Shenwan Hongyuan Securities·2025-09-20 15:14Investment Rating - The report indicates a positive investment outlook for the home appliance sector, with the sector outperforming the Shanghai and Shenzhen 300 Index by rising 1.6% while the index fell by 0.4% [2][3]. Core Insights - The report highlights the joint issuance of policies by nine departments aimed at expanding service consumption, which includes 19 specific measures to promote service consumption [9][63]. - The Federal Reserve's decision to cut interest rates by 25 basis points is expected to provide greater operational space for China's monetary policy, potentially alleviating depreciation pressure on the RMB [10]. - The report notes a rise in average prices for major home appliances, with air conditioners, refrigerators, and washing machines showing varying trends in sales volume and revenue [29][31][33][35]. Summary by Sections Industry Dynamics - The joint policy measures aim to enhance service consumption through promotional activities and improved access to cultural and recreational venues [9][63]. - The Federal Reserve's interest rate cut signals potential further reductions, which could impact foreign investment flows into RMB assets [10]. Data Observations - In August, the average retail price of air conditioners increased by 0.32% year-on-year, with retail volume up by 2.2% and retail revenue up by 2.9% [29]. - Refrigerator sales volume decreased by 0.4% year-on-year, but revenue increased by 3.8%, with the average price rising by 2.4% to 6438 RMB [31]. - Washing machine sales volume and revenue both declined by 0.4% and 7.4% respectively, while the average price increased by 5.5% to 4364 RMB [33]. Investment Highlights - The report identifies three main investment themes: 1. White goods sector benefiting from favorable real estate policies and potential for price and volume growth [29]. 2. Export opportunities driven by large customer orders and stable profitability for companies like Ousheng Electric and Dechang Shares [29]. 3. Core components demand exceeding expectations due to the white goods sector's performance, recommending companies like Huaxiang and Shun'an Environment for their competitive advantages [29].