Huachuang Securities·2025-11-18 06:24Investment Rating - The report maintains a recommendation to overweight the upstream and cleaning appliance sectors within the home appliance industry, while the overall investment rating for the home appliance sector is under review due to a decrease in fund holdings [1][10]. Core Insights - The proportion of actively managed equity funds holding home appliance stocks decreased to 3.02% in Q3 2025, down by 1.72 percentage points from the previous quarter. The overweight ratio for home appliances also fell to 0.72%, a decrease of 1.65 percentage points [10]. - Concerns regarding domestic demand due to reduced government subsidies and high base effects from the previous year have led to a cautious outlook for the home appliance sector. However, leading companies are expanding into overseas markets, which is expected to stabilize export revenues [10][61]. - The report highlights a shift in fund allocations, with increased investments in upstream and cleaning appliance sectors, while white goods, black goods, and two-wheeler sectors saw reductions in fund holdings [15][31]. Summary by Sections Fund Holdings Analysis - In Q3 2025, the fund holdings in the white goods sector accounted for 1.35% of total fund holdings, down by 1.33 percentage points. The number of funds holding white goods decreased by 509 [16]. - The black goods sector saw a fund holding of 0.20%, a decrease of 0.25 percentage points, with a reduction in the number of funds holding black goods by 78 [24]. - The two-wheeler sector's fund holdings decreased to 0.66%, down by 0.28 percentage points, with a reduction of 132 funds [31]. Sector Performance - The report indicates that the white goods sector is facing challenges due to reduced government incentives and high base effects, with air conditioning, refrigerator, and washing machine sales showing mixed year-on-year performance [16][62]. - The black goods sector is expected to face pressure from the withdrawal of "trade-in" policies, which may affect sales growth due to high base effects from the previous year [24]. - The cleaning appliance sector is experiencing growth, with increased fund holdings attributed to strong sales performance and expansion into new business areas [38][66]. Investment Recommendations - The report recommends focusing on leading companies in the white goods sector such as Midea Group, Gree Electric, and Haier Smart Home, which are expected to benefit from overseas market expansion and stable performance [61]. - In the black goods sector, companies like Hisense Visual and TCL Electronics are highlighted for their competitive advantages in the MiniLED technology space [61]. - The report also suggests monitoring companies in the cleaning appliance sector, such as Ecovacs and Roborock, due to their strong growth potential and market expectations [38][66].