Company Coverage
Haier Smart Home (6690 HK): 3Q26: Net Profit Declines 12% yoy; Targets A Return To Domestic Revenue Growth For 4Q26
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$18.94
HK$26.00
+37.3%
HK$28.30
Analyst
Analyst
Highlights
- Haier’s 3Q26 revenue was Rmb69,704m (-10% yoy, -11% qoq). EBIT was Rmb5,926m (flat yoy, -18% qoq), with EBIT margin of 8.5% (+0.8ppt yoy, -0.7ppt qoq). The yoy increase in EBIT margin was primarily due to a decline in selling expenses (-1.4ppt yoy) and R&D expenses (-0.4ppt yoy), partially offset by a lower gross margin. Net profit was Rmb4,682m (-12% yoy, -17% qoq), with net margin of 6.7% (-0.2ppt yoy, -0.5ppt qoq). Below the EBIT line, net profit was dragged by higher net finance costs (+0.6ppt yoy), mainly due to a Rmb364m net forex loss (vs a forex gain of Rmb134m in 3Q25), partially offset by a lower effective tax rate of 13.8% (vs 15.4% in 3Q25).
- Domestic revenue declined by double-digits, dragged by air conditioners, while overseas revenue remained largely flat. For 4Q26, management targets a return to domestic revenue growth. On the margin side, raw material cost pressure is expected to persist. Management also indicated that an additional US tariff refund may be recognised in 4Q26 or next year, which could partially offset the ongoing costs from supply-chain restructuring in 4Q26. Maintain BUY; cut target price by 8% to HK$26.00.
Analysis
- 3Q26 sales net profit declined 12%. Haier Smart Home (Haier) reported its 9M26 results. In 9M26, revenue was Rmb221,819m, down 5% yoy. Gross margin was 27.2%, flat yoy. EBIT was Rmb19,131m, down 3% yoy, with EBIT margin of 8.6%, up 0.2ppt yoy. Net profit was Rmb14,999m, down 14% yoy, with net margin of 6.8%, down 0.7ppt yoy.
Highlights
- Haier’s 3Q26 revenue was Rmb69,704m (-10% yoy, -11% qoq). EBIT was Rmb5,926m (flat yoy, -18% qoq), with EBIT margin of 8.5% (+0.8ppt yoy, -0.7ppt qoq). The yoy increase in EBIT margin was primarily due to a decline in selling expenses (-1.4ppt yoy) and R&D expenses (-0.4ppt yoy), partially offset by a lower gross margin. Net profit was Rmb4,682m (-12% yoy, -17% qoq), with net margin of 6.7% (-0.2ppt yoy, -0.5ppt qoq). Below the EBIT line, net profit was dragged by higher net finance costs (+0.6ppt yoy), mainly due to a Rmb364m net forex loss (vs a forex gain of Rmb134m in 3Q25), partially offset by a lower effective tax rate of 13.8% (vs 15.4% in 3Q25).
- Domestic revenue declined by double-digits, dragged by air conditioners, while overseas revenue remained largely flat. For 4Q26, management targets a return to domestic revenue growth. On the margin side, raw material cost pressure is expected to persist. Management also indicated that an additional US tariff refund may be recognised in 4Q26 or next year, which could partially offset the ongoing costs from supply-chain restructuring in 4Q26. Maintain BUY; cut target price by 8% to HK$26.00.
Analysis
- 3Q26 sales net profit declined 12%. Haier Smart Home (Haier) reported its 9M26 results. In 9M26, revenue was Rmb221,819m, down 5% yoy. Gross margin was 27.2%, flat yoy. EBIT was Rmb19,131m, down 3% yoy, with EBIT margin of 8.6%, up 0.2ppt yoy. Net profit was Rmb14,999m, down 14% yoy, with net margin of 6.8%, down 0.7ppt yoy.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$18.94
HK$26.00
+37.3%
HK$28.30
Analyst
Analyst
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