The Zhitong Finance App learned that CICC released a research report saying that Hisense Home Appliances (00921,000921.SZ)'s revenue for the first three quarters of this year was 67.014 billion yuan, down 6.3% year on year; net profit to mother was 1,849 billion yuan, down 34.2% year on year. Revenue for the third quarter was RMB 20.048 billion, down 8.8% year on year; net profit to mother was RMB 191 million, down 74% year on year, lower than the bank's forecast. The bank maintained its “outperforming the industry” rating and lowered the target price of H shares by 15.7% to HK$21.5, while the target price of A-shares was also lowered by 12.4% to RMB 25.5.
The bank pointed out that performance fell short of expectations, mainly due to increased external pressure such as rising raw materials and shipping costs, domestic demand has not recovered significantly, and product structure upgrades are progressing slightly, putting pressure on the profits of the HVAC business. Domestic demand for Baidian is weak. In order to maintain scale, the company adopted a relatively active pricing strategy. The share of middle and high-end products declined. Coupled with the continued high price of raw materials, the comprehensive gross margin for the third quarter fell 2 percentage points to 18.2% year on year.
On the export side, the decline in exports of household air conditioners narrowed month-on-month, and exports of refrigerators and washing machines maintained double-digit growth, but the sharp rise in shipping costs put pressure on export profits.
Considering that raw material prices are still high and domestic sales have yet to show clear signs of recovery, the bank lowered the company's 2026 and 2027 net profit forecasts by 33.6% and 31.2%, respectively, to 2,011 billion yuan and 2,246 billion yuan.