Investment Rating - The report maintains an "Outperform" rating for Haier Smart Home with a target price of RMB 36.16, based on a current price of RMB 26.00 [2][18]. Core Insights - Haier Smart Home reported excellent performance in the first half of 2025, achieving revenue of RMB 156.49 billion, a year-on-year increase of 10.2%, and a net profit of RMB 12.03 billion, up 15.6% [5][12]. - The company's gross profit margin for the first half of 2025 reached 26.9%, an increase of 0.1 percentage points year-on-year, while the net profit margin improved to 7.69%, up 0.36 percentage points [6][14]. - Domestic revenue for the first half of 2025 was RMB 77.42 billion, growing 8.8% year-on-year, with notable brand performance from Leader and Casarte [6][15]. - The overseas revenue reached RMB 79.08 billion, a year-on-year increase of 11.7%, with emerging markets showing rapid growth [6][16]. Summary by Sections Financial Performance - Revenue for 2025 is projected to be RMB 303.47 billion, with a net profit of RMB 21.18 billion, reflecting growth rates of 6% and 13% respectively [4][11]. - The diluted EPS is expected to increase from RMB 2.00 in 2024 to RMB 2.26 in 2025, with a consistent growth forecast for the following years [4][11]. Market Analysis - The report highlights Haier's strong position in both domestic and international markets, benefiting from national subsidy policies and increasing market share in mature markets [7][17]. - Emerging markets, particularly in South Asia, Southeast Asia, and the Middle East, have shown significant revenue growth rates of 33%, 18%, and 65% respectively [6][16]. Valuation - The report assigns a PE ratio of 16x for 2025, reflecting a positive outlook on Haier's earnings growth and market positioning [7][18]. - The target price of RMB 36.16 represents a potential upside from the current trading price, reinforcing the "Outperform" rating [2][18].