Shenwan Hongyuan Securities·2025-04-06 13:13Investment Rating - The report maintains a positive outlook on the home appliance industry, highlighting the potential for growth and investment opportunities [5]. Core Insights - The home appliance sector is experiencing significant growth, with double-digit increases in both domestic and international sales for major categories such as air conditioners, refrigerators, and washing machines [6][41][43]. - The report emphasizes three main investment themes: the undervaluation and stable growth of white goods, the potential for export growth driven by large customer orders, and the rising demand for core components in the white goods supply chain [6]. Summary by Sections Data Observation - In February 2025, the air conditioning industry produced 16.785 million units, a year-on-year increase of 42.9%, with domestic sales up 21.3% and exports up 50.8% [34]. - The refrigerator sector saw production of 7.225 million units, a 47.8% increase year-on-year, with both domestic and export sales rising by 16.5% [41]. - The washing machine industry produced 6.51 million units, a 14.7% increase year-on-year, with domestic sales up 20.9% and exports up 8.0% [43]. Investment Highlights - The report suggests that the white goods sector benefits from favorable real estate policies and has attributes of low valuation, high dividends, and stable growth, making it an attractive investment [6]. - The "trade-in" policy is expected to catalyze demand, with production schedules for domestic sales projected to increase significantly in the coming months [6]. - Recommended companies include Hisense, Midea, Haier, and Gree for their strong market positions and growth potential [6]. Industry Dynamics - The report notes that the home appliance sector underperformed compared to the broader market, with the home appliance index down 3.5% while the CSI 300 index fell 1.4% [8][9]. - The announcement of a "reciprocal tariff" plan by the Trump administration could impact trade dynamics, with various countries facing significant tariff increases [14][68]. - The "two new" policies are showing positive effects, with a notable increase in consumer spending on home appliances and vehicles, indicating a recovery in the consumer market [15][66]. Company Performance - Hisense reported a revenue increase of 9% year-on-year for 2024, with a net profit of 2.246 billion yuan, reflecting a stable financial performance [56]. - Stone Technology achieved a revenue growth of 38% year-on-year, although its net profit declined by 4%, indicating challenges in profitability despite revenue growth [58]. - The report highlights the struggles of Gome Retail, which reported a significant loss and declining revenues, reflecting broader challenges in the traditional retail sector [70][71].