Tai Ping Yang Zheng Quan·2025-06-29 13:44Investment Rating - The report does not provide specific ratings for sub-industries such as white goods, black goods, small appliances, and kitchen appliances [3] Core Insights - The white goods production is expected to face short-term pressure in Q3 2025, with production volumes for air conditioners, refrigerators, and washing machines projected to decline by 1.9%, 2.4%, and 4.2% respectively in July 2025 [4] - The report anticipates a recovery in the white goods sector due to the implementation of domestic replacement policies and inventory buildup in overseas channels, which may help improve the sector's performance [4] - Xiaomi has launched AI glasses with a starting price of 1999 yuan, indicating innovation in the consumer electronics space [5] Market Performance - The home appliance sector saw a 2.02% increase in the week of June 23-27, 2025, while the year-to-date performance shows a decline of 1.44%, ranking 18th among the Shenwan primary industries [11][12] - Notable stock performances include Springlight Technology, He Sheng New Materials, and Rongtai Health, with Springlight Technology achieving a year-to-date increase of 96.50% [11] Real Estate and Raw Material Data - In May 2025, the transaction area and number of transactions for commercial housing in 30 major cities in China were 8.21 million square meters (-4.95%) and 83,700 units (-2.16%) respectively, indicating a slight recovery in demand [17][20] - Raw material prices show mixed trends, with LME copper and aluminum prices increasing by 6.67% and 5.06% year-on-year, while steel and plastic prices have decreased [21][24] Investment Recommendations - The report suggests that the white goods sector is likely to benefit from ongoing replacement policies and a recovery in real estate transactions, making it a favorable investment opportunity [29] - Key companies recommended for investment include Midea Group, Haier Smart Home, Gree Electric Appliances, and Hisense Home Appliances, all of which have strong production capabilities to mitigate the impact of U.S. tariff policies [29][30]