According to Futubull, Morgan Stanley released a research report stating that it maintains a 'synchronised with the market' rating for Haier Smarthome (06690), with a target price of HKD 26, which implies a PEG ratio of 0.9 times the average compound annual growth rate for the group from 2023 to 2025, which is essentially in line with the average of 1 times for the household durable goods stocks covered by the bank.

Morgan Stanley expressed confidence in Haier Smarthome's premium and leading position, especially in the refrigerator and washing machine market, as well as its expanding overseas presence in branded products. The report pointed out that Haier Smarthome's year-on-year growth accelerated in the domestic and overseas markets from July to August this year, supporting a mid-single-digit annual growth rate in revenue for the domestic and overseas markets in the second half of the year, and it is expected that the growth in the domestic market will accelerate in the fourth quarter of this year.

In terms of the domestic market, Haier Smarthome's revenue turned positive in August, and its installment card sales volume increased by 20% compared to the same period last year. In terms of brand division, Leader brand achieved a 20% year-on-year increase in revenue in the first half of 2024, while Carsate, the high-end brand, saw a 7% decline in revenue in the same period this year. In addition, the upgrade demand driven by the old-for-new program for consumer goods may promote demand growth, rather than creating incremental demand. In terms of the overseas market, the group's revenue in July and August this year increased by a high single-digit percentage, which is higher than the 4% growth in the first half of 2024. Haier Smarthome's target for 2025 is to achieve single-digit growth in revenue in the USA, and high single-digit growth in other regions.