Core Viewpoint - Hisense Home Appliances reported a strong performance in Q1 2025, driven by governance dividends and product structure improvements, indicating a positive outlook for the future [1] Financial Performance - In Q1 2025, the company achieved operating revenue of 24.838 billion (up 5.76%) and a net profit attributable to shareholders of 1.127 billion (up 14.89%), with a non-recurring net profit of 1.008 billion (up 20.27%) [2] - The revenue growth was supported by a robust performance in overseas markets, despite a slight decline in domestic sales due to seasonal factors [2] Business Segments - The central air conditioning segment is expected to show slight growth, reversing previous declines, while the home appliance segment achieved double-digit growth, particularly in exports [2] - The washing machine segment is projected to see high single-digit growth domestically, with strong export performance, while the three-electric segment is expected to continue its decline [2] Profitability Improvement - The gross margin for Q1 was 21.41%, a slight decrease of 0.22 percentage points year-on-year, attributed to structural changes [3] - The sales expense ratio decreased to 9.55% (down 0.45 percentage points), benefiting from enhanced digital marketing and optimized logistics [3] - The net profit margin improved to 4.54%, an increase of 0.36 percentage points year-on-year [4] Market Outlook - The central air conditioning business is expected to stabilize and improve in 2025, aided by a shift in the real estate market towards higher quality [5] - The company is expanding its product categories and enhancing brand marketing efforts, particularly for the Hitachi brand, to capture market share [5] - Continued growth in overseas markets is anticipated, particularly in Europe, driven by improved brand value and refined operations in key regions [5] Investment Recommendations - The comprehensive product matrix and clear growth trajectories position the company favorably for valuation recovery and sustained performance growth [6] - Projected revenues for 2025-2027 are 100.1 billion, 108.2 billion, and 116.5 billion, with corresponding net profits of 3.882 billion, 4.472 billion, and 5.137 billion [6]

Core Viewpoint - The company reported a strong performance for 2024, with total revenue of 23.578 billion yuan, a year-on-year increase of 16.41%, and a net profit attributable to shareholders of 5.514 billion yuan, up 20.15% year-on-year [1] Financial Performance - For the fourth quarter of 2024, the company achieved revenue of 4.509 billion yuan, a year-on-year growth of 4.85%, while net profit attributable to shareholders was 767 million yuan, a decrease of 1.17% year-on-year [1] - The company maintained a steady operational pace throughout the year, with revenue and profit growth rates exceeding 15% [1] - The company’s proactive inventory reduction strategy in Q4 laid a solid foundation for a strong start in Q1 2025 [1] Market Strategy and Product Development - The company has a well-structured product layout and flexible market strategies, leading to sustained growth both domestically and nationally [2] - Key products such as Gu 5 and Gu 8 have stable sales, while efforts to enhance market recognition for Gu 16 are showing strong momentum [2] - The company’s strong control over product lines and regional channels enhances its resilience against market cycles [2] Earnings Forecast and Investment Recommendation - The company is projected to achieve revenues of 23.58 billion yuan, 26.36 billion yuan, and 29.67 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 16.4%, 11.8%, and 12.6% [2] - Expected net profits attributable to shareholders are 5.51 billion yuan, 6.35 billion yuan, and 7.29 billion yuan for the same years, with growth rates of 20.1%, 15.2%, and 14.7% [2] - The company is expected to have a price-to-earnings ratio of 14 and 12 for 2025 and 2026, respectively, maintaining a "recommended" rating [2]