Orient Securities·2025-07-03 13:43Investment Rating - The industry investment rating is maintained as "Positive" [4] Core Viewpoints - The home appliance sector is expected to benefit from policy support and the active new consumption market, with high temperatures and low inventory during the air conditioning peak season likely to boost demand [2] - The adjustment of tariffs between Vietnam and the US is seen as a positive signal, enhancing the competitiveness of home appliance production capacity in Southeast Asia [6] - The potential for emerging markets in exports is promising, and the global supply chain advantages should be emphasized [2][6] Summary by Sections Investment Recommendations and Targets - The report suggests focusing on quality white goods leaders that benefit from domestic policy continuity 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] - Companies like Hisense Visual (600060, Overweight) and Ousheng Electric (301187, Buy) are recommended for their potential in mature overseas markets and short-term global supply chain advantages [2] - The report highlights the positive changes in leading clean and small appliance companies, recommending Stone Technology (688169, Buy) and Bear Electric (002959, Overweight) [2] - It also suggests monitoring kitchen appliance companies like Robam Appliances (002508, Buy) and Vatti Corporation (002035, not rated) as the negative impact from real estate eases [2] Industry Dynamics - The report notes that the production capacity layout in Southeast Asia is characterized by both offensive and defensive strategies, which may enhance global competitiveness in the long term [6] - The profitability of production in Southeast Asia is expected to gradually improve as local supply chains become more complete, reducing costs [6] - The report emphasizes the importance of companies with global production capacity layouts, which will enhance their bargaining power and profitability in the context of unstable trade policies with the US [6]