SINOLINK SECURITIES·2025-05-11 14:23Investment Rating - The report suggests a positive outlook for the home furnishing sector, recommending a focus on leading domestic companies with high dividend support and growth certainty for 2025 [5][13]. Core Insights - The home furnishing sector shows signs of stabilization in domestic real estate, with potential for long-term investment opportunities as consumer subsidy policies improve [5][13]. - The new tobacco sector is experiencing growth, particularly in heated tobacco products, with significant sales increases reported [16]. - The paper packaging industry faces short-term pressure due to seasonal demand decline and price drops in raw materials, but long-term consumption growth is expected [17]. - The light consumer goods sector is seeing innovation and brand strength, particularly in pet food and trendy products, indicating potential for growth [18]. - The two-wheeler market is benefiting from trade-in policies, with significant sales increases noted, particularly in electric bicycles [19]. Summary by Sections Home Furnishing Sector - Domestic sales in Q1 2025 showed improvement compared to previous quarters, with leading companies expected to perform well as real estate stabilizes [5][13]. - Companies like Gujia Home and Sophia are highlighted for their strategic positioning and potential for growth [13][14]. New Tobacco Sector - The report notes a tightening regulatory environment in the U.S. for vaping products, but also highlights growth in heated tobacco product sales, with a 19% increase reported [16]. - Companies like Smoore International are recommended for their competitive positioning in the expanding compliant market [16]. Paper Packaging Sector - The sector is currently under pressure due to seasonal demand and declining prices for various paper products, with a forecasted consumption increase of 3.56% in 2024 [17]. - Key players like Sun Paper and Huawang Technology are noted for their resilience and potential for market share growth [17]. Light Consumer Goods Sector - The report emphasizes the importance of brand innovation and market expansion, particularly in the pet food segment, with companies like Guobao Pet and Bubble Mart highlighted for their growth potential [18][20]. - The AI glasses market is also mentioned as a focus area for investment, with recommendations for companies involved in the lens manufacturing sector [18]. Two-Wheeler Market - The trade-in program for electric bicycles has led to significant sales growth, with 4.2 million units reported as of April 24 [19]. - Companies like Yadi Holdings and Aima Technology are recommended for their strong market positions and innovative product offerings [19][21].