BOCI has released a research report raising HAIER SMARTHOME's (06690) earnings per share forecast for this year by 2.5%, while lowering its EPS estimates for 2026-2027 by 2% to 3%. The H-share target price has been increased from HK$33.4 to HK$34.3, with a "buy" rating maintained.

The group reported first-half revenue growth of 10% year-over-year and net profit growth of 16% year-over-year, with similar growth rates for both revenue and net profit in the second quarter. The firm noted that the second quarter results exceeded expectations as reform efforts are gradually bearing fruit.

The firm views this as a positive surprise, particularly given the challenges posed by US tariffs and pressure on its US business "GE Appliances." This reflects the group's effective implementation of digital transformation to improve profit margins.

The firm expects that due to diminishing marginal effects from trade-in subsidies, growth momentum may weaken significantly in the second half of this year, especially in the fourth quarter. However, it still forecasts profit margin improvement as the group can achieve a better product mix through premiumization and create further operational leverage through organizational streamlining.