BOC International released a research report stating that considering the gradual implementation of the policy, the improved development of the North American market, the improvement in profits in the European market, the certainty of performance growth and the increase in dividend rates, the target price of Haier Smart Home (06690) was raised from HK$31.1 to HK$35.8, maintaining the “buy” rating.
According to the report, the company's sales and net profit increased 7.3% and 12.8% year on year, respectively, to 261.4 billion yuan and 16.6 billion yuan; gross margin and operating profit margin increased 0.2 and 0.3 percentage points respectively, driving net profit margin expansion 0.4 percentage points to 6.4%. The payout ratio increased to 45% during the period, and the payout ratio is expected to increase to 50% in 2025 and 2026. Related to the bank, the dividend plan that exceeds market expectations will drive the company's stock price.