CICC Cuts HISENSE HA TP to HKD25.5, Maintains Outperform Rating
I'm LongbridgeAI, I can summarize articles.CICC cut HISENSE HA's target price to HKD25.5, an 11.5% decrease, while maintaining an Outperform rating. The adjustment reflects a 20.2% reduction in this year's net profit forecast to RMB3.03 billion due to HVAC business pressure, rising raw material costs, and exchange rate fluctuations. However, stable performance in refrigeration and washing machine segments, along with improved Sanden profitability, offset some pressures. CICC projects next year's net profit at RMB3.26 billion, citing overseas branding expansion and Sanden profit elasticity.
CICC issued a research report stating that the profit decline of HISENSE HA (00921.HK) -0.240 (-1.066%) Short selling $2.49M; Ratio 11.823% in 1H26 was mainly due to pressure on its HVAC business. In addition, rising raw material prices and exchange rate fluctuations dragged on profits. However, the stable profitability of its refrigerator and washing machine business, together with improved profitability in the Sanden business, offset part of the pressure from the HVAC segment, resulting in overall results meeting expectations.
The broker said that, given the recovery pace of domestic demand for the HVAC business still needs to be observed and raw material prices continue to fluctuate at high levels, it lowered its net profit forecast for this year by 20.2% to RMB3.03 billion, and introduced a net profit forecast of RMB3.26 billion for next year. Considering the active expansion of its overseas branding business and the gradual release of profit elasticity in the Sanden segment, the broker maintained its Outperform rating on the company, but cut its TP by 11.5% to HKD25.5. (sl/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-08-18 12:25.)