Shenwan Hongyuan Securities·2025-05-12 12:13Investment Rating - The report maintains a "Positive" outlook on the home appliance industry for 2024 and Q1 2025, driven by the old-for-new policy and the long-term trend of overseas expansion [1]. Core Insights - The home appliance industry continues to show revenue growth, with a year-on-year increase of 14.79% in Q1 2025, reaching a total revenue of 456.1 billion yuan [3][24]. - The white goods sector experienced significant revenue growth, with Q1 2025 revenue increasing by 16.16% year-on-year, totaling 289.42 billion yuan [3][47]. - The kitchen appliance sector saw a decline in both revenue and profit in Q1 2025, with revenue dropping to 6.99 billion yuan, a decrease of 36.2% year-on-year [3][43]. - The small appliance sector reported a revenue increase of 24.02% year-on-year in Q1 2025, totaling 35.26 billion yuan, despite a decline in profit [3][43]. - The black goods sector showed a modest revenue increase of 3.61% year-on-year in Q1 2025, with profits soaring by 150.83% [3][43]. - The components sector experienced robust growth, with revenue increasing by 35.02% year-on-year in Q1 2025, reaching 34.75 billion yuan [3][43]. Summary by Sections 1. Industry Performance Overview - The home appliance sector's revenue and profit growth outpaced other industries, with a net profit increase of 29.48% in Q1 2025 [3][28]. 2. Subsector Performance - White Goods: Revenue increased to 289.42 billion yuan in Q1 2025, with a profit growth of 28.87% [3][49]. - Kitchen Appliances: Revenue decreased to 6.99 billion yuan in Q1 2025, with a profit decline of 32.99% [3][43]. - Small Appliances: Revenue rose to 35.26 billion yuan in Q1 2025, with a profit increase of 11.41% [3][43]. - Black Goods: Revenue reached 89.67 billion yuan in Q1 2025, with a significant profit increase of 150.83% [3][43]. - Components: Revenue grew to 34.75 billion yuan in Q1 2025, with a profit increase of 22.73% [3][43]. 3. Investment Highlights - Three main investment themes are identified: 1. Domestic Sales: The reversal of real estate policies and the old-for-new policy are expected to boost demand for white goods [5]. 2. Exports: Companies like Ousheng Electric and Dechang Co. are recommended due to their stable profitability and expanding overseas orders [5]. 3. Core Components: Companies such as Huaxiang Co. and Shun'an Environment are highlighted for their competitive advantages in the components sector [5].