Haier Smart Home Q1 Profit Falls 15% on Weak China Demand

Haier Smart Home Co., Ltd. (6690.HK) reported a 15.2% drop in first-quarter net profit to 4.65 billion yuan, as revenue was hit by soft domestic demand and headwinds in its North American market.

"This was a quarter of contrasts. Both China and our core international markets sustained healthy momentum. North America faced meaningful headwinds from the evolving trade policy landscape and severe winter weather," Li Huagang, Chairman and CEO, said in a statement.

Revenue for the three months ended March 31 fell 6.9% year-on-year to 73.69 billion yuan, the company said. Basic earnings per share declined to 0.50 yuan from 0.59 yuan a year earlier. While the company's home appliance business in China saw operating profit grow, the overall domestic market contracted 6.2% in the quarter, according to data from All View Cloud.

The results underscore the challenges facing appliance makers from weak consumer spending in China and specific operational issues abroad. To boost shareholder returns, Haier is implementing a share buyback program of up to 6 billion yuan and has designated 74.54 million A-shares for cancellation.

The Qingdao-based company saw its overseas revenue decline 3.2% in the quarter. Excluding the North American market, however, international revenue and operating profit both grew. GE Appliances, Haier's North American arm, was "pressured in Q1 2026 by severe winter weather and the evolving trade policy landscape," the company said.

In other overseas markets, performance was stronger. Revenue in Europe continued to grow, with sales of HVAC systems jumping more than 20% from a year ago. South Asia and Southeast Asia also delivered double-digit revenue growth of 17% and 12%, respectively.

Despite the profit decline, BOCOM International maintained a Buy rating on the stock with a price target of HK$30.1, citing an attractive dividend yield and expectations for sequential improvement in the coming quarters.

Haier is also moving to return more capital to shareholders. The company has deployed 600 million yuan of a previously announced 3-6 billion yuan A-share buyback plan. It also proposed a separate voluntary buyback of up to 81 million D-shares.

This article is for informational purposes only and does not constitute investment advice.