Investment Rating - The report maintains an "Outperform the Market" rating for the home appliance industry [6][5][10]. Core Viewpoints - The home appliance retail sector is experiencing a bottoming out in November, with expectations for recovery driven by continued national subsidies and improvements in exports [1][18]. - Despite a challenging environment with high base effects from the previous year, the resilience of leading companies in the home appliance sector remains strong, particularly in the white goods segment [13][14]. - The report highlights a potential rebound in retail demand for home appliances, supported by ongoing national subsidy policies and improved export conditions [18][19]. Summary by Sections 1. Key Recommendations - Recommended companies include Midea Group, Haier Smart Home, TCL Smart Home, Gree Electric Appliances, and Hisense Home Appliances in the white goods category; Hisense Visual Technology in the black goods category; and Roborock, Bear Electric, and Ecovacs in the small appliances category [5][6][14]. 2. Market Performance and Insights - In November, the retail sales of home appliances and audio-visual equipment fell by 19.4% year-on-year, while the overall retail sales in China grew by 1.3% [2][19]. - The export value of home appliances decreased by 6% year-on-year in November, with air conditioning exports down by 25.7%, while refrigerators and washing machines showed signs of recovery with growth rates of 7.6% and 15.8%, respectively [3][46]. - Air conditioning production and sales saw declines exceeding 30% in November, but January production is expected to improve due to the timing of the Spring Festival [4][59]. 3. Key Data Tracking - The home appliance sector achieved a relative return of +0.44% compared to the broader market [61]. - Prices for copper and aluminum increased by 0.4% and 2.4%, respectively, while cold-rolled steel prices remained stable [63][64]. - The real estate sector continues to face challenges, with residential construction and sales areas down by 20.1% and 8.1% year-on-year, respectively [73].