Investment Rating - The investment rating for Hisense Home Appliances is "Buy" with a target price not specified [5] Core Views - The central view indicates that the central air conditioning (CAC) business is under pressure due to weak real estate trends, while the white goods segment shows operational resilience [3][2] - Future cost reduction and product structure optimization are expected to drive profit improvement [3] Financial Performance Summary - For the first three quarters of 2025, the company achieved operating revenue of 71.53 billion yuan, a year-on-year increase of 1.4%, and a net profit attributable to shareholders of 2.81 billion yuan, up 0.7% [1] - In Q3 2025, the company reported operating revenue of 22.19 billion yuan, a 1.2% increase, but a net profit of 735 million yuan, down 5.4% [1] - The CAC business is expected to continue facing challenges, while the home appliance segment shows strong growth, particularly in the refrigerator and washing machine categories, with profits up 35% year-on-year [2] Segment Performance Summary - **CAC**: The CAC business is under pressure, but maintains a leading market share despite domestic sales challenges [2] - **Home Appliances**: The home appliance segment saw a 41% increase in domestic sales but a 20% decrease in exports [2] - **Refrigerators and Washers**: This segment experienced steady growth with a profit increase of 35% year-on-year, leading the industry in growth rates [2] - **Kitchen Appliances**: Revenue increased by 50% year-on-year, with offline channels also showing significant growth [2] Financial Projections - Projected net profits for 2025, 2026, and 2027 are 3.49 billion yuan, 3.45 billion yuan, and 3.68 billion yuan respectively, with corresponding dynamic valuations of 10.2x, 10.3x, and 9.7x [3]

Core Insights - The event organized by Rongsheng Refrigerator in Changsha JD MALL featured a unique "flash + live" brand experience, showcasing the company's innovative technologies and engaging storytelling [2][4] - The live broadcast highlighted the IDP Dual Purification 2.0 technology and WILL Fresh-keeping technology, emphasizing the brand's commitment to providing a healthy lifestyle through effective food preservation [2][4] Group 1: Event Highlights - The event featured actress He Hongshan as a "super user," who performed in an immersive live drama that creatively integrated ancient and modern themes [2] - The storyline revolved around food preservation challenges, showcasing the capabilities of the Rongsheng Fangtang refrigerator, particularly its 99.9% active odor removal rate and zero cross-contamination effect [2][4] - The live broadcast served as a platform for deep communication of the brand's values, effectively addressing consumer demands for food preservation and quality living [4] Group 2: Product Performance - The Rongsheng 511 WILL refrigerator demonstrated its ability to rejuvenate wilted fruits and vegetables, reinforcing the product's promise of extreme freshness and food safety [4] - The event included a segment where the company president recommended various models from the Fangtang series, highlighting their technical advantages in odor and virus purification [4] - Data from AVC indicated that the Rongsheng Fangtang refrigerator flagship model ranked first in offline new product sales from January to June 2025, while the 515 model topped online sales for French-style four-door refrigerators, showcasing a "dual-line leading" position in the market [4][5] Group 3: Market Impact - As the Double Eleven pre-sale period approaches, the competitive edge of the Fangtang series refrigerators is expected to further intensify, with two models ranking among the top three in market sales during the 41st week of 2025 [5] - The "flash + live" event not only energized sales for Double Eleven but also provided a model for the industry on how to synergize technological innovation with user insights [5]

Core Insights - The home appliance industry has witnessed a significant innovation with Hisense refrigerator launching the world's first magnetic light curtain door panel, which has been recognized in the 2025 International CMF Design Awards [1][5] - This breakthrough technology addresses the long-standing user pain point of glass door refrigerators being aesthetically pleasing yet unable to hold magnets, redefining the design standards for high-end refrigerators [1][5] Group 1: Technological Innovation - Hisense's magnetic light curtain door panel integrates a unique magnetic medium composite technology within the glass, allowing for strong magnetic adhesion without compromising aesthetics, flatness, or insulation performance [5][6] - The door panel enables users to attach family photos, travel mementos, and reminders, transforming the refrigerator into a center for family memories and emotional connections [5][6] Group 2: Aesthetic and Functional Attributes - The magnetic light curtain door panel features the industry's first SMI magnetic composite technology, offering various texture options that enhance visual appeal and home compatibility while providing practical attributes like antibacterial properties, high hardness, fingerprint resistance, and ease of cleaning [6] - This innovation represents Hisense's commitment to user-centered design and continuous technological advancement, balancing external user experience with internal preservation technology [6] Group 3: Market Performance - Hisense's third-quarter report indicates strong performance in refrigerator sales, ranking first in sales across 11 global markets, showcasing the company's product strength, brand power, and global operational capabilities [7] - The successful integration of user-centric innovations, from the magnetic light curtain to vacuum preservation technology, has garnered positive feedback from global consumers, affirming Hisense's competitive edge in the high-end market [7]

Market Overview - The white goods sector experienced a slight decline of 0.1% on November 4, with Changhong Meiling leading the drop [1] - The Shanghai Composite Index closed at 3960.19, down 0.41%, while the Shenzhen Component Index closed at 13175.22, down 1.71% [1] Stock Performance - Notable stock performances in the white goods sector included: - Snowman Electric (001387) closed at 14.07, up 0.64% with a trading volume of 23,100 shares - TCL Smart Home (002668) closed at 11.10, up 0.63% with a trading volume of 348,200 shares - Gree Electric (000651) closed at 39.71, up 0.48% with a trading volume of 398,200 shares - Haier Smart Home (600690) closed at 26.65, down 0.26% with a trading volume of 447,900 shares - Midea Group (000333) closed at 75.16, down 0.31% with a trading volume of 302,600 shares [1] Capital Flow - The white goods sector saw a net inflow of 177 million yuan from institutional investors, while retail investors experienced a net outflow of 77.63 million yuan [1] - Detailed capital flow for key companies included: - Midea Group (000333) had a net inflow of 97.02 million yuan from institutional investors, while retail investors had a net outflow of 13.1 million yuan [2] - Gree Electric (000651) saw a net inflow of 74.56 million yuan from institutional investors, with retail investors experiencing a net outflow of 3.70 million yuan [2] - Haier Smart Home (600690) had a net inflow of 54.68 million yuan from institutional investors, while retail investors had a net inflow of 617,320 yuan [2]

Core Viewpoint - Hisense Home Appliances has been awarded the Most Investment Value Award at the 2024 Golden Bull Awards, marking the third consecutive year the company has received this recognition, reflecting its strong market performance and governance capabilities [1][3][6]. Group 1: Awards and Recognition - The Golden Bull Award is a prestigious financial brand established by China Securities Journal, aimed at promoting the healthy development of listed companies [3]. - Hisense Home Appliances has won the Most Investment Value Award, which is one of the highest recognition categories, based on strict criteria including company scale, profitability, debt repayment ability, and innovation capacity [3]. Group 2: Company Performance - Over the past decade, Hisense Home Appliances has achieved a compound annual growth rate (CAGR) of 16% in revenue and a remarkable 21% in net profit attributable to shareholders [5]. - The company emphasizes a long-term development philosophy and has established a robust corporate governance mechanism to enhance operational efficiency and quality [5]. Group 3: Innovation and Technology - Hisense is committed to technological innovation, focusing on creating emotional value and satisfaction for users through advanced technology [5]. - The company is advancing its AI strategy, utilizing its self-developed Star Sea model to create five major AI categories, enhancing smart living experiences and home management [5]. Group 4: Sustainability Initiatives - Hisense integrates ESG principles throughout its operations, focusing on employee growth, investor returns, and public welfare to create long-term value [6]. - The company has responded to the national "dual carbon" strategy by publishing its 2024 Carbon Neutrality White Paper, aiming for carbon neutrality in its operations by 2050 [6].

Market Overview - The white goods sector experienced a decline of 0.85% on November 3, with Midea Group leading the drop [1] - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1] Individual Stock Performance - Aokema (600336) saw a closing price of 7.30, with an increase of 3.11% and a trading volume of 241,300 shares, totaling 174 million yuan [1] - TCL Smart Home (002668) closed at 11.03, up 1.29%, with a trading volume of 419,700 shares, amounting to 459 million yuan [1] - Midea Group (000333) closed at 75.39, down 1.32%, with a trading volume of 282,000 shares, totaling 2.132 billion yuan [1] Capital Flow Analysis - The white goods sector saw a net outflow of 559 million yuan from institutional investors, while retail investors contributed a net inflow of 510 million yuan [1] - Among individual stocks, Hisense Home Appliances (000921) experienced a net outflow of 35.42 million yuan from institutional investors [2] - Aokema (600336) had a net inflow of 17.79 million yuan from institutional investors, while retail investors contributed a net inflow of 4.70 million yuan [2]

Investment Rating - Industry rating: Recommended [8] Core Insights - The report highlights that the export production of major home appliances (air conditioners, refrigerators, and washing machines) in November 2025 outperformed domestic sales, with total production of 28.47 million units, a year-on-year decrease of 17.7% [17] - Air conditioner exports showed resilience with a production of 7.46 million units, down 13.8% year-on-year, while domestic production fell by 21.2% to 5.3 million units [17] - Refrigerator production for domestic sales was 3.76 million units, down 10.9% year-on-year, while exports were 4.02 million units, down 1.5% [2][18] - Washing machine exports increased by 5.0% year-on-year to 3.75 million units, while domestic production decreased by 2.6% to 4.18 million units [3][18] - The overall air conditioner export volume for the cold year 2025 reached 88.02 million units, an increase of 12.3% year-on-year, with export value at $16.97 billion, up 13.7% [19] Summary by Sections 1. Weekly Topic: November Production Performance - Air conditioners, refrigerators, and washing machines showed stronger export performance compared to domestic sales, with significant production declines in domestic markets due to high inventory and cost pressures [17] - The report attributes the decline in domestic production to factors such as inventory management, high raw material costs, and the impact of previous government subsidy policies [17] 2. Company Announcements - Hisense Home Appliances reported a revenue of 71.533 billion yuan for Q1-Q3 2025, a year-on-year increase of 1.35%, with a net profit of 2.812 billion yuan, up 0.67% [21] - Midea Group's revenue for Q1-Q3 2025 was 364.7 billion yuan, a 14% increase year-on-year, with a net profit of 37.9 billion yuan, up 20% [24] - Haier Smart Home reported a revenue of 234.1 billion yuan for Q1-Q3 2025, a 10% increase year-on-year, with a net profit of 17.4 billion yuan, up 15% [25] 3. Data Tracking - Raw material prices showed slight increases, with copper and aluminum prices rising by 0.9% and 1.1% respectively as of October 31, 2025 [28] - Shipping rates increased, with the CCFI composite index rising by 2.89% [30] - Real estate data indicated a decline in sales area and construction activity, with year-on-year decreases of 5.5% and 15.3% respectively for the first nine months of 2025 [33]

Group 1 - The core innovation in the home appliance industry is the launch of Hisense's magnetic light curtain door panel, which addresses the user pain point of traditional glass door refrigerators being aesthetically pleasing but lacking magnetic attachment capabilities [4][5] - Hisense's magnetic light curtain door panel technology utilizes a unique magnetic composite technology within the inner layer of special glass, allowing for strong magnetic adhesion without compromising the panel's aesthetics, flatness, or insulation performance [4] - The new door panel design enhances the refrigerator's role as an emotional center in the home, allowing users to attach personal items like photos and notes, thus integrating functionality with emotional significance [4] Group 2 - Hisense's exploration of aesthetics continues with the introduction of the magnetic light curtain door panel, which features the industry's first SMI magnetic composite technology, offering various texture options and practical attributes such as antibacterial properties, high hardness, fingerprint resistance, and ease of cleaning [5] - According to Hisense's third-quarter report, the refrigerator segment has shown strong performance, ranking first in sales across 11 countries globally, indicating a significant enhancement in product strength, brand power, and global operational capabilities [5] - Hisense's user-centered innovation approach, from the magnetic light curtain to vacuum technology for preserving food freshness, is receiving positive feedback from global consumers [5]

Investment Rating - The investment rating for Hisense Home Appliances is "Accumulate" [1] Core Views - The company achieved revenue of 71.533 billion yuan in the first three quarters of 2025, a year-on-year increase of 1.35%, with a net profit attributable to shareholders of 2.812 billion yuan, up 0.67% year-on-year [2] - In Q3 2025, the company reported revenue of 22.192 billion yuan, a year-on-year increase of 1.16%, but the net profit attributable to shareholders decreased by 5.40% to 735 million yuan [2] - The central air conditioning business is under pressure due to the impact of real estate renovations, while the ice washing segment shows strong growth with a profit increase of over 35% year-on-year [3] - The gross margin remained stable at 21.08% for the first three quarters of 2025, with a slight increase in sales expense ratio [4] - The company is focusing on technological innovation and brand expansion, sponsoring major international sports events to enhance its global brand influence [5] Financial Summary - Revenue projections for 2025-2027 are adjusted to 94.687 billion yuan, 101.099 billion yuan, and 107.838 billion yuan respectively, with net profit estimates of 3.406 billion yuan, 3.831 billion yuan, and 4.219 billion yuan [6] - The earnings per share (EPS) for 2025-2027 are expected to be 2.46 yuan, 2.77 yuan, and 3.05 yuan respectively, with corresponding price-to-earnings (PE) ratios of 10, 9, and 8 [6] - The company maintains a gross margin of around 20.9% to 21.2% over the forecast period [8]

Group 1 - The core viewpoint of the report is that Hisense Home Appliances (000921.SZ) is rated as "Buy" due to expected steady revenue growth in Q3 2025, despite a slight decline in profits [1] - The report highlights that the profitability of Hisense is under short-term pressure, but the overall control of period expense ratio is reasonable [1] Group 2 - The report indicates that there are risks associated with fluctuating tariff policies, exchange rates, raw material prices, rising shipping and labor costs, market risks from trade protectionism, and technological iterations [1]