HAIER SMART HOME(600690) 华创证券·2024-11-05 05:08Investment Rating - Strong Buy (Maintained) with a target price of 34.5 RMB, compared to the current price of 29.70 RMB [1] Core Views - Revenue for 24Q1-Q3 reached 202.97 billion RMB, up 2.2% YoY, with net profit attributable to shareholders of 15.15 billion RMB, up 15.3% YoY [1] - Domestic sales faced pressure, while overseas sales maintained growth, particularly in emerging markets like South Asia, which grew over 30% in 24Q3 [1] - Profitability improved with a net margin increase of 0.9 ppts to 7.2% in 24Q3, driven by cost competitiveness and efficiency gains [1] - The company plans to consolidate Ririshun, aiming to accelerate retail transformation and enhance operational efficiency [1] Financial Performance - 24Q3 revenue was 67.35 billion RMB, up 0.5% YoY, with net profit attributable to shareholders of 4.73 billion RMB, up 13.2% YoY [1] - Gross margin improved by 0.1 ppts to 31.3% in 24Q3, despite rising raw material costs [1] - Sales and administrative expense ratio improved by 0.7 ppts to 18.9% in 24Q3, reflecting ongoing cost optimization [1] Market and Operational Strategy - Domestic sales are expected to improve with the rollout of trade-in policies, while overseas markets will benefit from localized supply chains and digital transformation [1] - The company is leveraging its high-end brand (Casarte) and comprehensive product portfolio to drive retail growth [1] - The consolidation of Ririshun is expected to enhance the integration of home appliance and logistics systems, further boosting operational efficiency [1] Financial Forecasts - Revenue for 2024E is projected at 272.31 billion RMB, with a 4.2% YoY growth, and net profit attributable to shareholders of 19.10 billion RMB, up 15.1% YoY [2] - EPS for 2024E is forecasted at 2.04 RMB, with a P/E ratio of 15x [2] - Gross margin is expected to rise to 31.8% in 2024E, with net margin improving to 7.1% [2] Valuation and Ratios - The company's P/E ratio for 2024E is 15x, with a P/B ratio of 2.4x [2] - ROE is projected to remain stable at around 16.2% from 2024E to 2026E [2] - Debt-to-equity ratio is expected to decline from 39.2% in 2023A to 22.1% in 2026E, reflecting improved financial health [2]