Midea Group(SZ:000333) Guoyuan Securities·2025-03-30 12:23Investment Rating - The report maintains a "Recommended" rating for the smart home industry, indicating a positive outlook for the sector [5][34]. Core Insights - The smart home industry is expected to benefit from a combination of policy support, technological advancements, and evolving consumer demands, driving rapid growth in the sector [5][34]. - The report highlights that the demand for smart home products is shifting from "single product intelligence" to "whole-home intelligence," driven by rising living standards and the aging population [5][34]. Summary by Sections Market Review - In the past two weeks (March 17-28, 2025), the Shanghai Composite Index fell by 2.00%, while the smart home index (399996.SZ) decreased by 4.72%, underperforming the Shanghai Composite by 2.73 percentage points [2][12]. - Year-to-date (January 1 - March 28, 2025), the smart home index has increased by 9.92%, outperforming the Shanghai Composite by 9.94 percentage points [12][14]. Industry Policy Tracking - The State Council has revised the "Regulations on Ensuring Payment of Funds to Small and Medium Enterprises," which will take effect on June 1, 2025, aiming to enhance payment responsibilities and supervision for SMEs [3][17][18]. - The Ministry of Commerce has announced new measures to stimulate consumption, focusing on upgrading product consumption and expanding service consumption [3][19]. Industry News Tracking - The "2025 China Home Appliance Consumption Trend White Paper" was released, indicating a shift towards smart and green appliances driven by policy incentives and technological innovation [4][20][21]. - Midea Group has successfully implemented AI technologies in its factories, enhancing operational efficiency and product quality [4][24][25]. - The 2025 Smart Home UP Summit highlighted key trends in the smart home market, including the integration of AI and IoT technologies [4][32]. Investment Recommendations - The report emphasizes that the expansion of the appliance replacement and recycling policies is expected to further stimulate market consumption, with previous policies already driving significant sales [5][34]. - Technological advancements in IoT, AI, and big data are expected to create high-value innovative products and services, catering to diverse consumer needs [5][34]. - The combination of consumer upgrades, aging population needs, and strong policy support is projected to drive the smart home industry into a rapid growth phase, benefiting the entire supply chain [5][34].