Tai Ping Yang·2024-04-08 16:00Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (600690) with a target price based on the last closing price of 24.95 [1][9]. Core Insights - Haier Smart Home reported a steady revenue growth of 7.33% in 2023, achieving total revenue of 261.43 billion yuan and a net profit of 16.60 billion yuan, reflecting a 12.81% increase [3][4]. - The company plans to increase its cash dividend payout ratio, with a proposed cash dividend of 8.04 yuan per 10 shares, totaling 7.47 billion yuan, which corresponds to a payout ratio of 45.02% [3][4]. - The air conditioning segment saw double-digit growth, with significant contributions from the European market [4]. Financial Performance - In Q4 2023, Haier Smart Home achieved a revenue of 62.77 billion yuan, up 6.82%, and a net profit of 3.45 billion yuan, an increase of 13.20% [3][4]. - The gross margin for Q4 2023 was 34.03%, with a net margin of 5.52%, indicating effective cost management [4]. - The company’s revenue from major appliances, including refrigerators, washing machines, and air conditioners, showed positive growth rates, with air conditioning revenue increasing by 13.98% [3][4]. Regional Performance - Domestic revenue reached 1246.14 billion yuan, growing by 7.12%, while international revenue was 1356.78 billion yuan, up 7.60% [3][4]. - In the overseas market, revenue from North America, Europe, South Asia, and Southeast Asia grew by 4.1%, 23.9%, 14.9%, and 11.6% respectively, with Europe showing the fastest growth [3][4]. Future Projections - The report forecasts net profits for 2024, 2025, and 2026 to be 18.83 billion yuan, 20.86 billion yuan, and 23.05 billion yuan respectively, with corresponding EPS of 2.00 yuan, 2.21 yuan, and 2.44 yuan [6][7]. - The expected PE ratios for the same years are 12.84, 11.59, and 10.49 times [6][7]. Strategic Initiatives - The company is focusing on high-end market opportunities, with the Casarte brand achieving a retail sales growth of 14% in 2023 [4]. - The "Three Wings Bird" initiative has seen retail sales increase by 84%, with over 60% of sales coming from complete sets [4].