SINOLINK SECURITIES·2025-05-25 10:45Investment Rating - The report suggests a positive outlook for the home appliance industry, indicating strong growth potential in both domestic and emerging markets [4][54]. Core Insights - In April, home appliance exports showed a mixed performance, with a slight increase in quantity (+1.5%) but a decrease in value (-1.7%). Notably, air conditioner exports rose significantly by 14.5% [11][13]. - Emerging markets, particularly Southeast Asia and Africa, demonstrated robust growth in appliance exports, with increases of 70% and 43% respectively [13][16]. - The domestic air conditioner production is expected to increase by 35% in June 2025, driven by improved consumer confidence and government policies [21][23]. Summary by Sections 1. Export Performance - In April, air conditioner exports reached 10.68 million units, a year-on-year increase of 14.5%, while refrigerator exports slightly declined by 0.7% [11][12]. - Southeast Asia and Africa led the growth in appliance exports, with significant increases in export values [13][14]. 2. Production Insights - Air conditioner production in June 2025 is projected at 20.75 million units, a 17% increase year-on-year, with domestic production up by 35.4% [21][23]. - Factors contributing to this growth include enhanced retail market dynamics and government incentives [23]. 3. Market Trends - The home appliance retail sector has maintained high growth, supported by domestic demand and favorable government policies [4][54]. - The report emphasizes the importance of focusing on domestic demand and subsidy-driven growth opportunities in the white goods sector [4][54]. 4. Investment Recommendations - The report recommends focusing on three main lines: domestic demand and subsidies, structural upgrades in the black goods sector, and opportunities in small appliances [4][54].