KAIYUAN SECURITIES·2024-03-28 16:00Investment Rating - The investment rating for Haier Smart Home is maintained as "Buy" [2][56]. Core Views - The company achieved steady revenue growth in 2023, with revenue reaching 261.43 billion yuan, a year-on-year increase of 7.3%, and net profit attributable to shareholders of 16.60 billion yuan, up 12.8% [2][8]. - The company is focusing on high-end product offerings and digital transformation to enhance profitability and market share both domestically and internationally [8][56]. - A three-year shareholder return plan has been introduced, with a commitment to maintain a cash dividend ratio of no less than 50% from 2025 to 2026 [55][56]. Summary by Sections Revenue Growth and Profitability - In 2023, the company reported a revenue of 2614.28 billion yuan, with a net profit of 165.97 billion yuan, reflecting a 12.8% increase [2][11]. - Domestic revenue was 1250.16 billion yuan, growing by 7.1%, while overseas revenue reached 1364.12 billion yuan, up 7.6% [2][29]. - The company’s gross margin improved to 31.5%, with a net profit margin of 6.35% [42][55]. Market Share and Product Performance - The company holds a 28% market share in China, with significant growth in high-end segments such as refrigerators and air conditioners [18][22]. - The air conditioning segment saw a revenue increase of 13.1%, contributing to overall profitability [37][40]. - The high-end brand Casarte achieved a retail sales growth of 14% in 2023, leading in several premium product categories [23][26]. Future Outlook and Financial Projections - The company has adjusted its profit forecasts for 2024-2026, expecting net profits of 187.1 billion yuan, 212.6 billion yuan, and 239.0 billion yuan respectively [56]. - The earnings per share (EPS) are projected to be 2.0 yuan, 2.3 yuan, and 2.5 yuan for the respective years, with corresponding price-to-earnings (P/E) ratios of 12.6, 11.1, and 9.9 [56].