In major news on Hong Kong stocks, Haier Smart Home Co., Ltd. (HK:6690) shares gained almost 8%, after the company achieved solid performance in its Q1 results for 2024. The company continued its positive trajectory from 2023 annual results and reported a robust beginning to 2024, with higher revenue and profits. Consequently, Haier’s stock has surged by 35% year-to-date, fueled by the company’s strong performance.
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Haier Smart Home is a prominent producer and distributor of household electrical appliances. Its diverse brand portfolio includes Casarte, GE Appliances, Candy, and others.
Highlights from Haier’s Q1 Results
In the first quarter, Haier’s total revenue surged to ¥68.98 billion, reflecting a 6.01% rise compared to the corresponding period last year. Meanwhile, net profit attributable to the owners of the parent company soared 20.16% year-over-year to ¥4.77 billion.
During this period, the company achieved a growth of 8.1% in its revenues in China. The company’s premium appliance brand, Casarte, continues to lead China’s high-end market, boasting a customer base of over 20 million. Meanwhile, Haier’s international revenue increased by 4%, with a double-digit operating profit gain year-over-year.
Haier’s gross profit margin reached 29.0% in Q1, marking a 0.3 percentage point increase compared to the same period in 2023. This was driven by improved product mix in domestic and overseas markets, along with digitization efforts.
Positive Outlook on Haier Stock
Analysts remain bullish on Haier’s FY24 performance. Earlier in April, analyst Walter Woo from CMB International Securities confirmed his Buy rating on the stock, predicting a 15% upside. He anticipates that the company will meet its FY24 guidance targets, propelled by consistent growth in Casarte and the expansion of Haier’s Air-con businesses.
He also highlighted investors’ strong appreciation for the company’s decision to increase its dividend payout ratio, starting in FY24. This ratio is expected to rise to 50% for FY25 and FY26 from 45% in FY23.
What is the Share Price Target for Haier Smart Home?
As per TipRanks, 6690 stock has received a Moderate Buy rating based on one Hold and one Buy recommendation. The Haier Smart Home’s share price target is HK$28.37, which is 4.7% above the current level.
