Huachuang Securities·2025-12-31 15:36Investment Rating - The report maintains a "Strong Buy" rating for Haier Smart Home (600690) [1] Core Insights - Haier Smart Home has received multiple industry recognitions for its digital service system, which extends its offline service capabilities online and overseas, enhancing service efficiency and standardization [1] - The company reported a revenue of 77.56 billion yuan in Q3 2025, reflecting a year-on-year growth of 9.51%, consistent with the 10.2% growth in H1 2025 [8] - The domestic business revenue grew by 10.8% year-on-year, with the air conditioning segment seeing over 30% growth in Q3 [8] - The company’s profitability improved, with a net profit of 5.34 billion yuan in Q3 2025, up 12.7% year-on-year [8] - The operating cash flow for Q3 2025 was 6.352 billion yuan, which is 1.2 times the net profit [8] - Future growth is expected to continue, with a projected double-digit profit growth in 2026, supported by improving demand in domestic and international markets [8] Financial Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are 285.981 billion, 309.930 billion, 328.665 billion, and 347.024 billion yuan respectively, with year-on-year growth rates of 9.4%, 8.4%, 6.0%, and 5.6% [3] - Net profit projections for the same years are 18.741 billion, 21.432 billion, 23.605 billion, and 26.101 billion yuan, with growth rates of 12.9%, 14.4%, 10.1%, and 10.6% respectively [3] - The target price is set at 33.8 yuan, with the current price at 26.54 yuan, indicating significant upside potential [4]