In major news on Hong Kong stocks, Haier Smart Home Co., Ltd. (HK:6690) soared 8% after the company announced upbeat annual results for 2023. The company maintained its positive performance, reporting a 7.3% year-over-year growth in revenue to ¥261.43 billion. The net profit attributable to shareholders reached ¥16.60 billion, marking a 12.8% increase compared to the previous year.
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Haier Smart Home is a leading manufacturer and seller of household electrical appliances, boasting a brand portfolio that includes Casarte, GE Appliances, Candy, and Aqua.
Haier’s Stellar Performance in China and Abroad
Despite the slow recovery of the home appliance market in China, Haier Smart Home expanded its market share in the top-ranked refrigerator and washing machine segments. As reported by GfK China Market Monitor, the company’s offline retail revenue share for refrigerators increased 1.3 percentage points year-over-year to 45.2% in China. While its share of washing machines increased by 1.5 percentage points to 47.5%.
In the overseas market, Haier’s revenue reached ¥136.41 billion, up 7.6% from 2022. The company’s growth surpassed the industry average in several countries, driven by product upgrades, premium branding, and a diversified portfolio.
Speaking of shareholder returns, Haier plans to propose a cash dividend payout ratio of 45.02% for 2023. Additionally, the company has devised a shareholder return plan for Fiscal 2024 through 2026, aiming to incrementally increase the payout ratio to 50% and beyond.
What is the Share Price Target for Haier Smart Home?
As per TipRanks, 6690 stock has received a Hold rating, based on one Hold recommendation from Bernstein analyst Melinda Hu. Her share price target of HK$25.50 implies a growth of 13.3% from the current trading price.
Year-to-date, Haier Smart Home’s share price has grown by 12.5%.
