Core Viewpoint - The white goods sector experienced a rise of 1.72% on January 20, led by Whirlpool, while the overall market indices showed slight declines [1]. Group 1: Market Performance - The Shanghai Composite Index closed at 4113.65, down 0.01% [1]. - The Shenzhen Component Index closed at 14155.63, down 0.97% [1]. - The white goods sector saw a net inflow of 844 million yuan from main funds, while retail investors experienced a net outflow of 378 million yuan [1]. Group 2: Individual Stock Performance - Whirlpool (600983) closed at 10.91 yuan, up 3.02%, with a trading volume of 108,100 hands and a transaction value of 116 million yuan [1]. - Gree Electric (000651) closed at 41.28 yuan, up 1.85%, with a trading volume of 906,400 hands and a transaction value of 3.72 billion yuan [1]. - Midea Group (000333) closed at 79.00 yuan, up 1.78%, with a trading volume of 455,400 hands and a transaction value of 3.58 billion yuan [1]. - Haier Smart Home (600690) closed at 26.38 yuan, up 1.70%, with a trading volume of 654,200 hands and a transaction value of 1.71 billion yuan [1]. - Hisense Home Appliances (000921) closed at 24.87 yuan, up 0.85%, with a trading volume of 142,900 hands and a transaction value of 355 million yuan [1]. Group 3: Fund Flow Analysis - Gree Electric saw a main fund net inflow of 4.26 billion yuan, while retail investors had a net outflow of 2.02 billion yuan [2]. - Midea Group had a main fund net inflow of 4.05 billion yuan, with retail investors experiencing a net outflow of 793.78 million yuan [2]. - Haier Smart Home recorded a main fund net inflow of 1.16 billion yuan, while retail investors had a net outflow of 1.58 billion yuan [2]. - Hisense Home Appliances faced a net outflow of 441.9 million yuan from main funds, but retail investors had a net inflow of 258.89 million yuan [2].

HISENSE HOME APPLIANCES GROUP CO., LTD. 海信家電集團股份有限公司 （在中華人民共和國註冊成立的股份有限公司） （股份代號：00921） 須予披露交易 認購理財產品 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而産生或 因依賴該等內容而引致的任何損失承擔任何責任。 董事會宣佈，於 2025 年 7 月 16 日至 2026 年 1 月 20 日期間，本公司的附屬公司空調營銷 公司及冰箱營銷公司（作為認購方）訂立華能信託理財協議，以認購華能信託理財產品， 認購金額為人民幣 1,815,000,000 元。 本集團使用自有閒置資金支付該等華能信託理財協議下的認購金額。 每份華能信託理財協議本身並不構成本公司根據上市規則第 14.06 條須予披露的交易。然 而，根據上市規則第 14.22 條，當該等華能信託理財協議下的認購金額合併計算時，相關適 用百分比率（定義見上市規則）超過 5%但低於 25%。因此，該等華能信託理財協議下的交 易按合併計算基準構成本公司的須予披露交 ...

Investment Rating - The report maintains an "Outperform the Market" rating for the home appliance industry [5][6][12]. Core Views - The home appliance sector is expected to recover in 2026, driven by the continuation of national subsidies and stabilization of exports, suggesting a positive outlook for leading white goods companies [1][12][18]. - December retail performance for home appliances showed signs of bottoming out, with significant declines in major appliances but a relatively stable performance in small appliances [1][19]. - The report highlights the resilience of leading companies in the home appliance sector, with a focus on white goods, which are expected to maintain steady growth despite high base effects [12][13]. Summary by Sections 1. Key Recommendations - Recommended companies include Midea Group, Haier Smart Home, TCL Smart Home, Gree Electric Appliances, and Hisense Home Appliances for white goods; Hisense Visual for black goods; and Roborock, Bear Electric, and Ecovacs for small appliances [4][12][13]. 2. December Retail Performance - In December, the retail sales of major appliances saw declines exceeding 20%, while small appliances showed slightly better demand, with air fryers experiencing growth [1][19]. - The offline sales channels for major appliances faced declines of over 40%, while kitchen small appliances remained relatively stable [1][19]. 3. Export Performance - In December, China's home appliance exports decreased by 8.1% year-on-year, with air conditioners facing a significant decline of 20.7% [2][37]. - Other categories like refrigerators and washing machines showed modest growth, indicating a mixed performance across different product lines [2][37]. 4. U.S. Market Insights - U.S. retail sales for home appliances showed a slight increase of 0.8% in November, indicating a gradual return to stable growth despite challenges such as tariffs and inflation [3][43]. - The inventory levels in U.S. appliance stores are returning to normal, suggesting improved market conditions [3][43]. 5. Company Earnings Forecasts - The report provides earnings forecasts for key companies, indicating expected EPS growth for Midea Group, Gree Electric Appliances, and Haier Smart Home, among others, with all rated as "Outperform the Market" [5][76].

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]

Core Viewpoint - The "Guangdong Goods Going Global" spring initiative aims to enhance consumer spending and expand the influence of Guangdong products, showcasing over 30 home appliance companies and their products through live streaming and on-site sales [1][3]. Group 1: Event Overview - The event took place on January 15 at the Shunde Tanzhou Convention and Exhibition Center, featuring major brands like Midea, Gree, Galanz, and Hisense [1][3]. - Sales during the live broadcast exceeded 100,000 yuan within three hours, indicating a 100% increase compared to regular sales [1][3]. Group 2: Evolution of Guangdong Goods - Guangdong goods have evolved from basic necessities to high-quality products, reflecting a shift in consumer demand from mere survival to quality and innovation [3][4]. - The evolution is characterized by three main trends: smart technology, green competitiveness, and aesthetic manufacturing [3][4]. Group 3: Strategic Changes - The Guangdong industry is transitioning from OEM to brand development, supply chain optimization, and international standards, enhancing the value proposition of Guangdong products [4]. - The initiative emphasizes not just product sales but also the transmission of quality confidence and brand value [4]. Group 4: Sales and Marketing Strategies - The initiative includes government subsidies, corporate discounts, and platform support, with companies like Gree offering up to 15% discounts and other brands providing various promotional offers [6]. - The event's success is attributed to the continuous optimization of Guangdong's industrial structure and product quality, with the home appliance sector alone exceeding 1 trillion yuan in scale [7][8]. Group 5: Regional Manufacturing Strength - Foshan was chosen as the launch site due to its concentration of advantageous manufacturing industries, contributing significantly to global production of microwaves and water heaters [8]. - The region has produced major brands like Midea and Galanz, as well as smaller innovative companies, forming a robust industrial cluster [8]. Group 6: Technological and Aesthetic Innovations - Companies are focusing on smart technology and green solutions, with products like Gree's AI-powered air conditioners and Galanz's energy-efficient appliances leading the way [11][12]. - The integration of technology and aesthetics is transforming products from mere tools to expressions of emotional and aesthetic value, enhancing user experience [13][14]. Group 7: Future Directions - Guangdong plans to continue its promotional efforts with a weekly focus on different product categories, aiming to cover all consumer needs and enhance the global reach of its products [9][14]. - The integration of cutting-edge technology, green practices, and aesthetic design is seen as essential for maintaining competitiveness in the global market [14].

Core Viewpoint - The "Guanghuo Hang Tianxia" spring campaign was officially launched in Foshan, marking the beginning of a large-scale online promotion initiative for Guangdong in 2026, starting with a home appliance special event [1] Group 1: Event Overview - The campaign features over 30 home appliance companies and industry associations from Guangdong, showcasing quality products and engaging in live-streaming sales to enhance the influence of "Guanghuo" [1] - The home appliance special is the starting point, with plans to expand to more advantageous industrial clusters in Guangdong in the future [1] Group 2: Company Insights - Hisense, represented by its Shunde Park General Manager Zou Hong, highlighted the company's history of innovation, including the first dual-door refrigerator and the first split air conditioner in China [1] - Zou emphasized the importance of technological advancement and quality improvement as a long-term development path for Hisense [1] - The collaborative advantage of Guangdong's industry was noted, where the presence of complete machine needs leads to the emergence of supporting parts industries, contributing to rapid industrial development in the region [1]

Core Viewpoint - The white goods sector experienced a slight decline of 0.08% on January 15, with Aucma leading the drop, while the Shanghai Composite Index fell by 0.33% and the Shenzhen Component Index rose by 0.41% [1] Group 1: Market Performance - The closing price of Whirlpool was 10.69, with an increase of 3.69% and a trading volume of 135,700 shares, amounting to 144 million yuan [1] - Midea Group closed at 77.22, with a marginal increase of 0.09%, trading 360,300 shares for a total of 2.794 billion yuan [1] - Gree Electric Appliances closed at 40.12, down by 0.20%, with a trading volume of 324,800 shares and a transaction value of 1.305 billion yuan [1] - Haier Smart Home closed at 25.82, down by 0.42%, with a trading volume of 355,500 shares and a transaction value of 920 million yuan [1] - Aucma closed at 7.86, down by 2.00%, with a trading volume of 216,200 shares and a transaction value of 170 million yuan [1] Group 2: Capital Flow - The white goods sector saw a net inflow of 401 million yuan from institutional investors, while retail investors experienced a net outflow of 12.22 million yuan [1] - Midea Group had a net inflow of 24.4 million yuan from institutional investors, but a net outflow of 35.4 million yuan from retail investors [2] - Haier Smart Home recorded a net inflow of 11.9 million yuan from institutional investors, with a significant net outflow of 122 million yuan from retail investors [2] - Gree Electric Appliances had a net inflow of 61.64 million yuan from institutional investors, while retail investors saw a net outflow of 14.52 million yuan [2] - Aucma experienced a net outflow of 18.75 million yuan from institutional investors, but a net inflow of 13.98 million yuan from retail investors [2]

Summary of the Conference Call Transcript Industry Overview - **Industry**: China Consumer Sector - **Outlook**: The sector is believed to be in the early stage of a multi-year recovery cycle that began in Q3 2024, with expectations for gradual improvement in consumer sentiment and spending through 2026E [2][11][12] Key Insights - **Valuation**: MSCI China Consumer Discretionary and Staples are trading at 17x and 15x 12-month forward PE, approximately one standard deviation below the 10-year averages, indicating that current valuations do not reflect a potential consumption recovery [2][9] - **Consumer Confidence**: The China Consumer Confidence Index has been trending upwards since September 2024, suggesting a gradual restoration of consumer confidence despite ongoing challenges in the property market [12][19] - **K-shaped Recovery**: The recovery is characterized by a K-shaped trend, where mid- to high-income consumers in tier-1 cities are expected to lead spending, while lower-tier city consumers remain focused on value for money [3][48] Consumer Behavior Trends - **Shifting Preferences**: A UBS Evidence Lab survey indicates a divergence in consumer behavior, with over 50% of mid- to high-income consumers reporting investment gains and showing strong spending intentions, particularly in premium and experiential categories [3][37] - **Spending Intentions**: The strongest spending intentions are noted in beauty and skincare (41%) and tourism (37%), reflecting a shift towards experiential and premium spending [51] - **Investment Gains**: 64-74% of mid- to high-income consumers reported increased investment returns, with many planning to reinvest or spend on travel, health services, and consumer electronics [40][41] Stock Implications - **Company Ratings**: - Upgrades to Neutral for Fenjiu due to expected benefits from non-business baijiu consumption - Buy ratings maintained for companies like MIXUE, Guming, China Foods, CR Beer, and YUM China, among others [4] - **Dividend Payouts**: Premium baijiu companies are noted for their >75% dividend payout, which is expected to protect share prices from downside risks [4] Structural Growth Opportunities - **Emerging Themes**: Key investment themes for 2026E include changing consumer preferences, corporate restructuring, and industry consolidation, particularly in sectors like home appliances and mass-market consumption [14][50] - **Corporate Restructuring**: Companies are expected to adapt their business models to align with changing consumer behaviors, which may lead to sustainable long-term earnings growth [4][50] Risks and Challenges - **Property Market Downturn**: The ongoing downturn in the property market is anticipated to weigh on household balance sheets, potentially impacting consumer spending [13][48] - **Policy Support**: The pace of recovery is contingent on stabilizing the property market and effective policy implementation to boost consumption [13][48] Conclusion - The China consumer sector is poised for a recovery, driven by improving consumer confidence and shifting spending patterns. However, the recovery will be uneven across different income groups and city tiers, necessitating a nuanced investment approach to capture emerging opportunities while being mindful of potential risks associated with the property market downturn.

Summary of Key Points from the Conference Call Industry Overview - **Industry**: China Consumer Appliances Sector - **Outlook**: The major appliance sector is entering a post-subsidy downcycle in H225-27, with expectations of subdued domestic demand in H126 due to fading subsidy benefits. However, demand may stabilize in H226 and potentially turn around in 2027 [2][11]. Core Insights - **Domestic Demand**: Anticipated declines in shipments for air conditioners (AC), washing machines (WM), refrigerators, and range hoods by 5%, 2%, 4%, and 5% YoY respectively in 2026, as trade-in subsidies continue to impact the market [2]. - **Average Selling Price (ASP)**: Expected to remain stable in 2026, with potential product mix downgrades offset by industry-wide price hikes led by Midea due to rising copper prices [2][36]. - **Consumer Survey Findings**: A UBS Evidence Lab survey indicated limited upside in white goods demand for 2026, with a median household budget for home appliances expected to drop by 11% YoY, particularly in tier-1 cities where the decline is projected at 27% [3][27]. Export Challenges and Opportunities - **Exports**: Global white goods demand is projected to grow by 1.5% YoY in 2026, but Chinese exports of AC, WM, and refrigerators are expected to decline by 4.0%, 0.2%, and 4.3% YoY respectively. Exports to Europe and the US are likely to remain muted due to US tariffs and capacity relocation [4][16]. - **Emerging Markets**: There is potential for demand growth in emerging markets and the US, particularly with lower interest rates [4][16]. Stock Recommendations - **Buy Ratings**: Midea, Haier, Hisense, and Roborock are recommended for their potential to consolidate market share and grow margins through price hikes. Midea is favored for its overseas demand exposure, Haier for its margin upside from US rate cuts, and Roborock as a beneficiary of trade-in subsidies [5][10]. - **Sell Rating**: Gree is viewed as vulnerable to domestic headwinds [5]. Earnings Forecast Adjustments - **Earnings Forecasts**: Adjustments made due to lower-than-expected domestic appliance sales and rising raw material prices, particularly copper. Price targets for major appliance companies have been revised upwards as valuations are rolled forward to 2027 [7][8]. Consumer Behavior Insights - **Purchase Intentions**: The survey revealed a decline in purchase intentions across most categories, with notable increases for TVs and cleaning appliances. The largest declines were seen in AC and WM, likely due to prior subsidy usage [3][27]. - **RVC Market**: Purchase intentions for leading robot vacuum cleaner brands (Ecovacs, Roborock, Dreame) have increased, indicating a shift towards these products due to improved affordability and consumer education [3][44]. Additional Insights - **Subsidy Impact**: The impact of trade-in subsidies has been significant, with 128 million units purchased in 2025. However, the demand pull-forward effect suggests limited upside for 2026 [19][26]. - **Market Trends**: The importance of smart features and integration with smart home platforms is rising among consumers when selecting RVCs, indicating a trend towards more technologically advanced products [45]. This summary encapsulates the key points from the conference call, highlighting the current state and future outlook of the China consumer appliances sector, along with consumer behavior trends and stock recommendations.