Investment Rating - The report maintains a strong buy rating for major companies in the home appliance sector, including Midea Group, Gree Electric, Hisense Home Appliances, and others, all receiving a "Strong Buy" recommendation [2]. Core Insights - The home appliance industry showed strong performance in Q1 2025, supported by national subsidies, booming exports to emerging markets, and increased shipments to North America. The report suggests focusing on new consumer trends domestically and leveraging tariff opportunities for exports [1][6]. - Major appliances reported impressive results, with Midea's exports growing over 30%, particularly in air conditioning and kitchen appliances. Hisense and other second-tier brands also experienced significant export growth [6]. - The report highlights the emergence of new consumer trends in small appliances, with companies like Ninebot and Roborock showing exceptional growth. The tariff situation presents a strategic opportunity for companies with high exposure to the U.S. market [6]. Industry Overview - The home appliance sector consists of 88 listed companies, with a total market capitalization of 1,846.4 billion and a circulating market value of 1,761.9 billion [3]. - The industry index has shown varied performance, with absolute performance at -1.4% over one month, but a relative performance of 14.9% over six months [5]. Company Performance - Midea Group's EPS for 2024 is projected at 5.03, increasing to 5.62 in 2025, with a PE ratio of 13.4 and a PB of 2.5 [2]. - Gree Electric is expected to see EPS rise from 5.75 in 2024 to 6.25 in 2025, with a PE of 7.4 and a PB of 1.8 [2]. - Hisense Home Appliances anticipates an EPS increase from 2.42 to 2.71, with a PE of 10.3 and a PB of 2.3 [2].

Group 1 - The report highlights that after the tariff increases in 2019, domestic counter-cyclical policies and easing external pressures contributed to a bullish equity market. The "export chain" continues to show significant excess returns, indicating a potential "spring" for exports [4][6][8] - The report notes that the tariffs imposed during the Trump administration altered the export structure but did not significantly change export competitiveness. The share of Chinese exports in global exports showed resilience, recovering from 12.8% in 2017 to 14.2% in 2023 [6][30][18] - The report emphasizes that the market's risk appetite will continue to rise, contingent on policy changes, including potential liquidity releases by the Federal Reserve and significant shifts in domestic export data [4][9][6] Group 2 - The report identifies that the "golden pit" of tariff opportunities should be closely monitored, especially if there are signs of policy easing, such as phase exemptions or progress in bilateral negotiations [9][8][6] - The analysis indicates that during the tariff implementation periods, there were notable "export rush" phenomena, particularly in the periods surrounding the announcements and implementations of tariffs [7][8][64] - The report suggests that companies with high exposure to the U.S. market (over 30%) performed better during the "export rush" periods, particularly in industries like industrial machinery and semiconductors [8][7][6]