Company Coverage
Haier Smart Home (6690 HK): 2Q26: Sales Beat And Net Profit In Line; Expect HVAC To Achieve Double-digit Revenue And Profit Growth In 2H26
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$21.28
HK$28.30
+33.0%
HK$29.40
Analyst
Analyst
Highlights
Haier’s 2Q26 sales increased by 1%, better than expected, and net profit declined by 13% yoy, largely in line with consensus.
The company’s HVAC integration began delivering benefits in 2Q26, and 2Q26 alone achieved 12% revenue growth. Looking ahead, management expects HVAC revenue and operating profit to both achieve double-digit growth in 2H26. Particularly in the overseas markets, it expects double-digit growth in 2026 and around 15% growth in 2027-28.
Overseas revenue increased by 2% in 2Q26. Looking ahead, management sets five-year growth targets of: low single-digit in North America, high single digit in Europe, 15-20% in Southeast Asia, and nearly 30% in South Asia & Latin America, respectively.
Maintain BUY; cut target price by 4% to HK$28.30.
Analysis
2Q26 sales better than expected and net profit in line. In 1H26, revenue was Rmb152,115m, down 3% yoy. Gross margin was 27.2%, up 0.4ppt yoy. EBIT was Rmb13,205m, down 5% yoy, with EBIT margin of 8.7%, down 0.2ppt yoy. Net profit was Rmb10,316m, down 14% yoy, largely in line with VA consensus. The sharper net profit decline was primarily dragged by a Rmb911m forex loss (from a forex gain of Rmb881m in 1H25). Net margin was 6.8%, down 0.9ppt yoy.
Highlights
Haier’s 2Q26 sales increased by 1%, better than expected, and net profit declined by 13% yoy, largely in line with consensus.
The company’s HVAC integration began delivering benefits in 2Q26, and 2Q26 alone achieved 12% revenue growth. Looking ahead, management expects HVAC revenue and operating profit to both achieve double-digit growth in 2H26. Particularly in the overseas markets, it expects double-digit growth in 2026 and around 15% growth in 2027-28.
Overseas revenue increased by 2% in 2Q26. Looking ahead, management sets five-year growth targets of: low single-digit in North America, high single digit in Europe, 15-20% in Southeast Asia, and nearly 30% in South Asia & Latin America, respectively.
Maintain BUY; cut target price by 4% to HK$28.30.
Analysis
2Q26 sales better than expected and net profit in line. In 1H26, revenue was Rmb152,115m, down 3% yoy. Gross margin was 27.2%, up 0.4ppt yoy. EBIT was Rmb13,205m, down 5% yoy, with EBIT margin of 8.7%, down 0.2ppt yoy. Net profit was Rmb10,316m, down 14% yoy, largely in line with VA consensus. The sharper net profit decline was primarily dragged by a Rmb911m forex loss (from a forex gain of Rmb881m in 1H25). Net margin was 6.8%, down 0.9ppt yoy.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$21.28
HK$28.30
+33.0%
HK$29.40
Analyst
Analyst
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