Investment Rating - The report maintains a positive outlook on the home appliance sector, particularly focusing on white goods, with an emphasis on their undervalued status, high dividends, and stable growth potential [4]. Core Insights - The report highlights the impact of the fourth batch of government subsidies amounting to 69 billion yuan, aimed at promoting the replacement of old appliances, which is expected to stimulate demand in the home appliance market [10][68]. - The production and sales of major appliances such as air conditioners, refrigerators, and washing machines have shown mixed results, with a notable decline in production for October 2025 compared to the previous year [11][32]. - The report identifies three main investment themes: white goods benefiting from favorable real estate policies, export opportunities for companies with strong client orders, and the demand for core components driven by the overall market growth [4]. Summary by Sections Industry Dynamics - The home appliance sector's performance is closely tied to government policies, with the recent 690 billion yuan subsidy expected to enhance consumer purchasing power [10][68]. - October 2025 production for air conditioners, refrigerators, and washing machines is projected to decline by 9.9% compared to the previous year, indicating potential challenges in the market [11]. Sales Data - In August 2025, the air conditioning sector saw a production increase of 9.4% year-on-year, but total sales decreased by 1%, with domestic sales up by 1.2% and exports down by 4.2% [32]. - The refrigerator market experienced a production increase of 3.4% and a sales increase of 2.1%, with domestic sales rising by 5.9% while exports fell by 0.8% [36]. - The washing machine sector reported a production increase of 5.8% and a sales increase of 6.6%, with domestic sales slightly up by 0.6% and exports up by 12.1% [37]. Key Companies - The report notes that major companies such as Midea, Haier, and Gree are well-positioned to benefit from the favorable market conditions and government policies [4]. - Companies like Ousheng Electric and Dechang Co. are highlighted for their stable income growth driven by large client orders and expanding automotive parts businesses [4]. Component Market - The demand for core components is expected to rise due to the overall growth in the white goods sector, with companies like Huaxiang and Sanhua Intelligent Control being recommended for their competitive advantages [4].

Core Viewpoint - The establishment of the "Freshness Quality Evaluation Standard for Household Refrigerators" led by Hisense Refrigerator marks a significant advancement in the refrigerator industry's ability to preserve meat freshness, providing a scientific and quantifiable evaluation system [1][4]. Group 1: Standard Overview - The new standard includes multi-dimensional evaluation methods such as sensory evaluation, weight loss rate, color difference, texture, and key biochemical indicators like Total Volatile Basic Nitrogen (TVB-N) [1][2]. - The standard aims to provide a clear and unified benchmark for measuring refrigerator preservation performance, enhancing consumer trust in product quality [3][4]. Group 2: Technological Innovation - Hisense Refrigerator's vacuum magnetic preservation technology plays a crucial role in the standard's formulation, showcasing its leading position in the vacuum preservation field [3]. - This technology combines a constant temperature and humidity, low pressure, and low oxygen vacuum environment with a specific magnetic field, effectively delaying food oxidation and preserving freshness at a molecular level [3]. Group 3: Practical Implications - Experimental data indicates that beef stored for seven days in Hisense's vacuum refrigerator shows a TVB-N value better than the national first-class fresh meat standard, maintaining excellent texture and color [3]. - The technology also significantly reduces weight loss in perishable fruits like lychee, achieving a weight loss rate that is only one-sixth of that in ordinary refrigerators after seven days [3]. Group 4: Industry Impact - The successful approval and release of the standard signify a new phase of standardization and technological advancement in the meat preservation sector of China's refrigerator industry [4]. - This initiative reflects the responsibility and commitment of Chinese home appliance companies, represented by Hisense, to drive innovation and enhance consumer quality of life [4].