Company Reports

Seasoned home appliance manufacturer Haier Smart Home has been among the top brands globally for the past decade, with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We attribute Haier’s industry-leading position to its effective multibrand strategies, strong product development, and broad distribution across online and offline channels. For domestic products, Haier positions its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have outperformed in sales growth versus Haier’s other brands in China, we expect high-end products to improve the company's overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies for home appliance trade-ins should boost Haier's domestic sales.

Haier's first-half revenue fell 3% and operating profit dipped 1% year on year. Strong sales growth in select overseas markets partly offset a 5% decline domestically. Operating margin was resilient, supported by a higher mix of premium products and tighter control of raw material costs.

Haier's revenue and operating profit fell 7% and 5% year on year, respectively, in the first quarter of 2026. Double-digit revenue declines in China and the US were partly offset by growth in emerging markets, while management kept its 5% revenue and operating profit growth targets for 2026.

Seasoned home appliance manufacturer Haier Smart Home has been among the top brands globally for the past decade, with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We attribute Haier’s industry-leading position to its effective multibrand strategies, strong product development, and broad distribution across online and offline channels. For domestic products, Haier positions its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have outperformed in sales growth versus Haier’s other brands in China, we expect high-end products to improve the company's overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies for home appliance trade-ins should boost Haier's domestic sales.

Haier Smart Home posted year-on-year growth of 5% in revenue and 3% in operating profit for 2025. It attributed margin erosion to elevated copper prices, intense competition, and tariff headwinds. It expects mid-single-digit revenue growth and a recovery in profitability in 2026.

Seasoned home appliance manufacturer Haier Smart Home has been among the top brands globally for the past decade, with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We ascribe Haier’s industry-leading role to its effective multibrand strategies, robust product-development capabilities, and broad distribution coverage through online and offline channels. For domestic products, Haier positions its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have outperformed in sales growth versus Haier’s other brands in China, we expect high-end products to improve the company's overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies for home appliance trade-ins should boost Haier's domestic sales.

China's National Development and Reform Commission announced renewed subsidies for home appliance purchases in 2026. The updated scheme cuts eligible categories to six from 12 in 2025, and subsidies will cover 15% of the selling price for grade 1 energy-efficient products, down from 20% last year.

Seasoned home appliance manufacturer Haier Smart Home has been among the top brands globally for the past decade, with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We ascribe the company’s industry-leading role to its effective multibrand strategies, robust product-development capabilities, and broad distribution coverage through online and offline channels. For domestic products, Haier positions its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have outperformed in sales growth versus Haier’s other brands in China, we expect high-end products to improve the company's overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies for home appliance trade-ins should boost Haier's domestic sales.

Haier's third-quarter revenue and operating profit climbed by 10% and 20% year on year, respectively. Both domestic and overseas markets delivered solid earnings growth thanks to cost optimization. Management guided mid-single-digit revenue growth in the fourth quarter.

Seasoned home appliance manufacturer Haier Smart Home has been among the top brands globally for the past decade, with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We ascribe the company’s industry-leading role to its effective multibrand strategies, robust product-development capabilities, and broad distribution coverage through online and offline channels. For domestic products, Haier positions its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have outperformed in sales growth versus Haier’s other brands in China, we expect high-end products to improve the company's overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies for home appliance trade-ins should boost Haier's domestic sales.

Haier's revenue and operating profit for first-half 2025 grew by 10% and 11% year on year, respectively. The mild margin expansion was driven by product mix upgrades and digitalization across the supply chain and marketing functions. The firm declared an interim dividend of CNY 0.27 per share.

Haier's revenue and operating profit for first-quarter 2025 increased by 10% and 13% year on year, respectively, driven by product mix upgrade and operation digitalization. Notably, overseas sales climbed by 13% due to rapid growth in emerging markets and high-end products.

Seasoned home appliance manufacturer Haier Smart Home has been among the top brands globally for the past decade with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We ascribe the company’s industry-leading role to its effective multibrand strategies, robust product-development capabilities, and broad distribution coverage through online and offline channels. For domestic products, Haier positions its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have outperformed in sales growth versus Haier’s other brands in China, we expect high-end products to improve the company's overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies for home appliance trade-ins should boost Haier's domestic sales.

Haier Smart Home's solid 2024 results included top-line growth of 4% and operating profit up 15% year on year. In the fourth quarter, domestic home appliance revenue rose over 10% and the sales value of the high-end Casarte brand surged over 30%, supported by new national subsidies.

Seasoned home appliance manufacturer Haier Smart Home has been among the top brands globally for the past decade with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We ascribe the company’s industry-leading role to its effective multibrand strategies, robust product-development capabilities, and broad distribution coverage through online and offline channels. For domestic products, Haier positions its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have outperformed in sales growth versus Haier’s other brands in China, we expect high-end products to improve the company's overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies for home appliance trade-ins should boost Haier's domestic sales.

The US government's 10% incremental tariff on goods imported from China has taken effect from Feb. 4, 2025. This leads to a corresponding duty increase to 35% from 25% on most home appliances, including air conditioners and fridges, shipped from China to the US.

China's National Development and Reform Commission announced expansion of the subsidy program for home appliances. The number of categories included will increase to 12 in 2025 from eight in 2024. Each consumer can utilize the subsidies for three air conditioners versus one previously.

As a seasoned home appliance manufacturer, Haier has been among the top brands globally for the past decade with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We ascribe the company’s industry-leading role to its effective multibrand strategies, robust product development capabilities, and broad distribution coverage through online and offline channels. For domestic products, Haier positioned its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have constantly outperformed in sales growth versus Haier’s other brands in China, we expect the company’s high-end products to improve the overall revenue mix over the next few years. Also, we think the Chinese government's ongoing subsidies on home appliance trade-ins should boost Haier's domestic sales.

China's National Development and Reform Commission shared the impact of government subsidies on home appliances on Nov. 19 and vowed to ramp up support. In particular, domestic home appliance and audiovisual equipment sales surged by 40% year on year in October, with 90% of home appliances sold being first-class energy-efficient. We believe that subsidies should drive material improvements in home appliance sales in the fourth quarter, and we've factored in mid- to high-single-digit 2024 domestic revenue growth for top manufacturers such as Midea and Haier. While we expect the government to extend subsidies in 2025, we keep our long-run forecasts unchanged amid uncertainty about their scale. We also think demand brought forward by current subsidies may compress subsequent sales. Hence, we maintain our fair value estimates on our China home appliance coverage. Our preferred name remains Midea as we like its product mix upgrade, effective cost optimization, and the 5% upside to our valuation.

We maintain our fair value estimates of CNY 82.0, CNY 33.0, and CNY 48.0 on Midea’s, Haier’s, and Gree’s A-shares, as well as HKD 91.10 and HKD 36.70 on Midea’s and Haier’s H-shares, respectively, following their third-quarter 2024 results. While Midea’s and Haier’s respective 8% and 1% revenue growth year over year align with our forecasts, Gree underperformed with a 15% top-line decrease due to an over 40% revenue slump in new businesses such as energy storage. Positively, these three companies expanded operating profit by 7%-10% compared with the same period last year, which we ascribe to higher revenue mixes of more profitable consumer appliances and better marketing cost control.