Investment Rating - The report maintains a "Positive" investment rating for the home decor industry [12] Core Insights - The U.S. home consumption trend is expected to turn around after interest rate cuts in 2024, with growth rates showing signs of recovery by Q3 2025. Home consumption is estimated to remain relatively stable when considering tariffs and comparable metrics [2] - The inventory levels for home decor companies have improved, with the inventory-to-sales ratio showing a month-on-month increase and currently positioned at historical averages [7] - The U.S. real estate market is gradually recovering, with home sales showing year-on-year growth of 1.9%, 3.7%, and 4.2% from August to October 2025. The annualized sales figure for existing homes in December 2025 is projected at 4.35 million units, indicating a recovery potential of 26% to 38% towards the mid-to-upper range of 5.5 to 6 million units [9] Demand - Home consumption in Q3 2025 is stable but shows a recovery trend, with fast-moving consumer goods continuing strong growth. Retailers in the home sector are performing relatively steadily, with variations across different categories. E-commerce channels are outperforming traditional offline channels [6][19] - Specific company performances in Q3 2025 include Home Depot and Lowe's experiencing year-on-year declines of 1.5% and 2.6%, respectively, while Costco reported a 6.3% increase in comparable revenue [19] Inventory - The inventory-to-sales ratio for major retailers in Q3 2025 has mostly improved month-on-month, with some companies experiencing declines. Overall, the inventory levels for home decor and appliances are at historical averages [7][28] Outlook - Leading companies have provided conservative guidance for Q4 2025, with growth rate expectations ranging from low single-digit declines to mid-high single-digit increases. The focus remains on demand improvement driven by interest rate cuts [8] Investment Perspective - The report expresses continued optimism regarding the U.S. interest rate cut chain, particularly for companies with well-established overseas production capabilities and competitive product costs. Key companies to watch include Xiangxin Home, Zhiou Technology, and Yongyi Co., as well as Ku Jia Home and Minhua Holdings, which are expected to benefit from export business [10]