CMS·2025-08-01 13:26Investment Rating - The report maintains a "Strong Buy" rating for Hisense Home Appliances [3] Core Views - The company is currently facing operational pressure but is expected to see a turnaround in its performance. The revenue for H1 2025 was 49.3 billion yuan, a year-on-year increase of 1%, while the net profit attributable to shareholders was 2.08 billion yuan, up 3% year-on-year. However, Q2 2025 saw a decline in revenue by 3% and a net profit decrease of 8% [1][2] Financial Data and Valuation - Projected total revenue for 2023 is 85.6 billion yuan, with a year-on-year growth of 15%. This is expected to grow to 99.6 billion yuan by 2025, with a growth rate of 7% [2][14] - The net profit attributable to shareholders is projected to reach 3.68 billion yuan in 2025, reflecting a 10% increase from the previous year [2][14] - Earnings per share (EPS) is expected to be 2.66 yuan in 2025, with a price-to-earnings (PE) ratio of 10.2 [2][14] - The company has a return on equity (ROE) of 21.3% and a debt-to-asset ratio of 73.9% [3] Product Performance - In Q2 2025, the air conditioning segment saw a year-on-year increase in domestic and foreign sales of 6% and 17%, respectively. However, both segments experienced negative growth in Q2 due to industry price wars and high base effects from the previous year [6] - The refrigerator segment reported a 4% increase in domestic sales and a 2% increase in foreign sales, with improved profitability in foreign sales due to enhanced brand strength [6] - The central air conditioning segment experienced a revenue decline of 6% in H1 2025, attributed to a sluggish real estate market, but maintains strong brand power in the renovation market [6] Investment Outlook - The report suggests that the domestic consumption support policies will positively impact the company's performance, with a strong growth outlook for 2025-2027. The projected net profits for these years are 3.7 billion yuan, 4.2 billion yuan, and 4.9 billion yuan, respectively, with corresponding growth rates of 10%, 15%, and 15% [6][2]