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2026-11-02 15:04:52 CLSA published a research report stating that HAIER SMARTHOME (06690.HK)'s third-quarter sales fell 10.1% YoY, mainly due to weak demand after subsidy withdrawal in China's domestic home appliance market, as well as soft demand and elevated inventory levels in the US air-conditioner market. Rising costs and intense price competition led to a notable decline in gross profit margin, but thanks to its global supply chain layout, stringent cost reductions, business integration and marketing transformation, net profit margin only edged down slightly. The broker noted that management expects domestic revenue to resume growth in the fourth quarter, supported by a low comparison base, product and channel initiatives, and smooth refrigerator inventory destocking. Overseas, the US business remained a major drag, but profitability of the US business stabilized in the third quarter, and the company hopes to maintain the third-quarter level in the fourth quarter. The broker expects China's domestic demand recovery to take time, and cut its revenue forecasts for 2026 to 2028 by 4% to 5%. It also lowered net profit forecasts for the same period by 2% to 13% due to operating leverage and persistently high raw material prices. The broker maintained its "Outperform" rating and lowered the Hong Kong share TP to HKD25 from HKD26, while cutting the A-share TP for HAIER SMART HOME (600690.SH) to RMB26 from RMB27.(da/u)~ 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. | |