Although Haier Smart Home‘s stock is currently trading at a significant premium of 779% above its fair value price of €6.61, the company’s valuation metrics reveal a relatively conservative earnings multiple, with a normalized price-to-earnings ratio of 7.58. This figure is distinctly lower than that of peer 6367, which stands at 18.61, indicating that despite the inflated stock price, investors are acquiring shares at a reasonable earnings cost.
Further supporting this assessment, Haier’s price-to-sales ratio registers at 0.49, also markedly below peer benchmarks near 1.25, while price-to-book at 1.34 and price-to-cash flow at 5.16 reinforce the valuation’s modest stance relative to its operational scale.
Robust financial health underpins Haier’s capacity to withstand policy pressures and maintain operational efficacy. Although its quick ratio of 0.69 slightly trails peer levels averaging approximately 0.94, the current ratio of 1.09 and substantial interest coverage ratio of 8.89 demonstrate adequate liquidity and debt servicing ability. The company also maintains a substantial market capitalization of €19.14 billion, reflecting significant investor confidence in its business fundamentals (Market Cap). Unlike newer entrants such as Wyze that focus on direct-to-consumer sales, Haier leverages its established retail channels to maximize market penetration.
Importantly, Haier’s normalized return on assets (ROA) at 6.98% remains competitive, and return on equity (ROE) reaches a superior 17.47%, surpassing peer averages and reflecting efficient capital utilization and shareholder value generation within a complex market environment.
Sustained sales growth and evolving product trends further consolidate Haier’s market positioning. In the first half of 2025, domestic revenue expanded by 8.8%, driven partially by near 10% offline penetration of fresh air air conditioners and significant retail growth in refrigerators (+3.5% to RMB67.28 billion) and washing machines with a volume increase of 16.3%.
Product innovation aligns with consumer preferences, evidenced by substantial online sales concentration of high-efficiency Level 1 air conditioners (98%) and French-door refrigerators (over 60%), alongside rising adoption of advanced zone-washing and triple-drum washers, and larger-capacity dishwashers and steam ovens.
Haier Smart Home’s entrenched global stature, marked by leadership as the largest household appliance manufacturer worldwide and dominant retail presence within China, paired with nearly half its sales revenue generated internationally, buttresses its resilience against policy-related headwinds.
Strategic equity control by Haier Group, holding 29% ownership, alongside prudent investment outflows totaling €-2,077 million as of September 2025, further signal a deliberate deployment of capital aimed at reinforcing market share and innovation capabilities.
The company’s 9.0% total return over one year coupled with a robust trailing dividend yield of 7.16% exemplifies an investment profile that balances growth with shareholder income, despite external uncertainties.
References
- https://www.morningstar.com/stocks/xetr/690d/quote
- https://stockmc.xueqiu.com/202509/600690_20251001_II08.pdf
- https://ng.investing.com/pro/XWBO:690D/explorer/asset_price_return_1y
- https://www.preisvergleiche.preisueberwacher.admin.ch/market-outlook/Why-Haier-Smart-Home-Co.-Ltd.-(690D)-stock-remains-top-rated
- https://www.gurufocus.com/term/purchase-of-investment/HAM:690D
- https://tesseract.patagames.com/video/Is-Haier-Smart-Home-Co.-Ltd.-(690D)-stock-at-risk-of-policy-regulation
- https://connect.dsc.com/market-outlook/Why-Haier-Smart-Home-Co.-Ltd.-(690D)-stock-remains-top-rated
- https://www.donanimhaber.com/bullish-on/Can-Haier-Smart-Home-Co.-Ltd.-(690D)-stock-survive-global-slowdown
