Glonghui, April 7 | Bank of China International released a report saying that Haier Smart Home's profit for the fourth quarter of last year met expectations and surpassed pessimistic investors' expectations, and they are pleased that the company raised its dividend payout ratio to 45%. According to the bank, the company promised to strengthen shareholder returns, gradually increase dividend payout ratios in the future, and accelerate air conditioner sales in the European market, reflecting the company's recent success in reforms. The bank continues to regard the stock as a quality share, and the stock price is expected to be supported by favorable policies, including subsidies to promote the recycling of household appliances. The bank raised its earnings forecast for Haier Smart Home by 7% and 6% per share for this year and next two years, reflecting profit margins that beat expectations, as well as the company's internal reforms, including digitizing and integrating the business functions of the Qingdao headquarters and overseas markets. The bank also reiterated its “buy” rating for the stock. Based on poor valuation, improved dividend rates and past performance driving profit margin expansion, the target price was raised from HK$28.7 to HK$30.6, which is 13.5 times the projected price-earnings ratio for this year.