Core Viewpoint - The report from Guolian Minsheng Securities maintains an "outperform" rating for the home appliance industry, highlighting a significant acceleration in retail sales during the 2025 618 shopping festival, driven by low-priced small appliances and sustained growth in major appliance categories, with leading companies benefiting from policy incentives and ongoing product upgrades [1] Group 1: Retail Performance - The home appliance industry experienced a notable uplift in overall sales during the 618 shopping festival, with a weighted average year-on-year growth rate of +15% for 20 representative categories in online retail sales from May 12 to June 15, 2025 [1] - The online retail volume and price growth rates for these 20 core categories were +13% and +1% respectively, indicating a strong performance in both volume and pricing [1] - Major appliances like air conditioners, washing machines, and black goods saw retail growth rates exceeding 20%, while low-priced small appliances also experienced significant growth, with online prices for rice cookers, pressure cookers, and air fryers rising over 10% year-on-year [1] Group 2: Brand Performance - Leading brands performed exceptionally well during the 618 shopping festival, with Midea's retail sales increasing over 20% and Gree's air conditioner sales leading the market, particularly the "Wind Does Not Blow" series, which saw a 240% year-on-year increase [2] - Other notable performers included Little Swan, COLMO, Haier, and Casarte in the white goods sector, while Hisense led the black goods market with a 24% share, particularly excelling in the high-end segment [2] - In the cleaning appliance category, Ecovacs maintained the top position in total sales, with Stone Technology achieving rapid growth, ranking first and second in sales for sweeping and washing machines respectively during the festival [2] Group 3: Subsidy and Demand Outlook - Concerns arose regarding the continuity of subsidy programs after notifications of pauses in certain regions, but data indicates that the usage of subsidy funds has accelerated since May, with approximately 50 billion yuan utilized by the end of May 2025 [3] - The central government is expected to allocate an additional 138 billion yuan in subsidies in July and October, ensuring a steady and orderly implementation of the policy through the end of the year [3] - The home appliance replacement program is anticipated to maintain a steady demand release in the second half of 2025, supported by a more stable pace of subsidy fund usage [3]

Core Viewpoint - The report from Guolian Minsheng Securities indicates that the home appliance industry is experiencing a positive shift in domestic demand, with a focus on the white goods sector, which is expected to benefit from improved pricing strategies and a favorable cost environment [1][2]. Group 1: Home Appliance Industry Overview - The home appliance sector has shown a slight increase of 0.1% from the beginning of the year to June 5, 2025, outperforming the CSI 300 index by 1.6 percentage points, ranking 17th among primary industries [1]. - The overall performance of the home appliance sector has historically shown a high success rate, with 16 out of the past 20 years outperforming the CSI 300 index during the same period [1]. Group 2: White Goods Sector - The white goods sector is expected to see improved domestic demand, with a lower base for shipments and a potential upward trend [2]. - The usage of funds for the old-for-new policy has accelerated in May, although the impact of elastic marginal reduction and funding constraints may be concentrated in Q4 2025 [2]. - Major players in the white goods sector have adopted aggressive online pricing strategies, leading to significant market share elasticity, while the cost environment has improved, suggesting minimal impact on profitability [2]. Group 3: Black Goods Sector - The overall demand for TVs has shown a weak recovery since 2025, with MiniLED backlight TVs becoming a key driver for domestic product upgrades [3]. - Domestic brands like TCL and Hisense have performed strongly, with Hisense rapidly increasing its market share in MiniLED backlight TVs [3]. - The profitability of leading brands is expected to improve due to product structure upgrades and stable panel prices, with an anticipated increase in industry concentration and ongoing technological advancements [3]. Group 4: Emerging Small Appliances - The demand for emerging small appliances, particularly robotic vacuum cleaners, has seen significant growth since 2025, driven by subsidies and product innovation [4]. - Competition in the domestic and international markets is expected to diverge, with companies like Roborock performing well domestically while facing challenges abroad [4]. Group 5: Kitchen Appliances - The kitchen small appliance sector is showing signs of stabilization after a prolonged adjustment, with domestic sales rebounding due to low bases, reduced competition, and new product launches [5]. - The demand for large kitchen appliances is gradually improving, but recovery is still dependent on the real estate market, transitioning from new home-driven demand to replacement-driven demand [5]. Group 6: Investment Recommendations - The report suggests a positive outlook for the home appliance industry, with a focus on high-quality, high-dividend leading companies such as Gree Electric Appliances, Midea Group, Haier Smart Home, and Hisense Home Appliances [6][7]. - It also highlights the potential of leading TV brands like Hisense Vision and TCL Electronics, as well as emerging consumer brands benefiting from promotional events [7].

Group 1 - The home appliance market is experiencing a surge in activity due to the implementation of trade-in policies, particularly during the 618 shopping festival, which has led to increased sales of energy-efficient products like gas water heaters [1][2] - The national trade-in policy offers subsidies of 20% for first-level energy efficiency products and 15% for second-level, resulting in over 90% of home appliance sales being attributed to first-level energy efficiency products by 2024 [2][4] - Local governments, including Beijing and Shanghai, are expanding subsidy programs to further stimulate consumer behavior towards high-efficiency products [2][4] Group 2 - Consumers are increasingly opting for first-level energy efficiency gas water heaters due to significant cost savings, with one family estimating a savings of 5,350 yuan over eight years by switching from a second-level to a first-level product [2][4] - The gas water heater industry has faced technical challenges, particularly in improving heat efficiency from 88% to over 98%, which requires advanced heat recovery methods [4][6] - Haier has emerged as a leader in addressing these technical challenges, achieving a heat efficiency of 107.2% through innovative designs and successfully mitigating issues related to condensate water [5][6] Group 3 - Haier's gas water heaters have maintained the top global sales position for four consecutive years, with its high-end series ranking first in sales on major e-commerce platforms [6] - The combination of government policies and Haier's technological advancements is expected to unlock significant consumer potential in the energy-efficient appliance market [6]

Investment Rating - Industry rating: Recommended [5] Core Insights - In May 2025, the retail sales of household appliances and audio-visual equipment in China showed a significant year-on-year increase of 30.2%, with total retail sales reaching 464.1 billion yuan. The growth rate for May alone was 53%, compared to 39% in April [9][12] - The remaining 46% of national subsidy funds will be distributed in batches in the second half of the year, with 300 billion yuan allocated to support the replacement of old consumer goods [12] - The retail performance during the 618 shopping festival in 2025 was strong, with year-on-year increases in sales for various categories, including televisions (+37%), air conditioners (+45%), and washing machines (+36%) [14][15] Summary by Sections Weekly Topic - The retail sales of household appliances in May 2025 accelerated significantly, with a year-on-year increase of 30.2% for the first five months, totaling 464.1 billion yuan. May alone saw a 53% increase [9] - Approximately 46% of the national subsidy funds will be released in July and October, continuing the "two new" policy to promote the replacement of old appliances [12] - The 618 shopping festival in 2025 showed impressive retail sales performance across various categories, with notable increases in sales figures [14][15] Company Key Announcements - Sanhua Intelligent Control announced the final price for its H-share issuance at 22.53 HKD per share, expected to be listed on June 23, 2025 [16] Data Tracking - Raw material prices showed fluctuations, with LME copper and aluminum prices increasing by 3.0% and 1.8% respectively as of June 20, 2025 [17] - Shipping rates also saw an increase, with the CCFI composite index rising by 8.0% [25] - Real estate data indicated a decline in sales area, completion area, and new construction area by 3%, 17%, and 23% respectively for the first five months of 2025 [28]

Investment Rating - The industry investment rating is maintained as "Positive" [4] Core Viewpoints - Domestic appliance sales are expected to benefit from policy support, with the air conditioning peak season anticipated to see high temperatures and low inventory, making second-quarter demand promising [2] - The national subsidy policy is confirmed to continue, with a total of 300 billion yuan allocated for supporting the replacement of old appliances, ensuring sustained demand [6] - The market is witnessing a shift towards new consumption trends, with brands actively targeting younger demographics and innovating product offerings to capture new growth opportunities [6] Summary by Sections Investment Recommendations and Targets - Focus on quality white goods leaders benefiting from domestic policy continuation and overseas expansion, such as Midea Group (000333, not rated), Haier Smart Home (600690, Buy), and Hisense Home Appliances (000921, not rated) [2] - Attention to companies with potential in mature overseas markets and short-term supply chain advantages, including Hisense Visual (600060, Overweight) and Ousheng Electric (301187, Buy) [2] - Highlighting small appliance companies that may benefit from national subsidies and long-term demand for new appliance categories, such as Roborock Technology (688169, Buy) and Bear Electric (002959, Overweight) [2] - Monitoring kitchen appliance companies that are adjusting strategies and may expand overseas, including Boss Electric (002508, Buy) and Vatti Corporation (002035, not rated) [2] Market Dynamics - Recent retail data shows significant year-on-year growth in online sales for major appliance categories, indicating resilience in demand despite concerns over subsidy reductions [6] - The market is adapting to new consumer preferences, with brands leveraging innovative marketing strategies to engage younger consumers and explore new product categories [6]

Core Viewpoint - The kitchen and bathroom appliance market is experiencing significant differentiation, with varying performance among companies due to the downturn in the real estate sector and changing consumer preferences [2][3][4]. Group 1: Market Performance - Companies focused on integrated stoves, such as Mars and Zhejiang Meida, have seen substantial declines in performance, with Mars reporting a 35.7% drop in revenue to 1.38 billion yuan in 2024 and a 95.5% decrease in net profit [3][4]. - Zhejiang Meida's revenue in Q1 2025 fell by 63.97% to approximately 98.36 million yuan, with net profit dropping by about 90% [3][4]. - The overall retail sales of integrated stoves in China decreased by 30.6% in 2024, with Q4 experiencing a 35.3% decline [3][4]. Group 2: Challenges Faced - The decline in demand for new home renovations, consumer confidence issues, and intensified competition are the primary challenges for integrated stove companies [4]. - Companies are adjusting strategies, with Mars exploring new growth areas such as dishwashers and enhancing brand strategy [4]. Group 3: Traditional Appliance Companies - Traditional kitchen appliance leaders like Vatti and Boss Electric have maintained relatively stable performance, with Vatti achieving a revenue increase of 2.23% to 6.372 billion yuan in 2024 [5][6]. - Boss Electric reported a slight revenue increase of 0.1% to 11.212 billion yuan, although net profit decreased by 8.97% [6][7]. - Both companies benefited from the "old-for-new" appliance policy, which supported their sales channels [7]. Group 4: Product Strategy and Innovation - Vatti is focusing on high-end product development, launching new products like the "Time Capsule" series and investing in R&D, with expenses reaching approximately 263 million yuan in 2024 [7][8]. - Boss Electric faced challenges in expanding new product categories, with sales of integrated stoves and other products declining [8]. - The market share of Vatti's ultra-thin range hood reached 37.17%, maintaining the top position in the online market [10]. Group 5: Future Outlook - The kitchen and bathroom appliance industry is in a deep adjustment phase, with potential for marginal improvement in the second half of 2025 due to supportive policies and market recovery [9][10]. - The continuation of the "old-for-new" policy is expected to be a significant driver for the kitchen appliance market in 2025, with related product categories showing positive growth [10][11]. - The competitive landscape is likely to shift, with market concentration increasing as leading companies adapt to changing consumer trends and focus on innovation [11].

智通财经6月5日电，中金公司研报称，在家电以旧换新政策带动及低基数效应下，预计今年小家电行业 需求有望延续复苏态势。在此背景下，行业竞争缓解、公司聚焦高质量发展，行业均价进一步修复，同 时平台降费减轻公司压力，综合影响下，预计小家电公司盈利能力或将明显改善。 中金：预计小家电公司盈利能力或将明显改善 ...

Investment Rating - The report maintains a "Positive" outlook for the home appliance industry [6] Core Viewpoints - The first quarter results for home appliances generally exceeded expectations, with domestic sales expected to benefit from policy support. There is a notable performance differentiation in high-end positioning and cost-effectiveness. The air conditioning peak season is anticipated to benefit from higher temperatures and lower inventory levels, making the demand for home appliances in the second quarter promising [4][9] - In April, the export of white goods showed steady growth, indicating potential in emerging markets. The disruptions in exports to the U.S. are also expected to ease [4][9] Summary by Sections Investment Recommendations and Targets - The report suggests focusing on quality white goods leaders that benefit from ongoing domestic policies and proactive overseas expansion, such as Midea Group (000333, not rated), Haier Smart Home (600690, Buy), and Hisense Home Appliances (000921, not rated) [4] - It recommends companies that are reshaping their market share in mature overseas markets and have short-term global supply chain advantages, such as Hisense Visual (600060, Overweight) and Ousheng Electric (301187, Buy) [4] - The report also highlights small appliance companies that are expected to benefit from national subsidy policies in the short term and enjoy demand dividends from emerging appliance categories in the medium to long term, recommending Stone Technology (688169, Buy) and Bear Electric (002959, Overweight) [4] Market Trends - Since May, many regions have experienced average maximum temperatures higher than in previous years, positively impacting air conditioning sales. The demand for air conditioning is closely related to temperature, with a significant increase in sales expected during the peak season from April to July [9] - In April, air conditioning exports reached 7.51 million units, a year-on-year increase of 12.1%, while washing machine exports grew by 10.9%. The export of refrigerators saw a slight decline [9][20] - The report indicates that the risk of a price war in the air conditioning market is manageable, with efficiency improvements and high-end upgrades occurring simultaneously. The average prices for air conditioners in April were 2,609 yuan online and 4,418 yuan offline, showing a slight decrease and increase respectively [9]

为贯彻执行汾阳市政府关于开展家电消费品以旧换新惠民专项活动政策，5月18日，市总工会再度携手志泰家电联合各大厂家开展了"情暖职工事·心系千 万家"工会会员家电三重补贴专项惠民活动。市总工会领导班子、市商务局相关领导、志泰家电负责人、各镇（街道）、系统（行业）工会主席以及30名 新业态劳动者（物流快递员）参加活动。 一位来自乡镇的工会会员说："最近刚装修好房子，正准备买家电，工会正好开展家电普惠活动，我将自己想买的产品在店里和网上都作了比价，店里竟 然比网上还便宜，这次活动为我们带来实实在在的优惠，真的感谢工会组织和政府补贴的好政策。 市总工会副主席何娜就活动的开展提出了两点希望：一是希望各参会单位要高度重视开展此次活动的意义，充分发挥基层工会组织桥梁纽带作用，把此项 普惠政策宣传到位，让利好政策惠及广大职工，让职工朋友们都能够参与到活动中来；二是希望志泰家电将此次专项补贴政策落实到位，为广大干部职工 提供优质、优惠的家电产品和服务，极大地激发市场活力，提振消费意愿和信心，让职工真正享受到"换新福利"，进一步提高职工的生活品质，增强他们 的获得感和幸福感。 下一步，市总工会将继续关注职工需求，积极拓展普惠服务内 ...

Investment Rating - The investment rating for the company is "Outperform" (Maintain) [3] Core Views - The company achieved a revenue of 325 million yuan in Q1 2025, representing a year-on-year increase of 21.37%, while the net profit attributable to shareholders decreased by 12.18% to 17.88 million yuan [5] - The continuation of the "old-for-new" policy in the home appliance sector is expected to drive performance growth, with profit forecasts for 2024-2026 set at 81 million, 94 million, and 112 million yuan respectively [5] - The company is expanding its production capacity in the refrigerator hinge sector and making breakthroughs in energy storage and commercial equipment [5][6] Financial Summary - Revenue is projected to grow from 1,049 million yuan in 2023 to 1,653 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 13.1% [8][11] - The net profit attributable to shareholders is expected to increase from 62 million yuan in 2023 to 112 million yuan in 2027, with a CAGR of approximately 18.7% [8][11] - The earnings per share (EPS) are forecasted to rise from 0.69 yuan in 2023 to 1.23 yuan in 2027, indicating a positive growth trajectory [8][11] Market Trends - The home appliance market in China is expected to see significant growth in 2024, with retail sales projected to reach 1,030.7 billion yuan, a year-on-year increase of 12.3% [6] - The total export of home appliances is anticipated to reach 100.1 billion USD in 2024, reflecting a year-on-year growth of 14.04% [6] - The sales volume of refrigerators in China is projected to reach 96.71 million units in 2024, marking a year-on-year increase of 10.87% [6] Business Expansion - The company is actively expanding into non-home appliance sectors, with projects such as commercial refrigerators and ecological planting boxes expected to commence production in Q3 2025 [7] - The company is also establishing a super factory in the refrigerator hinge segment, with equipment installation planned for Q3 2025 and production expected to start by the end of 2025 [7]