EBSCN·2025-08-07 08:57Investment Rating - The report maintains an "Accumulate" rating for Hisense Home Appliances (000921.SZ) with a current price of 25.40 CNY [1]. Core Views - The company's revenue for the first half of 2025 reached 49.34 billion CNY, a year-on-year increase of 1.4%, while the net profit attributable to shareholders was 2.08 billion CNY, up 3.0% year-on-year [5]. - Domestic sales are under pressure in the short term, while overseas sales continue to perform well, with a notable increase in revenue from the Americas and ASEAN markets [6]. - The company has seen improvements in gross margins for overseas sales, with a gross margin of 21.5% overall, and a significant increase in R&D investment [7]. Summary by Sections Financial Performance - In Q2 2025, the company achieved revenue of 24.50 billion CNY, a decrease of 2.6% year-on-year, and a net profit of 0.95 billion CNY, down 8.3% year-on-year [5]. - Domestic sales revenue was 25.25 billion CNY, a slight decline of 0.3% year-on-year, while overseas sales revenue was 20.45 billion CNY, an increase of 12.3% year-on-year [6]. Business Segments - The HVAC segment generated revenue of 23.69 billion CNY in H1 2025, up 4.1% year-on-year, with significant growth in overseas markets [6]. - The home appliance segment, excluding the subsidiary Hisense Hitachi, saw revenue of 13.04 billion CNY, a growth of 14.1% year-on-year, driven by national subsidies [6]. - The washing machine segment also performed well, with domestic revenue growth of 37.6% [6]. Profitability and Margins - The overall gross margin for H1 2025 was 21.5%, with domestic gross margin at 31.0% and overseas gross margin at 12.3% [7]. - The net profit margin for the company was 4.2%, reflecting a slight increase of 0.1 percentage points year-on-year [7]. Forecast and Valuation - The report adjusts the net profit forecast for 2025-2027 to 3.6 billion CNY, 4.0 billion CNY, and 4.5 billion CNY respectively, reflecting a downward adjustment of 5%, 6%, and 4% [8]. - The current price corresponds to a price-to-earnings ratio of 10, 9, and 8 for the years 2025, 2026, and 2027 respectively [8].