Haier Zhijia (600690): Overseas business is developing well

Haier Zhijia (600690): Overseas business is developing well

Event: The 2019 Interim Report was released, and the company achieved revenue of 989 in the first half of the year.

800 million, an annual increase of 9.

38%; net profit attributable to mother 51.

500 million US dollars, an annual increase of 7.


Key points for investment: Overseas revenues further increase In the first half of 2019, overseas revenues reached US $ 46.7 billion, a year-on-year increase of 24%. Overseas revenues accounted for 47%, and the proportion increased by 5%.

From the perspective of profitability, the gross profit margin of overseas business has also increased by nearly one substitution compared with the gross profit margin at the end of last year, but it is still lower than the domestic sales business by more than five substitutions.

Considering this achievement, the overall sales of home appliances in the US market fell in the first half of the year5.

6% obtained under the background, indicating that the company’s overseas competition is steadily increasing, and the company’s main growth point in the future will also mainly depend on overseas.

Under the background of the overall sluggish domestic market, the retail sales of refrigerators, washing machines, and air conditioners in the first half of the year were reduced by increasing their share in the first half of the year.

3%, 3.

9%, 8.

2%, the retail sales of kitchen appliances, water heaters fell by 2.

9%, 1.

0%, the domestic home appliance retail market is not booming, and the company’s internal revenue is only 1%. However, the company seeks to increase market share by focusing on explosive model competition and guiding products to increase high-end market share. The company’s main products are refrigerators and washing machine lines.The next market share is 3 in the second place.

1x and 2x, the online market share is 2x and 2 respectively of the second place.

1 times.

Taking smart home landing as the starting point to enhance product power and build an overall competitive advantage The company’s kitchen appliances revenue increased 23%, refrigerators increased 9%, and washing machines increased 22% in the first half of the year.

9%, but the air conditioner is 6 per second.

55%, mainly due to the expansion of the domestic air-conditioning industry in the first half of the year and increased competition in the industry, but the company integrates the advantages of the parallel industry and the entire process, and actively promotes the deployment of the smart home network.Integrate Zhijia Cloud, improve user experience, create overall competitive advantages, and promote high-end smart complete sets of products to grow 24% sequentially in the second quarter.

Leading products, retail transformation and transformational operations shape the company’s future. The company will expand its product washing strategy and the leading advantages of water heater products to achieve product leadership. The retail network will realize the comprehensive transformation of township networks, service providers, and business personnel.Home brand new connected network.

In overseas markets, a 360-degree marketing model upgrade for brands, industries, markets and other channels is established to promote “explosive” marketing.

Profit forecast and total investment The company’s profit growth in the first half of the year was lower than revenue growth, due to the increase in research and development expenses and management expenses, of which research and development expenses reached 2.7 billion US dollars, an increase of 21%; administrative expenses of 4.5 billion US dollars, an increase of 12%.

After the company’s large overseas acquisitions, management costs will remain high for a long time, and research and development costs will be difficult to reduce under the high-end strategy.

According to the domestic appliance market entering the 苏州桑拿网 adjustment period and the global economic downturn, the company’s growth will tend to gradually.

Therefore, the company is expected to increase revenue by 9% and profit by 11.

8%, expected EPS is 1.

17 yuan, 13 times of dynamic assessment, and recommended rating.

Risk warning: Real estate stall drags down, industry competition intensifies, overseas economic slowdown drags down, and risks of failure of overseas mergers and acquisitions.

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