Goldman Sachs: Hisense Home Appliances (000921.SZ): 2026 Asia Leadership Conference Takeaways: 3Q26 Revenue Growth and Margin Recovery; Buy

Goldman Sachs hosted Hisense Home Appliances management at its Asia leadership conference and maintains Buy with 12-month A/H target prices of Rmb29/HK$26. Management guided to modestly improved 3Q26 revenue growth: domestic demand remains soft, while overseas growth should benefit from an air-conditioning recovery, particularly in Latin America. Margin pressures are easing—copper prices are oscillating at highs without further increases, petrochemical costs have fallen from peaks, and leading players are expected to keep AC pricing broadly stable to protect profitability. In new businesses, liquid-cooling expansion is still early stage: the Changsha central air-conditioning plant covers chillers, while cold plates and other components will rely on external suppliers to deliver full thermal solutions. Overseas expansion focuses on emerging-market growth potential and European AC demand, leveraging the global supply chain, building after-sales retail infrastructure, and potentially M&A. Despite revenue and profit pressure, management guides to stable DPS with gradually rising payout ratios over the medium to long term. The Buy case rests on earnings visibility underpinned by 2024 ESOP targets, an attractive dividend yield and an undemanding forward P/E relative to high-single-digit earnings growth; key drivers include the Hisense Hitachi JV's VRF business, white-goods margin improvement, and Sanden's operational turnaround as EV contribution rises. Valuation applies 14x/11x 2028E P/E to the JV/white goods, discounted at 9.5% COE.