Haier's Secular Earnings Growth Will Be Driven by Product Upgrades and Deeper Digitalization

As a seasoned home appliance manufacturer, Haier has been among the top brands globally for the past decade with a stronghold in refrigerators, laundry appliances, water heaters, and air conditioners. We ascribe the company’s industry-leading role to its effective multibrand strategies, robust product development capabilities, and broad distribution coverage through online and offline channels. For domestic products, Haier positioned its namesake brand for mass-market consumers while targeting the premium Casarte brand to wealthy households. As Casarte products have constantly outperformed in sales growth versus Haier’s other brands in China, we expect the company’s high-end products to improve the overall revenue mix over the next few years.