BOCOM INTL released a research report stating that HAIER SMARTHOME (06690) experienced phased pressure in its first-quarter performance, with expectations for sequential improvement in subsequent quarters. In the first quarter, the company's operating revenue/non-GAAP net profit decreased by 6.9% and 17.2% year-on-year, reaching 73.69 billion yuan and 4.44 billion yuan, respectively. This decline was influenced by weak domestic demand and factors such as weather conditions and tariffs in the North American market. However, the rate of decline improved quarter-on-quarter, broadly aligning with the company's previous guidance of a single-digit year-on-year decrease. The firm maintained its profit forecasts for 2026 to 2028 unchanged, believing that the second quarter will show sequential improvement. It reiterated a target price of HK$30.1. The company's current dividend yield is attractive, supporting a "Buy" rating. In terms of profitability, the gross margin for the period was 25.3%, down 0.1 percentage points year-on-year. While the gross margin in the Chinese mainland market increased year-on-year, this was offset by pressures such as tariff disruptions in overseas markets and rising prices of bulk raw materials. Excluding the impact of the North American market, the company's operating profit grew by over 10% year-on-year, demonstrating resilience.