As the world’s leading smart home company and the benchmark for global layout in the home appliance industry, Haier Smart Home is deeply involved in the field of smart home, forming an industrial pattern of “smart home + smart home + global layout”.
The core business covers traditional home appliances such as refrigerators, washing machines, and air conditioners, as well as emerging businesses such as smart home appliances, smart home systems, and home appliance supply chain services. The core products are widely used in home consumption, commercial scenarios, high-end residential and other fields.
The company relies on its global brand matrix, complete supply chain system and technological innovation capabilities, and has the potential for steady growth.
Its operations are closely related to the recovery of the home appliance industry, the deepening of globalization and the industrialization process of smart home. It benefits from the home appliance trade-in policy, overseas market expansion and high-end transformation, and its long-term growth is more certain.
Based on the latest financial reports, performance reports and institutional forecasts, Haier Smart Home’s net profit attributable to its parent company in 2024 is 18.731 billion yuan; its performance in 2025 will see steady growth, with total operating income for the year reaching 302.347 billion yuan, and net profit attributable to its parent company to 19.553 billion yuan, a year-on-year increase of 4.39%. The core benefit is from the increased volume of high-end brand Casarte, steady expansion of overseas markets, smart home business volume and cost control optimization.
Despite the impact of market demand fluctuations in China and the United States, the overall performance remained solid.
Net profit attributable to the parent company will continue to grow steadily from 2026 to 2028, with a compound annual growth rate of approximately 15% – 25%. It is expected to be 22.50 billion yuan in 2026, 26.00 billion yuan in 2027, and 30.00 billion yuan in 2028. The core benefit is from the old-for-new policy dividend, the recovery of overseas markets, the deepening of high-end transformation and the improvement of the smart home ecosystem.
The company has a share capital of 9.376 billion shares, with total assets of 295.795 billion yuan and total liabilities of 169.818 billion yuan at the end of 2025. The asset-liability ratio is 57.41%, which is in line with the asset-heavy operation characteristics of the home appliance industry. The net cash flow from operating activities in 2025 is 26.003 billion yuan. It has outstanding hematopoietic capabilities and provides a solid guarantee for technology research and development, global layout and emerging business expansion.
The current stock price is 21.15 yuan, and the doubled target price is 42.30 yuan, corresponding to a total market value of 396.6 billion yuan.
From a comprehensive institutional perspective, the company is optimistic about the company’s global smart home leading position, global layout advantages and high-end transformation potential in the long term. It recognizes its brand matrix competitiveness and supply chain integration capabilities, and is optimistic about the long-term opportunities brought by the recovery of the home appliance industry, trade-in policy and overseas market recovery. Many institutions have given it an “outperform” rating, and the institution’s comprehensive target price has reached 25-28 yuan, which is a significant premium to the current stock price.
Simplifying the calculation of the doubling cycle, under the optimistic scenario, the performance growth rate is 25%, the valuation is maintained at 22 times PE, and the stock price is expected to double in 3.0-3.3 years; under the neutral scenario, the performance growth rate is 20%, the valuation is maintained at 20 times PE, and the stock price is expected to double in 3.3-3.6 years; under the conservative scenario, the performance growth rate is 15%, the valuation is maintained at 18 times PE, and the stock price is expected to be 3.6-3.9
The stock price doubled every year.
From the perspective of mainstream valuation methods, the price-to-earnings ratio (PE) valuation method shows that the current valuation is in a reasonably low range, and the dynamic PE basically matches the compound growth rate of performance, and there is room for improvement; the price-to-book ratio (PB) valuation method shows that the company’s current PB is within a reasonable range in the industry, in line with the attributes of the global home appliance leader; the price-to-sales ratio (PS) valuation method shows that the current PS is within a reasonable range in the industry. As the industry recovers, PS
It will gradually fit into the center of the industry; the discounted cash flow (DCF) valuation method shows that the current stock price is close to the neutral intrinsic value, and the safety margin is sufficient; the segment valuation (SOTP) method shows that the current market value is discounted within a reasonable range, and there is room for stable improvement.
Based on comprehensive judgment, the current valuation of Haier Smart Home is basically reasonable. There is room for reasonable valuation improvement due to the premium of globalization layout, high-end brand advantages and industry recovery dividends. It is basically consistent with the compound growth rate of performance, and there is no long-term bubble risk.
The company’s performance growth is certain, its core competitiveness is outstanding, and its core advantages are highlighted in the global smart home sector. It has high investment value and is suitable for long-term value investors.
