Changjiang Securities·2025-09-02 09:46Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a strong revenue growth of 10.22% year-on-year for H1 2025, achieving a total revenue of 1564.94 billion yuan. The net profit attributable to shareholders increased by 15.59% to 120.33 billion yuan, while the net profit excluding non-recurring items rose by 15.18% to 117.02 billion yuan [3][4]. - In Q2 2025, the company generated revenue of 773.76 billion yuan, reflecting a year-on-year growth of 10.39%, with a net profit of 65.46 billion yuan, up 16.02% year-on-year [3][4]. - The company plans to distribute a cash dividend of 2.69 yuan per 10 shares, which corresponds to 20.83% of the net profit attributable to shareholders for H1 2025 [3][4]. Summary by Sections Revenue Performance - The company achieved a revenue of 1564.94 billion yuan in H1 2025, with a year-on-year growth of 10.22%. The revenue for Q2 2025 was 773.76 billion yuan, growing by 10.39% year-on-year. The revenue growth was driven by various product categories, with air conditioning products growing by 12.97% and water appliances by 21.24% [3][9]. - Domestic revenue increased by 8.8%, with the Casarte brand growing over 20% and the Leader brand over 15%. Overseas revenue grew by 11.7%, with significant growth in emerging markets [9]. Profitability and Operational Quality - The company's gross margin improved by 0.08 percentage points in H1 2025, with notable increases in air conditioning (0.31 percentage points) and water appliances (0.31 percentage points). The operating profit for H1 2025 grew by 12.91%, with an operating profit margin increase of 0.20 percentage points [9]. - The net cash flow from operating activities increased by 32.23% year-on-year for H1 2025, indicating a significant improvement in operational quality [9]. Investment Outlook - The company is positioned as a global leader in major appliances, leveraging its full-category operational advantages and smart home solutions to meet diverse consumer needs. The projected net profits for 2025, 2026, and 2027 are 210.34 billion yuan, 237.58 billion yuan, and 261.57 billion yuan, respectively, with corresponding price-to-earnings ratios of 11.60, 10.27, and 9.33 [9].