Hisense Home Appliances (000921): The bottom of the central air-conditioning cycle is expected to be better in the future


Hisense Home Appliances (000921): The bottom of the central air-conditioning cycle is expected to be better in the future

The 2018 results were slightly higher than expected The company’s 2018 results announcement: operating income of RMB 360.

200 million, up 7 a year.

6%; net profit attributable to the parent company is RMB 13.

800 million, downgrading 31 every year.

0%, net profit after deducting non-profit rose 14 in ten years.


Initial profit of RMB 1.

01 yuan.

Corresponding to 4Q18 income of 72.

100 million, up 1 year.

7%; net profit attributable to mother RMB 2.

07 billion, downgraded by 22 every year.


The minimum dividend for 2018 is RMB 0.

303 yuan, the dividend rate is 30%.

Slightly more government subsidies resulted in slightly higher-than-expected performance.

Focus on Hisense Hitachi: 1) 2018 revenue of 110 megabytes, at least +16.

9%; Net profit 16.

0 ‰, +2 for ten years.


2H18 revenue increased by 11.

3%, net profit margin 5.


Excluding the impact of the acquisition of Yorkdo’s online business (incurring amortization expenses), 2H18 revenue and net profit increased by a number.

2) Central air-conditioning was affected by the real estate cycle, and the retail channel business in 2H18 was subdivided, but engineering channel orders continued to increase.

3) Investment income contributed by Hisense Hitachi in 2018.

500 million, accounting for 65% of the company’s net profit after deduction.

4) Aiken air-conditioning statistics, Hisense Hitachi multi-line central air-conditioning product market share in 2018.

3%, only 0 lower than Daikin.


Home appliance business: 1) The profitability of the ice washing business recovered well, with an operating margin of 2% in 2018.

2) The prosperity of the household air-conditioning market in the first half of the year and the second half of the year.

Affected by this, the profitability of the domestic air-conditioning business increased in the first half, but declined slightly in the second half.

Development trend The company is about to consolidate Hisense Hitachi and become a leading central air-conditioning company. It is estimated that there is room for improvement.

The 武汉夜网论坛 company’s performance in 2019 is expected to improve quarter by quarter. The worst period is 2H18-1H19: 1) The lag of the affected central air-conditioning affected the land cycle. Currently, the first- and second-tier real estate transactions have become increasingly active.

2) In 1H19, the profitability of home air conditioners faces a double base.

The breakdown of market demand and the aggressive promotion of Midea are expected to have an impact on the profitability of Hisense’s home air conditioners.

Earnings forecast performance was higher than expected, raising EPS forecast for 19/20 by 2% / 3% to RMB1.10/1.

33 yuan.

Estimates and recommendations maintain recommended levels.

Maintain target price of RMB 16.

25 yuan, corresponding to 15 / 12×2019 / 20e P / E, a 21% increase in space, the current A-shares 杭州桑拿网 correspond to 12x / 10x 2019 / 20eP / E.

Maintain H-share target price of 13.

94 Hong Kong dollars, corresponding to 11 / 9x 2019 / 20e P / E, a 28% increase in space, the current H share allocation corresponds to 9 / 7x 2019 / 20e P / E.

Risks The risk of increased competition in the home air-conditioning market.