Investment Rating - The report assigns a "Buy-A" rating for Hisense Home Appliances (000921.SZ) with a strong performance outlook [1][12]. Core Views - The company achieved a revenue of 49.34 billion yuan in H1 2025, with a year-on-year growth of 1.44%, and a net profit of 2.077 billion yuan, reflecting a year-on-year increase of 3.01% [2]. - The overseas market is driving performance, with foreign revenue growing by 12.34% year-on-year, while domestic revenue slightly declined by 0.31% [3]. - The company is expected to see steady growth in revenue and net profit from 2025 to 2027, with projected revenues of 98.54 billion yuan, 104.01 billion yuan, and 112.27 billion yuan, and net profits of 3.691 billion yuan, 4.171 billion yuan, and 4.587 billion yuan respectively [12]. Regional Performance Summary - Domestic revenue was 25.25 billion yuan, down 0.31% year-on-year, while overseas revenue reached 20.45 billion yuan, up 12.34% year-on-year [3]. - In Europe, revenue increased by 22.7%, with air conditioning and washing machine sales growing by 34.5% and 38.9% respectively [3]. - The Americas saw a revenue increase of 26.2%, with significant growth in washing machines (71%) and central air conditioning (59%) [3]. - The Middle East reported a 22.8% revenue increase, while the Asia-Pacific region grew by 14.5% [3]. - ASEAN region sales for refrigerators and washing machines surged by 46% and 55% respectively, with air conditioning brand revenue exceeding 80% [3]. Product Category Performance Summary - The HVAC segment generated 23.69 billion yuan, up 4.07% year-on-year, although Hisense Hitachi's revenue declined by 6.0% [4]. - The washing machine and refrigerator segment reported revenues of 15.39 billion yuan, up 4.76%, with an improvement in gross margin to 18.74% [5]. - Other main business revenues reached 6.61 billion yuan, reflecting an 8.89% increase, with significant contributions from the three electrical companies [5]. Financial Performance Summary - The company's gross margin for H1 2025 was 21.48%, a slight increase of 0.2 percentage points year-on-year, while the net profit margin was 6.06%, down 0.17 percentage points [5]. - The financial expenses increased by 0.3 percentage points, impacting profitability [5]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 2.67 yuan, 3.01 yuan, and 3.31 yuan respectively, indicating a low valuation with strong performance certainty [12].

Core Viewpoint - The company reported a slight revenue increase in the first half of 2025, but faced challenges in the second quarter due to weak domestic demand and increased competition in the air conditioning sector [1][2][3][4]. Financial Performance - In H1 2025, the company achieved revenue of 49.34 billion yuan, a year-on-year increase of 1.4%, and a net profit attributable to shareholders of 2.08 billion yuan, up 3.0% year-on-year [1][2]. - Q2 2025 revenue was 24.50 billion yuan, down 2.6% year-on-year, with a net profit of 0.95 billion yuan, a decline of 8.3% year-on-year [1][3]. - The company’s revenue from domestic and overseas markets in H1 2025 showed a slight decline of 0.3% and an increase of 12.3%, respectively [2]. Business Segment Analysis - Air Conditioning Business: H1 2025 revenue was 23.69 billion yuan, up 4.1% year-on-year, but central air conditioning growth was under pressure, declining by 6.0% due to a weak real estate market [2]. - Washing and Refrigeration Business: H1 2025 revenue reached 15.39 billion yuan, a 4.8% increase year-on-year, with washing machine revenue growing by 37.6% due to technological upgrades [2]. - Automotive Thermal Management: H1 2025 revenue increased by 3.0%, benefiting from the gradual realization of previous new energy orders [2]. Cost and Profitability - The net profit margin in Q2 2025 was 3.9%, down 0.2 percentage points year-on-year, despite a gross margin increase of 1.0 percentage points to 21.5% [3]. - The company faced a one-time expense impact from layoffs in the automotive thermal management segment, amounting to 1.9 billion yen [3]. Future Outlook - The company anticipates a recovery in performance due to favorable weather conditions and the successful rollout of government subsidies [4]. - Internal governance improvements are expected to drive growth, with a focus on supply chain efficiency and cost reduction [4]. - The company has adjusted its EPS forecasts for 2025, 2026, and 2027 to 2.68, 2.94, and 3.20 yuan, respectively, reflecting a slight decrease from previous estimates [4].

Investment Rating - The report maintains a "Strong Buy" rating for Hisense Home Appliances, with a target price of 33 yuan, corresponding to a 12x PE for 2025 [2][8]. Core Views - The company reported a revenue of 49.34 billion yuan for H1 2025, a year-on-year increase of 1.4%, and a net profit attributable to shareholders of 2.08 billion yuan, up 3.0% year-on-year. However, Q2 2025 saw a revenue decline of 2.6% year-on-year to 24.5 billion yuan and a net profit drop of 8.3% year-on-year to 0.95 billion yuan [2][8]. - The external sales continue to grow, with overseas revenue increasing by 12.3% year-on-year, while domestic revenue slightly decreased by 0.3% [8]. - The air conditioning segment reported a revenue of 23.69 billion yuan in H1 2025, up 4.1% year-on-year, although central air conditioning faced a decline of 6.0% due to a weak real estate market [8]. - The washing machine business within the refrigeration and washing segment saw a significant revenue increase of 37.6% year-on-year, contributing positively to overall growth [8]. - The company is expected to recover growth in the coming quarters due to favorable weather conditions and government subsidies, despite facing high base pressure in Q2 [8]. Financial Summary - For 2024A, the main revenue is projected at 92.746 billion yuan, with a growth rate of 8.3%. The net profit attributable to shareholders is expected to be 3.348 billion yuan, with a growth rate of 18.0% [4][9]. - The earnings per share (EPS) for 2025E is adjusted to 2.68 yuan, with corresponding PE ratios of 10, 9, and 8 for 2025, 2026, and 2027 respectively [8][9]. - The company’s total assets are projected to grow from 69.702 billion yuan in 2024A to 84.298 billion yuan in 2027E, indicating a steady increase in financial strength [9].

Core Viewpoint - The company reported its 2025 mid-year results, showing modest growth in revenue and net profit, but a decline in Q2 performance, primarily due to weak domestic sales [1][2]. Financial Performance - For H1 2025, the company achieved revenue of 49.34 billion yuan, a year-on-year increase of 1.44%, and a net profit attributable to shareholders of 2.08 billion yuan, up 3.01% [1]. - In Q2 2025, revenue was 24.50 billion yuan, down 2.60% year-on-year, with net profit of 949 million yuan, a decline of 8.25% [1]. - The company's gross margin for H1 2025 improved by 0.69 percentage points to 21.48%, with variations across product categories [2]. Segment Analysis - In terms of product categories, the HVAC business grew by 4.07%, while the ice and washing machine segment saw a 4.76% increase, with domestic washing machine revenue rising significantly by 37.58% [1]. - Regionally, domestic business saw a slight decline of 0.31%, while overseas business grew by 12.34%, with notable increases in Europe (22.7%) and the Americas (26.2%) [1]. Operational Efficiency - The company’s operating profit for H1 2025 was 2.63 billion yuan, reflecting a year-on-year increase of 9.67%, with an operating profit margin of 5.32%, up 0.40 percentage points [2]. - In Q2 2025, the operating profit margin improved to 4.59%, despite a slight decline in operating profit to 1.12 billion yuan [3]. Cash Flow and Future Outlook - The net cash flow from operating activities increased by 153.43% year-on-year for H1 2025, indicating significant improvement in operational quality [3]. - The company aims to enhance efficiency through brand synergy and supply chain optimization, with expectations for a return to higher growth rates in revenue and profit from 2025 to 2027 [3].

Group 1 - The core viewpoint of the report is that Haier Smart Home (000921.SZ) is given a "buy" rating by Open Source Securities due to significant revenue differentiation between domestic and international sales, with the central air conditioning business under pressure [2] - The report highlights an expected improvement in gross margin by Q2 2025, while maintaining stable period expense ratios [2] Group 2 - The report identifies risks such as intensified competition in domestic sales, risks related to raw material prices, and potential underperformance in overseas brand development [2]

Investment Rating - The investment rating for Hisense Home Appliances is "Outperform the Market" [7]. Core Views - The company showed slight pressure in Q2 2025, but overall performance remained stable with H1 revenue of 49.34 billion (+1.4%) and net profit of 2.08 billion (+3.0%) [2]. - The air conditioning business faced challenges, impacting Q2 results, but the overall growth in H1 indicates resilience [2]. - The company is expected to maintain profitability in its central air conditioning segment while facing price competition in the home air conditioning market [2][3]. Revenue and Profitability - In H1 2025, the revenue from HVAC (Heating, Ventilation, and Air Conditioning) grew by 4.1% to 23.69 billion, with a decline in Hisense Hitachi revenue by 6.0% to 10.66 billion [2]. - The ice washing segment saw a revenue increase of 4.8% to 15.39 billion, with an operating profit margin improvement of 0.8 percentage points to 4.2% [3]. - The three electric segments (automotive compressors and thermal management) reported a revenue growth of 3% in H1, with new orders contributing to future revenue stability [3]. Sales Performance - Domestic sales in H1 2025 decreased by 0.3% to 25.25 billion, primarily due to the impact of central air conditioning, while overseas sales increased by 12.3% to 20.45 billion [3]. - Significant growth was observed in various regions, with Europe up by 22.7%, the Americas by 26.2%, and the Middle East and Africa by 22.8% [3]. Margin and Cost Analysis - The gross margin for H1 improved by 0.7 percentage points to 21.5%, with Q2 gross margin also up by 1.1 percentage points to 21.5% [4]. - Increased expenses in sales, management, R&D, and finance were noted, with Q2 expense ratios rising by 0.3 percentage points across various categories [4]. Profit Forecast and Valuation - The profit forecast has been adjusted downwards, with expected net profits for 2025-2027 at 3.55 billion, 3.90 billion, and 4.27 billion, reflecting a year-on-year growth of 6.1%, 9.9%, and 9.5% respectively [4][5]. - The corresponding price-to-earnings ratios are projected at 10.6, 9.7, and 8.8 for the respective years [4].

Investment Rating - The investment rating for Hisense Home Appliances is "Buy" (maintained) [1] Core Views - In H1 2025, the company achieved operating revenue of 49.34 billion yuan (up 1.4% year-on-year) and a net profit attributable to shareholders of 2.08 billion yuan (up 3.0%) [4] - The company has adjusted its profit forecast for 2025-2027, expecting net profits of 3.61 billion, 4.15 billion, and 4.69 billion yuan respectively, with corresponding EPS of 2.60, 2.99, and 3.38 yuan [4] - Despite challenges in the central air conditioning sector and ongoing price wars, the company remains optimistic about profit improvement driven by strong overseas business growth [4] Financial Performance Summary - In H1 2025, the air conditioning segment generated revenue of 23.69 billion yuan (up 4.1%), while the ice washing segment saw revenue of 15.39 billion yuan (up 4.8%) with a significant improvement in profitability [5] - The gross margin for the air conditioning segment was 27.1% (down 1.6 percentage points), while the ice washing segment's gross margin improved to 18.7% (up 2.1 percentage points) [5] - Domestic revenue was 25.25 billion yuan (down 0.3%), while overseas revenue reached 20.45 billion yuan (up 12.3%), with notable growth in Europe (23%), the Americas (26%), and the Middle East and Africa (23%) [5] Profitability and Cost Management - The overall gross margin for H1 2025 was 21.5% (up 0.7 percentage points), with significant improvements in profitability from overseas and ice washing businesses [6] - The sales net profit margin for H1 2025 was 6.1% (up 0.5 percentage points), indicating stable cost management despite external pressures [6] Financial Projections - The company projects operating revenues of 97.18 billion yuan for 2025, with a year-on-year growth rate of 4.8% [7] - The projected net profit for 2025 is 3.61 billion yuan, reflecting a year-on-year increase of 7.8% [7] - The estimated P/E ratios for 2025, 2026, and 2027 are 10.6, 9.2, and 8.2 respectively, indicating a favorable valuation trend [7]

Core Viewpoint - Hisense Home Appliances reported a slowdown in revenue and net profit growth in its latest 2024 semi-annual report, despite achieving positive growth figures [2][6][7]. Financial Performance - For the first half of 2024, Hisense Home Appliances recorded revenue of 49.34 billion yuan, a year-on-year increase of 1.44%, and a net profit attributable to shareholders of 2.077 billion yuan, up 3.01% [6]. - The growth rates have significantly slowed compared to previous years, with 2022 net profit growth at 141.45% and 2024 first-half net profit growth at 34.61% [7]. Domestic vs. Overseas Business - Domestic revenue accounted for 50% of total revenue, amounting to 25.249 billion yuan, a slight decline of 0.31%, while overseas revenue made up 40%, reaching 20.451 billion yuan, a growth of 12.34% [8]. - The gross margin for domestic business was 31.02%, down 0.06 percentage points, while the overseas gross margin was 12.33%, up 1.35 percentage points [8]. Product Segmentation - The HVAC (Heating, Ventilation, and Air Conditioning) segment generated revenue of 23.694 billion yuan, a growth of 4.07%, while the washing and refrigeration segment accounted for 30% of total revenue, with 15.392 billion yuan, up 4.76% [10]. - Despite revenue growth in the HVAC segment, the gross margin decreased to 27.12%, down 1.56 percentage points [10]. Management Changes and Strategic Initiatives - High Yuling was appointed as the new chairman and president of Hisense Home Appliances, marking a significant leadership change [3][4]. - The company is undergoing a transformation, including the integration of various brands under the Hisense Air Conditioning division and the hiring of former Midea executive Yin Bitong to lead the air conditioning business [10][11]. - Hisense Home Appliances is also streamlining its workforce, reducing over 500 positions, particularly in sales and technical roles, while hiring more employees with master's and doctoral degrees [12].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a slight decline in revenue but an improvement in operating profit margin. For the first half of 2025, the company achieved operating revenue of 49.34 billion yuan, a year-on-year increase of 1.44%, and a net profit attributable to the parent company of 2.08 billion yuan, a year-on-year increase of 3.01% [2][6]. - In the second quarter of 2025, the company experienced a revenue decline of 2.60% year-on-year, with a net profit decrease of 8.25% [2][6]. - The company is focusing on optimizing its product structure and enhancing operational efficiency to achieve sustainable growth [12]. Summary by Sections Financial Performance - In H1 2025, the company reported a gross margin increase of 0.69 percentage points to 21.48%. The air conditioning segment saw a gross margin decrease of 1.56 percentage points, while the washing and refrigeration segment improved by 2.12 percentage points [12]. - The operating profit for H1 2025 was 2.63 billion yuan, a year-on-year increase of 9.67%, with an operating profit margin of 5.32%, up 0.40 percentage points [12]. - The company’s cash flow from operating activities increased by 153.43% year-on-year, indicating significant improvement in operational quality [12]. Business Segments - The air conditioning business grew by 4.07% year-on-year, while the washing and refrigeration business increased by 4.76%. Domestic sales saw a slight decline of 0.31%, whereas overseas sales grew by 12.34% [12]. - In Q2 2025, the company’s revenue decline was attributed mainly to weak domestic sales performance [12]. Future Outlook - The company aims to enhance its brand synergy and supply chain optimization to achieve efficient market penetration and rapid growth. It is also expanding into automotive compressor and thermal management systems [12]. - The projected net profits for 2025-2027 are 3.77 billion, 4.17 billion, and 4.71 billion yuan, respectively, with corresponding price-to-earnings ratios of 10.00, 9.03, and 7.99 [12].

Investment Rating - The investment rating for Hisense Home Appliances is "Buy-A" with a target price of 31.41 CNY for the next six months [4][6]. Core Views - Hisense Home Appliances reported a revenue of 49.34 billion CNY for the first half of 2025, a year-on-year increase of 1.4%, and a net profit attributable to shareholders of 2.08 billion CNY, up 3.0% year-on-year. The second quarter saw a revenue of 24.50 billion CNY, down 2.6% year-on-year, and a net profit of 0.95 billion CNY, down 8.3% year-on-year [1][2]. - The company is accelerating its overseas diversification and digital transformation to enhance production efficiency, which is expected to improve operational performance [1][3]. Summary by Sections Financial Performance - In H1 2025, domestic sales revenue decreased by 0.3% while export revenue increased by 12.3%. The second quarter's domestic sales remained flat, and export growth slowed [2]. - The air conditioning segment saw a revenue decline of 6.0% for Hisense Hitachi, attributed to a downturn in the real estate market affecting domestic sales, while exports continued to grow [2]. - The home appliance segment (ice and washing machines) experienced a revenue increase of 4.8% in H1 2025, with domestic sales benefiting from trade-in policies [2][3]. Profitability - The gross margin for Q2 was 21.5%, an increase of 1.1 percentage points year-on-year, mainly due to improved profitability in the ice and washing machine segment [3]. - The net profit margin for Q2 was 3.9%, a decrease of 0.2 percentage points year-on-year, influenced by an increase in expense ratios [3]. Cash Flow - Operating cash flow for Q2 was 5.26 billion CNY, a significant increase of 170.4% year-on-year, primarily due to a 17.6% increase in cash received from sales [3]. Future Outlook - The company is expected to improve profitability through ongoing upgrades in product structure and benefits from trade-in policies driving domestic sales [3][4]. - The projected EPS for 2025 is 2.62 CNY, with a PE valuation of 12x, supporting the target price of 31.41 CNY [6][11].