Kinwu financial news| Bocom Intl's research report pointed out that Haier Smarthome (06690) maintained stable income and double-digit profit growth in the first three quarters, meeting market and the bank's expectations. As for the third quarter, the income/net income increased by 0.5%/13.2% year-on-year, and the gross margin kept rising. The net profit margin for the third quarter was 7.2%, an increase of 0.9 percentage points year-on-year.

The bank pointed out that overseas business continued to drive revenue growth. In the third quarter, Haier's overall revenue saw a slight increase of 0.5%, with overseas business maintaining a mid-to-low single-digit growth as in the first half of the year (3Q year-on-year growth of 3.8%), offsetting the decline in China business (3% year-on-year decline). Growth trends continued in Europe, Southeast Asia, South Asia, and Australia. Localized production capacity layout addresses tariff risks. Currently, Haier's self-produced and self-sold ratio in the U.S. market has reached 98%, showing strong ability to deal with potential tariff risks in the future. Meanwhile, the company has added production capacity layout in other countries/regions (such as Thailand's air conditioner industrial park).

The bank further mentioned that Haier Smarthome's revenue in the third quarter saw a slight improvement compared to the previous quarter, as overseas mature markets began interest rate cuts. The revenue and profit outlooks are both positive, with expected profit growth of 15% for the whole year. Based on a 2025 pe ratio of 15 times, the target price was raised to HK$37.59/RMB34.7.