Orient Securities·2025-05-29 10:23Investment Rating - The report maintains a "Positive" outlook for the home appliance industry, indicating expected performance above the market benchmark index by more than 5% [4][18]. Core Insights - The first quarter results for home appliances generally exceeded expectations, with domestic sales likely to benefit from policy support. The demand for home appliances in the second quarter is anticipated to be promising due to high temperatures and low inventory during the air conditioning peak season [2][14]. - DJI's entry 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 is highlighted by the low penetration rates and the need for improved user experiences in the robotic vacuum sector [6][10][12]. Summary by Sections Investment Recommendations and Targets - The report suggests focusing on quality white goods leaders benefiting from domestic policy continuation and overseas expansion, 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 short-term global supply chain advantages are recommended, including Hisense Visual (600060, Accumulate) 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, Accumulate) [2][14]. - Kitchen appliance companies that are flexible in strategy and likely to expand overseas are also recommended, such as Robam Appliances (002508, Buy) and Vatti Corporation (002035, not rated) [2][14]. Industry Dynamics - DJI's entry into the robotic vacuum cleaner market is seen as a validation of the industry's high growth potential, with expectations of continued demand supported by national subsidies. The report notes that the domestic penetration rate for robotic vacuums remains low, indicating room for expansion [12]. - The competitive landscape is evolving, with major players like Ecovacs maintaining over 25% market share, while Stone Technology has also increased its market share to over 25% through enhanced marketing investments [12][14].