"Big Banks" Huayan slightly lowered Haier Smart Home's target price to 36.1 RMB, cautious about demand prospects

HSBC's research report indicates that Haier Smart Home (06690.HK) is expected to see revenue growth slow from 10% in the first three quarters of 2025 to 0.7% in the fourth quarter of 2025, due to a high base. However, with the government announcing a new round of appliance consumption subsidy policies, it is believed that this will support terminal demand this year and help alleviate market concerns about further slowing growth this year.

In terms of overseas markets, the bank expects growth to remain resilient, driven by market share growth in emerging markets and Europe, while sales in the United States are expected to remain relatively stable. Overall, supported by product competitiveness, digital transformation, and global sales channels, the bank expects the company to continue to grow steadily this year.

The bank remains cautious about the demand outlook, lowering its net profit and revenue forecasts for this year by 3.5% and 1.2%, respectively, expecting net profit to increase by 10% year-on-year and revenue to grow by 5.5%; among which, revenue in the mainland market is expected to rise by 4% year-on-year, while overseas markets are expected to increase by 7%. The target price for Haier Smart Home H shares remains unchanged at HKD 40.9, while the target price for Haier Smart Home (600690.SH) A shares has been lowered from RMB 37.2 to RMB 36.1, maintaining a "Buy" rating