Shenwan Hongyuan Securities·2026-03-17 15:27Investment Highlights - Three main investment themes are identified: "Dividends," "Technology," and "Overseas Expansion" focusing on leading companies in the white and black appliance sectors with attributes of low valuation, high dividends, and stable growth [5] - The domestic market is expected to benefit from the continued effects of the trade-in policy, while the export market is supported by leading appliance companies establishing production bases globally to mitigate tariff impacts [5] - Recommended companies include Haier, Midea, Gree, Hisense, and others, which are positioned well for value appreciation [5] Sector Review - The white appliance sector has shown significant improvement in demand, with both domestic and export sales returning to double-digit growth in January 2026 [8][9] - The market share of leading brands has slightly increased, with Gree and Midea holding 20.1% and 29.9% respectively, while Haier's market share has improved [13] - Channel inventory levels have been decreasing, indicating a manageable risk in inventory [14] Trend Analysis - The report anticipates a favorable market environment in 2026 driven by domestic policies and emerging market demand [7] - The white appliance sector is expected to see a rebound in valuations as the market stabilizes [30] Company Recommendations - Specific companies recommended for investment include: - Huazhi Technology, focusing on new business areas such as liquid cooling and robotics [5] - Minbao Optoelectronics, entering high-demand PCB drilling markets [5] - Ugreen Technology, capitalizing on the overseas consumer electronics market [5] - Anfu Technology, with stable cash flow from battery operations and expansion into semiconductors [5] Market Dynamics - The report highlights the correlation between the real estate market and appliance sales, noting that air conditioning sales tend to lag behind real estate sales by several months [49] - The introduction of favorable policies is expected to stimulate market demand and improve sales performance [52]