HISENSE H.A.(SZ:000921) EBSCN·2024-03-31 16:00Investment Rating - The report maintains a "Buy" rating for Hisense Home Appliances (000921.SZ) with a current price of 30.42 CNY [1] Core Insights - The company has shown a significant improvement in operational cash flow, with a net cash flow from operating activities of 10.612 billion CNY in 2023, an increase of 163.2% year-on-year [4][5] - Hisense achieved a revenue of 85.6 billion CNY in 2023, representing a year-on-year growth of 16%, and a net profit attributable to shareholders of 2.837 billion CNY, up 97.74% year-on-year [4][5] - The company plans to distribute a cash dividend of 10.13 CNY per 10 shares, totaling 1.4 billion CNY, with a cash dividend ratio of 49.0% [4] Revenue Performance - The domestic and international revenue for 2023 was 49 billion CNY and 27.9 billion CNY respectively, with year-on-year growth of 15% and 12% [5] - The air conditioning segment saw a revenue of 38.7 billion CNY, growing by 12%, while the central air conditioning business generated 22.2 billion CNY, with a net profit margin of 14.6% [5] - The home appliance segment, including refrigerators and washing machines, reported a revenue of 26.1 billion CNY, reflecting a robust growth of 23% [5] Profitability and Margins - The overall gross margin for 2023 was 22.1%, an increase of 1.4 percentage points year-on-year, with the air conditioning segment achieving a gross margin of 30.7% [5][11] - The net profit margin for 2023 was 3.3%, up 1.4 percentage points year-on-year, while the fourth quarter net profit margin was 2.0% [5][11] Future Projections - The report projects the company's net profit to reach 3.27 billion CNY in 2024 and 3.77 billion CNY in 2025, with corresponding growth rates of 15.24% and 15.21% [7][11] - The estimated P/E ratios for 2024, 2025, and 2026 are 13, 11, and 10 respectively, indicating a favorable valuation outlook [7][11]