Huachuang Securities·2025-05-06 10:34Investment Rating - The report maintains a "Strong Buy" rating for Haier Smart Home (600690) with a target price of 34.5 CNY, indicating an expectation of over 20% outperformance against the benchmark index in the next six months [2][7]. Core Insights - The company's Q1 2025 performance exceeded expectations, with total revenue reaching 79.12 billion CNY, a year-on-year increase of 10.1%, and net profit attributable to shareholders of 5.49 billion CNY, up 15.1% year-on-year [7]. - The report highlights strong growth in both domestic and overseas markets, with domestic revenue growing by 7.8% and overseas revenue by 12.6% [7]. - The company is expected to benefit from a favorable domestic demand environment and ongoing digital transformation initiatives, which are anticipated to enhance operational efficiency and profitability [7]. Financial Performance Summary - Revenue Forecasts: Projected total revenue for 2024 is 285.98 billion CNY, increasing to 309.93 billion CNY in 2025, with a compound annual growth rate (CAGR) of 9.4% [3][8]. - Net Profit Forecasts: Expected net profit attributable to shareholders is 18.74 billion CNY for 2024, rising to 21.17 billion CNY in 2025, reflecting a year-on-year growth rate of 12.9% [3][8]. - Earnings Per Share (EPS): EPS is projected to be 2.00 CNY in 2024, increasing to 2.26 CNY in 2025, and further to 2.53 CNY in 2026 [3][8]. Market Position and Strategy - The report notes that Haier's traditional stronghold in the refrigerator and washing machine segments is expected to maintain stable growth, outperforming the industry average [7]. - The company is also focusing on high-growth segments such as air conditioning, which is projected to achieve double-digit growth due to government subsidies [7]. - The introduction of an employee stock ownership plan aims to align the interests of management and key employees with those of shareholders, enhancing long-term value creation [7].