Core Viewpoint - The company, XGIMI Technology, is initiating a Hong Kong stock listing plan to issue H-shares and list on the Hong Kong Stock Exchange, aiming to enhance its global strategy and capitalize on new growth opportunities amid a challenging domestic market environment [1][2]. Group 1: Company Performance and Market Position - XGIMI Technology, founded in 2013, is a leading player in the domestic projection equipment industry, focusing on smart projectors and laser TVs, with a presence in over 100 countries and services provided to more than 5 million users [2][5]. - The company achieved significant milestones in 2018, surpassing international brands like Sony and Epson with a market share of 13.2%, and has maintained its position as the top seller in the industry for six consecutive years [2][5]. - Financial performance has shown volatility, with a peak revenue growth of 42.78% in 2021, followed by a sharp decline in 2022, where revenue growth plummeted to 4.6% [3][4]. Group 2: Recent Financial Trends - In 2023, the company faced further challenges, with revenue and net profit declining by 15.77% and 75.97%, respectively, while 2024 showed a slight recovery with a revenue decrease of only 4.27% [4][5]. - A significant turnaround is anticipated in the first half of 2025, with projected revenue of 1.626 billion yuan, a year-on-year increase of 1.63%, and a net profit surge of 2062.33% [5]. Group 3: Strategic Initiatives - To counteract domestic market challenges, XGIMI is focusing on globalization and the automotive sector as key growth strategies, with the Hong Kong listing aimed at supporting these initiatives [2][6]. - The company has seen a notable increase in international revenue, which reached 1.086 billion yuan in 2024, accounting for 32% of total revenue, up from 10.7% in 2021 [6][7]. - XGIMI has also made strides in the automotive market, becoming a designated supplier for several car manufacturers and entering mass production of car-mounted projection products [9][10]. Group 4: Market Challenges and Outlook - Despite the positive developments, the company faces significant challenges, including intense competition from established international brands and the high entry barriers in the automotive supply chain [8][10]. - The recent reduction in workforce and shareholder sell-offs reflect market skepticism regarding the company's short-term prospects, emphasizing the need for successful execution of its internationalization strategy [10][11]. - The overall market for projectors is expected to grow, with forecasts indicating a potential increase in global shipment volumes, which could benefit XGIMI if it successfully navigates its strategic initiatives [7][8].

Core Viewpoint - The company, XGIMI Technology, has announced plans to issue H-shares and apply for a listing on the Hong Kong Stock Exchange to enhance its international brand recognition and competitiveness [1][2]. Group 1: Company Strategy and Market Position - XGIMI aims to meet its internationalization strategy and overseas business layout needs through the upcoming Hong Kong listing [1]. - The company has established a solid foundation and growth momentum in the global market, having been listed on the STAR Market in March 2021 [2]. - The recent recovery of the Hong Kong IPO market has led to a surge in mainland companies seeking listings, indicating a favorable environment for XGIMI's H-share issuance [2]. Group 2: Financial Performance and Projections - XGIMI expects to achieve a revenue of 1.626 billion yuan in the first half of 2025, representing a year-on-year growth of 1.63% [2]. - The company anticipates a net profit attributable to shareholders of 88.6622 million yuan, an increase of 84.5619 million yuan compared to the same period in 2024, reflecting a growth of 2062.33% [2]. Group 3: Global Expansion and Product Strategy - Founded in 2013, XGIMI has become a leader in the new display sector, maintaining the top position in China's projector market for seven consecutive years since 2018 [4]. - The company has successfully expanded internationally, with overseas revenue reaching 1.205 billion yuan in 2024, accounting for over 35% of total revenue [4]. - XGIMI's overseas strategy includes utilizing crowdfunding platforms, accelerating e-commerce presence, and establishing a robust online and offline retail network [4][5]. Group 4: Innovation and Localization - XGIMI focuses on product strength and localized operations, investing 11% of its revenue in R&D, which is above the industry average [5]. - The company tailors its products to meet local market demands, such as launching simplified models for Japan and high-end models for Western markets [5][6]. - XGIMI's products are certified by Google and equipped with AndroidTV and GoogleTV, aligning with overseas users' content consumption habits [5]. Group 5: Future Prospects and Market Trends - The successful Hong Kong listing will create an "A+H" dual capital platform, providing new momentum for XGIMI's global expansion and enhancing its penetration in key markets [8]. - Research indicates that the proportion of overseas middle-class families considering Chinese brands for smart devices will increase by 17% in 2024, suggesting a shift towards high-end markets for Chinese brands [8].

Investment Rating - The report maintains a "Positive" outlook on the home appliance industry for the mid-2025 performance forecast [3] Core Insights - The home appliance sector is expected to benefit from domestic sales policies and the "old-for-new" program, which is driving demand for major appliances and kitchen appliances [4][5] - The air conditioning industry saw a cumulative production of 101.54 million units from January to May 2025, representing an 8% year-on-year increase, while sales reached 103.49 million units, up 9% year-on-year [4][17] - The report identifies three main investment themes: 1. **White Goods**: The reversal of real estate policies and the "old-for-new" program are expected to catalyze growth in the white goods sector, which is characterized by low valuations, high dividends, and stable growth [5][6] 2. **Exports**: Companies like Ousheng Electric are recommended due to stable income growth driven by large customer orders, while Dechang shares are highlighted for their expanding automotive parts business [6] 3. **Core Components**: The report suggests that the demand for core components will exceed expectations due to the strong performance of white goods, recommending companies like Huaxiang and Shun'an Environment for their competitive advantages [6] Summary by Sections 1. Air Conditioning and Major Appliances - The air conditioning sector is experiencing high growth in exports, with a 11% year-on-year increase in external sales from January to May 2025 [4][17] - The "old-for-new" policy is expected to enhance the average price of white goods, with major companies like Midea and Gree projected to see revenue growth of 8% and 5% respectively in Q2 2025 [4][29] 2. Kitchen Appliances - The kitchen appliance market is recovering due to real estate policies and the "old-for-new" program, with online sales of range hoods and gas stoves increasing by 17.5% and 16.5% respectively [40] - Companies like Boss Appliances are maintaining strong market shares in the kitchen appliance sector, with expected revenue growth of 5% in Q2 2025 [41] 3. Small Appliances - The small appliance sector is benefiting from high growth in domestic sales and exports, with companies like Supor and Joyoung expected to see revenue increases of 5% and 120% respectively in Q2 2025 [4][41] - The "old-for-new" policy is set to include small appliances, which is anticipated to significantly boost sales [5][20] 4. New Displays and Lighting - The emerging display market is at a turning point, with companies like Hisense and Jimi Technology expected to see revenue growth of 5% in Q2 2025 [4][5] 5. Investment Highlights - The report emphasizes the potential for a rebound in the home appliance sector driven by favorable policies and market conditions, recommending a combination of leading companies such as Midea, Haier, and Gree for investment [5][6]

Core Viewpoint - The report from Guolian Minsheng Securities indicates that the home appliance industry is experiencing a positive shift in domestic demand, with a focus on the white goods sector, which is expected to benefit from improved pricing strategies and a favorable cost environment [1][2]. Group 1: Home Appliance Industry Overview - The home appliance sector has shown a slight increase of 0.1% from the beginning of the year to June 5, 2025, outperforming the CSI 300 index by 1.6 percentage points, ranking 17th among primary industries [1]. - The overall performance of the home appliance sector has historically shown a high success rate, with 16 out of the past 20 years outperforming the CSI 300 index during the same period [1]. Group 2: White Goods Sector - The white goods sector is expected to see improved domestic demand, with a lower base for shipments and a potential upward trend [2]. - The usage of funds for the old-for-new policy has accelerated in May, although the impact of elastic marginal reduction and funding constraints may be concentrated in Q4 2025 [2]. - Major players in the white goods sector have adopted aggressive online pricing strategies, leading to significant market share elasticity, while the cost environment has improved, suggesting minimal impact on profitability [2]. Group 3: Black Goods Sector - The overall demand for TVs has shown a weak recovery since 2025, with MiniLED backlight TVs becoming a key driver for domestic product upgrades [3]. - Domestic brands like TCL and Hisense have performed strongly, with Hisense rapidly increasing its market share in MiniLED backlight TVs [3]. - The profitability of leading brands is expected to improve due to product structure upgrades and stable panel prices, with an anticipated increase in industry concentration and ongoing technological advancements [3]. Group 4: Emerging Small Appliances - The demand for emerging small appliances, particularly robotic vacuum cleaners, has seen significant growth since 2025, driven by subsidies and product innovation [4]. - Competition in the domestic and international markets is expected to diverge, with companies like Roborock performing well domestically while facing challenges abroad [4]. Group 5: Kitchen Appliances - The kitchen small appliance sector is showing signs of stabilization after a prolonged adjustment, with domestic sales rebounding due to low bases, reduced competition, and new product launches [5]. - The demand for large kitchen appliances is gradually improving, but recovery is still dependent on the real estate market, transitioning from new home-driven demand to replacement-driven demand [5]. Group 6: Investment Recommendations - The report suggests a positive outlook for the home appliance industry, with a focus on high-quality, high-dividend leading companies such as Gree Electric Appliances, Midea Group, Haier Smart Home, and Hisense Home Appliances [6][7]. - It also highlights the potential of leading TV brands like Hisense Vision and TCL Electronics, as well as emerging consumer brands benefiting from promotional events [7].

Core Insights - The global projector market is expected to reach 16.7 million units in 2024, reflecting a year-on-year growth of 7.5% [1] - The projector industry is currently undergoing a value reconstruction phase due to changes in market policies, user demands, and technological upgrades [2] Market Trends - The smart projector market in China has grown rapidly from 2017 to 2022, with nearly 1 million units added annually, transforming from a "toy" to a "second TV" in households [3] - In 2023, the consumer electronics industry, including projectors, faced a downturn, but policies like "trade-in" have stimulated recovery, with projected sales exceeding 6 million units in 2024 [3][6] - The projector market is expected to continue growing, with a forecasted increase of 5% in sales volume by 2025 [6] Consumer Behavior - Smart projectors are increasingly occupying central roles in various scenarios, including home entertainment and outdoor activities, with the car-mounted projector market projected to reach $4.78 billion by 2025, growing at a CAGR of 63% [7] Industry Challenges - The projector market is experiencing intense competition characterized by low-quality products and high return rates, with over 200 brands available online in China as of 2022, increasing to 378 by 2024 [8][11] - The majority of projector sales are concentrated in the sub-1,000 yuan price range, which accounts for over 50% of the market share [8] - Brightness, a key performance indicator, shows that 71.9% of projectors have a brightness of less than 500 lumens, with significant issues related to brightness misrepresentation [11][12] Regulatory Developments - The China Electronic Video Industry Association has introduced standards to address brightness misrepresentation, aiming to improve product quality and consumer trust [12] - JD.com has launched a "brightness certification" project to ensure transparency and accountability in projector specifications [12] Future Outlook - The smart projector market in China is projected to reach approximately 7.7 million units by 2028, with global shipments expected to reach between 21 to 22 million units [13] - The industry faces challenges in maintaining growth post-policy support, emphasizing the need for high-quality products that meet consumer demands [15] - The competitive landscape is shifting, with a need for more high-end products to differentiate from large-screen TVs, which are becoming more affordable and prevalent [15][17]