Guoxin Securities·2025-08-01 13:54Investment Rating - The investment rating for Hisense Home Appliances is "Outperform the Market" [7]. Core Views - The company showed slight pressure in Q2 2025, but overall performance remained stable with H1 revenue of 49.34 billion (+1.4%) and net profit of 2.08 billion (+3.0%) [2]. - The air conditioning business faced challenges, impacting Q2 results, but the overall growth in H1 indicates resilience [2]. - The company is expected to maintain profitability in its central air conditioning segment while facing price competition in the home air conditioning market [2][3]. Revenue and Profitability - In H1 2025, the revenue from HVAC (Heating, Ventilation, and Air Conditioning) grew by 4.1% to 23.69 billion, with a decline in Hisense Hitachi revenue by 6.0% to 10.66 billion [2]. - The ice washing segment saw a revenue increase of 4.8% to 15.39 billion, with an operating profit margin improvement of 0.8 percentage points to 4.2% [3]. - The three electric segments (automotive compressors and thermal management) reported a revenue growth of 3% in H1, with new orders contributing to future revenue stability [3]. Sales Performance - Domestic sales in H1 2025 decreased by 0.3% to 25.25 billion, primarily due to the impact of central air conditioning, while overseas sales increased by 12.3% to 20.45 billion [3]. - Significant growth was observed in various regions, with Europe up by 22.7%, the Americas by 26.2%, and the Middle East and Africa by 22.8% [3]. Margin and Cost Analysis - The gross margin for H1 improved by 0.7 percentage points to 21.5%, with Q2 gross margin also up by 1.1 percentage points to 21.5% [4]. - Increased expenses in sales, management, R&D, and finance were noted, with Q2 expense ratios rising by 0.3 percentage points across various categories [4]. Profit Forecast and Valuation - The profit forecast has been adjusted downwards, with expected net profits for 2025-2027 at 3.55 billion, 3.90 billion, and 4.27 billion, reflecting a year-on-year growth of 6.1%, 9.9%, and 9.5% respectively [4][5]. - The corresponding price-to-earnings ratios are projected at 10.6, 9.7, and 8.8 for the respective years [4].