Investment Rating - The report maintains a "Positive" outlook for the home appliance industry [4] Core Insights - Domestic demand is weak, and export performance is mixed, leading to a slight contraction in the production of the three major white goods [7] - The report highlights that the production of air conditioners, refrigerators, and washing machines has decreased by 3.6% compared to the same period last year, with total production in April 2026 amounting to 37.64 million units [7] - The report suggests that the short-term production of domestic sales will remain low and fluctuate, while the export side may see a recovery in certain regions once geopolitical factors diminish [2][7] Summary by Sections Air Conditioners - Total production in April 2026 was 21.32 million units, down 4.9% year-on-year, with domestic production at 12.70 million units, a slight decrease of 0.5% [7] - Export production fell by 12.2% to 8.62 million units, influenced by high raw material costs and reduced dealer inventory due to unclear end-user demand [7] Refrigerators - Total production in April 2026 was 8.21 million units, a minor decline of 0.1% year-on-year, with domestic production at 3.41 million units, down 8.2% [7] - Export production increased by 5.1% to 4.80 million units, driven by low inventory levels in overseas channels and a return of orders to China due to supply chain issues in Southeast Asia [7] Washing Machines - Total production in April 2026 was 8.11 million units, down 3.7% year-on-year, with domestic production at 4.10 million units, a decrease of 2.4% [7] - Export production also fell by 3.7% to 4.01 million units, facing challenges from tariff changes and increased logistics costs due to regional conflicts [7]

Investment Rating - Industry rating: Recommended [5] Core Views - The total production of the three major white goods (air conditioners, refrigerators, and washing machines) in October 2025 is 29.24 million units, representing a 9.9% decrease compared to the same period last year [12][13] - Air conditioner production has been slightly adjusted upwards, with domestic production for October to December 2025 expected to decrease by 12%, 8%, and 10% respectively compared to last year, an improvement from previous estimates of 23% and 18% [12] - Refrigerator domestic production is gradually declining, with expected decreases of 1%, 1%, and 5% for the same period, influenced by subsidy policy adjustments and high base effects [12] - Washing machine production is under pressure due to high base effects, low demand, and price wars, with expected decreases of 4%, 1%, and 3% for the same period [13] Summary by Sections 1. Production Data - The total production of air conditioners, refrigerators, and washing machines in October 2025 is 29.24 million units, down 9.9% year-on-year [12] - Air conditioner domestic production is expected to decrease by 12%, 8%, and 10% for October to December 2025, while export production is expected to decrease by 9.4%, 7%, and 1% [12] - Refrigerator domestic production is expected to decrease by 1%, 1%, and 5%, with export production decreasing by 4%, 1%, and 4% [12] - Washing machine domestic production is expected to decrease by 4%, 1%, and 3%, with export production decreasing by 1%, 2%, and 1% [13] 2. Company Announcements - Hisense Home Appliances plans to purchase a 26.0006% stake in Hisense (Guangdong) Kitchen and Bath Systems Co., Ltd. from Hisense Visual Technology Co., Ltd. for approximately RMB 94.29 million [16][17] - Hisense Home Appliances will sell a set of non-core manufacturing assets related to television structure components to Hisense Visual Technology to optimize asset structure and improve operational efficiency [17] 3. Data Tracking - Raw material prices show a mixed trend, with copper prices increasing by 2.2% and aluminum prices decreasing by 1.7% [18] - Shipping rates have decreased by 2.93% overall, with variations across different routes [23] - Real estate data indicates a decline in sales area, completion area, and new construction area by 4.70%, 17.0%, and 19.50% respectively for the first eight months of 2025 [25]