Hisense Home Appliances Stock (OTC: HISEF)

Latest news for Hisense Home Appliances (OTC:HISEF) Stock

Hisense Home Appliances Group Co Ltd is a manufacturer of white household electrical appliances in the People's Republic of China, with eight brand names, namely Hisense, Ronshen, KELON, HITACHI, YORK, Gorenje, ASKO, and SANDEN. The company produces electrical appliances like refrigerators, air-conditioners, freezers, washing machines, and Kitchen electrical appliances. The businesses of the Company are set out as follows: HVAC Business Work; Refrigerator and Washing Machine Business Work; Automotive Air Conditioner Compressor and Integrated Thermal Management System Business Work; Smart Home Business Work; Overseas Markets for Home Appliances Business Work and Implementing the Manufacturing Work. The majority of the company's revenue is generated from China.

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HISEF

Key Takeaways:


	Hisense Home Appliance’s profit rose 34.6% to 2.02 billion yuan in the first half of this year, propelled by the company’s rapid overseas growth
	Investment banks are bullish on the company, many rating it a “buy,” encouraged by the strong potential of its overseas business


By A. Au

Hisense Home Appliance Switches On Overseas Growth Engine

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HISENSE KELON ELECTR HLDG by Hisense Kelon Electrical Holdings Co Ltd.

Hisense Home Appliances Group Co Ltd

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co., Ltd. has announced an ordinary final cash div...

Hisense Announces Final Dividend for 2023

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co. has announced the subscription of wealth manag...

Hisense Invests Billions in Wealth Management

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co., Ltd. has disclosed transactions involving the...

Hisense Announces Billion-RMB Wealth Management Move

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co., Ltd. has released its unaudited interim finan...

Hisense Reports Growth in 2024 Interim Results

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co., Ltd. has utilized its idle funds to subscribe...

Hisense Allocates Idle Funds to Wealth Products

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co. reported its third-quarter financial results f...

Hisense Reports Steady Growth Amid Revenue Dip

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co. has announced a change in its branch share reg...

Hisense Home Appliances Updates Hong Kong Registrar

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co., Ltd. has announced that its subsidiaries have...

Hisense Invests in Hua Xia Wealth Products

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co., Ltd. has announced significant leadership cha...

Hisense Announces Leadership Changes: New Chairperson Appointed

Hisense Home Appliances Group Co (HK:0921) has released an update. Hisense Home Appliances Group Co., Ltd. has announced its board of directors, hi...

Hisense Home Appliances Reveals Board and Leadership Structure

Hisense Home Appliances

<h4>Key Takeaways:</h4>

<ul>
	<li>Hisense Home Appliance&rsquo;s profit rose 34.6% to 2.02 billion yuan in the first half of this year, propelled by the company&rsquo;s rapid overseas growth</li>
	<li>Investment banks are bullish on the company, many rating it a &ldquo;buy,&rdquo; encouraged by the strong potential of its overseas business</li>
</ul>

By A. Au

Chinese brands have become regular fixtures these days at major international sporting events like the UEFA European Soccer Championship in June. But one campaign at that event from&nbsp;Hisense Home Appliances Group Co. Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/HISEF#OTC">HISEF</a>)&nbsp;was notable for the discussion it sparked both at home and abroad.

The rising appliance maker&rsquo;s use of the tag line &ldquo;China first doesn&rsquo;t mean the world is second&rdquo; seemed aimed at sending a message of co-existence between Chinese and global brands, even as trade frictions heat up between China and the West. That message is taking on special importance for the company as it looks abroad to boost its sales to offset a slowdown in its home market.

The appearance at the UEFA Championship wasn&rsquo;t the first for Hisense at the event, even if it may have attracted the most attention. The sponsorship was the company&rsquo;s third time backing the tournament, and its fifth time sponsoring a leading international soccer event since 2016. It is hoping to impress the world with its visuals and messages, paving the way for its ongoing global expansion.

Hisense&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0830/2024083001470.pdf">reported revenue</a>&nbsp;of 48.6 billion ($6.83 billion) yuan in the first half of this year, up around 13.3% year-on-year. Most of that growth came from its overseas home appliance sales, which rose 36.9% to 14.8 billion yuan &ndash; more than enough to offset sluggish sales at home. Its net profit for the six-month period jumped by an impressive 34.6% to 2.02 billion yuan, even as many Chinese companies were reporting falling profits.

Chinese home appliance companies have struggled in the last two years due to the nation&rsquo;s property downturn that has seen new home construction slow sharply, compounded by intensifying competition. Authorities have rolled out a slate of measures to support home appliance makers, such as offering subsidies for consumers who trade in their old products for new ones. The city of Shenzhen also introduced subsidies worth 15% of the price for upgrades to energy-efficient home appliances earlier this month, and an additional 5% for the most energy efficient products. Shanghai also recently unveiled a similar program.

Hisense is being quite up front about how the property weakness is weighing on demand for its home appliances. Despite that, it still managed to eke out 3.5% growth in domestic sales in the first half of the year, with the figure reaching 25.3 billion yuan. But the big surprise for investors was the company&rsquo;s strong performance in the Americas and Europe, where it is aggressively promoting its wares.

The Americas performed the best, with 40% revenue growth, mostly thanks to products sold from its factory in Monterey, Mexico, which has helped to expand its local sales and distribution channels. Its Americas refrigerator sales surged 97.3%, and revenue from its freezers and washing machines in the market rose by 92% and 97%, respectively.

Its European revenue also grew 14%, with refrigerator sales up 16.9% and freezer sales soaring three times, helping it to capture an additional 1.4 percentage points in market share. Its air conditioner sales in the region jumped by 26.8%, following the launch of a local air conditioner research center to capitalize on local market trends.

<h3>Surging In Southeast Asia</h3>

The company also performed well in Southeast Asia, with revenue up 39.5% in the first half, including a 64.4% surge for its self-developed brands. Meanwhile, its revenue from the Middle East and Africa region also rose 27%, driven by its sponsorship of sporting events, with revenue growth ranging from 21% to 89% for various product categories such as refrigerators, freezers, air conditioners and washing machines. Its Asia Pacific revenue grew by 18.9% in the first half, mostly spurred by new product launches in Australia.

The company&rsquo;s strong overseas showing owes partly to its aggressive use of sporting event sponsorships since 2016. That year it sponsored the UEFA European Soccer Championship for the first time, kicking off a journey to boost its brand recognition. It has now been rated among the top 10 globalized Chinese brands for seven successive years.

The company started to tout a tag line saying &ldquo;The world is second, China is first&rdquo; in 2022 as its TV sales were on the rise. The company accounted for 26.9% of total TV sales volume and 29.1% of TV sales value in China last year, making it the industry leader, according to the data tracking All View Cloud platform. Data from market consultant Omdia shows the company&rsquo;s overseas TV sales last year grew 13.9%. And according to the market research firm AVC Revo, Hisense&rsquo;s total TV sales accounted for 14.3% of the global total in the first four months of this year, making it the second-largest seller globally.

Many investment banks are also bullish that the overseas market is becoming an important growth driver for the company, and have given the stock a &ldquo;buy&rdquo; rating. Kaiyuan Securities pointed out that the rapid growth of Hisense&rsquo;s overseas business has helped to improve the company&rsquo;s gross margin and profitability.

Guolian Securities said the company&rsquo;s air conditioner business was poised to expand further overseas and that its traditional home appliance business portfolio would see structural improvement at Hisense puts more emphasis on its self-developed brands. Chasing Securities stressed that the company&rsquo;s exports have outperformed its domestic sales and led to steady profit growth.

The company said in its latest financial report that boosting its overseas growth would be a top priority in the second half of this year. It added it will move ahead with integrating its various overseas research centers, production bases and local business centers to improve its offshore abilities and further extend its overseas business growth.

However, its overseas journey will not be without hurdles. Ongoing tensions between China and the West have led to a steady stream of new tariffs on Chinese goods in the U.S. and Europe, and there&rsquo;s no guarantee home appliance won&rsquo;t get hit with such measures in the future. Back at home, meanwhile, Hisense may have to wait for consumer confidence to improve before it can benefit from the recent wave of trade-in programs and other policy stimulus.

This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

Roku Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>) shares shot up over 4.5% and ViacomCBS Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VIAC#NASDAQ">VIAC</a>) shares were up over 2.6% at the end of the regular session on Wednesday.

What Happened: The movement in the stock prices was fueled by a <a href="https://www.wsj.com/articles/comcasts-ceo-built-a-cable-giant-can-he-build-a-streaming-giant-11624473722?mod=searchresults_pos1&amp;amp;page=1" style="text-decoration-line:none">report</a> from The Wall Street Journal that Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) CEO Brian Roberts is eyeing a possible collaboration with ViacomCBS or acquiring Roku in a bid to buttress the company&rsquo;s future in streaming.

A Comcast spokesperson dismissed the report as speculation, CNBC <a href="https://www.cnbc.com/2021/06/23/viacomcbs-roku-shares-jump-on-report-that-comcast-is-considering-deal.html" style="text-decoration-line:none">reported</a>.&nbsp;

On Wednesday evening, Roku shares rose 4.5% to $421.70 in the regular session and another 0.5% in the after-hours trading. On the same day, ViacomCBS shares closed 2.67% higher in the regular session at $41.84 and rose another almost 0.6% in after-hours trading.

Comcast shares closed 3.73% lower at $55.48 in the regular session on Wednesday and gained 0.13% in the after-hours trading.

Why It Matters: The Journal noted that Comcast subsidiary NBCUniversal&rsquo;s Peacock service is lagging rivals such as Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) and The&nbsp;Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) in terms of paid subscribers.

In late April, while Peacock had <a href="https://www.benzinga.com/news/21/04/20872581/comcasts-peacock-reaches-42m-subscribers-thanks-to-wwe-the-office" style="text-decoration-line:none">42 million sign-ups</a>, in May it had fewer than 10 million paid subscribers. Netflix and Disney&#39;s numbers amounted to 208 million and 103.6 million globally in the first quarter.

Comcast&rsquo;s streaming plans also span a partnership with Walmart Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>) and Chinese firm Hisense Home Appliances Group Co, Ltd (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HISEF#OTC">HISEF</a>) for the development of smart televisions, which could appear in stores later this year, as per the Journal.

Meanwhile, NBCUniversal CEO Jeff Shell said this month that depending on the ratings, the soon-to-be-held Tokyo Summer Olympics could be &ldquo;the <a href="https://www.benzinga.com/news/21/06/21628889/could-the-2020-olympics-see-record-profits-for-comcast" style="text-decoration-line:none">most profitable for the company.</a>&rdquo;

Read Next: <a href="https://www.benzinga.com/news/21/06/21409929/walmart-is-now-getting-into-streaming-hardware-how-will-the-move-impact-roku-partnership" style="text-decoration-line:none">Walmart Is Now Getting Into Streaming Hardware: How Will The Move Impact Roku Partnership?</a>

Photo by <a href="https://www.flickr.com/photos/149887304@N05/33394021904">roku Activate</a> on Flickr

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