By Megan Cheah
Haier Smart Home reported a rise in 2025 net profit, but its fourth-quarter profit is estimated to have declined amid weak retail demand in China.
The Chinese home appliance maker's net profit for the year gained 4.4% to 19.55 billion yuan, equivalent to $2.83 billion, the company said Thursday. Revenue added 5.7% to 302.33 billion yuan.
Despite the full-year gains, the results implied that Haier's fourth-quarter revenue and earnings missed market consensus estimates, said Jefferies analysts in a note.
The analysts estimate revenue for the three months ended December fell 7.0% compared with the same period a year earlier, and the market's expectations for an around 5.0% rise. Net profit for the period likely plunged 39% on year, which Jefferies sees as a major miss of a flattish consensus forecast.
The quarterly revenue decline was partly driven by weak retail demand in China, Jefferies reckons. U.S. demand pull-forward effects and new capacity likely also caused a price war, it added.
Haier's board has proposed a final dividend of 8.867 yuan for every 10 shares held. Its total cash dividend payout ratio was around 55% of profit attributable, the company said.
The board's chair Li Huagang said the company planned to raise its 2026 cash dividend payout ratio to no less than 58%, and lift it further to no less than 60% for 2027 and 2028.
The company is also seeking to buy back between 3.0 billion yuan and 6.0 billion yuan worth of Shanghai-listed shares as part of its employee share ownership plans or equity incentives. Haier set its maximum repurchase price at 35.0 yuan a share, which implies around 0.91% to 1.83% of its total share capital, it said.
The buy backs will be funded internally, it said.
Haier's Hong Kong shares last closed 3.55% lower at 22.82 Hong Kong dollars, while its China-listed shares ended 2.0% lower at 23.11 yuan, before the results.
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
03-26-26 2055ET
