Investment Rating - The industry rating is "Outperform the Market" [8][70]. Core Insights - The electric bicycle trade-in program has shown significant results, with 1.664 million units sold by March 11, 2025, surpassing the total for 2024 by 120.4% [3][11]. - The online sales of robotic vacuum cleaners in January-February 2025 reached 1.916 billion yuan, a year-on-year increase of 72%, with sales volume of 587,500 units, up 58% year-on-year [3][13]. Summary by Sections Electric Bicycle Trade-in Program - The trade-in program has resulted in 1.664 million electric bicycles being sold, with a total subsidy of 1 billion yuan, averaging 600 yuan per person, leading to new car sales of 4.51 billion yuan [3][11]. - The number of participating stores increased to 47,000, with an average sales boost of 96,000 yuan per store [11][12]. Robotic Vacuum Cleaner Sales - The online sales of robotic vacuum cleaners showed a strong performance, with a total sales amount of 1.916 billion yuan and an average price of 3,261 yuan, reflecting a 9% year-on-year increase [3][13]. - Leading brands like Ecovacs and Roborock saw significant increases in their market shares, with Ecovacs achieving a 27% market share and Roborock reaching 25% [13]. Investment Recommendations - The report suggests focusing on major home appliance companies benefiting from the trade-in program, including Midea Group, Haier Smart Home, Gree Electric, and TCL Electronics [5][17]. - The pet industry is highlighted as a resilient sector, with recommendations to consider companies like Guibao Pet and Zhongchong Co [5][17]. - The report anticipates a recovery in demand for small appliances and branded apparel in 2026, suggesting attention to leading brands in these categories [5][17]. Market Performance - The home appliance sector saw an overall increase of 1.7% this week, with specific segments like white goods and kitchen appliances performing particularly well [4][21]. - Raw material prices for copper and aluminum increased by 0.98% and 0.74% respectively compared to the previous week [4][21].

Investment Rating - The report maintains a "Recommended" rating for the company [2][55]. Core Viewpoints - The company is expected to benefit from government consumption stimulus and a recovery in the real estate market, gradually emerging from a low point [4]. - The company has a solid long-term value and is currently at a valuation bottom, with a stable cash flow despite recent impairments in its engineering and decoration business [4][13]. - The kitchen appliance market is projected to improve in 2024, driven by government subsidies, with significant growth expected in retail sales of kitchen appliances [4][44]. Company Overview - The company has experienced a significant adjustment in market value over the past few years, with a CAGR of 28% in revenue from 2010 to 2017, which decreased to 8% from 2017 to 2023 [4][7]. - The company's net profit CAGR dropped from 41% (2010-2017) to 3% (2017-2023), with expectations of continued pressure on performance in 2024 [4][7]. - The company is focusing on enhancing its retail business as the market for roughcast houses increases, which is expected to support future retail demand [4][44]. Financial Performance - The company achieved a revenue of 73.96 billion yuan in the first three quarters of 2024, a year-on-year decline of 6.78%, with a net profit of 12.02 billion yuan, down 12.44% year-on-year [19]. - The projected revenue for 2024 is 112.65 billion yuan, with a slight growth rate of 0.56%, and net profit is expected to be 16.12 billion yuan [55][56]. - The company’s EPS is forecasted to be 1.71 yuan in 2024, with a gradual increase to 2.00 yuan by 2026 [55][56]. Market Dynamics - The government has shifted its real estate policy to promote stability and recovery, which is expected to positively impact the kitchen appliance sector [4][46]. - The kitchen appliance market is anticipated to see a retail sales increase of 16.4% in 2024, driven by government subsidies and a recovering real estate market [4][44]. - The report highlights that the company is well-positioned to capitalize on the expected market recovery and government support for consumer spending [4][55].

对中国人来说，比走进厨房更难的，可能是找到合适的厨房电器。 19 世纪，电力普及前，没有洗衣机烘干机，手洗衣服再晾干；没有冰箱，每天买肉切菜做饭……即便在欧 美大部分家庭，家务都是女性的全职工作，这些从事家庭生产的 "工人" 比其他任何行业都多——都是免 费的。 直到第二次工业革命引入了电力和各式家用电器，这一情况才发生了改变。以家电为首的耐用消费品的开 发，将人类从家务劳动的桎梏中解放出来。1900 年，平均每个美国家庭每周花在家务劳动上的时间为 58 小时；1975 年，这一数字下降到了 18 小时，不到 1900 年的三分之一。 经济学家杰里米·格林伍德（Jeremy Greenwood）认为，繁琐的家务被电器取代，是女性解放的开始。她们 的社会劳动参与率大幅提高，话语权也从此开始提升。而 "在家中休闲" 作为一种基本权利，开始被每一 位家庭成员平等地享有。 这种家电对人性的解放，在中国发生得更加深刻。40 年的时间里，中国家庭从无到有走完了海外 200 年的 进化过程。 如今，没有哪个时代普通人 "享受生活" 的门槛会比今天更低。芯片对家电产品的接入、程序化的控制， 几乎重新发明了所有的家电。一些家电 ...