<Research>HTSC: HAIER SMARTHOME (06690.HK) Anticipated to See Ongoing Profit Growth; Target Price Raised to $33.09
Company Performance: HAIER SMARTHOME reported a 9.5% year-over-year increase in 3Q25 revenue, totaling RMB77.56 billion, with a net profit of RMB5.34 billion, up 12.7% YoY.
Year-to-Date Results: For the first three quarters of 2025, the company achieved a revenue of RMB234.05 billion, reflecting a 10% YoY growth, and a net profit of RMB17.37 billion, up 14.7% YoY.
Analyst Ratings: Huatai Securities has raised its target price for HAIER SMARTHOME's A-shares from RMB33.75 to RMB5.56, assigning a target PE ratio of 14x for 2026.
H-Shares Target Price: The target price for HAIER SMARTHOME's H-shares has been increased from $31.95 to $33.09, maintaining a "Buy" rating based on the company's strong market position and profitability outlook.
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UBS: Chinese Companies May Benefit from Disruptions in Petrochemical Downstream Supply Chain
Impact of Strait of Hormuz Closure: The closure of the Strait of Hormuz could disrupt the energy supply chain, particularly affecting the petrochemical industry, with China potentially benefiting from these disruptions as the largest exporter of petrochemical products.
Supply Chain Risks: UBS warns that if the blockade continues, industries reliant on petrochemical products, such as automotive, consumer goods, and agriculture, may face significant shortages of key components and raw materials.
Regional Exposure: Countries like India, South Korea, and ASEAN are highlighted as having the largest exposure to Chinese petrochemical exports, making them particularly vulnerable to supply chain disruptions.
Investment Opportunities: UBS identifies companies such as HAIER SMARTHOME, FUYAO GLASS, SINOTRUK, and PHARMARON as potential beneficiaries in gaining global market share amidst these market dynamics.
<UOB Kay Hian's Consumer Ratings and Target Prices (Table)>
Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with notable gains for ANTA SPORTS (+2.365%) and HAIDILAO (+5.822%), while LI NING (-1.875%) and SANDS CHINA LTD (-1.271%) experienced declines.
Short Selling Data: Short selling activity varied across stocks, with LI NING having the highest ratio at 23.224%, while TSINGTAO BREW reported the lowest at 1.075%.
Investment Ratings: Most stocks listed received a "Buy" rating, except for LI NING, which is rated as "Hold," indicating a generally positive outlook for the majority of the stocks.
Market Insights: Citi's estimate for Macau's February gross gaming revenue (GGR) is projected at MOP20 billion, reflecting a 1% year-over-year increase, suggesting a stable gaming market.
CLSA Raises HAIER SMARTHOME (06690.HK) Price Target to $32, Anticipates Slower Domestic Market Revenue Growth This Year
Revenue Growth Outlook: HAIER SMARTHOME is projected to experience slow revenue growth in China, expected to be in the low single digits by 2026, as the impact of the home appliance trade-in policy wanes.
Gross Margin Expansion: Despite the slowing revenue growth, CLSA remains optimistic about HAIER SMARTHOME's domestic market gross margin expansion due to product model streamlining and improved channel efficiency.
Target Price Increase: CLSA has raised its target prices for HAIER SMARTHOME's A-/H-shares from RMB32/$30 to RMB34/$32, maintaining an Outperform rating based on strong overseas demand recovery.
Short Selling Data: As of February 16, 2026, HAIER SMARTHOME has reported short selling of $9.48 million, with a short selling ratio of 13.994%.
Analysis of the Top 5 Strongest and Weakest Stocks in HSCEI for 2025 (Table)
Top 5 Strongest Stocks: The strongest stocks in the HSCEI for 2025 include CHINAHONGQIAO (+177.4%), ZIJIN MINING (+152.2%), SMIC (+124.7%), POP MART (+109.4%), and INNOVENT BIO (+108.3%), with varying short selling ratios.
Top 5 Weakest Stocks: The weakest stocks in the HSCEI for 2025 are MEITUAN-W (-31.9%), LI AUTO-W (-31%), JD-SW (-17.9%), MENGNIU DAIRY (-15.1%), and HAIER SMARTHOME (-11.7%), also showing different short selling ratios.
Market Performance: The HSCEI index ended 2025 with a gain of 1,623 points, representing a 22.3% increase, closing at 8,913.
JD-SW Target Price Adjustment: HSBC Research has reduced the target price for JD-SW to $144 due to weaker-than-expected sales in the home appliance sector.
G Sachs Anticipates Continued High Base Pressure on CN Appliance Data in December, with Expected Improvement Next Year
Retail Sales Decline: China's November appliance retail sales saw a YoY decline of 19%, worsening from a 15% drop in October, influenced by the early Double 11 event and high base effects.
Factory Shipments Drop: Domestic factory shipments of air conditioners experienced a significant YoY decrease of 40%, indicating ongoing challenges in the appliance sector.
Future Outlook: Goldman Sachs anticipates continued growth pressure in December due to high base effects, but expects potential improvement in 2026 with the continuation of the consumer good trade-in policy.
Stock Ratings: Goldman Sachs maintains a bullish outlook on MIDEA GROUP and HISENSE HA, both receiving Buy ratings, while also providing target prices for these stocks.
CMBI Maintains Equalweight Rating for CN Discretionary Consumption Sector with a Cautious Perspective
CMBI's Rating and Outlook: CMBI has assigned an Equalweight rating to China's discretionary consumption sector for 2026, predicting retail sales growth of about 3.5%, influenced by various economic headwinds and a cautious outlook.
Positive Factors and Stock Performance: Despite challenges, factors like the delayed Spring Festival and a recovering real estate sector may support stock prices, with expectations of pressure in the first half of 2026 and potential rebounds in the second half.
Investment Preferences: CMBI categorizes investments into survival, compensatory, and hedging/defensive consumption, recommending companies in these areas, such as LEPU BIO-B and YUM CHINA, all rated as Buy.
Large-Scale Consumption Outlook: The broker is less optimistic about large-scale consumption sectors, although favorable market conditions could enhance their performance, with companies like HAIER SMARTHOME and MIDEA GROUP also rated as Buy.
UBS: Chinese Companies May Benefit from Disruptions in Petrochemical Downstream Supply Chain
Impact of Strait of Hormuz Closure: The closure of the Strait of Hormuz could disrupt the energy supply chain, particularly affecting the petrochemical industry, with China potentially benefiting from these disruptions as the largest exporter of petrochemical products.
Supply Chain Risks: UBS warns that if the blockade continues, industries reliant on petrochemical products, such as automotive, consumer goods, and agriculture, may face significant shortages of key components and raw materials.
Regional Exposure: Countries like India, South Korea, and ASEAN are highlighted as having the largest exposure to Chinese petrochemical exports, making them particularly vulnerable to supply chain disruptions.
Investment Opportunities: UBS identifies companies such as HAIER SMARTHOME, FUYAO GLASS, SINOTRUK, and PHARMARON as potential beneficiaries in gaining global market share amidst these market dynamics.
<UOB Kay Hian's Consumer Ratings and Target Prices (Table)>
Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with notable gains for ANTA SPORTS (+2.365%) and HAIDILAO (+5.822%), while LI NING (-1.875%) and SANDS CHINA LTD (-1.271%) experienced declines.
Short Selling Data: Short selling activity varied across stocks, with LI NING having the highest ratio at 23.224%, while TSINGTAO BREW reported the lowest at 1.075%.
Investment Ratings: Most stocks listed received a "Buy" rating, except for LI NING, which is rated as "Hold," indicating a generally positive outlook for the majority of the stocks.
Market Insights: Citi's estimate for Macau's February gross gaming revenue (GGR) is projected at MOP20 billion, reflecting a 1% year-over-year increase, suggesting a stable gaming market.
CLSA Raises HAIER SMARTHOME (06690.HK) Price Target to $32, Anticipates Slower Domestic Market Revenue Growth This Year
Revenue Growth Outlook: HAIER SMARTHOME is projected to experience slow revenue growth in China, expected to be in the low single digits by 2026, as the impact of the home appliance trade-in policy wanes.
Gross Margin Expansion: Despite the slowing revenue growth, CLSA remains optimistic about HAIER SMARTHOME's domestic market gross margin expansion due to product model streamlining and improved channel efficiency.
Target Price Increase: CLSA has raised its target prices for HAIER SMARTHOME's A-/H-shares from RMB32/$30 to RMB34/$32, maintaining an Outperform rating based on strong overseas demand recovery.
Short Selling Data: As of February 16, 2026, HAIER SMARTHOME has reported short selling of $9.48 million, with a short selling ratio of 13.994%.
Analysis of the Top 5 Strongest and Weakest Stocks in HSCEI for 2025 (Table)
Top 5 Strongest Stocks: The strongest stocks in the HSCEI for 2025 include CHINAHONGQIAO (+177.4%), ZIJIN MINING (+152.2%), SMIC (+124.7%), POP MART (+109.4%), and INNOVENT BIO (+108.3%), with varying short selling ratios.
Top 5 Weakest Stocks: The weakest stocks in the HSCEI for 2025 are MEITUAN-W (-31.9%), LI AUTO-W (-31%), JD-SW (-17.9%), MENGNIU DAIRY (-15.1%), and HAIER SMARTHOME (-11.7%), also showing different short selling ratios.
Market Performance: The HSCEI index ended 2025 with a gain of 1,623 points, representing a 22.3% increase, closing at 8,913.
JD-SW Target Price Adjustment: HSBC Research has reduced the target price for JD-SW to $144 due to weaker-than-expected sales in the home appliance sector.
G Sachs Anticipates Continued High Base Pressure on CN Appliance Data in December, with Expected Improvement Next Year
Retail Sales Decline: China's November appliance retail sales saw a YoY decline of 19%, worsening from a 15% drop in October, influenced by the early Double 11 event and high base effects.
Factory Shipments Drop: Domestic factory shipments of air conditioners experienced a significant YoY decrease of 40%, indicating ongoing challenges in the appliance sector.
Future Outlook: Goldman Sachs anticipates continued growth pressure in December due to high base effects, but expects potential improvement in 2026 with the continuation of the consumer good trade-in policy.
Stock Ratings: Goldman Sachs maintains a bullish outlook on MIDEA GROUP and HISENSE HA, both receiving Buy ratings, while also providing target prices for these stocks.
CMBI Maintains Equalweight Rating for CN Discretionary Consumption Sector with a Cautious Perspective
CMBI's Rating and Outlook: CMBI has assigned an Equalweight rating to China's discretionary consumption sector for 2026, predicting retail sales growth of about 3.5%, influenced by various economic headwinds and a cautious outlook.
Positive Factors and Stock Performance: Despite challenges, factors like the delayed Spring Festival and a recovering real estate sector may support stock prices, with expectations of pressure in the first half of 2026 and potential rebounds in the second half.
Investment Preferences: CMBI categorizes investments into survival, compensatory, and hedging/defensive consumption, recommending companies in these areas, such as LEPU BIO-B and YUM CHINA, all rated as Buy.
Large-Scale Consumption Outlook: The broker is less optimistic about large-scale consumption sectors, although favorable market conditions could enhance their performance, with companies like HAIER SMARTHOME and MIDEA GROUP also rated as Buy.
