The dividend ratio will be no less than 50%, and Haier Smart Home will firmly give back to shareholders
What kind of companies are popular in the capital market?
Companies with high dividends are undoubtedly one of them. On the one hand, high dividends mean that shareholders can get higher returns; on the other hand, it also shows that the company has good profitability. High-dividend stocks with recent steady growth in revenue and profits have become the targets of funds.
Haier Smart Home is one such company. On March 27, in addition to releasing steady growth in performance, Haier Smart Home also announced the latest dividend plan: In 2023, Haier Smart Home plans to increase the dividend ratio from the original 36% to 45%, and formulates a dividend plan for the next three years ( 2024-2026) Shareholder return plan, the dividend ratio in 2025 and 2026 will not be less than 50%.
In addition, Haier Smart Home also announced that it plans to cancel all 54,051,559 shares in the special securities account for the repurchase plan in 2021 and reduce the company’s registered capital accordingly.
Increasing the dividend ratio and canceling shares on a large scale shows that Haier Smart Home not only has solid current performance, but also has confidence in future growth. At the same time, it also demonstrates Haier Smart Home’s determination to continue creating value for shareholders.
Current performance growth is steady
So, what supports the steady growth of Haier Smart Home’s performance? Looking through the annual report of Haier Smart Home, we can clearly find that its growth mainly comes from 5 aspects:
First, overseas high-end brand creation, growth is better than the industry.The financial report shows that Haier Smart Home’s overseas revenue in 2023 will be 136.412 billion yuan, a year-on-year increase of 7.62%. At the same time, overseas regions performed well. In the United States, against the backdrop of flat industry sales and intensified competition, Haier Smart Home’s revenue bucked the trend and grew by 4.07%; in Europe, against the backdrop of an industry decline of 4%, Haier Smart Home’s revenue bucked the trend and grew by 23.93%, and has continued to do so for eight consecutive years. The fastest growing market and so on.
Second, Casarte has been ranked No. 1 in the high-end market for eight consecutive years.Casarte has become a phenomenal brand in China: No. 1 in average unit price in the industry, No. 1 in high-end share, No. 1 in compound growth rate, and it has ranked No. 1 in the high-end market for eight consecutive years.
Third, the share of various industries continues to increase.Refrigerators and washing machines have always been the strong sectors of Haier Smart Home. In 2023, on the basis of firmly ranking first in the offline market share, it has achieved continuous growth: the share of refrigerators rose to 45.2%; the share of washing machines rose to 47.5%. Haier Smart Home’s air conditioning business revenue and profits increased, and its operating profit margin also increased by 1.4 percentage points.
Fourth, the retail sales of Sanyiniao stores increased by 84% year-on-year.In 2023, the retail sales of Sanyiniao stores will increase by 84% year-on-year, with complete sets accounting for more than 60%, and scene transaction volume exceeding 5.1 billion.
Fifth, the digital transformation rate will be further optimized by 0.23pct.In 2023, Haier Smart Home will comprehensively deepen its digital transformation and promote the continuous optimization of its rates. The financial report shows that Haier Smart Home’s rate will be further optimized by 0.23% in 2023.
Confidence in future growth
Dare to continue to increase dividends in the future, and increase the dividend ratio to no less than 50%, which means that Haier Smart Home is confident in continued growth in the future. So how can we clearly see the future of Haier Smart Home? There are three points:
First, the growth confidence brought by independent brand creation and high-end brand creation.According to annual import and export data released by the General Administration of Customs, home appliance export volume will increase by 11.2% and value by 3.8% in 2023, which means that the average unit price will decrease by 7.4%, which reflects the intensity of competition in the market.
Under the pressure of competition, most companies have chosen to trade price for volume, but Haier Smart Home has chosen another path, that is, insisting on going high-end. A typical case is that in April 2023, a large drum washing machine with a retail price of US$2,899 was put on sale in the United States. Because the price was too high, many channels were not optimistic about it. However, after its launch, additional orders exceeded 100,000 units within half a year, driving Haier Smart Home’s overall share of the local large drum washing machine market to rapidly increase from only 4% to 19%.
It is precisely thanks to independent brand creation and high-end brand creation that Haier Smart Home grew by 7.62% overseas, and each region also achieved leadership. The financial report shows that in the United States, GE Appliances has also become the leading local home appliance company; in Europe, Haier Smart Home has had the fastest market growth for eight consecutive years; in New Zealand, Fisher & Paykel has ranked No. 1 in the white appliance market; in Pakistan, Haier’s market share ranks No. 1 in the industry; in Vietnam, AQUA washing machines rank No. 1 in the industry; in Thailand, Haier air conditioners and freezers rank No. 1 in the industry.
For the domestic market, Haier Smart Home continues to deepen its high-end brand strategy.From a mid- to long-term perspective, my country has about 400 million middle-income groups. In the home appliance market that will be dominated by “replacement” in the future, high-end, personalized, and customized demands may release stronger consumption potential.
As a leading brand of high-end home appliances in China, Casarte has been ranked TOP 1 in sales in the domestic high-end home appliance market for eight consecutive years. The financial report shows that Casarte ranks first in the high-end market in many categories: the offline market share of refrigerators above 15,000 yuan is 50%, the offline market share of washing machines above 10,000 yuan is 84%, and the offline market share of air conditioners above 15,000 yuan is 28%. %.
As Casarte continues to iterate brand innovation, product innovation, model innovation, etc. based on user trends, it will become a growth point for Haier Smart Home to explore profits.
The second is the new increment brought by the accelerated realization of Three-winged Bird.At this year’s AWE, Sanyiniao brought new experiences in 20 scenes in 8 major spaces, providing users with more integrated, intelligent, and space-efficient home appliance and home integration services. Ten days later, Sanyiniao opened the country’s first super experience center in Jinan, which was also the industry’s first home appliance and home integrated store.
The continuous evolution and rapid implementation of Triwing Bird not only allow Haier Smart Home to bring the best life experience to users, but also open up a new space for growth. The financial report shows that in 2023, the retail sales of Sanyiniao stores will increase by 84% year-on-year, with complete sets accounting for more than 60%, and scene transaction volume exceeding 5.1 billion.
The third is the high efficiency of enterprises brought about by digital transformation.According to Haier Smart Home, the digital economy era requires the reorganization of resources, the re-engineering of models, and higher efficiency. And all of this requires digitization, and digitization is not about informatization. It requires the reengineering of business processes.
Based on this understanding, Haier Smart Home comprehensively deepens digital transformation, uses digital transformation to drive the transformation of the entire enterprise process, takes user experience as the center, takes the reshaping of the entire process value chain as the starting point, and uses digital intelligence technology as the carrier to realize the transformation of the enterprise. The efficient linkage between internal operations and the upstream and downstream of the external industrial chain, as well as the efficient operation of the company’s R&D, manufacturing, marketing, and order systems, achieve continuous optimization of rates. The financial report shows that Haier Smart Home’s rate will be further optimized by 0.23pct in 2023.
For Haier Smart Home, in the past two years, it has begun to make full efforts to deepen its digital transformation, which has brought continuous optimization of rates, and the future is full of more expectations.
It can be seen that continued and steady growth in performance is an important basis for Haier Smart Home to increase its dividend ratio. With the release of the potential of Haier Smart Home’s independent brand creation, high-end brand creation, smart home and digital transformation, it will also bring more value returns to investors.
