Shenwan Hongyuan Securities·2025-10-26 14:45Investment Rating - The report maintains a positive outlook on the home appliance sector, highlighting its potential for stable growth and high dividend yields [4]. Core Insights - The home appliance sector has shown resilience, with the sector index rising 3.3% compared to a 3.2% increase in the CSI 300 index [3][5]. - Key companies such as Ecovacs and Haier are making significant strides, with Ecovacs reporting a 26% year-on-year revenue growth in the first three quarters of 2025 [10][11]. - Strategic partnerships, such as Haier's collaboration with Cevital Group, are expected to enhance market presence in the Middle East and Africa [11][54]. Summary by Sections Sales Performance - In September, offline sales of major appliances faced challenges, with air conditioners, refrigerators, and washing machines experiencing significant declines in both retail volume and revenue [2][31][35]. - The average selling prices for these appliances also decreased, indicating a competitive market environment [31][37]. Company Dynamics - Ecovacs reported a revenue of 12.84 billion yuan in Q3 2025, marking a 142% increase in net profit year-on-year [10][52]. - Haier's strategic partnership with Cevital aims to enhance local production capabilities and expand its product offerings in the African market [11][54]. Investment Opportunities - The report identifies three main investment themes: white goods, export-driven companies, and core components, recommending companies like Hisense, Midea, and Gree for their strong market positions [4]. - The report suggests that the white goods sector is undervalued and offers high safety margins and growth potential, especially with the implementation of trade-in policies [4]. Market Trends - The report notes that the home appliance market is experiencing a shift towards high-end products and service upgrades, driven by consumer demand for innovative solutions [59][60]. - The impact of government policies, such as the trade-in program, is expected to stimulate consumer spending and support the overall market growth [64][65].