Haier Smart Home Co., Ltd. (SHSE:600690) Just Released Its Annual Earnings: Here's What Analysts Think

Simply Wall St ·  Mar 29 20:09

Investors in Haier Smart Home Co., Ltd. (SHSE:600690) had a good week, as its shares rose 6.9% to close at CN¥24.95 following the release of its yearly results. Haier Smart Home reported in line with analyst predictions, delivering revenues of CN¥261b and statutory earnings per share of CN¥1.78, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

SHSE:600690 Earnings and Revenue Growth March 30th 2024

Taking into account the latest results, the most recent consensus for Haier Smart Home from 26 analysts is for revenues of CN¥281.7b in 2024. If met, it would imply a modest 7.8% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 10% to CN¥1.99. In the lead-up to this report, the analysts had been modelling revenues of CN¥282.6b and earnings per share (EPS) of CN¥2.02 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of CN¥30.21, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Haier Smart Home at CN¥36.70 per share, while the most bearish prices it at CN¥22.90. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Haier Smart Home shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Haier Smart Home's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Haier Smart Home'shistorical trends, as the 7.8% annualised revenue growth to the end of 2024 is roughly in line with the 7.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 10% annually. So it's pretty clear that Haier Smart Home is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Haier Smart Home's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Haier Smart Home analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Haier Smart Home's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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