Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (6690 HK) with a target price of HKD 35.79, indicating a potential upside of 47.0% from the current price of HKD 24.35 [1][9]. Core Insights - Haier Smart Home's 2023 performance met expectations, with revenue and net profit increasing by 7.3% and 12.8% year-on-year, reaching RMB 261.4 billion and RMB 16.6 billion, respectively. The company also exceeded market expectations with a dividend payout of RMB 0.8 per share, raising the payout ratio from 36% to 45% [1][2]. - The company has announced a shareholder return plan for 2024-2026, projecting a dividend payout ratio of 50% for 2025 and 2026, which has positively influenced the stock price [1][2]. - All business segments showed revenue and profit growth, with notable performance in the air conditioning sector, which saw a profit margin improvement of 1.3 percentage points year-on-year [1][6]. Financial Overview - In 2023, Haier Smart Home's revenue from major product categories included refrigerators (RMB 81.9 billion), kitchen appliances (RMB 41.7 billion), air conditioning (RMB 46.1 billion), washing machines (RMB 61.5 billion), and water appliances (RMB 15.3 billion), reflecting growth rates of 5%, 7%, 13%, 6%, and 9%, respectively [6][7]. - The company achieved a gross margin of 31.5% and an operating margin of 7.5% in 2023, with a net profit margin of 6.4%, indicating overall profitability improvements [6][10]. - The financial projections for 2024 estimate revenue growth of 8.4% to RMB 283.3 billion and net profit growth of 16.4% to RMB 19.3 billion, with an expected EPS of RMB 2.08 [5][10]. Strategic Initiatives - The high-end brand Casarte is expected to achieve double-digit growth in 2024, supported by product upgrades and an expanded presence in high-end retail locations [2][6]. - The company is focusing on enhancing production efficiency and cost management across all segments, which is anticipated to further improve profitability [1][2]. Market Position - Haier Smart Home is positioned to benefit from ongoing recovery in consumer spending and government policies promoting appliance upgrades, particularly in the refrigerator and washing machine segments [1][2]. - The company is optimistic about its overseas business performance, especially in the North American and European markets, where profitability is expected to improve [1][2].
各业务盈利能力均获提升，派息水平超预期；上调目标价