HISENSE H.A.(SZ:000921) Guotai Junan Securities·2024-04-01 16:00Investment Rating - The investment rating for Hisense Home Appliances is "Buy" with a target price of 35.55 CNY, up from the previous target of 30.81 CNY [1][17]. Core Insights - The company's performance in 2023 met expectations, with significant improvements in operational efficiency in its traditional white goods sector and a notable increase in export profitability. The dividend payout ratio has been raised, indicating a potential increase in dividend yield [1][17]. - The company achieved a revenue of 85.6 billion CNY in 2023, representing a year-on-year growth of 15.5%, and a net profit of 2.837 billion CNY, which is a 97.74% increase year-on-year [8][9]. Summary by Sections Performance Overview - In 2023, Hisense Home Appliances reported a total revenue of 85.6 billion CNY, with a net profit of 2.837 billion CNY, reflecting a year-on-year increase of 15.5% and 97.74% respectively. The fourth quarter alone saw revenues of 20.701 billion CNY, up 21.13% year-on-year, and a net profit of 411 million CNY, up 12.68% year-on-year [8][9]. Revenue Breakdown - The revenue from air conditioning, refrigeration, and washing machines was 386.5 billion CNY, 260.7 billion CNY, and 122.4 billion CNY respectively, with year-on-year growth of 12%, 23%, and 4% [9][10]. - Domestic and overseas revenues were 49 billion CNY and 27.9 billion CNY respectively, with year-on-year growth of 15% and 12% [9][10]. Profitability - The gross margin for 2023 was 22.08%, an increase of 1.4 percentage points year-on-year, while the net profit margin was 3.3%, also up by 1.4 percentage points [13]. - The company has seen significant improvements in profitability, particularly in the air conditioning segment, driven by cost optimization and increased sales volume [13][15]. Cash Flow and Dividends - The cash and cash equivalents at the end of 2023 were 18.131 billion CNY, a 42.1% increase year-on-year. The net cash flow from operating activities was 10.612 billion CNY, reflecting a 163.17% increase year-on-year [15][16]. - The company plans to distribute a cash dividend of 10.13 CNY per 10 shares, totaling 1.391 billion CNY, which represents 49% of the net profit for the year [16]. Investment Recommendations - The report maintains profit forecasts for 2024-2025 and introduces a new forecast for 2026, projecting net profits of 3.288 billion CNY, 3.901 billion CNY, and 4.484 billion CNY for the respective years, with corresponding EPS of 2.37 CNY, 2.81 CNY, and 3.23 CNY [17][18].