According to Nomura’s research report, Haier’s net profit in the first half of the year reached 1.34 billion yuan, down 27.3% year-on-year, mainly due to the negative impact of a 5% drop in revenue and a 10% drop in gross profit. Taking into account the 22% and 47% drop in revenue and net profit in the first quarter, this means that the company’s revenue fell by 12.7% in the second quarter and net profit fell by 6.8%. Revenue growth was mainly boosted by revenue growth in washing machines, channel services, water heaters and water purifiers, but was partially offset by lower than expected gross margin performance. At present, Nomura maintains its forecast of the company’s revenue of RMB 74 billion in fiscal year 2020, but reduces its gross profit rate forecast by 0.9 percentage points to reflect the impact of performance in the first half of the year. Meanwhile, Nomura’s net profit forecast for fiscal year 2020 is reduced by 14%. < p > < p > Nomura pointed out that Haier received a proposal from the controlling shareholder, Haier Zhijia, to privatize the company in the form of agreement arrangement. The price per share included cash of HK $1.95 and 1.6 new shares of Haier Zhijia. According to the median valuation value of Haier Zhijia, the theoretical total value of each share was about 31.51 yuan, which was 34% higher than the current target price of Haier electric. The company plans to complete the privatization transaction by the end of this year. Currently, Nomura has downgraded the company’s investment rating from “buy” to “neutral” and believes that the current privatization price is reasonable, with the target price raised from HK $23.5 to HK $29.7.