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Hisense Home Appliances Group Co Ltd Class H (HK:0921)
:0921

Hisense Home Appliances Group Co (0921) AI Stock Analysis

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HK:0921

Hisense Home Appliances Group Co

(0921)

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Neutral 62 (OpenAI - 5.2)
Rating:62Neutral
Price Target:
HK$24.50
▲(6.99% Upside)
The score is driven primarily by attractive valuation (low P/E and high dividend yield) and solid operating performance with strong recent revenue growth. This is tempered by a meaningfully higher leverage profile and weakening recent free cash flow growth, while technical signals remain bearish with the stock trading below major moving averages.
Positive Factors
Revenue Growth
A ~247% TTM revenue surge signals material market share gains and scaling of Hisense's product mix across appliances and electronics. Sustained top-line expansion supports long-term fixed-cost absorption, distributor leverage, and investment in R&D and international expansion strategies.
Cash Generation
Consistent positive operating and free cash flow provide durable internal funding for capex, product development, and shareholder returns. This cash generation underpins the business's ability to invest through cycles, reduce reliance on external financing, and support strategic initiatives.
Return on Equity
A ~21% TTM ROE indicates effective use of equity to generate profits, reflecting solid operational execution and capital allocation. High ROE supports long-term shareholder value creation if operating performance and asset efficiency are maintained.
Negative Factors
Rising Leverage
A near‑parity debt-to-equity ratio represents a sharp increase in financial leverage versus prior years, raising refinancing, interest, and covenant risks. Elevated leverage reduces flexibility to absorb demand shocks and constrains strategic investments during downturns.
Free Cash Flow Trend
A ~-16.8% decline in TTM free cash flow and historically volatile cash conversion weaken the reliability of internal funding. This trend makes it harder to consistently fund capex, pay down rising debt, or sustain dividends without resorting to external financing.
Modest Profitability
Persistently mid-single-digit net margins despite strong revenue growth point to limited operating leverage and competitive/price pressures. Long‑term margin stagnation constrains free cash flow expansion and resilience against cost inflation or slower volume growth.

Hisense Home Appliances Group Co (0921) vs. iShares MSCI Hong Kong ETF (EWH)

Hisense Home Appliances Group Co Business Overview & Revenue Model

Company DescriptionHisense Home Appliances Group Co., Ltd. manufactures and sells household electrical appliances under the Hisense, Ronshen, Kelon, Hitachi and York brands in the People's Republic of China and internationally. The company's products include refrigerators, residential air-conditioners, central air-conditioners, freezers, washing machines, kitchen appliances, and other cold chain appliances. It also offers after-sales services and transportation services. The company was formerly known as Hisense Kelon Electrical Holdings Company Limited and changed its name to Hisense Home Appliances Group Co., Ltd. in October 2018. Hisense Home Appliances Group Co., Ltd. was founded in 1984 and is headquartered in Foshan, the People's Republic of China.
How the Company Makes MoneyHisense generates revenue primarily through the sale of its home appliances and consumer electronics. The company's revenue model is based on direct sales to consumers, as well as partnerships with retailers and distributors worldwide. Key revenue streams include the sale of large appliances such as refrigerators and washing machines, as well as smaller appliances and electronics like TVs and air conditioners. Hisense also benefits from strategic partnerships with major retailers and e-commerce platforms, which enhance its market reach and distribution capabilities. Additionally, the company invests in research and development to innovate and improve its product offerings, helping to drive sales and maintain competitive pricing in the market.

Hisense Home Appliances Group Co Financial Statement Overview

Summary
Strong TTM revenue growth (~+247%) and positive operating/free cash flow support fundamentals, but profitability remains modest (net margin ~3.6%) with limited margin expansion. The sharp rise in leverage (debt-to-equity ~0.98 vs ~0.19–0.20 previously) and weaker recent free cash flow growth (~-16.8%) increase financial risk.
Income Statement
72
Positive
TTM (Trailing-Twelve-Months) revenue is up strongly (about +247%), showing a sharp acceleration versus the modest growth seen in 2024. Profitability is steady but not high for the category: gross margin is ~21% and net margin is ~3.6% in TTM, broadly consistent with 2023–2024 levels. A key weakness is that margins have not expanded with growth (net margin remains in the mid‑3% range and below 2022), suggesting pricing/competition and cost pressures are limiting operating leverage.
Balance Sheet
48
Neutral
The balance sheet looks notably more leveraged in TTM: total debt is roughly in line with equity (debt-to-equity ~0.98), a sharp deterioration from 2024 (~0.19) and 2023 (~0.20). Returns on equity remain healthy (~21% TTM), indicating the business is still earning well on capital, but the step-up in leverage increases financial risk and reduces flexibility if demand or margins weaken.
Cash Flow
58
Neutral
Cash generation is positive in TTM with operating cash flow (~7.7B) and free cash flow (~5.6B), and free cash flow exceeds net income (free cash flow to net income ~0.68), supporting earnings quality. However, free cash flow declined versus the prior period (TTM free cash flow growth about -16.8%), and cash conversion has been volatile historically (very strong in 2023, weaker in 2024 and TTM), which is a risk for funding higher leverage.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue93.69B92.75B85.60B74.12B67.56B48.39B
Gross Profit19.44B19.27B18.84B15.33B13.31B11.64B
EBITDA5.97B7.26B7.04B5.27B4.08B3.74B
Net Income3.37B3.35B2.84B3.07B2.34B2.85B
Balance Sheet
Total Assets71.92B69.70B65.95B55.38B55.95B41.81B
Cash, Cash Equivalents and Short-Term Investments24.65B20.61B18.13B12.76B12.65B9.73B
Total Debt16.58B2.92B2.75B1.90B3.46B79.95M
Total Liabilities51.29B50.33B46.55B39.10B40.36B27.41B
Stockholders Equity16.93B15.46B13.58B11.52B10.34B9.78B
Cash Flow
Free Cash Flow5.51B3.74B9.63B3.15B3.21B5.35B
Operating Cash Flow7.46B5.13B10.61B4.03B4.31B5.96B
Investing Cash Flow-5.14B-619.44M-9.56B-2.60B-4.42B-3.90B
Financing Cash Flow-2.33B-5.12B-621.14M-1.78B1.47B-2.51B

Hisense Home Appliances Group Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price22.90
Price Trends
50DMA
24.26
Negative
100DMA
24.07
Negative
200DMA
23.72
Negative
Market Momentum
MACD
-0.28
Positive
RSI
40.10
Neutral
STOCH
19.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0921, the sentiment is Negative. The current price of 22.9 is below the 20-day moving average (MA) of 23.50, below the 50-day MA of 24.26, and below the 200-day MA of 23.72, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0921.

Hisense Home Appliances Group Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$255.29B10.5117.99%5.20%19.14%14.07%
62
Neutral
HK$35.34B8.6220.78%5.70%2.29%3.18%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
45
Neutral
HK$6.13B-10.58-14.41%1.29%-386.78%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0921
Hisense Home Appliances Group Co
22.90
-1.62
-6.60%
HK:1691
JS Global Lifestyle Company Limited
1.79
-0.24
-11.82%
HK:6690
Haier Smart Home Co., Ltd. Class H
25.80
2.04
8.59%

Hisense Home Appliances Group Co Corporate Events

Hisense Home Appliances Invests RMB1.86 Billion of Idle Funds in Cofco Trust Products
Jan 6, 2026

Hisense Home Appliances Group Co., Ltd. has disclosed that between 16 July 2025 and 6 January 2026 its subsidiaries Gorenje Company, Kelon Mould Company and Refrigerator Marketing Company subscribed to Cofco Trust wealth management products with an aggregate principal amount of RMB1.855 billion, funded entirely from idle internal funds. The fixed-income, medium- to low-risk products invest in bank deposits, bonds and other credit assets, and, when aggregated, the transactions meet the threshold for discloseable transactions under Hong Kong listing rules, underscoring the group’s ongoing strategy of using short- to medium-term financial instruments to improve capital efficiency and generate additional returns on cash without materially altering its operating profile.

The most recent analyst rating on (HK:0921) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Hisense Home Appliances Group Co stock, see the HK:0921 Stock Forecast page.

Hisense Home Appliances Deploys RMB1.892 Billion in Jingu Trust Wealth Products
Dec 19, 2025

Hisense Home Appliances Group Co., Ltd. has disclosed that several of its subsidiaries, including its air-conditioner and refrigerator marketing units, (Beijing) Electric Company and Gorenje Company, subscribed to Jingu Trust wealth management products between 14 October 2025 and 19 December 2025, committing an aggregate RMB1.892 billion of idle funds to fixed-income, medium‑low risk trust plans invested in deposits, bonds and other debt assets. While each subscription is individually below disclosure thresholds, their aggregation triggers discloseable transaction requirements under Hong Kong Listing Rules, underscoring the group’s continued strategy of using surplus cash for short- and medium-term, lower-risk investments to enhance returns on cash assets without affecting its core operations.

The most recent analyst rating on (HK:0921) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Hisense Home Appliances Group Co stock, see the HK:0921 Stock Forecast page.

Hisense Home Appliances Invests in Wealth Management Products
Dec 12, 2025

Hisense Home Appliances Group Co., Ltd. announced that its subsidiaries have subscribed to Hua Xia Wealth Management Products with an aggregate amount of RMB1,760,000,000, utilizing idle funds for this investment. This move is part of the company’s strategy to improve capital efficiency and increase returns on cash assets through short-term, medium- to low-risk investments, reflecting a proactive approach in managing its financial resources.

The most recent analyst rating on (HK:0921) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Hisense Home Appliances Group Co stock, see the HK:0921 Stock Forecast page.

Hisense Enhances Transparency with Supplemental Stock Ownership Information
Nov 26, 2025

Hisense Home Appliances Group Co., Ltd. has released additional information regarding its 2022 Incentive Scheme, 2022 Stock Ownership Plan, and 2024 Stock Ownership Plan. The announcement provides details on the closing prices of shares before the grant dates and outlines the lock-up periods for the shares granted. This supplemental announcement aims to enhance transparency and provide stakeholders with a clearer understanding of the company’s stock ownership plans, potentially impacting investor confidence and market perception.

The most recent analyst rating on (HK:0921) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Hisense Home Appliances Group Co stock, see the HK:0921 Stock Forecast page.

Hisense Home Appliances Invests in Wealth Management Products
Nov 21, 2025

Hisense Home Appliances Group Co., Ltd. announced its subscription to Alltrust Insurance Wealth Management Products, amounting to RMB1,738,000,000, utilizing idle funds. This strategic move aims to enhance capital efficiency and increase returns on cash assets, reflecting the company’s proactive approach in managing its financial resources. The transactions are classified as discloseable under Hong Kong’s Listing Rules, indicating a significant financial maneuver that could impact the company’s financial standing and stakeholder interests.

The most recent analyst rating on (HK:0921) stock is a Buy with a HK$30.00 price target. To see the full list of analyst forecasts on Hisense Home Appliances Group Co stock, see the HK:0921 Stock Forecast page.

Hisense Reports Q3 2025 Financial Results: Revenue Up, Profits Down
Oct 28, 2025

Hisense Home Appliances Group Co., Ltd. announced its unaudited financial results for the third quarter of 2025, reporting a slight increase in operating revenue by 1.16% compared to the same period in 2024. However, the net profits attributable to shareholders saw a decrease of 5.40%. Despite this, the company experienced a significant increase in net cash flow from operating activities by 34.06% for the nine months ending September 2025, indicating strong operational cash generation. The announcement highlights the company’s stable revenue growth and improved cash flow, although it faces challenges in maintaining profit margins.

The most recent analyst rating on (HK:0921) stock is a Buy with a HK$26.00 price target. To see the full list of analyst forecasts on Hisense Home Appliances Group Co stock, see the HK:0921 Stock Forecast page.

Hisense Home Appliances Updates on Equity Acquisition Valuation
Oct 17, 2025

Hisense Home Appliances Group Co., Ltd. announced a supplemental update regarding a connected transaction involving the acquisition of target equity. The valuation of the target company was conducted using the income approach, specifically the discounted future cash flow method, due to the company’s stable operations and predictable returns. The acquisition price was adjusted based on a dividend distribution post-valuation, resulting in a final consideration of RMB94,290,516.95. This transaction complies with the relevant listing rules, and the valuation approach was chosen due to the clear asset ownership and financial records of the target company.

The most recent analyst rating on (HK:0921) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Hisense Home Appliances Group Co stock, see the HK:0921 Stock Forecast page.

Hisense Home Appliances Invests in Wealth Management Products
Oct 16, 2025

Hisense Home Appliances Group Co., Ltd. has announced the subscription of wealth management products through its subsidiaries, utilizing idle funds amounting to RMB1,860,000,000. This move is part of a broader strategy approved by the company’s board to enhance capital efficiency and increase returns on cash assets through short-term and medium- to low-risk investments. The transactions, while individually not significant, collectively constitute discloseable transactions under Hong Kong’s listing rules, indicating a strategic financial maneuver to optimize asset management.

The most recent analyst rating on (HK:0921) stock is a Buy with a HK$31.00 price target. To see the full list of analyst forecasts on Hisense Home Appliances Group Co stock, see the HK:0921 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 14, 2026