HISENSE H.A.(SZ:000921) Guoxin Securities·2024-02-01 16:00Investment Rating - The report maintains a "Buy" rating for Hisense Home Appliances (000921.SZ) [1][4][10] Core Views - The company is expected to achieve a net profit of 2.75-2.85 billion yuan in 2023, representing a year-on-year growth of 92%-99%. The non-recurring net profit is projected to be 2.27-2.35 billion yuan, reflecting a growth of 151%-160% [1] - The fourth quarter of 2023 is anticipated to show a net profit of 320-420 million yuan, with a year-on-year change of -11% to +16%. The non-recurring profit is expected to be 210-290 million yuan, indicating a growth of 59% to 121% [1] - The company benefits from declining raw material costs and internal efficiency improvements, leading to nearly doubled profits for the year [1] - Domestic sales are expected to remain stable, while exports are projected to grow significantly, with air conditioner, refrigerator, and washing machine exports increasing by 10.6%, 43.8%, and 21.9% respectively in Q4 [1] - The company is likely to maintain a high growth rate in Q4 revenue, estimated to exceed 15% due to a low revenue base from the previous year [1] Financial Forecasts and Metrics - The projected revenues for 2023-2025 are 28.0 billion, 31.8 billion, and 36.0 billion yuan respectively, with year-on-year growth rates of 95%, 14%, and 13% [1][2] - The earnings per share (EPS) for 2023-2025 are expected to be 2.05, 2.34, and 2.64 yuan respectively [2][11] - The company’s price-to-earnings (PE) ratios for 2023-2025 are projected to be 12, 10, and 9 times [1][11] - The EBIT margin is expected to improve from 5.0% in 2023 to 6.1% in 2024 and 6.8% in 2025 [2][11] - The return on equity (ROE) is forecasted to be 21.7% in 2023, slightly increasing to 21.9% in 2024 and 22.1% in 2025 [2][11]