Guotai Junan Securities·2024-03-28 16:00Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (600690) with a target price of 28.95 CNY [5][24]. Core Views - The company's 2023 performance met expectations, with an increase in dividend payout ratio and a positive outlook on overseas market share growth and high-end product profitability improvement [3][24]. Summary by Sections 1. Performance Overview - In 2023, Haier achieved a revenue of 261.43 billion CNY, a year-on-year increase of 7.3%, and a net profit attributable to shareholders of 16.60 billion CNY, up 12.8% year-on-year. In Q4 2023, revenue was 62.77 billion CNY, growing 6.8% year-on-year, with a net profit of 3.45 billion CNY, up 13.2% year-on-year [15][3]. 2. Revenue Growth - The air conditioning segment showed the fastest growth, with a revenue increase of 14% year-on-year. The company’s revenue from domestic sales was 125 billion CNY, up 7%, while international sales reached 136.4 billion CNY, up 8%. In Europe, revenue grew by 24% year-on-year, driven by strategic partnerships and product positioning improvements [16][19]. 3. Profitability - The gross margin for 2023 was 31.51%, an increase of 0.18 percentage points year-on-year, while the net margin was 6.4%, up 0.35 percentage points. Domestic gross margin was 36.37%, up 0.52 percentage points, while overseas gross margin was 26.77%, down 0.15 percentage points [19][20]. 4. Cash Flow - By the end of 2023, the company had cash and cash equivalents of 55.44 billion CNY, a year-on-year increase of 1.43%. The net cash flow from operating activities for 2023 was 25.26 billion CNY, up 25.35% year-on-year [21][22]. 5. Dividend Policy - The company plans to distribute a cash dividend of 8.04 CNY per 10 shares, totaling 7.471 billion CNY, which represents 45.02% of the net profit attributable to shareholders for 2023, an increase of 9% from 2022. The expected dividend yield is 3.4% [23][24]. 6. Investment Outlook - The company is expected to continue its overseas expansion and high-end product strategy, with projected net profits for 2024-2026 of 18.22 billion CNY, 20.32 billion CNY, and 22.35 billion CNY, respectively, corresponding to EPS of 1.93 CNY, 2.15 CNY, and 2.37 CNY, with a growth rate of approximately 10% annually [24][3].