Key Takeaways:
Haier Smart Home (6690.HK) saw its first-quarter net profit fall 15 percent year-over-year as the appliance giant faced slowing domestic demand and significant overseas headwinds, according to a BOCI research report.
"Its 1Q26 results were under pressure and risks remain," BOCI said in its report, assigning a "Hold" rating with a $22.8 target price.
The company's revenue for the quarter dropped 7 percent from the prior year. The decline was attributed to the fading effect of trade-in subsidies in its domestic market and severe snowstorms in the United States. Foreign exchange losses from a stronger yuan also weighed on the results. A separate report from BOCOM International noted revenue was RMB73.69 billion, a 6.9 percent decline, with net profit excluding non-recurring items down 17.2 percent to RMB4.44 billion.
While Haier has announced initiatives to enhance shareholder returns, providing some price support, the weak results highlight ongoing market risks. BOCI believes a potential inflection point may not emerge until the second half of 2026.
In a more optimistic take, BOCOM International maintained its "Buy" rating and a HKD30.1 target price. The bank expects performance to improve quarter-over-quarter, noting that operating profit excluding the North American market increased by more than 10 percent, demonstrating resilience.
The conflicting analyst ratings underscore the current uncertainty surrounding Haier's recovery. Investors will be watching for signs of demand stabilization in China and improved overseas performance in the upcoming Q2 results to determine if a turnaround is materializing.
This article is for informational purposes only and does not constitute investment advice.
