Core views
Overseas markets and profit margins are larger, and going overseas has become an inevitable choice for Chinese brands. Currently, there is still a gap between the influence of Chinese black power brands and the breadth and depth of channels overseas, and Samsung, etc. Through reviewing Samsung's history, we discovered that sports marketing has a profound impact on brand recognition and channel system, and also has reference significance for Hisense's brand power building. Hisense has achieved brand growth overseas through its own brands and world-class events. The European Cup will open in June. We believe Hisense's sports marketing will further promote the internationalization and high-end of the brand, and lay a solid foundation for long-term brand influence and market share growth.
summary
Overseas has become a necessary place for China's black electricity leaders. Compared to the Chinese market, overseas markets have a larger capacity, less competitive, and more profit margins. China's TV products and supply chain have significant advantages, but there are still shortcomings in brand power and channels. Brand marketing is the key.
Review: How can Samsung build brand influence overseas? Samsung Sports Marketing began when it became a regional sponsor of the Seoul Winter Olympics in 1988. Since then, nearly 30 years of Olympic sales and superposition product technology have enabled Samsung to maintain the world's number one brand influence in the TV field.
Can Hisense learn from Samsung and establish long-term growth through sports marketing? Samsung sports marketing has reference value, and Hisense is expected to replicate the growth path of the Samsung brand to achieve high-end overseas goals. With the European Cup and World Cup appearing on the world stage, Hisense has made achievements in terms of brands, channels, products, and high-end technology. The 2024 European Cup is expected to bring further brand upgrades, laying the foundation for the company's channel development and long-term influence.
Investment advice: Referring to the case of Samsung Sports Marketing, we believe that Hisense, as the official sponsor of the European Cup, is expected to achieve channel expansion and high-end breakthroughs through brand marketing. We predict that in 2024-2026, the company will achieve net profit of 2,413/27.95/3.65 billion yuan, corresponding EPS of 1.85/2.14/2.50 yuan, and PE corresponding to the current stock price of 14.79/12.76/10.93 times, maintaining a “buy” rating.
Risk warning: declining market demand, rebound in panel prices, and fluctuations in the RMB exchange rate.