Goldman Sachs revised Haier Smart Home's earnings per share forecast for the 2024-2026 fiscal year by 4% to 5%.
The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintained the Haier Smart Home (06690) “buy” rating and raised the target price from HK$29 to HK$33.
According to the report, revenue performance for the first quarter of fiscal year 2024 was in line with expectations, and profit performance also improved. Operating income and net profit for the same period increased by 6% and 20%, respectively, compared with the same period last year. According to the bank, Haier Smart Home's revenue growth was strong and higher than that of its peers. In addition, gross margin and operating profit margins in domestic and foreign markets all recorded expansion.
The bank said it will revise Haier Smart Home's earnings per share forecast for the 2024-2026 fiscal year by 4% to 5% to take into account the company's newly released results, as well as updated operating revenue growth and profit margin assumptions. The bank also expects that Haier Smart Home's profit margin expansion in the second quarter of the 2024 fiscal year will slow down compared to the previous quarter, mainly due to the impact of rising copper prices.