Hisense Home Appliances Group Co., Ltd. (000921) recently released its Q3 2025 financial report, showing operating revenue of 71.533 billion yuan, a year-on-year increase of 1.35%. Net profit attributable to shareholders reached 2.812 billion yuan, up 0.67% YoY, while adjusted net profit stood at 2.327 billion yuan, rising 1.65% YoY.

Key financial highlights for Q3 2025 include operating revenue of 22.192 billion yuan (+1.16% YoY), net profit attributable to shareholders of 735 million yuan (-5.40% YoY), and adjusted net profit of 509 million yuan (-13.08% YoY).

Hisense Home Appliances specializes in the R&D, manufacturing, and marketing of home appliances such as refrigerators, air conditioners, and kitchen appliances, as well as automotive air conditioning compressors and thermal management systems.

The company explained significant changes in certain financial indicators: construction in progress surged 84.97% due to new industrial park projects, long-term prepaid expenses rose 31.37% from subsidiary-related costs, short-term borrowings increased 31.11% for operational funding needs, and contract liabilities dropped 43.40% due to reduced advance payments.

Pacific Securities maintained a "Buy" rating on Hisense Home Appliances, noting steady Q3 revenue growth of 22.192 billion yuan (+1.16% YoY) despite industry pressures. Dishwasher and kitchen appliance sales grew over 30% and 50%, respectively, in the first three quarters. However, Q3 net profit declined 5.40% YoY to 735 million yuan, impacted by intensified competition and rising raw material costs.

Gross margin fell to 20.20% (-2.72 percentage points YoY), while net profit margin dropped to 4.88% (-5.76 percentage points YoY). Operating expenses remained stable, with sales/management/R&D/finance expense ratios at 9.97%/2.56%/3.77%/0.36%.

Pacific Securities expects demand recovery in home appliances driven by China's trade-in policies and export recovery, alongside growth opportunities in new energy vehicle components. The firm forecasts 2025-2027 net profits of 3.424/3.825/4.257 billion yuan, with EPS of 2.47/2.76/3.07 yuan and PE ratios of 10.17/9.10/8.18 times.