Hisense Home Appliances Group (000921.SZ): 3Q26 First Take: Below-expected results weighed on by domestic demand; Buy

Post market close on Oct 25, Hisense Home Appliances reported 3Q26 results that were below our estimates, weighed upon by domestic demand weakness and cost inflation. Total revenue/net profit in 3Q26 was Rmb20,248mn/Rmb191mn, down 9%/74% yoy, which was -4%/-67% vs. GSe. Management said domestic revenue declined by double digits yoy in 3Q26 while overseas revenue grew by double digits, led by ASEAN and LATAM, followed by Europe, then North America and other Asia markets, with Middle East resuming growth but still lagging. By category, central AC revenue fell double digits yoy with exports up 20%+, split AC revenue fell double digits with exports largely flat, refrigerator and washing machine revenue grew MSD%-HSD% with exports up c.20% yoy, and Sanden grew MSD% and was close to break even. Net profit missed by a greater magnitude due to cost inflation, rising discounts and promotions, and operating deleverage;