DBS: Haier Smart Home Co Ltd – Buy Target Price CNY32.98
alanyeo
<Earnings first take> Haier Smart Home (6690.HK/600690.CH) 1H22 results in line, GP margin remains stable
Haier reported 1H22 revenue of RMB121.8b, increased by 9.1% y-o-y
1H22 GP margin scored 29.7%, up by 0.2ppts y-o-y, and saw expense ratio y-o-y changes by -0.6/-0.4ppts in selling and distribution costs/admin expenses, respectively
Net profit increased by 15.1% to around RMB8.0b, the net profit margin increased by 0.4ppts y-o-y to 6.5%
What’s New
Haier Smart Home reported 1H22 revenue of RMB121.8b, increase by 9.1% y-o-y. Domestic market and overseas markets saw 12.7% and 8.0% y-o-y revenue increases
High-end brand, Casarte, saw 20.8% y-o-y growth in 1H22 and showed significant expansion in the kitchen appliance segment, achieving 46% y-o-y growth in 1H21 and accounting for 27.1% of Casarte’s revenue
1Q22 GP margin scored 29.7%, up by 0.2ppts y-o-y, and saw expense ratio y-o-y changes by -0.6/-0.4ppts in selling and distribution costs/admin expenses, respectively
Operating profit of the domestic market and the overseas market grew by 27.6% and 13.0% y-o-y to RMB4.9b and RMB 3.6b, with operating margins of 7.6% and 5.9%, respectively
Net profit increased by 15.1% to around RMB8.0b, and the net profit margin increased by 0.4ppts to 6.5%
We currently have a BUY rating with TP at RMB32.98 and HK$39.58.
More to follow after the company’s result briefing to be held at 4pm tomorrow.
