Investment Rating - The report suggests a positive outlook for leading brands in the home appliance sector, indicating a potential for steady growth due to integrated advantages and strong pricing power [5]. Core Insights - The home appliance industry is currently facing short-term adjustments in both domestic and export sales due to high base effects and the timing of the Spring Festival, with air conditioning production experiencing significant declines [1][12]. - Domestic air conditioning production in February 2026 was 4.555 million units, down 38.1% year-on-year, while export production was 6.93 million units, down 26.5% year-on-year [1][12]. - Refrigerator production also saw a decline, with domestic production at 2.6 million units (down 17.1%) and exports at 3.4 million units (down 8%) [1][15]. - Washing machine production showed a slight increase in exports (up 1.5%), while domestic production fell to 3.1 million units (down 5.9%) [1][16]. - The report highlights that the real estate market's downturn continues to suppress demand for home appliances, although there are signs of a potential recovery in production post-holiday [3][5]. Summary by Sections Air Conditioning Production - February 2026 air conditioning production was impacted by the Spring Festival timing and high base effects, leading to a significant drop in both domestic and export figures [1][12]. - Domestic production was 4.555 million units, a year-on-year decrease of 38.1%, while exports were 6.93 million units, down 26.5% [1][12]. Refrigerator Production - Domestic refrigerator production in February 2026 was 2.6 million units, down 17.1%, with exports at 3.4 million units, down 8% [1][15]. - The decline in domestic sales was attributed to the Spring Festival holiday and weak macro demand, but a recovery is expected in March [1][15]. Washing Machine Production - Domestic washing machine production was 3.1 million units, down 5.9%, while exports increased slightly to 3.2 million units, up 1.5% [1][16]. - The domestic decline is linked to previous policy impacts and a sluggish real estate market, while exports benefited from stable overseas demand [1][16]. Market and Sector Performance - The report notes that the Shanghai and Shenzhen 300 Index increased by 0.08%, while the home appliance index decreased by 2.88% [2][19]. - Key companies showed varied performance, with Samsung New Materials up 23.72% and Tianyin Electromechanical down 18.66% [2][19]. Raw Material Prices - Recent trends show fluctuations in raw material prices, with copper prices up 1.32% and aluminum prices down 2.57% in the last week [2][23]. - Year-to-date, copper prices have increased by 6.35%, while aluminum has risen by 4.15% [2][23]. Real Estate Data - Real estate metrics indicate a continued decline, with new housing starts down 19.9% year-on-year, impacting long-term demand for home appliances [3][31]. Investment Recommendations - The report recommends leading brands such as TCL Electronics, Hisense Visual, Midea Group, and Haier Smart Home for their strong market positions and growth potential in both domestic and international markets [5][42].

Investment Rating - The report maintains a "Buy" rating for the home appliance industry, expecting a price increase exceeding 15% over the next 3-6 months compared to the market [42]. Core Insights - The report highlights a rebound in air conditioner production in January 2026 due to a shift in production schedules, although end-user demand is expected to remain weak. Home air conditioner domestic production reached 7.86 million units, up 8.9% year-on-year, while export production was 10.65 million units, up 1.2% year-on-year [13][14]. - Refrigerator production showed a decline in both domestic and export markets, with domestic production at 3.52 million units, down 6.9% year-on-year, and export production at 4.4 million units, down 3.4% year-on-year. The market is experiencing regional differentiation, with emerging markets being the main growth points [16]. - Washing machine production also faced challenges, with domestic production at 3.65 million units, down 4.1% year-on-year, and export production at 4.45 million units, down 0.7% year-on-year. The "trade-in" policy's effectiveness is diminishing, and companies need to innovate to find breakthroughs [17]. Market and Sector Performance - The Shanghai and Shenzhen 300 Index increased by 1.95%, while the home appliance index rose by 0.54%. Notable stock performances included Feike Electric (+24.57%), Jinhai High-Tech (+22.57%), and Tianyin Electromechanical (+17.91%) [20]. - The report tracks raw material prices, noting a 2.62% increase in copper prices and a 1.16% increase in aluminum prices, while cold-rolled steel and plastic prices saw slight declines [24]. - The exchange rate for USD to RMB was reported at 7.04, with a slight decrease of 0.02% week-on-week, and container shipping rates showed a small increase of 1.95% [27]. Real Estate Data - Real estate data for November 2025 indicates a significant decline in new construction, with a year-on-year decrease of 20% in new starts, 10% in construction, and 20.2% in completions. Sales also fell by 8.9% year-on-year, indicating ongoing pressure on the home appliance sector's long-term demand [31][32]. Investment Recommendations - The report suggests that leading brands are likely to achieve stable growth due to their integrated advantages and strong pricing power. The external market is expected to benefit from a potential recovery in the U.S. housing market and gradual improvement in European consumption. Emerging markets are anticipated to maintain strong demand due to demographic advantages [40]. Recommended companies include Hisense, Midea Group, Haier, and TCL Electronics [40].

Report Summary 1. Report Industry Investment Rating - Not provided in the given content. 2. Core View - From the October data, the decline in real - estate sales area continued to widen, investment remained weak, and the new construction and construction areas continued to decline significantly. Attention should be paid to policy changes and the restoration of the market's internal driving force [1]. 3. Summary of Key Data Development Investment - The completed development investment amount was 735.63 billion yuan, with a cumulative year - on - year decrease of 14.7%. The growth rate in October was - 23.0%, in September was - 21.3%, from January to September was - 13.9%, and in 2024 was - 10.6% [1]. New Construction Area - The new construction area of houses was 49,0610,000 square meters, with a cumulative year - on - year decrease of 19.8%. The growth rate in October was - 29.5%, in September was - 14.4%, from January to September was - 18.9%, and in 2024 was - 23.0% [1]. Commercial Housing Sales Area - The sales area of commercial housing was 71,9820,000 square meters, with a cumulative year - on - year decrease of 6.8%. The growth rate in October was - 18.8%, in September was - 10.5%, from January to September was - 5.5%, and in 2024 was - 12.9% [1]. Construction Area - The construction area of houses was 6,529,390,000 square meters, with a cumulative year - on - year decrease of 9.4%. The growth rate in October was - 9.4%, and in September was - 12.7% [1]. Completion Area - The completion area of houses was 34,8610,000 square meters, with a cumulative year - on - year decrease of 16.9%. The growth rate in October was - 28.2%, in September was 1.5%, from January to September was - 15.3%, and in 2024 was - 27.7% [1].

Report Summary 1. Report Industry Investment Rating - Not provided in the document 2. Core View of the Report - From the September data, the decline in real estate sales area is stabilizing, while the investment side remains weak. After a significant drop in the base, the decline in new construction starts has narrowed marginally. Attention should be paid to policy changes and the restoration of the market's internal driving force [1] 3. Summary by Relevant Catalog Real Estate Development Investment - The completed real estate development investment from January to September 2025 was 677.06 billion yuan, with a cumulative year - on - year decrease of 13.9%. The single - month growth rate in September was - 19.5% [1] New Housing Construction Area - The new housing construction area from January to September 2025 was 45,3990,000 square meters, with a cumulative year - on - year decrease of 23.0% [1] Commercial Housing Sales Area - The commercial housing sales area from January to September 2025 was 65,8350,000 square meters, with a cumulative year - on - year decrease of 5.5%. The single - month growth rate in September was - 10.5% [1] Housing Construction Area - The housing construction area from January to September 2025 was 6,485,800,000 square meters, with a cumulative year - on - year decrease of 9.4% [1] Housing Completion Area - The housing completion area from January to September 2025 was 31,1290,000 square meters, with a cumulative year - on - year decrease of 15.3%. The single - month growth rate in September was 1.5% [1]