Guotou Securities: HAIER SMARTHOME (06690) accelerates domestic sales growth in Q3, steadily increases exports, and the continuous effects of digital transformation are becoming more prominent.

Guotou Securities released a research report stating that HAIER SMARTHOME (06690) released its third quarter report for 2025, with the company achieving revenue of 234.05 billion yuan in the first three quarters of 2025, YoY+10.0%, and achieving a net profit attributable to shareholders of 17.37 billion yuan, YoY+14.7%; after conversion, the company achieved revenue of 77.56 billion yuan in Q3, YoY+9.5%, and a net profit attributable to shareholders of 5.34 billion yuan, YoY+12.7%. The bank believes that the growth of Haier's domestic sales revenue accelerated in Q3, overseas revenue continued to grow rapidly, and overall revenue showed steady growth; the company's digital transformation and high-end brand strategy continued to yield results, improving profitability compared to the same quarter in Q3. Guotou Securities' main points are as follows: Event: HAIER SMARTHOME released its third quarter report for 2025, with the company achieving revenue of 234.05 billion yuan in the first three quarters of 2025, YoY+10.0%, and achieving a net profit attributable to shareholders of 17.37 billion yuan, YoY+14.7%; after conversion, the company achieved revenue of 77.56 billion yuan in Q3, YoY+9.5%, and a net profit attributable to shareholders of 5.34 billion yuan, YoY+12.7%. The bank believes that the growth of Haier's domestic sales revenue accelerated in Q3, overseas revenue continued to grow rapidly, and overall revenue showed steady growth; the company's digital transformation and high-end brand strategy continued to yield results, improving profitability compared to the same quarter in Q3. Q3 quarterly revenue continues to grow rapidly: Haier's domestic/overseas revenue in Q3 grew YoY+10.8%/+8.3% (compared to +8.8%/+11.7% in H1). In the domestic market, the company strengthened the competitiveness of explosive and series products, accelerated the expansion of channel touchpoints, leveraged the advantages of the full chain and multiple brands, and saw an increase in the growth rate of domestic revenue in Q3, with the household air conditioning industry's revenue in Q3 growing by over 30%. In the overseas market, the company maintained rapid growth in emerging markets such as South Asia, Southeast Asia, and the Middle East and Africa in Q3, while operations in developed markets such as North America and Europe remained stable, with continuous improvement in the quality of profitability. Looking ahead, Haier will deepen its global layout of multiple brands, cross products, and cross regions, with domestic and overseas sales revenue expected to maintain rapid growth. Q3 gross profit margin increased year-on-year: Haier's Q3 gross profit margin was 27.9%, up by +0.1pct year-on-year. The company promoted digital transformation in procurement, research and development, and manufacturing in the domestic market, and adhered to the high-end brand strategy in overseas markets, strengthened global supply chain collaboration, and built a digital procurement platform, leading to a continuous improvement in gross profit margin driven by the ultimate cost strategy. Q3 expense ratio optimization, profitability improved year-on-year: Haier's Q3 expense ratio decreased by 0.1pct year-on-year, with sales/management expense ratios dropping by -0.1pct/-0.1pct year-on-year. Benefiting from the digital transformation in the domestic market and the improvement in operational efficiency brought about by the innovative retail in overseas markets and the integration of global resources, the company's expense ratio continued to improve. As a result, Haier's net profit margin in Q3 was 6.9%, up by +0.2pct year-on-year. Q3 operating cash flow increased year-on-year: Haier's net cash flow from operating activities in Q3 was 6.35 billion yuan, up by 0.29 billion yuan year-on-year. The company's operating cash flow improved year-on-year mainly due to the expansion of revenue, with cash received from selling goods and providing services in Q3 up by 7.62 billion yuan year-on-year. The company's contract liabilities at the end of this period were 4.15 billion yuan, up by 1.79 billion yuan year-on-year, showing a more positive willingness of dealers to pick up goods. Investment recommendation: Haier's incentive mechanism is improving, and the enthusiasm of management and employees is continuously increasing. The company continues to deepen its global layout and digital transformation, and is expected to leverage the advantages of multiple brands, cross products, and cross regions to drive continuous growth in revenue scale and profitability. Risk warning: Significant appreciation of the renminbi, intensified competition in overseas markets, significant increase in raw material prices.