CLSA has issued a research report indicating a reduction in Haier Smart Home's net profit forecasts for this year and next by 25% and 21%, respectively, due to weakening demand in both China and the United States. The target price for Haier Smart Home's A-shares has been lowered from 34 yuan to 28 yuan, while the H-share target price has been cut from HK$32 to HK$25. The firm continues to favor Haier's premium market positioning but believes the company must navigate through the current cyclical downturns in these two key markets to realize its full value. CLSA maintains an "Outperform" rating on the stock. In the fourth quarter of last year, Haier Smart Home's revenue fell 7% year-on-year to 68 billion yuan, with net profit declining 39% to 2.2 billion yuan, both falling short of the bank's expectations. During the period, revenue in the Chinese market dropped 15% year-on-year, primarily attributed to earlier demand release in previous quarters spurred by appliance replacement policies. Sales in the U.S. remained largely flat; however, due to market weakness, the company was unable to pass on increased costs—including tariffs—to consumers, leading to a significant decline in profit margins.