Core Viewpoint - Haier Smart Home's performance in the first half of the year exceeded expectations, and management reaffirmed its operational guidance for 2025, leading to increased confidence in the outlook for the second half of the year [1] Group 1: Performance and Growth Strategies - The company is optimistic about the growth strategies of its Casarte and Leader brands [1] - Significant cost savings and efficiency improvements are expected through inventory management and digital marketing [1] - The air conditioning business is showing steady growth [1] Group 2: Market Expansion and Financial Projections - The European business has turned profitable [1] - Rapid development is noted in emerging markets [1] - The target price for H-shares has been raised from HKD 28.45 to HKD 31.57, corresponding to a projected price-to-earnings ratio of 12 times for 2026 [1] - Net profit forecasts for 2025 to 2027 have been increased by 2% to reflect accelerated sales growth and better-than-expected gross margins in both domestic and overseas markets [1]

Group 1 - The core viewpoint of the report is a "buy" rating for Haier Smart Home (600690.SH) based on expected growth in both domestic and international sales [1] - The report highlights a projected double-digit growth in overseas sales by the first half of 2025, driven by the brands Casarte and Leader in the domestic market [1] - It anticipates an improvement in profitability by the second quarter of 2025, attributed to the efficiency gains from digital transformation [1] Group 2 - The report mentions potential risks including macroeconomic uncertainties, intensified industry competition, fluctuations in raw material prices, exchange rate volatility, and operational risks in overseas markets [1]

Summary of Haier Smart Home (A/H) Conference Call Company Overview - **Company**: Haier Smart Home Co Ltd - **Ticker**: 6690 HK (H-shares), 600690 CH (A-shares) - **Market Cap**: Approximately $29.996 billion (H-shares) and $35.328 billion (A-shares) [4][23] Key Financial Highlights - **2024 Performance**: - Organic sales growth of 3.5% and earnings growth of 15.1% year-over-year (YoY) [2][21] - Reported sales and earnings grew by 4.3% and 12.9% YoY, respectively [2][21] - Domestic sales increased by 3% YoY, rebounding from a decline in earlier quarters [22] - Overseas sales achieved 4% organic growth, with emerging markets contributing significantly [22] - **2025 Guidance**: - Sales growth expected in the mid-high single digits (M/HSD) and earnings growth in the double digits (DD) [2][21] - Anticipated 7% sales growth in China, driven by premium brand Casarte [22] - Overseas sales forecasted to grow by 5% YoY with stable operating profit margins [22] Strategic Initiatives - **Digitalization and Efficiency**: - Deployment of AI to enhance sales management and supply chain efficiency, targeting a reduction in SG&A ratio by 40-50 basis points in 2025 [2][21] - **Tariff Mitigation Strategies**: - Plans to upgrade product mix, pass some tariff costs to suppliers, and improve production efficiency in the US [2][21] - Establishing a backup supply chain in Southeast Asia to mitigate tariff impacts [2][21] Market Position and Valuation - **Valuation Metrics**: - Haier-H trades at 10x 2025 P/E with a 4.9% dividend yield, more attractive compared to Haier-A's 12x/4.1% and Midea-A's 13.6x/4.5% [2][21] - **Price Target**: - New price target for Haier-H raised to HK$33 (from HK$31) and for Haier-A to Rmb31 (from Rmb30) [2][21][14] Earnings Estimates - **Adjusted EPS Estimates**: - FY25E adjusted EPS for Haier-H increased from Rmb2.14 to Rmb2.23, and for Haier-A from Rmb2.14 to Rmb2.23 [7][18] - **Long-term Growth Projections**: - Forecasted sales and earnings growth of 6% and 11.9% YoY in 2025, with CAGRs of 3.7% and 8.7% over 2025-2027 [25][31] Risks and Considerations - **Market Concerns**: - Haier has been perceived as disproportionately discounted due to fears surrounding US tariff hikes [24][30] - **Operational Challenges**: - Potential impacts from restructuring costs in Europe and fluctuating consumer sentiment in the US and EU markets [22][24] Conclusion - **Investment Thesis**: - Haier's balanced product portfolio and geographical diversification are seen as strengths. The company is expected to improve its operating margins and close the gap with competitors like Midea and Gree [24][30]

上 市 公 司 家用电器 2025 年 03 月 31 日 海尔智家 (600690) ——2024 年报点评：全球化大视野稳健经营，管理层创 新营销带来新生机 报告原因：有业绩公布需要点评 | 买入（维持） | | --- | | 市场数据： | 2025 年 03 月 28 日 | | --- | --- | | 收盘价（元） | 27.16 | | 一年内最高/最低（元） | 35.37/23.10 | | 市净率 | 2.3 | | 股息率%（分红/股价） | 2.95 | | 流通 A 股市值（百万元） | 169,872 | | 上证指数/深证成指 | 3,351.31/10,607.33 | | 注："股息率"以最近一年已公布分红计算 | | | 基础数据: | 2024 年 12 月 31 日 | | --- | --- | | 每股净资产（元） | 11.87 | | 资产负债率% | 59.19 | | 总股本/流通 A 股（百万） | 9,383/6,255 | | 流通 B 股/H 股（百万） | -/2,857 | 一年内股价与大盘对比走势： 03-28 04-28 05-28 06 ...