Haier Smart Home Co.Ltd(600690) (600690)
Overweight layout in the field of smart home appliances, help the implementation of smart home strategy and maintain the “buy” rating
On December 15, 2021, the company announced that it planned to increase the capital of its wholly-owned subsidiary by 3.5 billion yuan and establish a smart household appliances business department. We expect that this capital increase is expected to strengthen the company’s competitiveness in the field of household appliances, complement the existing household appliances, jointly promote the landing of smart families and open up new growth space. The profit forecast remains unchanged. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be RMB 13.01/147.9/16.88 billion, corresponding to EPS of RMB 1.38/1.57/1.80 respectively, and the corresponding PE of the current stock price is 21.2/18.7/16.4 times, maintaining the “buy” rating.
Maximize resource integration and business collaboration, help the implementation of smart family strategy and ensure the long-term development of the company
The capital increase aims to create four ecological scenes around the user’s family life: healthy cooking, clean house, comfortable environment and intelligent care. The company will use its overall resources to provide the target company with all-round support from product R & D, production to sales, such as general technology R & D, centralized procurement and marketing network. We believe that this overweight layout in the field of household appliances can, on the one hand, contribute more emerging categories to the company, on the other hand, combine with existing household electrical products to form a smart home network and improve the scene experience of the Internet of things, so as to ensure the long-term development of the company.
Household appliances and smart homes have become new engines of growth in the field of household appliances, and the development prospect of smart life business is broad
According to the IDC report, it is expected that the compound growth rate of shipments of China’s smart home equipment market will reach 21.4% in the next five years, among which the growth rate of smart home equipment such as smart lights, smart door locks and smart small household appliances is in the forefront, and the whole house intelligent solutions are becoming one of the important driving forces of market growth. In addition, Euromonitor data show that the United States, which has a large scale of cleaning / personal protection / environmental health appliances from 2021 to 2023, will maintain a compound growth rate of 12.74% / 5.95% / 5.14% respectively, and the Chinese market will maintain a compound growth rate of 13.3% / 7.31% / 4.93% respectively. Life appliances outside China have broad prospects. In contrast, the target company achieved an operating revenue of 758 million yuan in 2020 and an unaudited operating revenue of 562 million yuan in 2021q1-q3. The company’s smart life business still has a large growth space.
Continue to pay attention to the improvement of net interest rate and the realization of logic, and pay attention to the landing of smart life appliance business for a long time
High end improves customer unit value, superimposes supply chain optimization to boost gross profit margin, digital platform reform to drive management improvement and cost reduction, and continues to be optimistic about the logic of improving the company’s net profit margin. Looking forward to the future, with the gradual implementation of smart home appliances and the maturity of smart home solutions, the company is expected to usher in new growth points.
Risk tip: industry competition intensifies; Rising prices of raw materials; Overseas operation risk.
