DBS Group Research lifted its target price for Haier Electronics (01169) to HK$28.52 from HK$26.56 and maintained its "buy" rating.
The research house expects Haier to see sequential improvement from 4Q 2019 onwards. Going forward, DBS estimated its manufacturing business (washing machine, water heater and water purifier) to see high-single-digit to low-teen growth in 2020.
In view of the company's recovering air-conditioner shipment growth and relatively low channel inventory, DBS also expects its channel sales to see mid-single-digit growth this year. DBS lifted its FY2020/21 core earnings forecasts by 1.4%/5% respectively.
DBS is more positive about the company's fundamentals in FY2020 than consensus. It also likes the company's business expansion into the commercial water purifier leasing segment.
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