Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [5][8]. Core Insights - The company achieved a revenue of 79.12 billion RMB in Q1 2025, reflecting a year-over-year (YOY) growth of 10.0%. The net profit attributable to shareholders was 5.49 billion RMB, with a YOY increase of 15.1% [5]. - The growth in emerging markets is robust, with overseas revenue increasing by 13% YOY. Notably, South Asia, Southeast Asia, and the Middle East and Africa markets saw revenue growth exceeding 30%, 20%, and 50%, respectively [5]. - Domestic sales benefited from national subsidy policies, with a 7.8% YOY growth in Q1 2025, particularly in high-end brands like the Casarte series, which grew over 20% [5]. - The gross margin slightly increased to 25.4%, up by 0.1 percentage points YOY, driven by digital transformation in procurement, R&D, and manufacturing [5]. - The company launched a core employee stock ownership plan to enhance employee motivation, with a target return on equity (ROE) of over 17.7% [5]. Financial Projections - The company forecasts net profits of 21.66 billion RMB, 23.73 billion RMB, and 26.29 billion RMB for 2025, 2026, and 2027, respectively, with YOY growth rates of 15.6%, 9.5%, and 10.8% [7]. - Earnings per share (EPS) are projected to be 2.31 RMB, 2.53 RMB, and 2.80 RMB for the same years, with corresponding growth rates of 14.27%, 9.54%, and 10.81% [7]. - The report indicates that the H-share price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are expected to be 9X, 8X, and 7.59X, respectively, suggesting that the stock is undervalued [5][7]. Market Position - The company has a diversified product portfolio, with refrigerators accounting for 29.3%, washing machines for 22.2%, and air conditioners for 17.2% of its revenue [5]. - The total market capitalization of the company is approximately 185.97 billion RMB, with a share price of 22.90 HKD as of May 6, 2025 [5].
海尔智家（06690）：国补及新兴市场增长推动，25Q1净利YOY+15%