Based on the 2026 Q1 financial report and management communications, the key developments for Haier Smart Home (6690.HK) are summarized as follows:
Key Developments This Quarter
- Optimization of Profit Structure: Despite a decline in overall revenue due to the macroeconomic environment, domestic operating profit margins continued to improve. This demonstrates that the efficiency gains from premium brand positioning (e.g., Casarte) and digital transformation are yielding results.
- Global Supply Chain and FX Impact: The North American market was disrupted by extreme weather (snowstorms), which hampered distribution. Coupled with exchange losses triggered by RMB fluctuations, the financial expense ratio spiked, serving as the primary driver for the pressure on this quarter’s performance.
- Shift in Capital Management: The company has demonstrated a stronger commitment to shareholder returns, elevating share buybacks and cancellations to a strategic priority. This approach aims to protect per-share equity value by actively adjusting the capital structure.
Outlook for Next Quarter
- Market Recovery Expectations: As weather conditions in North America improve, it is expected that pent-up demand for home appliances will gradually be released in the second and third quarters, alleviating pressure on overseas revenue.
- Structural Growth: The company will continue to advance the scale effect of its “Large HVAC” strategy. During the peak summer demand season for air conditioners, the product structure transformation in the domestic market is expected to further hedge against potential fluctuations in raw material costs.
- Cost Control: Management intends to strengthen hedging against exchange rate risks and further streamline operational costs, with the goal of achieving elastic recovery in net profit margins as revenue growth resumes.
EPS Forecast for the Coming Year
Based on current consensus estimates from market analysts, factoring in expected revenue improvements and cost structure optimizations for 2026, the EPS forecast for Haier Smart Home for the coming year is as follows:
- Estimated EPS for Full Year 2026: Approximately 2.05 to 2.18 RMB.
- Growth Drivers:
- As the profitability of overseas operations recovers, the growth rate of net profit is expected to outpace revenue growth in the second half of the year.
- Ongoing share buybacks and cancellations will reduce the number of shares outstanding, providing direct momentum for EPS growth.
- If policy incentives for the domestic home appliance replacement market (stock housing) continue to be effective, they will provide structural incremental demand for home appliances.
Source:
- https://stockmc.xueqiu.com/202604/600690_20260428_YWPN.pdf
- https://www.haier.com/about_haier/xinwen/20260428_289890.shtml
- https://www.stockfisher.com.hk/news/cbce2ba0-9893-4c07-9bf7-01f16ebe28e6
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