HAIER SMARTHOME (06690) shares have declined roughly 10% year-to-date amid market jitters over its US business exposure, according to BofA Securities. The brokerage anticipates stronger-than-expected second-quarter earnings will alleviate these concerns, citing the stock's attractive valuation while reiterating its "Buy" recommendation with a HK$31.8 target price.

Projections indicate low double-digit revenue growth for Q2. China's market acceleration—climbing from 8% in Q1 to low double digits—stems from scorching summer temperatures, favorable year-earlier comparisons, and government subsidy programs. Product-wise, refrigerators and washing machines should deliver mid-single-digit expansion, with air conditioners surging approximately 10%.

Overseas markets likewise show promising momentum, expected to achieve low double-digit gains. US revenue growth may accelerate through price adjustments, while Europe should expand 10%. ASEAN, Middle East, and African markets could leap 20%-25%+, with South Asia skyrocketing 30%. Operating margins might widen by 10-20 basis points, cushioned by manageable raw material costs and operational refinements.

Notably, the company's US subsidiary implemented low single-digit price hikes during the first half alongside industry peers to offset tariff expenses. HAIER SMARTHOME maintains superior localization versus competitors—60% of US sales originate from domestic production, 30% from Mexican imports, and just 10% from China—minimizing tariff vulnerability.

Capacity expansion plans include a $490 million investment over two years for a new US washing machine facility. Simultaneously, production diversification continues with refrigerator manufacturing shifting to Southeast Asian hubs like Thailand.