Investment Rating - The report maintains a "Positive" outlook on the home appliance industry for 2024 and Q1 2025, driven by the old-for-new policy and the long-term trend of overseas expansion [1]. Core Insights - The home appliance industry continues to show revenue growth, with a year-on-year increase of 14.79% in Q1 2025, reaching a total revenue of 456.1 billion yuan [3][24]. - The white goods sector experienced significant revenue growth, with Q1 2025 revenue increasing by 16.16% year-on-year, totaling 289.42 billion yuan [3][47]. - The kitchen appliance sector saw a decline in both revenue and profit in Q1 2025, with revenue dropping to 6.99 billion yuan, a decrease of 36.2% year-on-year [3][43]. - The small appliance sector reported a revenue increase of 24.02% year-on-year in Q1 2025, totaling 35.26 billion yuan, despite a decline in profit [3][43]. - The black goods sector showed a modest revenue increase of 3.61% year-on-year in Q1 2025, with profits soaring by 150.83% [3][43]. - The components sector experienced robust growth, with revenue increasing by 35.02% year-on-year in Q1 2025, reaching 34.75 billion yuan [3][43]. Summary by Sections 1. Industry Performance Overview - The home appliance sector's revenue and profit growth outpaced other industries, with a net profit increase of 29.48% in Q1 2025 [3][28]. 2. Subsector Performance - **White Goods**: Revenue increased to 289.42 billion yuan in Q1 2025, with a profit growth of 28.87% [3][49]. - **Kitchen Appliances**: Revenue decreased to 6.99 billion yuan in Q1 2025, with a profit decline of 32.99% [3][43]. - **Small Appliances**: Revenue rose to 35.26 billion yuan in Q1 2025, with a profit increase of 11.41% [3][43]. - **Black Goods**: Revenue reached 89.67 billion yuan in Q1 2025, with a significant profit increase of 150.83% [3][43]. - **Components**: Revenue grew to 34.75 billion yuan in Q1 2025, with a profit increase of 22.73% [3][43]. 3. Investment Highlights - Three main investment themes are identified: 1. **Domestic Sales**: The reversal of real estate policies and the old-for-new policy are expected to boost demand for white goods [5]. 2. **Exports**: Companies like Ousheng Electric and Dechang Co. are recommended due to their stable profitability and expanding overseas orders [5]. 3. **Core Components**: Companies such as Huaxiang Co. and Shun'an Environment are highlighted for their competitive advantages in the components sector [5].

Investment Rating - The industry investment rating is "Overweight" indicating that the industry is expected to outperform the overall market [20]. Core Views - NIO's Firefly model has exceeded expectations at the auto show, with potential monthly sales of 4,000-5,000 units, which could increase total sales to 20,000-25,000 units, replicating the growth path of XPeng's Mona M03 [3][4]. - SAIC is expected to see a structural change in joint venture brands, with new models from SAIC Volkswagen and General Motors anticipated to be turning points next year [3][5]. - Leap Motor's sales surpassed 40,000 units in April, with an annual target of 500,000-550,000 units, supported by the delivery of C10/C16 and new models [3][6]. - Great Wall Motors experienced a profit decline in Q1 due to short-term factors, but strong sales of fuel vehicles and a successful pricing strategy for new energy vehicles are expected to drive recovery [3][9]. - The report recommends focusing on domestic leading manufacturers like BYD and XPeng, as well as companies involved in intelligent trends and state-owned enterprise reforms [3]. Summary by Sections Complete Vehicles: NIO, SAIC, Leap Motor, Great Wall - NIO's Firefly model shows strong potential for sales growth in China, with new models and self-developed technology expected to enhance market confidence [4]. - SAIC is witnessing a structural change in joint ventures, with new product launches expected to halt the decline in market performance [5]. - Leap Motor's sales are projected to reach 500,000-550,000 units in 2025, with a focus on cost control and overseas expansion [6][8]. - Great Wall Motors is expected to recover from short-term profit declines, with strong sales in fuel vehicles and new energy models driving growth [9]. Components: Fuda, Shuanghuan, Yinlun, Jifeng, JuYi, Baolong - Fuda's Q1 profit doubled year-on-year, focusing on core businesses like crankshafts and electric drives [10]. - Shuanghuan's Q1 profit increased by 25%, with steady growth in core business despite a decline in non-core operations [10]. - Yinlun's Q1 profit rose by 11%, with strong growth in digital energy and improved profitability in North America [10]. - Jifeng's Q1 profit exceeded 100 million yuan for the first time since 2021, indicating successful overseas integration [11]. - Baolong is showing signs of a performance turnaround, with improved profitability expected from structural adjustments [13].

Core Viewpoint - The automotive industry is experiencing a positive trend in passenger vehicle sales, particularly in the new energy vehicle (NEV) segment, driven by policy support and increasing consumer demand [2][5][38]. Weekly Data - In the second week of April 2025, passenger car sales reached 351,000 units, up 13.1% year-on-year and 4.0% month-on-month. NEV sales were 185,000 units, up 27.2% year-on-year and 9.9% month-on-month, with a penetration rate of 52.8%, an increase of 2.8 percentage points from the previous month [2][38]. Market Performance - The automotive sector underperformed the market, with a decline of 0.39% from April 14 to April 18, 2025, ranking 28th among sub-industries. The passenger vehicle, commercial passenger vehicle, and auto parts segments saw declines of 0.29%, 0.29%, and 0.76%, respectively [3][26]. Investment Recommendations - The focus is on high-quality domestic companies accelerating in smart technology and globalization, recommending companies such as BYD, Geely, Xpeng Motors, and others [6][12]. Industry Catalysts - The upcoming Shanghai Auto Show from April 23 to May 2, 2025, will showcase innovations in smart driving and new models, including significant launches from brands like BYD, Geely, and Xpeng [4][5][10]. Passenger Vehicle Fundamentals - The demand for passenger vehicles is supported by favorable policies, with new car launches expected to stimulate sales. The first half of April saw strong sales figures, indicating a robust market outlook [5][10][11]. Electric Vehicle Market - The electric vehicle segment is projected to grow significantly, with companies like BYD leading the charge in smart driving technology, aiming for widespread adoption across various price points [5][13]. Motorcycle Market - The motorcycle market is witnessing a surge in demand, particularly for mid-to-large displacement models, with sales in March 2025 showing a year-on-year increase of 68.4% [22][24]. Heavy Truck Market - The heavy truck market is expected to recover due to expanded subsidy policies aimed at replacing older vehicles, with sales in March 2025 reaching 111,000 units, a month-on-month increase of 37% [25][26]. Tire Industry - The tire industry is experiencing high demand and operational efficiency, with domestic production rates at a decade high, indicating a positive outlook for leading tire manufacturers [27][28].