Jinwu Financial News | Guotai Junan released a research report that Hisense Home Appliances (00921) achieved revenue of 23.486 billion yuan in 24Q1, an increase of 20.87% over the previous year, and achieved net profit of 981 million yuan to mother, an increase of 59.48% over the previous year. The company's revenue side growth relatively exceeded expectations, and the export side grew significantly under the trend of overseas channel replenishment. The bank expects export business growth to be better than domestic sales. The company's 23Q1 cold sector has a relatively low revenue base due to overseas inventory removal, and there is a marked increase in elasticity during the current inventory replenishment phase.
According to the bank, the company's gross margin improved by 0.5 pcts in 2024q1. The bank is expected to mainly derive from: 1) an increase in the scale of the air conditioning and refrigeration business, and an improvement in capacity utilization at overseas bases such as the Monterey plant at the export end; 2) white electronics products as a whole follow the trend of structural upgrading, and the average price continues to rise year-on-year, with remarkable growth in bright high-end packages. On the other hand, rising costs and prices of 24Q1 copper and aluminum, refrigerants, and foam materials are also putting some pressure on the manufacturing side.
The bank predicts that the company's overseas revenue will grow better in 2024, so it raised the 24-26 forecast. The estimated net profit for 24-26 is 35.67/41.76/4.819 billion yuan, and the corresponding EPS is 2.57/3.01/3.47 yuan (originally 2.37/2.81/3.23 yuan), +26%/17%/15% year-on-year. Maintain an “Overweight” rating.