Shenwan Hongyuan Securities·2025-07-21 08:14Investment Rating - The report gives an "Overweight" rating for the home appliance industry, indicating an expectation for the industry to outperform the overall market [3][12]. Core Insights - The "old-for-new" policy has significantly stimulated the home appliance market, with an expanded subsidy range leading to notable demand increases across various categories [3]. - In the first half of 2025, major kitchen appliance categories such as range hoods and gas stoves experienced double-digit growth, while dishwashers showed signs of recovery [3]. - The report highlights specific companies within the kitchen appliance sector, recommending Midea Group, Gree Electric, and Vatti Corporation due to their strong market positions [3]. Summary by Sections Old-for-New Policy Impact - The 2024 "old-for-new" policy has expanded to include eight categories, significantly boosting demand, with range hoods achieving retail sales of 36.2 billion yuan, a 14.9% year-on-year increase [3]. - The government plans to allocate 300 billion yuan in special bonds to support the "old-for-new" initiative, enhancing market activation [3]. Sales Performance - In H1 2025, range hoods sold 778,000 units, up 36% year-on-year, with sales revenue reaching 3.48 billion yuan, a 44% increase [3]. - Gas stoves saw sales of 768,000 units, a 25% increase, with revenue of 1.76 billion yuan, up 41% [3]. - Dishwashers, newly included in the subsidy list, showed a recovery with offline sales of 180,000 units, a 28% increase, and online sales of 602,000 units, a 9% increase [3]. Investment Recommendations - The report suggests focusing on companies with solid positions in traditional categories, specifically recommending Boss Electric, Vatti Corporation, and Wanhe Electric for their leading market shares in water heaters [3].