Haier Smart Home Achieves 6.1% Q3 Revenue Growth and 12.9% Net Profit Increase

Haier Smart Home (600690:SH; 06690:HK) released its Q3 2023 report on October 30th. The report shows that the company had a revenue of CNY 198.657 billion for the first three quarters, indicating a 7.5% year-over-year increase. The Net Profit Attributable to Parent Company was CNY 13.149 billion, representing a 12.7% year-on-year growth. The profit growth exceeded revenue growth, which is particularly evident in the 6.1% increase in Q3 single-quarter revenue and the 12.9% growth in net attributable profit.

The financial report highlighted Haier Smart Home's growth path fueled by its premiumization and internationalization tactics. This progress was accomplished despite the momentary slowdown experienced in the home appliance sector in 2022. The company's pursuit of high-end, intelligent, and eco-friendly home appliance brands has positioned Haier Smart Home to display significant market resilience and growth potential amidst vital industry trends, including export recovery and digital transformation.

Despite China's home appliance market contracting by 5.2% YoY in 2022, a robust rebound was observed upon entering 2023. Haier Smart Home excelled throughout this process, upholding its dominant market presence in the refrigerator and washing machine segments. Noteworthy, the market share of refrigerators increased to 45.4%, while the share of washing machines rose to 47.6%, strengthening the company's market position in these spheres. Additionally, water heaters continued to maintain the top spot in numerous channels. 

A leading factor contributing to this growth was Casadei's persistent emphasis on the premium market. The financial report emphasized Casadei's robust performance in this segment due to its wider range of premium products. The data showed that Casadei dominated the high-end market in different categories, holding a 40.3% share of retail sales for refrigerators priced above CNY10,000, an 83.5% share for washing machines above CNY10,000, and a 28.5% share for air conditioners priced above CNY15,000. In the same period from last year, Casadei's market share for refrigerators and washing machines grew by 1.7% and 4.1%, respectively.

2023 will mark the 30th anniversary of Haier Smart Home's A-share listing, which is noteworthy. Throughout the past 30 years, the company has accomplished a yearly average revenue growth rate of 21.8% and an average annual net profit growth rate of 20.3%. Additionally, it has disbursed dividends amounting to CNY 29.687 billion, with an average annual dividend rate of 32%.

In the highly competitive global market, Haier Smart Home has made a significant impact despite the challenges of weak industry demand and intensified competition. The company strategically optimized its product portfolio and improved capacity utilization to counter the effects of heightened competition in key regions, resulting in increased gross profit margins during the first three quarters. In the European market, Haier achieved a price index of 115 by developing its high-end brand. Further, Haier Smart Home in Australia saw a 5% growth in dual-branded market share, along with a 4% increase in dual-branded high-end T-door refrigerator sales in retail channels. These accomplishments highlight Haier's global success.