EBSCN·2024-05-06 02:26Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (600690.SH) with a current price of 30.26 CNY [2]. Core Insights - The company achieved a revenue of 68.978 billion CNY in Q1 2024, representing a year-over-year increase of 6.01%. The net profit attributable to shareholders was 4.773 billion CNY, up 20.19% year-over-year, exceeding market expectations [7][8]. - Domestic sales drove growth, with a year-over-year increase of 8.1% in domestic revenue. Key segments such as home air conditioning, kitchen appliances, and smart buildings saw double-digit growth [8]. - The company is enhancing its international presence, with foreign revenue increasing by 4% despite challenges in the U.S. appliance market [8]. Revenue Performance - The company reported a gross margin of 29.0% in Q1 2024, an increase of 0.26 percentage points year-over-year, attributed to digital transformation and product structure optimization [8]. - The net profit margin for Q1 2024 was 7.0%, up 0.85 percentage points year-over-year, indicating improved profitability [8]. Financial Projections - The report projects the company's net profit attributable to shareholders for 2024-2026 to be 19.103 billion CNY, 21.521 billion CNY, and 24.083 billion CNY respectively, with corresponding growth rates of 15.10%, 12.66%, and 11.90% [9]. - The price-to-earnings (P/E) ratio is expected to be 15, 13, and 12 for the years 2024, 2025, and 2026 respectively [8][9]. Cash Flow and Balance Sheet - The operating cash flow for Q1 2024 was 1.725 billion CNY, reflecting a year-over-year increase of 27% [8]. - The proportion of cash to total assets was 11.9%, a decrease of 2.2 percentage points year-over-year, indicating a shift in asset management [8].