Core Viewpoint - The air conditioning industry experienced double-digit growth in domestic sales in July, while exports remained weak, aligning with market expectations. The domestic sales volume for the 2025 cooling year is projected to increase by 11% year-on-year to 110 million units, marking a historical high [1]. Group 1: Domestic Sales Performance - In July, the production of household air conditioners was 16.12 million units, a slight decrease of 0.01% year-on-year, while sales reached 16.44 million units, an increase of 1.58% year-on-year. Domestic sales accounted for 10.58 million units, up 14.34% year-on-year [1]. - The retail performance showed significant growth, with online and offline retail volumes increasing by 32% and 37% year-on-year, respectively [2]. - The domestic sales growth trend is expected to continue, with a forecasted increase of 13% year-on-year from August to December 2024 [2]. Group 2: Performance of Leading Companies - In July, the domestic sales of major brands showed varied performance: Midea +2%, Gree stable, Haier +58%, Hisense +63%, Changhong -2%, and TCL stable [3]. - Midea's cumulative domestic sales from May to July increased by 24% year-on-year, outperforming the industry average of 15% [3]. Group 3: Export Challenges - The export volume of air conditioners in July decreased by 15% year-on-year, with ongoing impacts from tariffs. The U.S. and China announced a 90-day suspension of the 24% tariff increase, but future developments remain uncertain [4]. - Major brands' export performance in July included Midea -22%, Gree -15%, Hisense -12%, Haier -30%, and Changhong -34% [4]. Group 4: Investment Recommendations - Recommended stocks include Midea Group (000333.SZ), Haier Smart Home (600690.SH), Gree Electric Appliances (000651.SZ), and Hisense Home Appliances (000921.SZ) [5].

Core Viewpoint - The air conditioning market in July showed double-digit growth in domestic sales, while exports remained weak, aligning with market expectations. The domestic sales volume for the 2025 cooling year is projected to increase by 11% year-on-year to 110 million units, marking a historical high [1]. Group 1: Domestic Sales Performance - In July, the production of household air conditioners was 16.12 million units, a slight decrease of 0.01% year-on-year, while sales reached 16.44 million units, an increase of 1.58% year-on-year. Domestic sales accounted for 10.58 million units, up 14.34% year-on-year [1]. - The retail sector showed strong performance, with online and offline retail volumes increasing by 32% and 37% year-on-year, respectively. This indicates that retail growth is outpacing shipment growth [2]. - The air conditioning market's performance from March to July has shown a compound annual growth rate (CAGR) of approximately 4% compared to the same period in 2019, indicating a stable trend [2]. Group 2: Export Sales and Challenges - Export sales of air conditioners in July decreased by 15% year-on-year, with ongoing impacts from tariffs. The announcement of a 90-day suspension of the 24% tariff by the US and China on August 12 is a key development to monitor [4]. - Major brands like Midea and Gree experienced export declines of 22% and 15% respectively, while Haier and Hisense saw declines of 30% and 12% [4]. Group 3: Company Performance Insights - In July, Midea, Gree, and Haier reported year-on-year domestic sales growth of 2%, flat, and 58% respectively, with Hisense and Changhong showing growth of 63% and a decline of 2% [3]. - The overall performance of leading brands has been stable, with Haier and Hisense showing particularly strong results [3]. Group 4: Investment Recommendations - The report recommends investing in Midea Group, Haier Smart Home, Gree Electric Appliances, and Hisense Home Appliances as key players in the air conditioning market [5].