ZHONGTAI SECURITIES·2024-04-30 08:30Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (600690) [1][4] Core Views - The company reported a strong performance in Q1 2024, with revenue reaching 69 billion yuan, a 6% increase year-on-year, and net profit of 4.8 billion yuan, a 20% increase year-on-year, driven by digitalization enhancing gross margins and reducing expense ratios [1][3] - The report highlights that the digital transformation has significantly improved operational efficiency, leading to a continuous improvement in gross margins over several quarters [3][4] Revenue and Profit Breakdown - Revenue Breakdown: - Domestic sales increased by 8%, with significant growth in water appliances, air conditioning, and kitchen appliances, while exports grew by 4% due to new product launches [3] - Profit Breakdown: - Gross margin improved to 29%, benefiting from enhanced digital efficiency in procurement, R&D, and production, with overall operating profit expected to grow by 27% [3] Financial Forecasts - The report projects revenues of 278.8 billion yuan for 2024, 297 billion yuan for 2025, and 316.4 billion yuan for 2026, with net profits expected to be 19.1 billion yuan, 21.6 billion yuan, and 24.3 billion yuan respectively [4][5] - Profit growth rates are forecasted at 15% for 2024, 13% for 2025, and 12% for 2026 [4] Key Financial Metrics - The report provides key financial metrics, including a projected P/E ratio decreasing from 18.5 in 2023 to 11.2 in 2026, and a consistent ROE of 16% over the forecast period [1][5]