Haier Smart Home Co.Ltd(600690) (600690)
event:
The company plans to increase the capital of 3.5 billion yuan to the wholly-owned subsidiary living appliances company for the definition, R & D, manufacturing and promotion of new products. After the capital increase, the registered capital of the company will be changed from 200 million yuan to 3.7 billion yuan. The company will set up a smart household appliances business department with the household appliances company as the main body, and Mr. Xie Juzhi, deputy director of the company, will be the head of the business department.
comment:
Increase capital to subsidiaries and strengthen the smart home appliance business: the company’s capital increase will greatly enhance the capital strength of the smart home appliance company, and establish the smart home appliance business department as the company’s first-class strategic unit, with Mr. Xie Juzhi, vice chairman of the company as the person in charge. It can be seen that the company’s strategic positioning for the smart home appliance business this time. We believe that the capital increase of the company will help attract talents and lay a good foundation for R & D activities. Accordingly, the establishment of a new first-class business department and the vice chairman as the person in charge will help the development and implementation of the company’s smart home appliance business and coordinate the support of the company’s overall resources.
Smart life has become a trend, and the smart home strategy has been deepened by adding weight to the household appliance business: with the development of science and technology and the improvement of people’s demand for quality of life, smart life has become a trend. For example, the compound growth rate of sales of sweeping Siasun Robot&Automation Co.Ltd(300024) in recent five years has exceeded 20%, much higher than that of general household appliances. The company has already formulated the smart home strategy, launched a number of smart products for the upgrading of the original white electricity products, and launched the three winged bird platform as the whole scene solution platform of the smart home this year. We believe that this overweight of household appliances business will effectively supplement the company’s gap in intelligent cleaning and other fields, strengthen the network synergy with existing household appliances, improve the richness and experience of the overall smart home solution scenario, and be optimistic about the company’s comprehensive layout in the direction of smart home.
Profit forecast and investment suggestions: we expect the net profit of the company in 2021 and 2022 to be 13.13 billion yuan and 15.1 billion yuan, yoy + 48.0% and + 15.0%, EPS to be 1.4 yuan and 1.6 yuan, P / E of A-Shares to be 21x and 18x respectively, and P / E of H shares to be 19x and 17x respectively. We are optimistic about the promotion of the company’s smart home ecological strategy and the improvement of operation efficiency. At present, the valuation is relatively reasonable, and we maintain the “buy” investment proposal.
Risk tips: epidemic fluctuation, raw material price fluctuation, exchange rate fluctuation and overseas business operation risk
