Investment Rating - The report maintains a "Positive" investment rating for the home appliance industry [11] Core Insights - The home appliance sector shows strong profitability resilience despite challenges from domestic subsidy reductions and external tariff impacts. The overall valuation remains at a reasonable low level, suggesting opportunities for growth in high-performing leaders and stable value recovery in established companies [2][10] Overall Industry Summary - The home appliance industry achieved a revenue growth of 7.52% year-on-year in the first three quarters of 2025, with quarterly growth rates of +13.97%, +5.46%, and +3.59% respectively. The growth trend is expected to slow down due to subsidy reductions and diminishing marginal effects [4][21] - The gross profit margin for the industry in Q3 2025 was 24.75%, reflecting a slight year-on-year decrease of 0.54 percentage points, while the gross sales difference improved by 0.64 percentage points to 16.35% [31][39] - The net profit attributable to shareholders for the first three quarters of 2025 reached 1,048.77 billion, marking a year-on-year increase of 9.76%, with Q3 net profit growing by 4.22% [38][44] White Goods - The white goods sector reported a revenue growth of 9.06% year-on-year in the first three quarters of 2025, with Q3 growth at 5.29%. The sector benefits from a reduction in domestic price competition, leading to a recovery in gross profit margins [5][27] - The net profit for the white goods sector increased by 11.32% year-on-year in the first three quarters, with Q3 showing a growth of 3.50% [43][44] Black Goods - The black goods sector experienced a revenue growth of 3.09% year-on-year in the first three quarters, but Q3 saw a decline of 2.64%. The sector's performance is influenced by a low base effect and increased non-recurring gains [6][24] - The net profit for the black goods sector surged by 37.26% in Q3, reflecting a strong recovery [42][43] Kitchen Appliances and Post-Cycle - The kitchen appliance sector faced a revenue decline of 4.09% in Q3 2025, attributed to a downturn in the real estate market and cautious consumer spending [7][25] - The net profit for the kitchen appliance sector decreased by 12.73% year-on-year in Q3 [42][43] Small Appliances - The small appliances sector achieved a revenue growth of 5.92% in Q3 2025, with the cleaning segment showing a remarkable growth of 30.70% [8][24] - The net profit for the small appliances sector increased by 16.52% year-on-year in Q3 [42][43] Upstream Components - The upstream components sector reported a revenue growth of 8.13% year-on-year in the first three quarters, with Q3 growth at 3.31%. The sector's profitability significantly improved due to order and business structure optimization [9][26] - The net profit for the upstream components sector grew by 30.29% in Q3 [42][43] Investment Recommendations - The report suggests focusing on high-growth leaders with strong organizational, technological, and brand capabilities, such as Anker Innovations, Roborock, and Ninebot. Additionally, it recommends paying attention to stable leaders like Midea Group, Haier Smart Home, and Gree Electric for value recovery opportunities [10]

Investment Rating - The report maintains an "Outperform" rating for the home appliance industry [8]. Core Insights - The home appliance sector reported a revenue increase of 2.68% year-on-year to 389.7 billion yuan in Q3 2025, with a net profit increase of 4.50% to 32.5 billion yuan. The gross margin improved by 0.66 percentage points, while the net profit margin increased by 0.14 percentage points [4][19][28]. Summary by Sections Overall Performance - The home appliance sector showed resilience despite challenges such as the decline of domestic subsidies and external tariff disruptions. The sector achieved steady growth, with revenue and profit margins performing better than expected [4][19]. White Goods - The white goods segment saw a revenue increase of 3.83% year-on-year to 269.7 billion yuan, with net profit rising by 3.32% to 25.6 billion yuan. The gross margin remained stable at 26.00% [10][30]. Black Goods - The black goods segment experienced a revenue decline of 2.64% to 48.6 billion yuan, but net profit improved significantly by 37.21% to 1.5 billion yuan, driven by better profitability from leading brands [11][30]. Post-Cycle Appliances - The post-cycle segment (kitchen appliances and electrical lighting) reported a revenue decline of 4.09% to 11.7 billion yuan, with net profit down 12.73% to 1.6 billion yuan. The segment continues to face low demand [12][30]. Smart Home - The smart home segment achieved a remarkable revenue growth of 24.81% to 11.4 billion yuan, with net profit soaring by 93.18% to 0.9 billion yuan, reflecting strong market demand [13][30]. Traditional Small Appliances - The traditional small appliances segment saw a revenue decline of 4.03% to 22.5 billion yuan, with net profit down 28.32% to 1.0 billion yuan, primarily due to external sales pressures [14][30]. Upstream Performance - The upstream sector reported a slight revenue increase of 2.91% to 25.9 billion yuan, with net profit rising by 22.75% to 1.9 billion yuan, indicating improved performance in raw material supply [19][30].