KAIYUAN SECURITIES·2025-04-30 06:17Investment Rating - The investment rating for Hisense Home Appliances is "Buy" (maintained) [1] Core Views - In Q1 2025, the company's revenue reached 24.84 billion yuan, representing a year-on-year increase of 5.8%. The net profit attributable to shareholders was 1.13 billion yuan, up 14.9%, while the net profit excluding non-recurring items was 1.01 billion yuan, an increase of 20.3%. The strong performance in overseas sales, cost reduction, and product structure optimization contributed to the steady improvement in profitability. The profit forecast for 2025-2027 has been raised, with expected net profits of 3.84 billion, 4.34 billion, and 4.83 billion yuan respectively, corresponding to EPS of 2.77, 3.13, and 3.49 yuan. The current stock price corresponds to P/E ratios of 10.0, 8.8, and 7.9 times [5][8] Summary by Sections Financial Performance - In Q1 2025, the gross margin was 21.4%, a slight decrease of 0.2 percentage points, attributed to the faster growth of lower-margin overseas sales. The net profit margin was 6.6%, a year-on-year increase of 0.03 percentage points, while the net profit margin attributable to shareholders was 4.5%, up 0.4 percentage points [7] Business Segments - The central air conditioning business is expected to return to growth, with Hisense's multi-split system holding over 20% market share. The home air conditioning segment is also projected to grow rapidly, with overseas sales expected to increase at a higher rate. In Q1 2025, domestic and overseas sales of Hisense air conditioners grew by 9% and 32% respectively. The refrigerator segment maintained high single-digit growth, with domestic and overseas sales increasing by 12% and 22% respectively [6] Financial Projections - Revenue projections for 2025-2027 are 100.55 billion, 108.59 billion, and 116.23 billion yuan, with year-on-year growth rates of 8.4%, 8.0%, and 7.0% respectively. The net profit attributable to shareholders is projected to grow at rates of 14.8%, 13.0%, and 11.2% over the same period [8][10]