Core Viewpoint - Hisense's heat pump washing and drying technology is fundamentally transforming the laundry care industry, showcasing significant advancements in product functionality and user experience [1][2]. Technology Breakthrough - The heat pump washing and drying integrated technology saves space and simplifies the laundry process by allowing clothes to transition directly from washing to drying without manual transfer, providing a convenient experience [1]. - Hisense's Zeus integrated heat pump drying system operates at a precise temperature of 42°C, consuming about 50% less energy compared to traditional methods, thus redefining drying efficiency [2]. - The technology excels in wrinkle prevention, utilizing a three-variable frequency system to gently smooth out wrinkles, achieving results comparable to manual ironing [2]. Competitive Advantage - The market for multi-tub washing machines is becoming increasingly competitive, yet few brands possess the core technology for heat pump systems, leaving a gap in addressing key issues like health isolation and energy efficiency [3]. - Hisense's Ultra family tub technology, while more complex and costly, creates a significant technological barrier that enhances its competitive edge in the market [3]. - Users are willing to pay for tangible technological benefits, which Hisense's products deliver through reduced wrinkles, no deformation, effective lint removal, and energy efficiency [3]. Innovative Value - Since launching the world's first three-tub washing machine in 2017, Hisense has developed a complete ecosystem of heat pump washing and drying products, receiving multiple awards for its innovation [4]. - The Ultra family tub has achieved recognition as the top-selling heat pump washing and drying machine in its price category, reflecting consumer trust in Hisense's technology [4]. - Hisense is expanding the application of heat pump technology across various product lines and price ranges, promoting a lifestyle of "wash and wear" for more households, which signifies a strategic move towards industry-wide technological advancement [4].

Investment Rating - The report maintains a "Buy" rating for Gree Electric Appliances with a target price of 54.10 CNY [5][7]. Core Insights - The expected dividend yield for 2025 exceeds 7%, indicating strong value characteristics. The current expected dividend yield is 7.7% based on a profit forecast of 33 billion CNY and a 52% cash dividend rate [2][5]. - Historical data shows that the company has had a dividend yield above 7% for approximately 31% of the time from 2013 to 2024, typically corresponding to valuation bottoms [2]. - The company has seen a resilient online retail growth, with a 21% year-on-year increase in August, compared to a 2% growth in the industry [3]. - Gree Electric is accelerating its expansion in Southeast Asia, with a significant increase in its market share from 30% to 80% in the region [4]. Summary by Sections Dividend and Profitability - The projected dividend per share for 2025 is 2.86 CNY, with a cash dividend rate of 7.2% [15]. - The company’s net profit for 2025 is estimated at 33 billion CNY, with a growth rate of 2.63% [6]. Revenue and Growth - The expected revenue for 2025 is 194.89 billion CNY, with a growth rate of 2.55% [6]. - The company’s online retail price has increased, benefiting from a reduction in the proportion of low-priced air conditioning sales [3]. Market Position and Strategy - Gree Electric has shifted its operational model in Thailand to a localized subsidiary approach, enhancing market responsiveness [4]. - The company has successfully positioned itself against Japanese brands in Indonesia, indicating strong competitive capabilities [4]. Financial Metrics - The projected earnings per share (EPS) for 2025 is 5.90 CNY, with a price-to-earnings (P/E) ratio of 7 [6][15]. - The return on equity (ROE) is expected to be 22.88% in 2025, reflecting strong profitability [14].

Core Viewpoint - Aokai Electric Co., Ltd. has passed the listing hearing on August 12, 2025, with CICC as the sponsor, despite facing significant challenges in market share and competition in the home appliance industry [1][3]. Company Overview - Aokai was established in 1994, with over 95% of its revenue coming from air conditioning business. It was known as a "price killer" in the domestic air conditioning market, achieving the top online position and third in the industry, becoming a leading second-tier brand [1]. - In recent years, Aokai's online market share has dropped to sixth place, overtaken by brands like Xiaomi and Hualing, while its offline market share is below 1%, indicating a trend towards marginalization [3]. Financial Performance - According to the prospectus, Aokai's revenue is projected to grow from 19.528 billion in 2022 to 29.759 billion in 2024, with a compound annual growth rate (CAGR) of 23.45%. Net profit is expected to increase from 1.442 billion to 2.910 billion during the same period, with a CAGR of 42.07% [3]. - Despite these growth figures, Aokai's scale is significantly smaller than industry leaders, with Midea Group achieving 372.037 billion in revenue and 33.720 billion in net profit in 2023, and Gree Electric achieving 205.018 billion in revenue and 29.017 billion in net profit [3]. Competitive Landscape - Aokai has been viewed as a competitor by Gree Electric, with ongoing disputes and accusations dating back to 2013, highlighting the intense rivalry in the industry [3]. - The white goods industry has entered a phase of stock competition, where relying solely on price wars is unsustainable. Aokai's challenge lies in transitioning from a "price-driven" to a "value-driven" model to find new growth engines [5]. Financial Health - Aokai's debt-to-asset ratio has consistently remained above 80%, significantly higher than the approximately 60% ratio of leading competitors like Midea and Gree. As of 2024, Aokai's total liabilities reached 19.269 billion, with a debt-to-asset ratio of 84.1% [5]. - The total liabilities increased by approximately 29.7% from 14.850 billion in 2023 to 19.269 billion in 2024, indicating a concerning trend in financial health [5]. - Prior to the IPO, the founder's family distributed a substantial dividend of 3.79 billion, raising market concerns as it nearly equaled the net profit of 3.929 billion for 2022 and 2023 combined [5].

Core Viewpoint - Haier Smart Home's Q1 2025 financial results exceeded market expectations, showcasing strong growth in both domestic and international markets, driven by new product launches and digital transformation initiatives [1][2]. Financial Performance - Q1 2025 revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 79.1 billion, 5.5 billion, and 5.4 billion yuan, respectively, representing year-on-year increases of 10%, 15%, and 16% [1]. - Gross margin for Q1 2025 was 25.4%, up by 0.1 percentage points year-on-year, with improvements in both domestic and overseas operations [2]. - Net profit margin for Q1 2025 remained stable at 6.9% year-on-year [3]. Market Growth - Domestic and overseas revenue growth for Q1 2025 was 8% and 13%, respectively, with the domestic high-end brand Casarte benefiting from government subsidies and new product launches, achieving over 20% growth [1]. - Emerging markets showed rapid growth, with revenue increases of over 30% in South Asia, over 20% in Southeast Asia, and 50% in the Middle East and Africa [1]. Cost and Efficiency - The company optimized its expense ratios in Q1 2025, with sales, management, R&D, and financial expense ratios at 9.6%, 3.1%, 4.2%, and -0.3%, respectively, all showing year-on-year improvements [2]. - Digital transformation initiatives contributed to enhanced efficiency in marketing resource allocation, logistics, and warehousing operations, leading to reduced sales expense ratios [2]. Investment Outlook - The company is positioned as a leader in the white goods industry, with advantages in high-end, global, and localized operations, supported by a multi-tiered brand portfolio [3]. - The integration of logistics capabilities through the merger with日日顺 is expected to become a new growth point for the company [3]. - Projected net profits for 2025 and 2026 are 21.3 billion and 23.9 billion yuan, respectively, with corresponding EPS of 2.27 and 2.55 yuan, indicating a favorable investment outlook [3].

Core Insights - Haier Smart Home reported its 2024 annual results with revenue of 286 billion yuan, net profit attributable to shareholders of 18.7 billion yuan, and net profit excluding non-recurring items of 17.8 billion yuan, reflecting year-on-year growth of 4%, 13%, and 13% respectively [1] - The company plans to distribute a cash dividend of 9.65 yuan per share, totaling 9 billion yuan, with a dividend payout ratio of 48%, and intends to repurchase shares worth 1 to 2 billion yuan at a price not exceeding 40 yuan per share [1] Revenue Growth - Both domestic and international sales grew, with significant increases in the Middle East, Africa, South Asia, and Southeast Asia [2] - Revenue from various segments for 2024 included: refrigeration 83.6 billion yuan (+2%), kitchen appliances 41.2 billion yuan (-1%), washing machines 63.3 billion yuan (+3%), air conditioning 49.6 billion yuan (+8%), water appliances 16.2 billion yuan (+5%), and other businesses 118.2 billion yuan (+7%) [2] - Domestic revenue was 142.2 billion yuan (+3%) and overseas revenue was 143.8 billion yuan (+5%) [2] Brand Performance - The retail revenue of the Casarte brand increased by 12%, with Q4 revenue growth exceeding 30% [3] - The Leader brand saw a 26% increase in retail revenue, driven by product innovation and marketing upgrades [3] Profitability Improvement - The overall gross margin for 2024 was 27.8%, an increase of 0.3 percentage points year-on-year, with improvements in both domestic and overseas gross margins [4] - Profit margins for various segments included: air conditioning 23.9%, refrigeration 30.8%, kitchen appliances 29.3%, water appliances 41.6%, washing machines 31.4%, and equipment and channel services 8.6%, all showing year-on-year increases [4][5] - The net profit margin for 2024 was 6.6%, up 0.5 percentage points year-on-year, with all segments showing improved profit margins [5] Future Outlook - The company is positioned as a leader in the white goods industry, with advantages in high-end, global layout, and localized operations [5] - The integration of logistics capabilities through the merger with Rishun is expected to enhance domestic and international operations [5] - Revenue projections for 2025 and 2026 are 21.4 billion yuan and 23.9 billion yuan respectively, with corresponding EPS of 2.29 yuan and 2.54 yuan, indicating a PE ratio of 12.0 and 10.8 times [5]