Orient Securities·2025-05-29 09:16Investment Rating - The report maintains a "Positive" outlook for the home appliance industry, indicating expected performance relative to market benchmarks [4]. Core Insights - The first quarter results for home appliances exceeded expectations, with domestic sales likely to benefit from policy support. The demand for home appliances in the second quarter is anticipated to be strong due to high temperatures and low inventory levels [2][14]. - The entry of DJI into the robotic vacuum cleaner market is expected to stimulate innovation within the industry, although its short-term impact is deemed limited. The long-term potential for growth remains strong due to low penetration rates and the need for improved user experiences [6][10][12]. Summary by Sections Investment Recommendations and Targets - The report suggests focusing on leading white goods companies that benefit from domestic policy continuation and are actively expanding overseas, such as Midea Group (000333, not rated), Haier Smart Home (600690, Buy), and Hisense Home Appliances (000921, not rated) [2][14]. - Companies with a strong presence in mature overseas markets and those benefiting from global supply chain advantages are also recommended, including Hisense Visual (600060, Overweight) and Ousheng Electric (301187, Buy) [2][14]. - Small appliance companies expected to benefit from national subsidies and long-term demand growth are highlighted, including Stone Technology (688169, Buy) and Bear Electric (002959, Overweight) [2][14]. - Kitchen appliance companies that are adjusting strategies in response to real estate market fluctuations are also recommended, such as Robam Appliances (002508, Buy) and Vatti Corporation (002035, not rated) [2][14]. Industry Dynamics - The entry of DJI into the robotic vacuum cleaner market is seen as a validation of the industry's high growth potential, with expectations of continued demand driven by government subsidies and low domestic penetration rates [12]. - The competitive landscape is evolving, with leading players like Ecovacs maintaining over 25% market share, while Stone Technology is increasing its sales share to over 25% through enhanced marketing efforts [12][10]. - The report notes that while increased marketing expenditures may temporarily affect profitability, they are expected to strengthen brand positioning and market presence in the long run [12].