Investment Rating - The report maintains an "Outperform the Market" rating for the home appliance industry [5][6][12] Core Insights - The home appliance sector is expected to recover in 2026, driven by the continuation of national subsidies and improvements in export performance. It is recommended to actively invest in leading white goods companies [1][12][18] - December retail performance for home appliances showed signs of bottoming out, with major appliances experiencing a decline of over 20% in domestic retail sales, while small appliances showed slightly better demand [1][19] - The report highlights that the U.S. home appliance retail sales saw a slight increase in November, indicating a gradual return to stable growth despite challenges such as tariffs and inflation [3][12] Summary by Sections 1. Core Recommendations - Key recommendations include investing in leading companies in the white goods sector such as Midea Group, Haier Smart Home, TCL Smart Home, Gree Electric, and Hisense Home Appliances. For small appliances, Stone Technology and Bear Electric are recommended [4][12][13] 2. Research Tracking and Investment Thoughts - December retail performance for home appliances continued to face pressure due to high base effects, with significant declines in major appliances. However, small appliances showed relative stability, particularly in air fryers [1][19] - December exports of home appliances decreased by 8.1% year-on-year, with air conditioners facing the most significant pressure, while refrigerators and washing machines showed modest growth [2][37] - U.S. home appliance retail sales increased by 0.8% year-on-year in November, with inventory levels returning to normal [3][12] 3. Key Data Tracking - The home appliance sector achieved a relative return of +0.23% this week compared to the broader market [49] - Raw material prices for copper and aluminum decreased by 0.5% and 0.7% respectively, while cold-rolled steel prices also saw a decline [51] - Shipping indices for routes to the U.S. West Coast, East Coast, and Europe showed slight increases, indicating a stabilization in shipping costs [64] 4. Company Announcements and Industry Dynamics - Notable company announcements include Midea Group's ongoing efforts in overseas markets and Gree Electric's dividend distribution plans [71][72] - The report discusses the structural adjustments in the air conditioning export market and the anticipated trends for 2026, highlighting the challenges and opportunities in the global supply chain [74]

Core Viewpoint - The white goods sector experienced a slight increase of 0.55% on January 19, with Xueqi Electric leading the gains, while the Shanghai Composite Index rose by 0.29% and the Shenzhen Component Index by 0.09% [1] Group 1: Market Performance - The closing price of Xueqi Electric was 14.99, reflecting a rise of 3.52% with a trading volume of 69,200 shares and a transaction value of 103 million yuan [1] - Aokema closed at 8.06, up by 2.68%, with a trading volume of 151,800 shares [1] - TCL Smart Home's closing price was 10.17, increasing by 1.70% with a trading volume of 126,300 shares [1] - Whirlpool closed at 10.59, up by 1.34%, with a transaction value of approximately 64.76 million yuan [1] - Haier Smart Home's closing price was 25.94, reflecting a 0.93% increase with a trading volume of 383,500 shares [1] - Gree Electric's closing price was 40.53, up by 0.45%, with a transaction value of approximately 1.68 billion yuan [1] - Midea Group closed at 77.62, increasing by 0.40%, with a transaction value of approximately 2.61 billion yuan [1] Group 2: Fund Flow Analysis - The white goods sector saw a net inflow of 307 million yuan from institutional investors, while retail investors contributed a net inflow of 211 million yuan [1] - The net outflow from speculative funds was 518 million yuan [1] - Midea Group had a net inflow of 149 million yuan from institutional investors, while it experienced a net outflow of 372 million yuan from speculative funds [2] - Gree Electric saw a net inflow of 121 million yuan from institutional investors, with a net outflow of 117 million yuan from speculative funds [2] - Haier Smart Home had a net inflow of approximately 67.83 million yuan from institutional investors, while it faced a net outflow of 16.48 million yuan from speculative funds [2]

Group 1 - On January 19, Midea Group executed a block trade of 31,400 shares, with a transaction value of 2.4398 million yuan, accounting for 0.09% of the total transaction volume for the day [1] - The transaction price was 77.70 yuan, which represents a premium of 0.1% compared to the market closing price of 77.62 yuan [1]

Group 1 - The core viewpoint of the report highlights Midea Group's commitment to shareholder returns through multiple share buybacks in 2025 and 2026, indicating a strong focus on enhancing shareholder value [1] - In 2026, Midea Group repurchased approximately 2 million yuan worth of 2.613 million A-shares at an average price of 76.5 yuan per share, representing about 0.038% of the total shares [1] - The total amount for Midea's two share buybacks in 2025 ranged from 6.5 billion to 13 billion yuan, with 70% of the 5-10 billion yuan allocated for cancellation and reduction of registered capital, and 1.5-3 billion yuan for employee stock ownership plans [1] Group 2 - Midea Group's operational performance remains stable, and short-term disruptions do not alter its long-term value, suggesting potential for further market capitalization expansion driven by cash flow [1] - The company is expected to leverage global resources for diversified growth opportunities, maintaining a target price of 93.4 yuan based on a DCF valuation method, corresponding to a 15x PE for 2026 [1] - The report maintains a "strong buy" rating for Midea Group, reflecting confidence in its financial health and growth prospects [1]

Investment Rating - The industry investment rating is "Overweight" [4][11]. Core Insights - The report highlights favorable real estate policies and Meta's plan to increase smart glasses production to 20 million units by the end of 2026, indicating a strong market demand [2][3]. - Several home appliance companies have released their performance forecasts for 2025, showing a mix of growth and decline in net profits [2][3]. Summary by Sections Investment Recommendations - The report suggests that national subsidies are expected to transition smoothly, with leading black and white appliance companies demonstrating stable operations and high dividends, making them cost-effective investments. Recommended companies include: - Midea Group (2025 PE: 13.2X) - Haier Smart Home (2025 PE: 11.4X) - TCL Electronics (2025 PE: 10.8X) - Hisense Visual (2025 PE: 12.0X) [4][5]. - The core driver for smart home appliances is overseas expansion, with recommendations for leading robot vacuum companies: - Roborock (2025 PE: 20.8X) - Ecovacs (2025 PE: 22.7X) [4][5]. - Companies with stable performance and upward potential include: - Ninebot (2025 PE: 19.1X) - Anfu Technology (2025 PE: 53.2X) - Hailong Cold Chain (2025 PE: 15.2X) - Beiding Co. (2025 PE: 31.2X) [4][5]. - Appliance companies are diversifying into new areas, with recommendations for: - Rongtai Health (2025 PE: 21.1X) - Wanlong Magnetic Plastic (2025 PE: 21.9X) [4][5]. Performance Forecasts - Stone Technology expects a net profit of no less than 1.34 billion, a 31% decline year-on-year for 2025. - Beiding Co. anticipates a revenue of 950 million, a 26% increase year-on-year, with a net profit of 111 million, up 59.1% year-on-year. - Dechang Co. forecasts a net profit between 160 to 200 million, a decline of 51% to 61% year-on-year, with a non-recurring net profit forecasted between 145 to 185 million, down 53% to 63% year-on-year [2][4].

Core Insights - The article emphasizes the importance of practical learning experiences in the field of investment and technology, highlighting the value of direct engagement with leading companies and experts in various industries [2][7][19]. Schedule Overview - The schedule for 2026 includes visits to major tech companies and universities, such as NVIDIA, Tesla, and Stanford University, focusing on cutting-edge technologies and innovations [3][4][5]. - Specific events include closed-door research meetings on AI and technology trends, as well as visits to companies like Huawei, BYD, and others in the robotics and AI sectors [18][19][57]. Company Engagement - The program aims to connect entrepreneurs with top executives and scientists to gain insights into strategic decisions and technological advancements [7][19]. - Participants will explore various sectors, including AI, robotics, and new energy, through hands-on experiences and discussions with industry leaders [19][57]. Learning Philosophy - The initiative promotes a philosophy of "reading extensively and traveling widely," encouraging participants to learn from real-world applications and innovations in technology [2][38]. - The focus is on fostering a mindset of long-term thinking and ethical business practices among entrepreneurs [2][40].

Investment Rating - The report maintains a "Positive" investment rating for the home appliance industry [13] Core Insights - The report analyzes Samsung Electronics' successful transition from home appliances to semiconductor storage, display panels, and mobile phones, providing a reference for China's leading home appliance companies in their industrial upgrades [4] - Samsung Electronics has achieved an average annual compound growth rate of 19% in net profit from 1993 to 2024, making it the largest and fastest-growing home appliance company globally [7][34] - The report emphasizes the importance of proactive engagement with industry changes and policy opportunities during the growth phase of home appliances, highlighting Samsung's strategic investments and efficiency improvements [8][9] Summary by Sections Background and Timing - Samsung Electronics entered the semiconductor storage industry in 1983 when the penetration rate of home appliances in South Korea was rapidly increasing, supported by a strong GDP growth rate of over 10% [8][46] - The company capitalized on government support and market opportunities to navigate early losses and establish a profitable cycle in the semiconductor industry [8][46] Challenges and Strategies - Samsung leveraged its latecomer advantage and implemented a counter-cyclical investment strategy to quickly capture market share, achieving a 39% market share in the storage sector by 2024 [9] - The company focused on efficiency and cost advantages across various dimensions, including organizational structure and production strategies [9] Effects and Outcomes - By 2017, Samsung surpassed Intel to become the world's largest semiconductor manufacturer, with R&D investment increasing from 2% in 1980 to 12% in 2024 [10] - The company successfully expanded into display panels and mobile phones, creating a synergistic industrial system that enhanced its brand image and market position [10] Comparison with Midea Group - Midea Group is positioned to achieve significant industrial upgrades, with a projected 22% revenue contribution from non-home appliance sectors by 2024 and a growth rate of 15%-20% in recent years [11] - The report highlights Midea's advantages in cash flow stability and efficiency, suggesting a strong potential for industrial upgrades [11]

Investment Rating - The industry investment rating is "Overweight" [5] Core Views - The report maintains the "Overweight" rating, indicating expectations for the industry to outperform the market benchmark by over 10% in the next 6-12 months [5][9] - The report highlights significant developments in the home appliance sector, including Midea Group's successful bid for a centralized procurement project with China Mobile, which is expected to enhance its market position [1] - Anker's UV printer shipments have accelerated, with a notable increase in output, reflecting strong demand in the consumer technology segment [3] Summary by Relevant Sections White Goods & Small Appliances - Midea Group has won a centralized procurement project from China Mobile for high-pressure centrifugal chillers, which will support data center cooling needs [1] - The company has previously provided cooling systems for a large-scale liquid-cooled intelligent data center in the Guangdong-Hong Kong-Macao Greater Bay Area [1] Consumer Technology - Anker's E1 printer has seen a significant increase in shipments, with 4,950 units shipped as of January 15, 2026, compared to earlier figures of 100 units in December [3] - Stone Technology has announced a pre-sale for its flagship model G30S Pro, with a starting price of 5,499 yuan, and a new P20 Ultra model priced at 3,899 yuan [3] Company Performance Forecasts - Beiding Co. expects Q4 revenue and net profit to be 30 million and 3 million yuan, respectively, with a year-on-year increase of 20.9% in revenue but a decrease of 9.8% in net profit [2] - For the full year 2025, Beiding anticipates revenue of 95 million yuan and a net profit of 11 million yuan, representing increases of 26.0% and 59.1% year-on-year [2] Investment Recommendations - The report suggests focusing on three main investment lines: 1. White goods, recommending Haier Smart Home, Midea Group, and Gree Electric, with a particular emphasis on Haier due to its transformation success and benefits from the overseas interest rate cycle [7] 2. Selective consumer technology stocks, including Anker Innovation and Ecovacs, while also monitoring Stone Technology and others in the 3D printing supply chain [7] 3. Companies with good growth prospects in international markets, such as TCL Electronics and Chunfeng Power [7]

1月16日，美的集团董事长兼总裁方洪波向全球员工发表了《我们总有道路，前程崭新》的主题演讲。 他表示，"次核心业务要坚定布局，把握机遇突破。在核心业务运转的同时，要为未来而创新，对机器 人、能源、医疗业务要保持战略定力，因为它们具备广阔市场空间，是集团穿越周期的关键保障。" ...

Core Insights - The chairman and president of Midea Group, Fang Hongbo, emphasized a strategic focus on "core growth" for 2026, concentrating on core businesses, markets, and capabilities to foster sustainable growth [2] - Midea's operational strategy in the past year was centered on "simplification to promote growth" and "self-disruption to face challenges," with expectations for significant breakthroughs in technology, product innovation, and global expansion by 2025 [2] - Midea's diverse business segments, including smart home, industrial technology, and medical sectors, have shown considerable growth, with notable product launches such as AI-driven home appliances and advanced HVAC solutions [2][3] Business Segments - The smart home segment introduced several innovative products, including the industry's first AI butler and a 45CM ultra-thin refrigerator, showcasing Midea's commitment to product innovation [2] - The industrial technology segment focused on HVAC and new energy vehicles, launching new products like wide-frequency rotary compressors and dual-stage variable capacity scroll compressors [2] - Midea Medical has entered a new development phase, launching the world's first full-link AI intelligent platform for MRI and acquiring international imaging giant Ricoh Medical to accelerate its entry into the high-end medical market [3] Core Business Focus - Despite the growth of diversified businesses, Midea's core operations in white goods and HVAC remain foundational, with a need to strengthen market advantages through continuous innovation and user experience enhancement [4] - The company aims to solidify its position as a market leader in core businesses while strategically developing its next core sectors: robotics, energy, and medical [4] - KUKA's goal is to become the number one player in the Chinese market, while the medical sector aims to leverage domestic innovation opportunities to build a trillion-yuan industry platform [4] Strategic Mindset - Fang Hongbo expressed a strong sense of urgency regarding market competition, advocating for a mindset of "only the paranoid survive" to encourage self-revolution and break away from path dependence [4] - The management is encouraged to decisively eliminate redundant businesses and inefficient assets, streamline organizational structures, and maintain agility and vitality within the company [5] - There is a call to disrupt existing mindsets and structures to foster growth, warning against the "big company disease" characterized by unclear responsibilities, slow decision-making, and stagnation in innovation [5]