Date of Report

October 1, 2024

Broker Name

CGS International Securities

Company Overview

Haier is a leading company in the consumer discretionary sector, recognized for its wide range of home appliances and electronics in China.

Current Market Position

• Current Market Capitalization: Rmb 40.7 billion
• Current Price: Rmb 32.3
• Target Price: Rmb 32.2

Analyst Recommendation

• Recommendation: Add
• Expected Return: The stock’s total return is anticipated to exceed 10% over the next 12 months.

Financial Projections

• Forward P/E (2024): 27.2
• Forward P/E (2025): 21.4

Strategic Outlook

The report indicates that Haier is well-positioned to benefit from recent policy initiatives aimed at enhancing domestic consumption in China. As the government emphasizes boosting consumer spending, Haier’s extensive product offerings are likely to align well with evolving consumer preferences, providing significant growth opportunities.

Risks and Considerations

While the outlook for Haier is positive, potential risks include regulatory scrutiny and fluctuations in market demand. The impact of broader economic conditions and international trade relations may also affect the company’s performance.

Summary

Haier is highlighted as a strong investment opportunity within the consumer discretionary sector, supported by favorable government policies and its innovative product range. The anticipated increase in consumer spending presents a compelling growth trajectory for Haier, making it an attractive choice for investors.