Investment Rating - The report maintains a "Buy" rating for Haier Smart Home (600690) with a target price not specified [6][18]. Core Views - Haier Smart Home reported a revenue of 156.49 billion yuan for H1 2025, representing a year-on-year increase of 10.2%, and a net profit of 12.03 billion yuan, up 15.6% [1][3]. - The company continues to enhance its profitability through digital transformation and AI technology, leading to improved operational efficiency and user experience [3]. - The report highlights strong growth in both domestic and international markets, with domestic revenue increasing by 8.8% and overseas revenue by 11.7% in H1 2025 [2][3]. Financial Performance - In Q2 2025, Haier Smart Home achieved a revenue of 77.38 billion yuan, a 10.4% increase year-on-year, and a net profit of 6.55 billion yuan, up 16.0% [1][3]. - The gross margin for Q2 2025 was reported at 28.4%, with a net profit margin of 8.9%, reflecting a year-on-year increase of 0.5 percentage points [3]. - The company’s operating cash flow for H1 2025 was 11.14 billion yuan, a significant increase of 32.2% [3]. Regional Performance - In the domestic market, the revenue growth was driven by a multi-brand strategy and digital marketing innovations, with the Casarte and Leader brands growing by 20% and 15% respectively [2]. - In North America, despite tariff disruptions, high-end brands achieved double-digit growth, while Europe saw a revenue increase of 24.1% [2]. - Emerging markets showed robust growth, with revenue increases of 65% in the Middle East and Africa, 33% in South Asia, and 18% in Southeast Asia [2]. Product Category Performance - The cooling industry, kitchen appliances, and home laundry solutions saw revenue growths of 4.2%, 2.0%, and 7.6% respectively in H1 2025 [2]. - The air energy solutions and whole-house water solutions experienced significant growth, with increases of 12.8% and 20.8% respectively [2]. Future Outlook - The report projects net profits for Haier Smart Home to reach 21.3 billion yuan, 24 billion yuan, and 26.6 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding dynamic P/E ratios of 11.6x, 10.2x, and 9.2x [3].

Investment Rating - The investment rating for Haier Smart Home is "Buy" (maintained) [6] Core Views - The report indicates that Haier Smart Home's revenue for Q4 2024 reached 83.01 billion yuan, a year-on-year increase of 9.88%, with a net profit attributable to shareholders of 3.59 billion yuan, up 3.96% year-on-year. For the full year 2024, the company achieved revenue of 285.98 billion yuan, a 4.29% increase year-on-year, and a net profit of 18.74 billion yuan, up 12.92% year-on-year. The domestic sales have shown a turning point due to policy stimulation and proactive adjustments in the Chinese market, while overseas performance remains stable. The company is expected to see accelerated revenue growth in 2025 as structural improvements and one-time impacts gradually dissipate [3][12][15]. Summary by Sections Financial Performance - In Q4 2024, Haier's revenue increased by 10% year-on-year, with significant growth in domestic sales driven by government policies and improved product structure. The company reported a notable increase in the shipment of refrigerators, washing machines, and air conditioners, with year-on-year growth of 10%, 8%, and 29% respectively. The premium brand Casarte saw a 30% increase in revenue in Q4 [13]. - For the full year 2024, Haier's overseas revenue grew by 5%, with the second half showing a 7% increase compared to the first half. The integration of Carrier Refrigeration positively impacted the results [13]. Profitability and Costs - The report highlights an improvement in real profitability, although there were one-time factors that affected results. In Q4 2024, the net profit margin decreased by 0.2 percentage points year-on-year, while the gross margin increased by 1.3 percentage points. The increase in expense ratios was attributed to accounting adjustments and the integration of new entities [14]. - The company plans to distribute a cash dividend of 9.65 yuan per 10 shares, totaling 8.997 billion yuan, with a dividend payout ratio of 48% [12]. Future Outlook - The report anticipates strong domestic sales and structural improvements for Haier in 2025, projecting net profits of 21.19 billion yuan and 23.96 billion yuan for 2025 and 2026 respectively, with corresponding price-to-earnings ratios of 12.0x and 10.6x. The dividend yield is expected to be around 4% [15].

Investment Rating - The investment rating for Midea Group is "Buy" with a target price indicating a potential return of over 20% within the next six months [6][17]. Core Views - Midea Group is expected to achieve a total revenue of 409.1 billion yuan in 2024, representing a year-on-year growth of 9.5%, with a net profit attributable to shareholders of 38.5 billion yuan, up 14.3% year-on-year [1]. - The company plans to distribute a cash dividend of 35 yuan per 10 shares, totaling 26.7 billion yuan, which corresponds to a dividend payout ratio of 69.3% [1]. - Midea Group has announced a share buyback plan of no less than 5 billion yuan and up to 10 billion yuan, with over 70% of the repurchased shares intended for cancellation [1]. Financial Performance - The home appliance business is projected to generate 269.5 billion yuan in revenue in 2024, a 9.4% increase year-on-year, while the ToB business is expected to reach 104.5 billion yuan, growing by 6.9% [2]. - The gross profit margin for the main business in 2024 is forecasted to be 26.4%, an increase of 0.7 percentage points year-on-year [3]. - The net profit margin for 2024 is expected to be 9.4%, reflecting a year-on-year increase of 0.4 percentage points [3]. Future Outlook - Midea Group's net profit attributable to shareholders is projected to reach 42.9 billion yuan in 2025, 46.9 billion yuan in 2026, and 50.8 billion yuan in 2027, with corresponding price-to-earnings ratios of 13.7x, 12.6x, and 11.6x respectively [4]. - The company is expected to benefit from domestic policies promoting demand through trade-in programs and the optimization of high-end brands [4]. - The ToB business is showing positive trends, with improvements across various sectors, particularly in smart building technology and industrial technology [2].

Investment Rating - The investment rating for Midea Group is "Buy" with a target price indicating a potential return of over 20% within the next six months [6][17]. Core Views - Midea Group is expected to achieve a total revenue of 409.1 billion yuan in 2024, representing a year-on-year growth of 9.5%, with a net profit attributable to shareholders of 38.5 billion yuan, up 14.3% year-on-year [1]. - The company plans to distribute a cash dividend of 35 yuan for every 10 shares, totaling 26.7 billion yuan, which corresponds to a dividend payout ratio of 69.3% [1]. - Midea Group has introduced a shareholder return plan for 2025-2027, committing to at least two cash dividends annually, with a minimum of 30% of the average distributable profit from the last three years allocated for cash distribution [1]. Summary by Sections Financial Performance - In 2024, Midea Group's main business gross margin is projected to be 26.4%, an increase of 0.7 percentage points year-on-year. The gross margin for smart home products is expected to rise to 30.0%, while the ToB business gross margin is anticipated to decrease to 21.4% [3]. - The net profit margin for 2024 is forecasted to be 9.4%, reflecting a year-on-year increase of 0.4 percentage points [3]. Revenue Breakdown - The home appliance business is expected to generate 269.5 billion yuan in revenue in 2024, a year-on-year increase of 9.4%. The ToB business is projected to reach 104.5 billion yuan, growing by 6.9% year-on-year [2]. - In Q4 2024, the revenue from the home appliance segment is expected to be 54.1 billion yuan, up 7% year-on-year, while the ToB segment is projected to see a revenue of 10.4 billion yuan, reflecting a 6.9% increase [2]. Cash Flow and Financial Health - Midea Group's net cash flow from operating activities is expected to be 60.5 billion yuan in 2024, an increase of 4.5% year-on-year [3]. - As of the end of 2024, the company’s other current liabilities are projected to be 90.4 billion yuan, up 27% year-on-year [3]. Future Outlook - The company anticipates a continued improvement in profitability driven by internal efficiency enhancements and AI applications [3]. - Midea Group's net profit attributable to shareholders is forecasted to reach 42.9 billion yuan in 2025, 46.9 billion yuan in 2026, and 50.8 billion yuan in 2027, with corresponding P/E ratios of 13.7x, 12.6x, and 11.6x respectively [4].

Investment Rating - The investment rating for Haier Smart Home is "Buy" with a target price reflecting a potential return of over 20% within six months [6][17]. Core Views - The company achieved a revenue of 285.98 billion yuan in 2024, a year-on-year increase of 4.3%, and a net profit attributable to shareholders of 18.74 billion yuan, up 12.9% year-on-year [1]. - The company is focusing on digital transformation and optimizing costs, which has led to a gross margin improvement of 0.3 percentage points to 27.8% in 2024 [3]. - Cash flow remains strong, with net cash flow from operating activities reaching 26.5 billion yuan in 2024, indicating robust cash generation capabilities [4]. Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of 73.24 billion yuan, with a net profit of 3.59 billion yuan, reflecting a 4.0% year-on-year increase [1]. - The company plans to distribute a dividend of 9.65 yuan per 10 shares, totaling 9 billion yuan, with a dividend payout ratio of 48% [1]. Revenue Growth - The company experienced a revenue growth of 4% year-on-year, with specific product categories showing varied performance: air conditioning (+7%), refrigeration (+2%), washing machines (+3%), and kitchen appliances (-1%) [2]. - Domestic retail growth was driven by trade-in programs, with significant growth in the high-end brand Casarte, which saw over 30% growth [2]. Cost Optimization - The company has successfully reduced its sales, management, and R&D expense ratios, contributing to overall efficiency improvements [3]. - The financial expense ratio increased slightly due to rising interest expenses from overseas rate hikes [3]. Cash Flow and Balance Sheet - The company reported a net cash flow from operating activities of 26.5 billion yuan for the year, maintaining a high level of cash flow generation [4]. - Contract liabilities increased by 40% year-on-year, indicating a growing revenue and performance reservoir [4]. Future Outlook - The company is expected to continue its growth trajectory, with projected net profits of 21.44 billion yuan, 24.11 billion yuan, and 26.64 billion yuan for 2025, 2026, and 2027, respectively [5]. - The company is enhancing its global competitiveness through core module manufacturing capabilities and overseas acquisitions [4].

Investment Rating - The investment rating for Gree Electric Appliances is "Buy" with a target price not specified [6]. Core Views - Gree Electric Appliances' major shareholder, Jinghai Internet, plans to increase its stake in the company by investing between 10.5 billion to 21 billion CNY, reflecting confidence in the company's future [1][2]. - The company's air conditioning business is expected to see a significant uptick in retail growth due to the promotion of old-for-new exchanges, marking a potential turning point for the business [3]. - The projected net profits for Gree Electric Appliances from 2024 to 2026 are estimated to be 31 billion, 32.9 billion, and 34.7 billion CNY respectively, with corresponding price-to-earnings ratios of 7.5x, 7.1x, and 6.7x [3]. Financial Data and Valuation - Revenue for 2022 was approximately 190.15 billion CNY, with a projected increase to 205.02 billion CNY in 2023, followed by a slight decrease to 200.63 billion CNY in 2024 [4]. - The net profit attributable to the parent company for 2022 was around 24.51 billion CNY, expected to rise to 29.02 billion CNY in 2023 and further to 31.02 billion CNY in 2024 [4]. - The earnings per share (EPS) for 2022 was 4.38 CNY, projected to increase to 5.18 CNY in 2023 and 5.54 CNY in 2024 [4]. - The company’s price-to-earnings (P/E) ratio is expected to decrease from 9.53 in 2022 to 7.53 in 2024 [4].

Investment Rating - The investment rating for Gree Electric Appliances is "Buy" with a target price not specified [6]. Core Views - Gree Electric Appliances' major shareholder, Jinghai Internet, plans to increase its stake in the company by investing between 10.5 billion to 21 billion CNY, reflecting confidence in the company's future [1][2]. - The company's air conditioning business is expected to see a turning point in Q4 2024, driven by the promotion of old-for-new exchanges, leading to a significant increase in retail growth in the domestic air conditioning industry [3]. - The financial outlook for Gree Electric Appliances shows projected net profits of 31 billion, 32.9 billion, and 34.7 billion CNY for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 7.5x, 7.1x, and 6.7x [3]. Financial Data and Valuation - Revenue for Gree Electric Appliances is projected to be 200.63 billion CNY in 2024, with a slight decline of 2.14% compared to 2023, followed by growth rates of 3.44% and 4.50% in 2025 and 2026 respectively [4][12]. - The company's EBITDA is expected to be 40.99 billion CNY in 2024, with a projected increase to 44.60 billion CNY by 2026 [4]. - The net profit attributable to the parent company is forecasted to grow from 31.02 billion CNY in 2024 to 34.68 billion CNY in 2026, reflecting a growth rate of 6.90% in 2024 and gradually decreasing to 5.36% by 2026 [4][12]. - The P/E ratio is expected to decrease from 7.53 in 2024 to 6.73 in 2026, indicating a potentially undervalued stock [4].