Core Viewpoint - Haier Smart Home (600690.SH) has announced a share buyback program, indicating a commitment to enhancing shareholder value through capital management strategies [1] Group 1: Share Buyback Details - As of March 31, 2026, the company has repurchased a total of 15.35 million shares, which represents 0.16% of the company's total share capital [1] - The highest purchase price for the repurchased shares was 22.40 CNY per share, while the lowest was 21.43 CNY per share [1] - The total amount spent on the share buyback program is 334 million CNY [1]

Investment Rating - The investment rating for the company is "Trading Buy" with a target price of HKD 22.8, indicating a potential upside of 5% to 15% from the current price of HKD 20.72 [1][6]. Core Insights - The company reported a revenue of RMB 302.35 billion for 2025, representing a year-over-year (YOY) increase of 5.7%. The net profit attributable to the parent company was RMB 19.55 billion, a YOY increase of 4.3%. However, the performance was below expectations due to rising raw material prices [8]. - The company is actively expanding into emerging markets, achieving a revenue of RMB 154.55 billion from overseas operations in 2025, which is a YOY increase of 8.2%. Notably, revenue from South Asia grew by 23% and from the Middle East and Africa by 56% [8]. - The gross profit margin for 2025 was 26.7%, down 1.1 percentage points YOY, while the expense ratio improved to 19.1%, a decrease of 1 percentage point YOY due to ongoing digital transformation efforts [8]. - The company has a dividend policy that includes a cash dividend of RMB 8.867 per 10 shares (before tax), leading to a total dividend payout ratio of 55% of net profit for the year. The dividend yield for A and H shares is 5.4% and 5.6%, respectively [8]. - Profit forecasts have been adjusted downwards due to the impact of raw material prices, with expected net profits for 2026, 2027, and 2028 at RMB 20.2 billion, RMB 22.1 billion, and RMB 24.2 billion, respectively, reflecting YOY growth rates of 3.2%, 9.8%, and 9.4% [8]. Summary by Sections Company Overview - The company operates in the home appliance industry, with a market capitalization of RMB 194.30 billion and a total share count of approximately 9.38 billion [2]. Recent Ratings - The last rating update was on November 3, 2025, where the stock was rated as "Buy" with a closing price of HKD 25.24 [3]. Financial Performance - The company’s revenue and net profit figures for 2025 were RMB 302.35 billion and RMB 19.55 billion, respectively, with a significant decline in Q4 revenue and net profit compared to the previous year [8]. - The company’s gross profit margin and expense ratio were reported at 26.7% and 19.1%, respectively, indicating pressure on margins but improved cost management [8]. Dividend Policy - The company has committed to increasing its dividend payout ratio, with plans for a minimum of 58% in 2026 and 60% in subsequent years [8]. Profit Forecasts - Adjusted profit forecasts for the next three years indicate a cautious outlook due to raw material cost pressures, with expected EPS of RMB 2.2, RMB 2.4, and RMB 2.6 for 2026, 2027, and 2028 [8][10].

1. Report Industry Investment Rating - No relevant information provided 2. Core View of the Report - The domestic manufacturing industry's prosperity has rebounded to the expansion range, providing some support for the market, and Chinese stock indices are relatively resistant to declines compared to other markets. However, the current market trading focus remains on geopolitical factors, fluctuating with changes in event expectations [3] 3. Summary by Relevant Catalogs 3.1 Market Analysis - **Macro Aspect**: In March, with the acceleration of resumption of work and production after the Spring Festival, both production and demand expanded simultaneously. China's manufacturing, non - manufacturing, and comprehensive PMI output indices all returned to the expansion range, reaching 50.4%, 50.1%, and 50.5% respectively, up 1.4, 0.6, and 1 percentage points from the previous month [1] - **Geopolitical Aspect**: Trump stated that he is willing to end military operations against Iran even if the Strait of Hormuz remains largely closed, believing that the war with Iran is likely to end soon. Iran's Foreign Minister Araqchi said that the current situation involves information exchange through direct channels or "regional friends", and Iran still receives information from US representative Witkoff, but this does not mean negotiations have started, and currently Iran is not in negotiations with any specific party [1] - **Index Adjustment**: In the spot market, the three major A - share indices adjusted. The Shanghai Composite Index fell 0.8% to close at 3891.86 points, and the ChiNext Index fell 2.7%. Most sector indices declined, with only household appliances, banking, and food and beverage industries rising. Coal, power equipment, electronics, and basic chemical industries led the decline. The daily market turnover was 2 trillion yuan. The central bank's Monetary Policy Committee held its first - quarter regular meeting to study the main ideas of monetary policy for the next stage, suggesting to give play to the integrated effect of incremental and existing policies, comprehensively use various tools, strengthen monetary policy regulation, and grasp the intensity, rhythm, and timing of policy implementation. Overseas, the three major US stock indices all closed higher, with the Nasdaq rising 3.83% to 21590.63 points [2] - **Basis Recovery**: In the futures market, the basis of stock index futures all recovered. In terms of trading volume and open interest, the trading volume and open interest of IF, IH, and IC increased simultaneously [2] 3.2 Strategy - The recovery of domestic manufacturing prosperity to the expansion range provides support for the market, and Chinese stock indices show relative resistance to declines compared to other markets. However, the current market trading focus is still on geopolitical factors, fluctuating with changes in event expectations [3] 3.3 Charts 3.3.1 Macro - economic Charts - Include charts showing the relationship between the US dollar index and A - share trends, US Treasury yields and A - share trends, RMB exchange rate and A - share trends, and US Treasury yields and A - share style trends [6][8][10] 3.3.2 Spot Market Tracking Charts - **Domestic Main Stock Index Daily Performance**: The Shanghai Composite Index closed at 3891.86, down 0.80%; the Shenzhen Component Index closed at 13478.06, down 1.81%; the ChiNext Index closed at 3184.95, down 2.70%; the CSI 300 Index closed at 4450.05, down 0.93%; the SSE 50 Index closed at 2826.12, down 0.25%; the CSI 500 Index closed at 7617.33, down 1.76%; the CSI 1000 Index closed at 7619.85, down 1.91% [13] - Also include charts of the trading volume of the Shanghai and Shenzhen stock markets and the margin trading balance [14] 3.3.3 Stock Index Futures Tracking Charts - **Trading Volume and Open Interest**: The trading volume of IF was 97664, an increase of 2925; the open interest was 257846, an increase of 4198. The trading volume of IH was 47813, an increase of 1832; the open interest was 101567, an increase of 55. The trading volume of IC was 166503, an increase of 6990; the open interest was 273460, an increase of 11361. The trading volume of IM was 233473, a decrease of 3452; the open interest was 393494, an increase of 6672 [15] - **Basis**: For IF, the basis of the current - month contract was - 16.25, an increase of 3.30; the basis of the next - month contract was - 36.65, an increase of 2.30; the basis of the current - quarter contract was - 74.25, an increase of 3.70; the basis of the next - quarter contract was - 156.65, an increase of 5.10. For IH, the basis of the current - month contract was - 1.72, an increase of 2.49; the basis of the next - month contract was - 4.72, an increase of 2.29; the basis of the current - quarter contract was - 22.12, a decrease of 1.31; the basis of the next - quarter contract was - 61.92, an increase of 0.49. For IC, the basis of the current - month contract was - 41.73, an increase of 5.19; the basis of the next - month contract was - 90.93, an increase of 8.19; the basis of the current - quarter contract was - 192.33, an increase of 0.79; the basis of the next - quarter contract was - 361.93, an increase of 4.59. For IM, the basis of the current - month contract was - 46.25, an increase of 25.88; the basis of the next - month contract was - 121.85, an increase of 22.28; the basis of the current - quarter contract was - 240.45, an increase of 18.08; the basis of the next - quarter contract was - 459.85, an increase of 25.48 [37][39] - **Inter - period Spread**: The inter - period spread data of different contracts (next - month minus current - month, next - quarter minus current - month, etc.) are provided, including the current values and changes [46][47]

Report Summary 1. Report Industry Investment Rating No information provided. 2. Core Viewpoints - China's manufacturing, non - manufacturing, and composite PMI output indices all returned to the expansion range in March 2026, with values of 50.4%, 50.1%, and 50.5% respectively, up 1.4, 0.6, and 1 percentage points from the previous month [2]. - The central bank's monetary policy committee held a quarterly meeting, suggesting to give play to the integrated effect of incremental and existing policies, use various tools comprehensively, and strengthen monetary policy regulation [2]. - Trump said he was willing to end military operations against Iran, and both the US and Iran expressed a willingness to end the war under certain conditions [2]. - On Tuesday, A - share major indices closed down across the board, with the ChiNext Index leading the decline at 2.7%, the STAR 50 down 2.59%, and the CSI 300 down 0.93%. The market turnover was 2.01 trillion yuan, an increase of 78.4 billion yuan from the previous trading day [3]. - The global market showed obvious differentiation. US stocks rebounded strongly, European markets rose slightly, and most Asia - Pacific markets fell [3]. - The US dollar index fell 0.62% to 99.88, and the US dollar against the offshore RMB fell 0.41% to 6.8879. The 10 - year Treasury bond yield rose slightly by 0.52BP to 1.812%, and the 7 - day pledged repo weighted interest rate dropped to 1.423%, a daily change of - 0.63BP [4]. 3. Summary by Related Catalogs A - share Market - A - share total market capitalization was 108.46 trillion yuan, a decrease of 0.29 trillion yuan from the beginning of the year. The cumulative turnover this year was 144.51 trillion yuan, with an average daily turnover of 25,805.28 billion yuan. The PE (TTM) was 22.42x, and the PB (MRQ) was 5.66x [10]. - Most A - share indices closed down on Tuesday. The Wanquan A fell 1.42%, the Shanghai Composite Index fell 0.80%, the Shenzhen Component Index fell 1.81%, etc. [10]. - The market turnover was 20,059 billion yuan, and the turnover rate was 3.79%. The market financing balance was 25,986 billion yuan as of March 30, 2026 [10][12][14]. Industry Performance - Among the Shenwan primary industries, household appliances (+1.57%), banks (+0.72%), and food and beverage (+0.23%) rose against the trend, while power equipment (-3.21%), coal (-3.67%), and electronics (-2.71%) led the decline [3]. - The top three industries in terms of daily net inflow of funds were public utilities, light manufacturing, and automobiles. The top three industries with net inflow of funds at the end of the day were non - ferrous metals, comprehensive, and beauty care [19]. - The top three themes in terms of increase were automobile whole - vehicle selection (+2.29%), CRO (+1.83%), and new energy vehicle whole - vehicle [19]. Global Important Markets - US stocks rebounded strongly, with the Nasdaq up 3.83%, the S&P 500 up 2.91%, and the Dow Jones up 2.49%. European markets rose slightly, with the French CAC40, German DAX, and UK FTSE 100 all up about 0.5%. Most Asia - Pacific markets fell, except for the Australian S&P 200 which rose slightly [3]. Interest Rates and Exchange Rates - The US dollar index fell 0.62% to 99.88, and the US dollar against the offshore RMB fell 0.41% to 6.8879. The 10 - year Treasury bond yield rose 0.52BP to 1.812%, and the 7 - day pledged repo weighted interest rate dropped 0.63BP to 1.423% [4][6].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Insights - The company achieved a revenue of 302.347 billion yuan in 2025, representing a year-on-year increase of 5.71%. The net profit attributable to shareholders was 19.553 billion yuan, up 4.39% year-on-year, and the net profit excluding non-recurring items was 18.604 billion yuan, an increase of 4.49% year-on-year. In Q4 2025, the company reported a revenue of 68.293 billion yuan, down 6.72% year-on-year, with a net profit of 2.180 billion yuan, a decrease of 39.15% year-on-year [2][5] - The company plans to distribute a cash dividend of 8.867 yuan per 10 shares (tax included) to all shareholders, which, combined with the mid-term dividend already implemented, accounts for 55.0% of the annual net profit attributable to shareholders. The company also announced a shareholder return plan for the next three years (2026-2028), expecting a cash dividend ratio of no less than 58% in 2026 and no less than 60% in 2027-2028 [5][2] Revenue and Profit Analysis - The company's revenue growth in 2025 was driven by various product categories, with air conditioning products increasing by 9.55%, refrigerators by 1.11%, kitchen appliances by 0.51%, water appliances by 10.94%, and washing machines by 3.10%. The revenue from equipment parts and channel services grew by 19.93%. Domestic revenue increased by 3.05%, while overseas revenue rose by 8.15% [5][11] - The gross profit margin for 2025 decreased by 1.16 percentage points to 26.66%. The decline in profit margins was attributed to various factors, including tariffs and competition. The company’s operating profit margin remained stable, with a slight increase of 0.38 percentage points [11][5] Future Projections - The company is expected to achieve net profits attributable to shareholders of 20.381 billion yuan, 21.491 billion yuan, and 23.386 billion yuan for the years 2026, 2027, and 2028, respectively. The corresponding price-to-earnings ratios are projected to be 9.93, 9.42, and 8.66 times [11][5]

Market Performance - The Shanghai Composite Index decreased by 0.80%[3] - The Shenzhen Component Index fell by 1.81%[3] - The ChiNext Index dropped by 2.59%[3] Industry Analysis - The home appliance sector showed a gain of 1.57%[3] - The coal industry experienced a decline of 3.67%[3] - The automotive sector decreased by 0.22%[3] Economic Indicators - The manufacturing PMI rose to 50.4%, indicating expansion[6] - The non-manufacturing PMI increased to 50.1%[6] - The composite PMI output index reached 50.5%[6] Geopolitical Risks - Uncertainty in the Middle East may continue to affect market risk appetite[8] - The U.S. military actions against Iran are planned to last 4 to 6 weeks[5] Market Outlook - A-shares are expected to maintain a volatile pattern with structural opportunities[8] - Defensive sectors like healthcare and consumer goods may perform relatively strong[8]

Market Overview - The A-share major indices closed lower today, with the Shanghai Composite Index down by 0.80% at 3891.86 points, the Shenzhen Component down by 1.81% at 13478.06 points, the Sci-Tech 50 down by 2.59% at 1256.33 points, and the ChiNext Index down by 2.70% at 3184.95 points [1][10] - Overall, there were 1008 stocks that rose and 4372 stocks that fell, with a total market turnover of 199.25 billion yuan, an increase of 76.7 billion yuan compared to the previous trading day [1][10] Industry Performance - Most of the Shenwan first-level industries closed lower today, with the home appliance, banking, and food and beverage sectors showing gains of 1.57%, 0.72%, and 0.23% respectively. In contrast, the coal, electric equipment, and electronics sectors experienced significant declines of 3.67%, 3.21%, and 2.71% respectively [1][10] Concept Sector Performance - The concept sectors that performed well today included automotive complete vehicles, CRO, new energy vehicles, high-speed rail, and selected medical services, among others [2][11]

Investment Rating - The report maintains a "Recommended" rating for Midea Group (stock code: 000333) [1] Core Insights - Midea Group's revenue for 2025 reached 456.5 billion yuan, a year-on-year increase of 12.1%, with a net profit attributable to shareholders of 43.9 billion yuan, up 14.0% year-on-year [5][7] - The company has a high return on equity (ROE) of 19.7%, indicating strong profitability [5] - Midea's cash flow supports a high dividend payout ratio of 73.6%, which has increased by 4.3 percentage points year-on-year [5] - The company is focusing on both domestic and international markets, with domestic revenue of 260.5 billion yuan and international revenue of 195.9 billion yuan, reflecting year-on-year growth of 9.4% and 15.9% respectively [10] Financial Performance - Midea Group's projected revenue for 2026-2028 is estimated at 489.6 billion yuan, 523.4 billion yuan, and 561.2 billion yuan, representing year-on-year growth rates of 6.8%, 6.9%, and 7.2% respectively [6] - The net profit for the same period is expected to be 47.0 billion yuan, 50.6 billion yuan, and 54.9 billion yuan, with growth rates of 6.9%, 7.7%, and 8.4% respectively [6] - The earnings per share (EPS) are projected to be 6.18 yuan, 6.66 yuan, and 7.22 yuan for 2026, 2027, and 2028 respectively [6] Business Segments - Midea's smart home business generated revenue of 299.9 billion yuan in 2025, growing by 11.3% year-on-year, maintaining a leading global market share [5][9] - The commercial and industrial solutions segment achieved revenue of 122.8 billion yuan, a year-on-year increase of 17.5%, becoming a significant growth driver for the company [5][9] - The company has successfully transitioned from a central air conditioning supplier to a provider of integrated smart building solutions, with significant market shares in various product categories [5][9] Market Position - Midea's market capitalization for circulating A-shares is approximately 494 billion yuan, with a corresponding dividend yield of 5.9% [2] - The company has implemented stock repurchase plans totaling over 116 billion yuan, enhancing shareholder value [5] - Midea's competitive positioning is strengthened by its extensive global supply chain and digital platform, which supports thousands of small retailers [5][10]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a potential upside of 15% to 35% [5][10]. Core Insights - The company achieved a revenue of RMB 458.5 billion in 2025, representing a year-over-year (YOY) increase of 12.1%. The net profit attributable to shareholders was RMB 43.95 billion, with a YOY growth of 14.0% [7]. - The company is experiencing steady growth across its business segments, with significant revenue increases in overseas markets. The smart home segment generated RMB 299.9 billion, up 11.3% YOY, while the building technology segment saw a 25.7% increase [7]. - The company has announced substantial dividends and share buybacks, with a total dividend payout of RMB 43 per 10 shares, resulting in a dividend yield of approximately 6% for A-shares and 6.2% for H-shares, making it attractive in the market [7]. - The earnings forecast for 2026-2028 predicts net profits of RMB 46.8 billion, RMB 51.1 billion, and RMB 57.0 billion, respectively, with corresponding EPS of RMB 6.2, RMB 6.7, and RMB 7.5 [7]. Financial Summary - The company reported a net profit of RMB 43.95 billion for 2025, with a YOY increase of 14.0% [9]. - The projected net profits for the upcoming years are as follows: RMB 46.78 billion in 2026, RMB 51.08 billion in 2027, and RMB 56.96 billion in 2028, with respective YOY growth rates of 6.5%, 9.2%, and 11.5% [9]. - The company’s revenue is expected to grow from RMB 513.64 billion in 2026 to RMB 662.23 billion by 2028 [11].

Investment Rating - The report maintains a "Recommended" rating for Midea Group (stock code: 000333) [1] Core Insights - Midea Group's revenue for 2025 reached 456.5 billion yuan, a year-on-year increase of 12.1%, with a net profit attributable to shareholders of 43.9 billion yuan, up 14.0% year-on-year [5][7] - The company has a high return on equity (ROE) of 19.7%, indicating strong profitability [5] - Midea's dividend payout ratio for 2025 was 73.6%, reflecting robust cash flow and a commitment to returning value to shareholders [5] - The smart home business generated 299.9 billion yuan in revenue, growing 11.3% year-on-year, maintaining a leading global market share [5][9] - The commercial and industrial solutions segment saw revenue of 122.8 billion yuan, a 17.5% increase year-on-year, becoming a significant growth driver [5][9] Financial Performance - Revenue projections for 2026, 2027, and 2028 are estimated at 489.6 billion yuan, 523.4 billion yuan, and 561.2 billion yuan, respectively, with growth rates of 6.8%, 6.9%, and 7.2% [5][6] - Net profit forecasts for the same years are 47.0 billion yuan, 50.6 billion yuan, and 54.9 billion yuan, with growth rates of 6.9%, 7.7%, and 8.4% [5][6] - The earnings per share (EPS) are projected to be 6.18 yuan, 6.66 yuan, and 7.22 yuan for 2026, 2027, and 2028, respectively [5][6] Business Segmentation - In 2025, Midea's revenue breakdown was as follows: smart home business 299.9 billion yuan, commercial and industrial solutions 122.8 billion yuan, and other businesses 33.8 billion yuan [9][10] - The domestic market contributed 260.5 billion yuan, while overseas revenue reached 195.9 billion yuan, with year-on-year growth of 9.4% and 15.9%, respectively [10][11] - The commercial solutions segment includes building technology, robotics and automation, and industrial technology, with respective revenues of 35.8 billion yuan, 31.0 billion yuan, and 27.2 billion yuan [9][12] Market Position - Midea Group has maintained a strong position in the domestic market, with significant shares in various segments, including over 28% in commercial multi-split units and over 16% in centrifugal units [5][9] - The company is expanding its overseas presence, with self-operated subsidiaries increasing from 27 to 50 countries/regions and establishing a network of 25,000 overseas retailers [5][9]