[ET Net News Agency, 3 February 2021] China Renaissance Securities initiated coverage
of Haier Smart Home (06690) with a "buy" rating and a target price of HK$41.5.
Haier Smart Home completed its privatization of Haier Electronics. The research house
believes the privatization should improve Haier Smart Home's profitability, given the
consolidation of offshore and onshore household appliance businesses to improve
operational efficiency.
China Renaissance believes Haier Smart Home could leverage Haier Electronics' ample cash
to repay long-term debts that bear higher rates of interest, thus reducing its financial
burden/boosting net attributable profit.
Assuming an interest expense ratio similar to peers' (Gree and Midea), and an effective
tax rate of 16%, China Renaissance estimated the consolidation could boost Haier Smart
Home's 2021 net attributable profit by RMB600mn-RMB700mn. (KL)
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06690 HAIER SMARTHOME
Nominal 
26.150 -0.450 (-1.692%) Research Report
03/02/2021 17:37
China Renaissance starts Haier Smart Home (06690) at HK$41.5
| Remark: | Real time quote last updated: 19/04/2024 12:22 |
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