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| HSI1 | 24,186.83 | +124.11 | 178.21B |
| HSCEI1 | 8,128.25 | +24.98 | 60.40B |
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2026-10-15 13:02:49 Goldman Sachs issued a report lowering its 3Q26 revenue and net profit forecasts for covered white goods companies for 2026, with cuts ranging from 3% to 11% and 3% to 19%, respectively, to reflect weaker-than-expected domestic demand in 3Q26. Although export performance remained resilient, the situation has also affected the profitability of covered companies. The broker now expects weighted average YoY declines of 5% and 11% in 3Q26 revenue and net profit (excluding one-off fair value gains), respectively, compared with 1% and 8% in 2Q26. Ahead of earnings releases, Goldman Sachs expects investors to focus on: 1) domestic demand outlook for 4Q26 and beyond, and measures to address weak demand; 2) competitive landscape and pricing trends; 3) overseas demand outlook and measures to further expand overseas markets; 4) cost trends and measures to cope with cost pressure; 5) development of new business lines; and 6) potential shareholder return enhancement plans. The report noted that MIDEA GROUP (00300.HK) has recently faced challenges from weaker-than-expected domestic demand, prompting Goldman Sachs to cut its 2026-2028 EPS forecasts by 6% to 9%. The broker expects the group's 3Q26 business to demonstrate resilience, supported by healthy growth in overseas home appliance and 2B businesses, potentially outperforming other covered white goods companies. Goldman Sachs expects the group's proactive adjustment of domestic channel strategy to help further reduce channel inventory and distributor burdens, which would support gains in retail market share. Goldman Sachs maintained its "Buy" rating on MIDEA GROUP (00300.HK), while lowering the H-share TP from HKD119 to HKD113. The A-share TP for MIDEA GP (000333.SZ) was cut from RMB103 to RMB98. Regarding HAIER SMARTHOME (06690.HK), Goldman Sachs expects declines in revenue and profit to be more pronounced than those of MIDEA GROUP (00300.HK). The broker expects Haier's domestic revenue to face pressure similar to Midea's, while overseas growth performance will be weaker due to drag from the US market. Goldman Sachs assigned a "Buy" rating to HAIER SMARTHOME (06690.HK), lowered its 2026-2028 EPS forecasts by 6% to 9%, and cut the H-share TP from HKD31 to HKD28. The A-share TP for HAIER SMART HOME (600690.SH) was lowered from RMB29 to RMB27. Goldman Sachs also reduced its 2026-2028 EPS forecasts for HISENSE HA (00921.HK) by 3% to 7%, while maintaining the H-share TP at HKD26 and the A-share TP for HISENSE HOME APPLIANCES (000921.SZ) at RMB29, with a "Buy" rating. Goldman Sachs cut 2026-2028 EPS forecasts for GREE APPLIANCES (000651.SZ) by 2% each year, maintained the TP at RMB41, and kept a "Neutral" rating. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |