Haitong Securities International·2025-11-02 09:33Investment Rating - The report maintains an "Outperform" rating for Haier Smart Home with a target price of RMB 36.16, based on a current price of RMB 26.81 [2][15]. Core Insights - Haier Smart Home has demonstrated outstanding performance with a revenue of RMB 234.05 billion for Q3 2025, reflecting a year-on-year growth of 9.98%, and a net profit of RMB 17.37 billion, up 14.68% year-on-year [4][10]. - The company's gross profit margin reached 27.2%, a slight increase of 0.1 percentage points year-on-year, indicating improved profitability driven by a high-end brand strategy [11]. - Domestic revenue growth for the first three quarters of 2025 was 9.5%, with Q3 showing a growth rate of 10.8%. The air conditioning segment saw revenue growth exceeding 30% in Q3 [12][13]. - Internationally, Haier's overseas revenue grew by 10.5% in the first three quarters, with a quarterly growth of 8.3% in Q3, supported by a localized operation strategy [13][14]. Financial Performance Summary - Revenue projections for Haier Smart Home are as follows: RMB 303.47 billion for 2025, RMB 314.74 billion for 2026, and RMB 331.79 billion for 2027, with respective growth rates of 6%, 4%, and 5% [3][9]. - Net profit estimates are RMB 21.18 billion for 2025, RMB 23.81 billion for 2026, and RMB 26.71 billion for 2027, maintaining a growth rate of approximately 12% annually [3][9]. - The diluted EPS is projected to be RMB 2.26 for 2025, RMB 2.54 for 2026, and RMB 2.85 for 2027, with a P/E ratio decreasing from 15 in 2025 to 10 in 2027 [3][9].