a significant increase in contract liabilities, suggesting effective results from the trade-in policy [3] Financial Forecasts - The profit forecasts for 2025-2027 have been adjusted to 21.2 billion, 23.4 billion, and 25.7 billion respectively, with expected growth rates of 13%, 10%, and 10% [4] - The earnings per share (EPS) are projected to be 2.26, 2.49, and 2.74 yuan for the years 2025, 2026, and 2027 respectively [4][5] - The report maintains a price-to-earnings (PE) ratio forecast of 12, 11, and 10 for the same years [4]