Core Viewpoint - The report indicates that Supor (002032) is rated as a "buy" due to its stable long-term performance, although short-term exports are impacted by U.S. tariffs [1] Financial Performance - In the first half of 2025, Supor reported revenue of 11.48 billion yuan, a year-on-year increase of 4.7%, and a net profit attributable to shareholders of 940 million yuan, a slight decrease of 0.1% [1] - The net profit margin for the first half of 2025 was 8.2%, down 0.4 percentage points year-on-year [1] - Revenue for Q1 and Q2 of 2025 was 5.79 billion yuan and 5.69 billion yuan respectively, with year-on-year growth rates of 7.6% and 1.9% [1] - The net profit for Q1 and Q2 was 500 million yuan and 440 million yuan respectively, with year-on-year changes of +5.8% and -5.9% [1] Domestic and International Sales - Domestic sales in the first half of 2025 reached 7.76 billion yuan, up 3.4% year-on-year, supported by national subsidy policies [2] - The gross margin for domestic sales improved to 27.7%, an increase of 0.6 percentage points year-on-year [2] - International sales in the first half of 2025 were 3.72 billion yuan, a year-on-year increase of 7.6%, but Q2 growth slowed due to U.S. tariff changes [2] - The gross margin for international sales was 15%, down 1.5 percentage points year-on-year [2] Product Performance - In the first half of 2025, revenue from cooking appliances, cookware, food processing appliances, and other appliances was 4.7 billion yuan, 3.16 billion yuan, 1.95 billion yuan, and 1.67 billion yuan respectively, with year-on-year growth rates of +1.2%, +7.5%, +2.4%, and +13% [3] - The gross margins for these product categories were 23.5%, 25.5%, 20.3%, and 24.1% respectively, with year-on-year changes of +0.6, -1.1, +0.2, and -1.5 percentage points [3] Investment Recommendations - The company is expected to maintain stable earnings, high return on equity (ROE), and high dividends, with projected net profits for 2025-2027 at 2.3 billion yuan, 2.38 billion yuan, and 2.49 billion yuan respectively [3] - Earnings per share (EPS) are forecasted to be 2.87 yuan, 2.96 yuan, and 3.1 yuan for the same period, corresponding to price-to-earnings (PE) ratios of 17.9, 17.3, and 16.5 times [3]

Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 11.478 billion yuan, a year-on-year increase of 4.68% [4] - The net profit attributable to shareholders was 940 million yuan, a slight decrease of 0.07% year-on-year [4] Group 2: Domestic and International Sales - Domestic sales revenue showed stable growth due to increased resource investment in core categories and the positive impact of the "trade-in" policy [4] - International sales revenue also experienced good growth, with major foreign clients' orders increasing compared to the same period last year [4] Group 3: Product Strategy - The company plans to focus resources on traditional advantageous categories while iterating products based on differentiated usage scenarios and target demographics [4] - New product categories such as desktop water purifiers and ice makers are being actively developed to enhance brand recognition and consumer acceptance [4] Group 4: Competitive Strategy - The company adheres to a long-term strategy of product innovation, aiming to provide high-quality, high-value-added products [4] - Efforts are being made to optimize product and price combinations, strengthen resource investment in core businesses, and implement strict cost control to maintain stable gross margins [5] Group 5: Dividend Policy - The company has maintained a high dividend payout ratio since 2021, with future dividend plans subject to adjustments based on capital expenditures and cash flow [5]

Summary of Key Points from the Conference Call Industry Overview - The small home appliance industry entered a plateau phase after 2021, but new categories like air fryers and coffee machines showed remarkable growth in 2022, with air fryers increasing by 88% and coffee machines by 41% [1][2][4]. - The macroeconomic downturn in 2023-2024 is expected to impact consumer spending, but the national subsidy policy in Q4 2024 is anticipated to boost confidence, particularly benefiting mid-to-high-end products [1][2][4]. Core Insights and Arguments - By 2025, small appliance companies are expected to face a mild recovery in demand, reduced competition, and improved profitability, driven by fiscal subsidies and low base effects [1][4]. - Online sales channels have become the mainstream for small appliances, accounting for 79% of sales, with platforms implementing cost-reduction policies to alleviate pressure on brands [1][5]. - Brands like Xiaoxiong are optimizing product structures and focusing on high-end products to enhance brand image and profitability, while also emphasizing marketing efficiency and supply chain cost reduction [1][6]. Future Trends and Recommendations - The kitchen small appliance market is projected to recover in 2025, with significant price-driven growth expected. The domestic market is entering a phase of enhanced product capabilities [1][7]. - Recommended companies to watch include Xiaoxiong, Feike, Delma, and the stable dividend-paying leader Supor, as well as the promising water purification company Yunmi Technology [1][7]. Market Environment and Strategic Directions - Current market conditions for small appliance companies include moderate demand recovery, easing competition, and improving profitability, with a focus on high-quality development [4]. - Companies are adopting various strategic directions, including market penetration, product development, market expansion, and diversification to adapt to the plateau phase [8][10]. - The mother and baby small appliance market is particularly strong, with Xiaoxiong's revenue in this segment growing by 32% in 2024, outperforming other business areas [2][9]. Additional Important Insights - The online retail share of kitchen small appliances rose from 55% in 2019 to 67% in 2020 due to the pandemic, with brands like Xiaoxiong, Beiding, and Xinbao seeing significant revenue growth [2]. - Platforms are shifting their strategies towards GMV (Gross Merchandise Volume) to enhance user engagement, repeat purchase rates, and average transaction value, leading to a reduction in price competition [5]. - Companies are increasingly focusing on overseas markets due to prolonged domestic demand weakness, with brands like Xiaoxiong and Beiding achieving substantial growth in international sales [10].