Core Points - Supor announced the cancellation of 56,720 stock options due to the failure of the relevant business unit to meet the 100% performance assessment target for the first exercise period of the 2023 stock option incentive plan [2] Group 1 - The eighth meeting of the eighth board of directors and the eighth supervisory board was held on October 23, 2025, where the proposal to cancel part of the granted stock options was approved [2] - The cancellation of stock options has been completed at the Shenzhen branch of China Securities Depository and Clearing Co., Ltd. on November 6, 2025 [2] - The decision was made in accordance with the relevant provisions of the 2023 stock option incentive plan and the authorization from the second extraordinary general meeting of shareholders in 2023 [2]

Market Overview - The small home appliance sector increased by 0.77% compared to the previous trading day, with Bi Yi Co., Ltd. leading the gains [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Stock Performance - Bi Yi Co., Ltd. (603215) closed at 21.05, up 3.34% with a trading volume of 69,500 shares and a turnover of 146 million yuan [1] - Other notable performers include: - Kai Neng Health (300272) at 6.91, up 2.98% [1] - Lek Electric (603355) at 25.95, up 2.57% [1] - Dechang Co., Ltd. (605555) at 19.53, up 2.04% [1] - ST Dehao (002005) at 2.73, up 1.49% [1] Capital Flow - The small home appliance sector saw a net inflow of 62.27 million yuan from institutional investors, while retail investors experienced a net outflow of 67.04 million yuan [2] - The main capital inflow was concentrated in Dechang Co., Ltd. with a net inflow of 46.16 million yuan [3] - Kai Neng Health also attracted significant institutional investment with a net inflow of 24.51 million yuan [3] Individual Stock Capital Flow - Bi Yi Co., Ltd. had a net inflow of 8.20 million yuan from institutional investors, but retail investors withdrew 39.75 million yuan [3] - Other stocks with notable capital flows include: - Su Poer (002032) with a net inflow of 3.66 million yuan from institutional investors [3] - Jiu Yang Co., Ltd. (002242) with a net inflow of 3.49 million yuan from institutional investors [3]

Core Insights - The small appliance industry has experienced significant growth post a "black swan" event five years ago, but recent quarterly reports indicate a divergence in performance among companies within the sector [2][12] - Leading companies in the cleaning appliance segment, such as Ecovacs and Roborock, continue to show strong growth, while traditional kitchen appliance manufacturers like Supor and Joyoung face revenue declines [2][12] Cleaning Appliances - Ecovacs reported a revenue of 12.877 billion yuan for the first three quarters, a year-on-year increase of 25.93%, with a net profit of 1.418 billion yuan, reflecting a staggering growth of 130.55% [3] - Roborock achieved a revenue of 4.163 billion yuan in the third quarter, a year-on-year growth of 60.71%, significantly surpassing the global average growth rate of 28% for smart cleaning devices [3] - The growth in cleaning appliances is driven by continuous technological upgrades, product innovations, and global channel expansion [3][4] - Despite high growth rates, Ecovacs faces challenges with a sequential decline in revenue and net profit in the third quarter compared to the second quarter, indicating potential market saturation [5] - Roborock is experiencing a "revenue growth without profit increase" scenario, with a net profit decline of 29.51% despite a revenue increase of 72.22% [6] Kitchen Appliances - The kitchen appliance sector is under pressure, with Supor reporting a slight revenue increase of 2.33% but a net profit decline of 4.66% for the first three quarters [7] - Joyoung's revenue decreased by 9.7% in the first three quarters, highlighting the overall market demand weakness in kitchen appliances [7] - Supor's performance is hindered by a reliance on the domestic market, which has stagnated, and an over-dependence on its parent company, SEB Group, for overseas sales [8] - Joyoung needs to find new growth avenues as its traditional product lines, like soybean milk machines, face declining market interest due to increased competition [11] Market Dynamics - The small appliance industry is witnessing a clear divide in performance based on product categories, with cleaning appliances benefiting from low penetration rates and innovation, while kitchen appliances struggle with market transformation challenges [12] - Companies like Bear Electric have managed to achieve growth through product innovation and channel optimization, indicating that adaptability is key in the current market landscape [12] - Recent developments in US-China trade relations may provide opportunities for small appliance companies to negotiate better pricing with overseas clients, potentially benefiting manufacturers like Supor [12]

Core Insights - The article discusses the third-quarter report of Jiang Cheng, a well-known fund manager at Zhongtai Asset Management, highlighting his investment strategies and portfolio adjustments in response to market conditions [1][3][12]. Fund Performance and Adjustments - Jiang Cheng's funds maintained a high level of stability with passive adjustments, showing no new stocks added to the heavy positions during the quarter [3][4]. - Despite the A-share market reaching a 10-year high, Jiang Cheng's performance slightly lagged behind the benchmark, indicating a conservative approach amidst a market driven by emerging industries [3][5]. - The total assets under Jiang Cheng's management decreased by nearly 400 million yuan, reaching 12.219 billion yuan by the end of the third quarter of 2025 [4]. Investment Strategy - Jiang Cheng's strategy involved a "buy low, sell high" approach, where he reduced positions in stocks that had appreciated significantly while increasing holdings in those that had declined [6][12]. - In the third quarter, Jiang Cheng increased his positions in bank stocks significantly, with a 46.23% increase in Hong Kong's Industrial and Commercial Bank and a 25.06% increase in A-share's China Merchants Bank [9][10]. - The focus remained on sectors like construction, real estate, and banking, with a notable lack of engagement in high-growth technology stocks [5][12]. Portfolio Composition - The concentration of holdings in Jiang Cheng's funds slightly increased, with Zhongtai Xingyuan and Zhongtai Yuheng reaching 72.12% and 72.40% respectively [8]. - Jiang Cheng's funds saw net redemptions, prompting adjustments in heavy positions to comply with regulatory limits [6][7]. Market Outlook - Jiang Cheng emphasized a long-term investment perspective, focusing on the overall potential of assets rather than short-term fluctuations [12][13]. - He acknowledged the rapid demand growth in sectors like artificial intelligence and new energy, while maintaining a cautious stance on the current market dynamics [12].

Group 1 - The core viewpoint is that China's per capita disposable income is increasing, leading to a rise in service consumption expenditure as a proportion of total consumption [1] - Per capita disposable income in China rose from 30,733 yuan in 2019 to 41,314 yuan in 2024, with a CAGR of 6.10% [1] - The proportion of per capita service consumption expenditure in total consumption increased from 42.61% in 2020 to 46.11% in 2024 [1] Group 2 - Consumers are shifting from material consumption to a pursuit of spiritual life, reflected in the growth of tourism and cultural industries [2] - The emotional economy market in China is steadily increasing, with a projected market size of 23,077.67 billion yuan in 2024, expected to grow to 27,185.50 billion yuan in 2025, representing a year-on-year growth of 17.80% [2] - The emotional consumption market is categorized into three main types: strong stickiness consumption, social consumption, and self-pleasing consumption [3] Group 3 - Investment recommendations suggest embracing new home appliances with emotional value, focusing on three areas: panoramic/action cameras, robotic vacuum cleaners, and kitchen small appliances [4] - The market for handheld smart imaging devices, such as panoramic and action cameras, is expected to enter a high growth phase, driven by consumer demand for emotional and experiential consumption [5] - The robotic vacuum cleaner segment is experiencing rapid growth, with domestic brands expanding their global market share, indicating a shift towards technology-driven emotional value in home cleaning [7] - Kitchen small appliances, such as coffee machines and juice makers, are expected to grow due to their health, convenience, and social attributes, with a focus on emotional value [8]

Investment Rating - The industry investment rating is "Outperform the Market" [90] Core Viewpoints - The report emphasizes the rise of emotional consumption in the home appliance sector, driven by increasing disposable income and changing consumer preferences towards emotional value [8][9][13] - The emotional economy market in China is projected to grow significantly, reaching approximately 27,185.50 billion yuan in 2025, with a year-on-year growth of 17.80% [13] - The report suggests focusing on three key areas: panoramic/sport cameras, robotic vacuum cleaners, and kitchen small appliances, which are expected to benefit from emotional value and technological advancements [85][86][87] Summary by Sections Emotional Value and Consumer Demand - The increase in disposable income in China has led to an upgrade in the structure of consumer demand, with per capita disposable income rising from 30,733 yuan in 2019 to 41,314 yuan in 2024, reflecting a CAGR of 6.10% [8] - Consumers are shifting from material needs to a pursuit of spiritual life, with emotional consumption becoming more prominent [9][13] Emotional Economy Market - The emotional economy market in China is expected to grow from 23,077.67 billion yuan in 2024 to over 45,000 billion yuan by 2029, indicating a robust growth trajectory [13] - Consumer preferences are categorized into three types: strong stickiness consumption (54.57%), social consumption (26.29%), and self-pleasure consumption (19.14%) [13] Key Consumer Demographics - The primary consumers of emotional products are young people, particularly those aged 25-34, who represent 44% of the emotional economy consumer base [20] - Emotional consumption is driven by the need for companionship and emotional resonance, with 97.34% of respondents indicating these as primary motivations [20] Product Trends - The demand for panoramic and sports cameras is increasing due to their ability to capture and share life experiences, with the global market for handheld smart imaging devices expected to grow significantly [39] - Robotic vacuum cleaners are gaining popularity as they offer technological advancements and emotional value by freeing up time for consumers [54][86] - Kitchen small appliances are seeing growth in categories like coffee machines and health-related products, driven by consumer interest in emotional value and functionality [67][87] Company Focus - The report recommends focusing on companies like Insta360 in the panoramic/sport camera sector, Roborock and Ecovacs in the robotic vacuum cleaner market, and Beiding and Bear in the kitchen small appliance segment [85][86][87]

Market Overview - The small home appliance sector experienced a decline of 0.94% on November 3, with Xiaoxiong Electric 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] Stock Performance - Notable gainers in the small appliance sector included: - ST Dehao: Closed at 2.70, up 5.06% with a trading volume of 266,900 shares and a turnover of 71.53 million yuan [1] - Bi Yi Co., Ltd.: Closed at 20.36, up 3.25% with a trading volume of 47,200 shares and a turnover of 94.92 million yuan [1] - Li Ren Technology: Closed at 29.20, up 2.10% with a trading volume of 19,300 shares and a turnover of 56.44 million yuan [1] - Major decliners included: - Xiaoneng Electric: Closed at 46.25, down 4.05% with a trading volume of 61,600 shares and a turnover of 284 million yuan [2] - Stone Technology: Closed at 156.97, down 3.94% with a trading volume of 88,100 shares and a turnover of 1.379 billion yuan [2] Capital Flow - The small home appliance sector saw a net outflow of 157 million yuan from institutional investors, while retail investors had a net inflow of 205 million yuan [2] - Key stocks with significant capital flow included: - Laike Electric: Net inflow of 8.35 million yuan from institutional investors, but a net outflow of 6.41 million yuan from speculative funds [3] - Xinbao Co., Ltd.: Net inflow of 6.81 million yuan from institutional investors, with a net outflow of 2.90 million yuan from speculative funds [3]

Core Insights - The kitchen small appliance industry is experiencing a "ice and fire" situation, with some companies reporting strong revenue and profit growth, while others face declines in both metrics [2] - The disparity in performance among companies is attributed to differences in product innovation capabilities and the lifecycle stage of existing products [2][4] - The market is undergoing structural upgrades, with a shift towards high-end products driven by national subsidies and increased consumer standards for product updates [2][7] Company Performance - Beiding Co. reported revenue of 219 million yuan, a year-on-year increase of 18.98%, and a net profit of 27.1 million yuan, up 288.95% [3] - Xiaoxiong Electric achieved revenue of 1.156 billion yuan, a 14.73% increase, and a net profit of 41.01 million yuan, up 113.16% [3] - Joyoung Co. experienced mixed results, with revenue of 1.598 billion yuan, down 10.99%, but a net profit of 854,600 yuan, up 101.11% [5] - Xinbao Co. reported revenue of 4.481 billion yuan, down 9.78%, and a net profit of 298 million yuan, down 13.05% [5] - Supor Co. had revenue of 5.42 billion yuan, down 2.3%, and a net profit of 426 million yuan, down 13.42% [5][6] Market Trends - The kitchen small appliance market is transitioning from a "necessity" phase to a "quality" phase, with a focus on product upgrades and competition among existing products [7] - The overall retail sales of kitchen small appliances are projected to decline by 9.6% in 2023 and 0.8% in 2024, but are expected to rise by 9.3% in the first half of 2025 due to national subsidies [7] - The market is shifting towards improvement-driven demand, emphasizing smart, personalized, and aesthetically pleasing products [7][8] Strategic Directions - Companies are focusing on product innovation to address consumer needs for health, cooking enjoyment, and quality [8] - The market is moving from a "price war" to a "value war," with an increase in average prices for small appliances [8] - Companies are exploring international markets, but face challenges such as trade barriers and geopolitical uncertainties [9]

Core Viewpoint - The company reported a slight decline in revenue for Q3 2025, primarily due to increased sales expenses impacting profitability, while maintaining a focus on product innovation and channel optimization to drive future growth [1][2][4] Financial Performance - For the first three quarters of 2025, the company achieved revenue of 16.897 billion, a year-on-year increase of 2.33%, with a net profit attributable to shareholders of 1.366 billion, down 4.66% year-on-year [1] - In Q3 2025, the company recorded revenue of 5.420 billion, a year-on-year decline of 2.30%, and a net profit attributable to shareholders of 0.426 billion, down 13.42% year-on-year [1][2] - The gross profit margin for the first three quarters of 2025 was 23.71%, a decrease of 0.12 percentage points year-on-year, while the operating profit for the same period was 1.554 billion, down 4.92% year-on-year [2] Cost Structure - The sales expense ratio increased to 10.15%, up 0.69 percentage points year-on-year, contributing to the decline in profitability [2] - In Q3 2025, the sales expense ratio further increased to 10.39%, up 1.54 percentage points year-on-year, indicating intensified market competition and increased marketing investments [2] Product and Market Strategy - The company is actively pursuing product innovation centered around consumer needs, focusing on core categories and exploring niche consumption scenarios [3] - The company continues to implement a big product strategy in dining utensils, maintaining strong sales in its popular product lines [3] - The company is expanding into new categories such as personal care products and enhancing its channel layout to adapt to changing market dynamics [3] Investment Outlook - The company is expected to maintain steady growth in scale while optimizing profitability efficiency, with projected net profits of 2.250 billion, 2.379 billion, and 2.535 billion for 2025-2027, corresponding to PE ratios of 16.78, 15.87, and 14.90 respectively [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company reported a slight decline in revenue and a phase adjustment in profitability, with a year-on-year revenue growth of 2.33% for the first three quarters of 2025, totaling 16.897 billion yuan. However, the net profit attributable to shareholders decreased by 4.66% to 1.366 billion yuan [2][6]. - In Q3 2025, the company experienced a revenue decline of 2.30% year-on-year, amounting to 5.420 billion yuan, and a net profit drop of 13.42% to 426 million yuan [2][6]. - The company is actively innovating products and optimizing channel layouts to adapt to changing consumer demands, focusing on core categories and expanding into new segments [12]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved a total revenue of 16.897 billion yuan, with a net profit of 1.366 billion yuan, reflecting a decline in profitability [2][6]. - The gross margin for the first three quarters was 23.71%, a decrease of 0.12 percentage points, while the sales expense ratio increased by 0.69 percentage points to 10.15% [12]. - In Q3 2025, the gross margin was 23.92%, with a significant increase in the sales expense ratio to 10.39% [12]. Market Strategy - The company is focusing on consumer-centered product innovation and category expansion, aiming to meet user needs with intelligent solutions [12]. - It is enhancing its marketing efforts in response to intense market competition and has adjusted its channel strategies to improve sales efficiency [12]. Future Outlook - The company is expected to maintain steady growth in scale and improve profitability efficiency, with projected net profits of 2.250 billion, 2.379 billion, and 2.535 billion yuan for 2025, 2026, and 2027, respectively [12]. - The corresponding PE ratios are estimated to be 16.78, 15.87, and 14.90 times for the same years [12].