HK Stock Market Move | Hisense Home Appliances Group (00921) extends decline by over 4%, pressured by raw materials and exchange rates; Q3 net profit attributable to shareholders falls 70% year-on-year.

Hisense Home Appliances Group (00921) extended its decline by over 4%. As of press time, it was down 4.09% at HK$17.83, with turnover of HK$8.7422 million. On the news front, Hisense Home Appliances Group recorded revenue of RMB20.248 billion in Q3 this year, down 8.8% year-on-year; net profit attributable to shareholders of RMB191 million, down 74.0% year-on-year; net profit attributable to shareholders after deducting non-recurring gains and losses of RMB17 million, down 96.7% year-on-year. This was mainly affected by weak domestic demand, rising costs compounded by intensifying competition. Meanwhile, exchange losses weighed on financial expenses, and a reduction in the VAT immediate refund policy led to lower other income, further suppressing net profit. BofA Securities believes that Hisense Home Appliances Group's Q3 results were below expectations and cut its 2026 and 2027 earnings per share forecasts by 26% and 7%. Hisense Home Appliances Group, due to thinner margins and greater central air-conditioning exposure, is more susceptible to the property market cycle and cost inflation than peers, but the relevant risks have been reflected in its valuation, equivalent to 7x 2027 forecast price-to-earnings ratio and a 7% dividend yield.