Haier Smart Home's Q1 Profit Slides 15% on Lower US, China Demand
Haier Smart Home's (SHA:600690, HKG:6690) attributable profit dropped 15% in the first quarter amid demand pressures in the U.S. and mainland China, as well as a slide in revenue.The bottom line at the Qingdao, China-based home appliance manufacturer slid to 4.65 billion yuan in the first quarter from 5.49 billion yuan a year prior.Earnings per share fell 15% to 0.50 yuan from 0.59 yuan, according to a Tuesday filing with the Shanghai Stock Exchange.Profitability came under pressure during the first three months of 2026, especially in North America, where operating profit fell 10% due to extreme weather conditions such as blizzards, as well as the impact of tariffs by U.S. President Donald Trump, according to a Monday disclosure to the Hong Kong bourse.The home appliance maker boosted the integration of its large heating, ventilation, and air conditioning (HVAC) operations, it said in its filing.Revenue fell 6.9% year over year to 73.7 billion yuan from 79.1 billion yuan, slightly below market expectations of an 8% to 10% slide, according to a research note by Jefferies released Monday.Back home, the decline is attributable to a 6.2% slide in home appliance retail sales, in line with expectations from Jefferies.Overall overseas revenue slid 3.2% due to pressures in North America.European refrigeration sales inched up 1.3%, while the top line across South and Southeast Asia jumped 17% and 12%, respectively.Operating costs declined to 68.4 billion yuan from 72.5 billion yuan.The company also launched a plan to become a "user-centric platform-based technology ecosystem enterprise," as well as expanding its HVAC business, boosting its domestic model, and building its overseas brand.Jefferies reiterated its hold rating on Haier's Hong Kong and Shanghai shares.For 2026, the investment bank estimates earnings per share to slide 14% year over year with demand in China weakening in March through the second quarter before recovering in the second half.U.S. demand will also continue to face pressure through 2026, the bank said in a separate note in March.
