HISENSE H.A.(SZ:000921) Guotou Securities·2024-04-26 00:00Investment Rating - The investment rating for Hisense Home Appliances is "Buy-A" with a target price of 41.99 CNY over the next six months, which corresponds to a dynamic P/E ratio of 17 times for 2024 [4][8]. Core Insights - Hisense Home Appliances reported a revenue of 23.49 billion CNY in Q1 2024, representing a year-over-year increase of 20.9%. The net profit attributable to shareholders reached 0.98 billion CNY, up 59.5% year-over-year, indicating a strong improvement in profitability driven primarily by export sales [3][4]. - The company's gross profit margin improved to 21.6%, a 0.5 percentage point increase year-over-year, attributed to product structure optimization and cost reduction measures [3][4]. - Operating cash flow decreased significantly by 82% year-over-year, primarily due to increased cash payments for raw materials in response to price fluctuations [4]. Revenue Growth - Hisense's revenue continued to grow rapidly, with air conditioning sales increasing by 20% year-over-year in Q4 2023 and 9% in January-February 2024. The domestic sales of refrigerators also saw a year-over-year increase of 20% in Q4 2023 and 16% in January-February 2024 [3][4]. - Export sales for air conditioning units surged by 35% year-over-year in Q4 2023 and 34% in Q1 2024, while refrigerator exports increased by 86% year-over-year in Q4 2023 and 52% in January-February 2024 [3][4]. Profitability Improvement - The net profit margin for Q1 2024 was 4.2%, reflecting a 1.2 percentage point increase year-over-year. The company is expected to further enhance its profitability through supply chain optimization and continuous product upgrades [3][4]. - The company has increased its R&D investment, which is reflected in the stable growth of its three major product lines [3][4]. Financial Forecast - The forecasted earnings per share (EPS) for 2024 and 2025 are 2.47 CNY and 2.86 CNY, respectively, indicating a positive growth trajectory [4][8]. - The projected revenue for 2024 is 95.8 billion CNY, with a growth rate of 11.9% expected [4][8].