Shenwan Hongyuan Securities·2025-08-24 09:12Investment Rating - The report maintains a "Positive" investment rating for the home appliance sector, highlighting its undervalued status, high dividends, and stable growth potential [3][7]. Core Insights - The home appliance sector is expected to benefit from a reversal in real estate policies, with the "old-for-new" policy likely to stimulate demand. The report anticipates a rise in both volume and price in the white goods industry [7]. - The report emphasizes the growth in online and offline sales for air conditioners and kitchen appliances, indicating a positive trend in consumer demand [4][5][32][33][38]. Sales Data Summary - Air Conditioners: In July 2025, online retail sales reached 4.64 million units, a year-on-year increase of 28.9%. Offline sales were 892,000 units, up 37.4% year-on-year. The average online price increased by 6.5% to 2,629 yuan per unit, while the offline average price decreased by 0.9% to 3,978 yuan per unit [4][32]. - Kitchen Appliances: For July 2025, online sales of range hoods were 473,000 units, up 16.6% year-on-year, and offline sales were 91,000 units, up 17.9%. The average online price rose by 3.5% to 1,474 yuan per unit, and the offline average price increased by 5.7% to 4,226 yuan per unit. Dishwashers saw online sales of 60,000 units, up 25.5%, and offline sales of 17,000 units, up 30.7% [5][33][38]. Company Performance Summary - Midea Group: The company has secured a major project for a large-scale liquid-cooled intelligent computing data center in the Guangdong-Hong Kong-Macao Greater Bay Area, indicating strong growth potential in its smart building technology business [6][14]. - Huaxiang Co., Ltd.: For the first half of 2025, the company reported revenue of 1.976 billion yuan, a 2% increase year-on-year, and a net profit of 290 million yuan, up 26% year-on-year [6][15]. - Bolei Technology: The company reported a significant decline in revenue for the first half of 2025, with a 36% drop to 385 million yuan, indicating challenges in its market performance [6][56]. Market Dynamics - The home appliance sector has underperformed compared to the CSI 300 index, with the home appliance index rising by 2.2% while the CSI 300 increased by 4.2% during the same period [6][8]. - The report notes a significant increase in demand for air conditioners and fans in overseas markets due to extreme heat in Europe, with exports from Guangdong experiencing substantial growth [62][65].