Group 1: Core Views - The company maintains a "stronger than market" investment rating for the home appliance industry, emphasizing the need for upward expectations and the overall low exposure to the U.S. market [1] - Key recommendations include focusing on high-quality, high-dividend white goods leaders, leading TV brands with strong product capabilities, and small appliances with expected performance elasticity [1] Group 2: White Goods - Domestic sales of white goods are expected to see high single to double-digit growth by Q2 2025, driven by national subsidy policies, with terminal sales outpacing shipments [1] - The air conditioning leaders are actively adjusting product structures, showing significant market share elasticity and outperforming the overall industry [1] - The cost environment is improving, and stable average prices are expected to enhance profitability, with Q2 revenue performance likely to exceed expectations [1] Group 3: Color TVs - The demand for color TVs has shown slight fluctuations, but the penetration rate of MiniLED technology is increasing due to subsidy policies [2] - The average selling prices for online and offline channels have increased by 10.5% and 6.5% year-on-year, respectively, indicating a significant product structure optimization [2] - Leading Chinese TV brands are expected to maintain steady revenue growth, benefiting from their advantages in the panel supply chain [2] Group 4: Kitchen Appliances - The demand for kitchen appliances is supported by national subsidies, with retail growth expected to remain relatively stable in Q2 2025 despite a decline in construction area [3] - The integrated stove market may face pressure, while the demand for separate stoves is expected to remain steady [3] Group 5: Emerging Small Appliances - The market for robotic vacuum cleaners and washing machines is experiencing high growth, with domestic brands performing well in exports [4] - The domestic market is expected to continue growing, driven by high-end products and competitive pricing strategies [4] Group 6: Small Kitchen Appliances - The trend of recovering domestic demand for small kitchen appliances continues, supported by low base effects and national subsidies [5] - The competitive landscape in the small appliance sector has eased, with significant price increases during the "618" shopping festival [5] - However, external sales are under pressure due to tariffs affecting some OEM small appliance companies [5]

Group 1: Home Appliances Sector - The home appliance sector is expected to maintain stable operations due to robust domestic sales growth and strong export performance, supported by favorable policies and low base effects [1] - White goods are projected to see steady revenue growth and improved profitability, with expectations of stable growth in both domestic and export markets for air conditioners, refrigerators, and washing machines [1] - Leading companies in the sector, such as Gree Electric Appliances, Midea Group, Haier Smart Home, and Hisense Home Appliances, are recommended for investment due to their strong risk management capabilities and dividend advantages [1] Group 2: Black Appliances Sector - The black appliance sector is experiencing slight growth in shipments, with significant optimization in product structure, driven by subsidy policies and increased penetration of MiniLED technology [2] - The overall operating environment for the color TV industry remains stable, with a year-on-year increase in both domestic and export sales [2] - Panel prices have seen a slight increase, allowing leading companies to potentially improve profitability through product upgrades [2] Group 3: Post-Cycle Sector - The post-cycle sector is facing weak terminal demand, with a significant year-on-year decline in residential construction area, impacting overall industry demand [3] - Despite a narrowing decline compared to the previous quarter, the demand outlook remains weak, with limited impact from trade-in policies [3] - Profitability in the sector is expected to be slightly pressured due to the challenging demand environment [3] Group 4: Emerging Small Appliances - The emerging small appliance sector is anticipated to continue high growth in domestic sales, particularly in robotic vacuum cleaners and washing machines, driven by trade-in policies and product innovations [4] - Export performance is expected to remain stable, supported by aggressive marketing strategies from domestic brands [4] - However, intense competition in the industry may put pressure on profitability [4] Group 5: Kitchen Small Appliances - The kitchen small appliance sector is showing signs of recovery in domestic sales, aided by government subsidies and improved brand management on platforms like Douyin [5] - Export growth is expected to remain steady due to a recovery in overseas markets and short-term export opportunities [5] - Profitability is projected to improve in 2025, supported by a better competitive environment and slight revenue growth [5]