Core Insights - Jiuyang Co., Ltd. reported a revenue of 5.59 billion yuan for the first three quarters of 2025, a year-over-year decrease of 9.7%, while achieving a net profit attributable to shareholders of 120 million yuan, a year-over-year increase of 26.0% [1] - In Q3 alone, the company generated a revenue of 1.6 billion yuan, down 11.0% year-over-year, but turned a profit of 855,000 yuan compared to a loss of 77.32 million yuan in the same period last year [1] - The company’s online sales increased by 16.5% year-over-year in Q3, with an average price increase of 6.8%, indicating strong domestic demand driven by the appliance replacement policy [1] Revenue Performance - Q3 revenue showed a decline primarily due to pressure on overseas sales, influenced by U.S. tariffs and adjustments in related party transactions [1] - Domestic sales of kitchen small appliances benefited from government incentives, leading to improved performance in the domestic market [1] Profitability Analysis - Q3 net profit margin was 0.1%, an increase of 4.4 percentage points year-over-year, driven by a rise in gross margin, which increased by 6.1 percentage points [2] - The improvement in gross margin was attributed to reduced price competition in the kitchen small appliance sector and a shift in product mix, enhancing domestic business profitability [2] Cash Flow and Investment Outlook - Operating cash flow in Q3 decreased by 180 million yuan year-over-year, primarily due to increased inventory levels [2] - Jiuyang is expected to benefit from ongoing government subsidies stimulating domestic small appliance consumption and a gradual stabilization of export business, indicating potential for revenue recovery [2] - The company’s projected EPS for 2025 to 2027 is 0.23 yuan, 0.35 yuan, and 0.42 yuan respectively, maintaining a "Buy-A" investment rating with a target price of 12.15 yuan based on a 35 times dynamic P/E ratio for 2026 [2]

Investment Rating - The investment rating for the company is maintained at "Buy-A" with a 12-month target price of 12.15 CNY [4]. Core Insights - The company reported a significant improvement in gross margin year-on-year for Q3, with a gross margin increase of 6.1 percentage points [2]. - The company's revenue for the first three quarters was 5.59 billion CNY, a year-on-year decrease of 9.7%, while the net profit attributable to shareholders was 120 million CNY, an increase of 26.0% year-on-year [1][2]. - Q3 revenue was 1.6 billion CNY, down 11.0% year-on-year, but the net profit for the quarter was 855,000 CNY, a recovery from a loss of 77.32 million CNY in the same period last year [1][2]. Financial Performance Summary - The company’s Q3 net profit margin was 0.1%, up 4.4 percentage points year-on-year, primarily driven by the improvement in gross margin [2]. - The company’s operating cash flow for Q3 decreased by 180 million CNY year-on-year, attributed to increased inventory [2]. - The forecasted earnings per share (EPS) for 2025, 2026, and 2027 are 0.23 CNY, 0.35 CNY, and 0.42 CNY respectively [2][3]. Revenue and Profit Trends - The company’s revenue growth rate is projected to decline in 2025 to 83.1 billion CNY, followed by a slight recovery in 2026 and 2027 [3][10]. - The net profit is expected to increase to 1.8 billion CNY in 2025, 2.7 billion CNY in 2026, and 3.2 billion CNY in 2027 [3][10]. Market Position and Outlook - The company is positioned as a leading brand in the domestic small home appliance industry, benefiting from government subsidies that are expected to stimulate consumer demand [2]. - The company is focusing on expanding new products and channels, which is anticipated to enhance revenue growth in the future [1][2].

Investment Rating - The report maintains a "Recommended" rating for Supor (002032) with a target price of 54.1 CNY [2][8]. Core Insights - Supor's Q3 2025 revenue reached 5.42 billion CNY, showing a year-over-year decline of 2.3%, primarily due to pressure on overseas sales, while domestic sales remained stable [8]. - The company's gross margin for Q3 2025 was 23.9%, unchanged from the previous year, indicating resilience in maintaining profitability despite competitive pressures [8]. - The net profit margin decreased to 7.9%, down 1.0 percentage points year-over-year, mainly due to increased marketing expenses [8]. Financial Performance Summary - **Revenue Forecasts**: - 2024A: 22,427 million CNY - 2025E: 23,127 million CNY (growth of 3.1%) - 2026E: 24,275 million CNY (growth of 5.0%) - 2027E: 26,181 million CNY (growth of 7.9%) [4][9] - **Net Profit Forecasts**: - 2024A: 2,244 million CNY - 2025E: 2,239 million CNY (decline of 0.3%) - 2026E: 2,389 million CNY (growth of 6.7%) - 2027E: 2,637 million CNY (growth of 10.4%) [4][9] - **Earnings Per Share (EPS)**: - 2024A: 2.80 CNY - 2025E: 2.79 CNY - 2026E: 2.98 CNY - 2027E: 3.29 CNY [4][9] - **Valuation Ratios**: - Price-to-Earnings (P/E) ratio for 2025E: 17 times - Price-to-Book (P/B) ratio for 2025E: 6.0 times [4][9] Market Performance - The report highlights that Supor's domestic sales of key products such as woks and pressure cookers showed positive growth, with sales increasing by 11.1% and 0.5% respectively in Q3 2025 [8]. - The company is positioned as a leading player in the small home appliance sector, benefiting from effective channel transformations and continuous product innovation [8].

Group 1: Core Insights - The domestic appliance market in China is experiencing rapid growth in sales, significantly outperforming the overall consumer market, with retail sales of home appliances and audio-visual equipment reaching 144.8 billion yuan in July-August 2025, a year-on-year increase of 27% [1] - The export of home appliances is declining, with cumulative exports from July to September 2025 amounting to 24.47 billion USD, a year-on-year decrease of 6.7%, primarily due to fluctuating U.S. tariff policies and weakened demand against a high base [1] - White goods are showing good growth in domestic sales, while exports are slowing down; air conditioning products are performing the best in retail, although price competition is intense [1] Group 2: Small Appliances - In the small appliance sector, the average price of kitchen appliances has significantly increased, with online average prices for electric steamers, health pots, rice cookers, electric pressure cookers, and electric kettles rising by 20%, 16%, 15%, 14%, and 13% respectively [2] - The export of small appliances is declining due to tariffs and high export bases, although the vacuum cleaner market in China is recovering, with slight price increases observed [2] Group 3: Black Appliances - The demand for television products is weakening, with retail volume growth slowing; however, downstream manufacturers are optimizing product structures to enhance average prices and profitability [2] - Domestic retail volume of color TVs increased by 1.5% year-on-year, while retail value rose by 3.2% for offline sales, and online sales volume decreased by 0.4% but sales value increased by 9.7% [2] Group 4: Investment Recommendations - White goods are expected to maintain stable growth, benefiting from the "old-for-new" policy; recommended stocks include Midea Group and Haier Smart Home [3] - For small appliances, companies with global market share growth and product expansion, such as Roborock Technology and Ninebot, are recommended [3] - Leading black appliance companies like Hisense and TCL are expected to benefit from global market share increases and product upgrades [3]

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]

Investment Rating - The report does not explicitly provide an investment rating for the small home appliance industry Core Insights - The small home appliance market in China is categorized into kitchen appliances, home appliances, and personal care appliances, emphasizing portability and functionality [3][4] - Online sales channels for small home appliances have significantly increased, with online sales accounting for 79% of total sales by 2024, reflecting a clear shift towards e-commerce [9][12] - The kitchen small appliance market is projected to have a retail value of 609 billion yuan in 2024, showing a slight decline of 0.8% year-on-year, with online sales being the main growth driver [18][19] - The personal care small appliance market is diverse, with notable growth in hair dryers but declines in electric toothbrushes and shavers, indicating varied performance across product categories [24][27] Summary by Sections Small Appliance Definition and Classification - Small appliances are defined as compact, convenient, low-energy, and affordable household devices that enhance the quality of life [3] - Categories include kitchen appliances, home appliances, and personal care appliances [3][4] Sales Channel Distribution - The sales channels for small appliances are increasingly diversified, with a strong shift towards online platforms, which dominate the market [12] - Traditional retail channels are facing challenges and are in a period of adjustment, while new channels like community group buying are emerging [12] Kitchen Small Appliance Market - The kitchen small appliance market's retail value is expected to be 609 billion yuan in 2024, with online sales reaching 478 billion yuan, a 1.7% increase [18][19] - The market is segmented into traditional large items, health-oriented small items, Western-style appliances, and rapidly penetrating but previously stagnant categories [19][20] Personal Care Small Appliance Market - The personal care small appliance market shows mixed results, with hair dryers experiencing a 10.4% increase in retail sales, while electric toothbrushes and shavers face declines [24][27] - The market dynamics are influenced by social media platforms and the immediacy of retail needs [24][27] Competitive Landscape - The small appliance market in China is characterized by high brand concentration, with leading brands like Midea, Supor, and Joyoung holding over 50% market share in kitchen appliances [35] - The competitive landscape includes a mix of established brands and emerging players, with a trend towards innovation and technology integration in product offerings [36]

Core Viewpoint - The company, Supor, is actively implementing sustainable development practices and has received multiple awards for its commitment to ESG (Environmental, Social, and Governance) principles, showcasing its efforts in reducing carbon emissions and promoting social responsibility [1][4][6]. Group 1: Sustainable Development Initiatives - Supor has optimized packaging design to reduce carbon emissions throughout the year [1] - The company has implemented water recycling practices in its workshops, leading to a significant and continuous decrease in monthly water usage [1] - Supor's sustainable development projects have been recognized as benchmarks for ESG practices within its industrial system [1][4] Group 2: Awards and Recognition - In the past six months, Supor has received four significant honors, including "2024 Zhejiang Province Corporate Social Responsibility Benchmark Enterprise" and "National Energy Conservation and Emission Reduction Carbon Neutral Commitment Demonstration Unit" [4] - The company has been acknowledged for its contributions to ESG, reflecting its commitment to environmental, social, and governance dimensions [6] Group 3: Innovation and R&D - Supor's infrared rice cooker project was listed among the top 10 in patent industrialization in Hangzhou, highlighting its innovative technology [7] - The company plans to invest 470 million yuan in R&D in 2024, employing over 1,400 R&D personnel across multiple bases [7] - Supor has developed a robust patent matrix supporting 21 product categories, including rice cookers and pressure cookers [7] Group 4: Environmental Impact - The company has introduced dry dust removal equipment and paint sludge separators at its Hangzhou base, expected to save 5,000 tons of water annually [9] - The Yuhuan base has a distributed photovoltaic matrix generating 5.69 million kWh of electricity annually, with an 87% consumption rate [9] - Supor plans to procure 18,503 tons of recycled aluminum and 13,007 tons of recycled steel in 2024, significantly reducing carbon emissions [9] Group 5: Packaging Innovations - Supor is implementing a packaging revolution using honeycomb cardboard, achieving a 99% plastic-free rate in foreign trade packaging [10] - The company adheres to the 3R principles (Reduce, Reuse, Recycle) in its packaging materials, utilizing FSC-certified materials and eco-friendly inks [10] - Various strategies have been employed to optimize packaging, including reducing material usage and integrating electronic instructions [10] Group 6: Social Responsibility and Education - Supor's "Future Life Home" project has been implemented in 52 schools, promoting educational equity and community engagement [12] - The company has donated to 30 schools, benefiting over 30,000 students and teachers across 12 provinces [12] - Supor organizes annual volunteer weeks, encouraging employee participation in community service [12] Group 7: Commitment to Quality and Innovation - Supor integrates ESG principles into its core operations, emphasizing quality and innovation as part of its brand identity [15] - The company's sustainable practices extend from production lines to the broader industrial ecosystem, reinforcing its commitment to enhancing the quality of life for families in China [15]

Core Viewpoint - The company, Hongzhi Technology, has signed a Memorandum of Understanding with Indonesian local enterprise PT. KUMALA LESTARI INDAH to jointly invest in establishing a joint venture company [1] Group 1: Joint Venture Details - The registered capital of the joint venture company is set at 10 million RMB, with Hongzhi Technology contributing 4.9 million RMB, representing 49% of the registered capital, while PT. KUMALA LESTARI INDAH will contribute 5.1 million RMB, holding 51% [1] - The operational scope of the joint venture includes research, manufacturing, sales, and export of small household appliances such as rice cookers, electric pressure cookers, multifunctional pots, slow cookers, ovens, air fryers, and electric kettles [1]

Core Viewpoint - The overall price index in Linyi Mall has decreased slightly, indicating a mixed trend in various product categories with some experiencing price increases while others face declines [1] Group 1: Price Index Overview - The total weekly price index for Linyi Mall is 102.49 points, down 0.04 points or 0.04% from the previous week [1] - Among 14 categories, 3 categories saw price increases, 4 remained stable, and 7 experienced price declines [1] Group 2: Price Increases - Steel category index rose to 96.57 points, up 0.06 points; medium materials, pipes, and boards increased, while construction steel decreased [1] - Home appliances and audio-visual equipment index reached 103.17 points, up 0.01 points; kitchen appliances saw increased demand due to summer activities [2] - Lighting category index increased to 104.31 points, up 0.01 points; demand for ceiling lights and related accessories has risen [3] Group 3: Price Decreases - Building decoration materials index fell to 105.37 points, down 0.36 points; prices decreased due to lower raw material costs and seasonal demand [4] - Board category index decreased to 96.93 points, down 0.16 points; demand weakened due to high temperatures affecting construction [5] - Furniture category index dropped to 88.98 points, down 0.05 points; sales primarily driven by essential purchases, leading to slight price reductions [6]

Core Viewpoint - The home appliance industry is expected to experience significant retail growth during the 2025 618 shopping festival, driven by low-priced small appliances and sustained growth in major appliance categories, with leading companies benefiting from policy incentives and leading the upgrade of product structures [1][2]. Group 1: Retail Growth and Performance - The overall retail performance of the home appliance industry has significantly improved, with online sales accelerating during the 618 shopping festival, showing a weighted average year-on-year growth of +15% across 20 representative categories [2]. - High-priced major appliances saw volume growth, while average prices remained stable, with air conditioners, washing machines, and black appliances experiencing retail growth rates exceeding 20% [2]. - Low-priced small appliances also showed strong performance, with online average prices for products like rice cookers, pressure cookers, and air fryers increasing by over 10% year-on-year [2]. Group 2: Leading Brands and Product Upgrades - Leading brands performed exceptionally well during the 618 shopping festival, with Midea's retail sales growing over 20% and Gree's air conditioner sales leading the market, particularly the "Wind Does Not Blow" series, which saw a 240% year-on-year increase [3]. - In the black appliance sector, Hisense maintained a 24% market share in television sales, with strong performance in the high-end market [3]. - The cleaning appliance segment saw strong growth, with Ecovacs and Roborock leading in sales, achieving first and second place in the 618 shopping festival [3]. Group 3: Subsidy Policies and Market Outlook - The continuation of the national subsidy program for appliance replacements is expected, with approximately 500 billion yuan in subsidy funds utilized by the end of May, indicating a faster-than-expected pace [4]. - An additional 138 billion yuan in central funds will be allocated in July and October 2025, ensuring a steady release of demand in the home appliance sector [4]. - The home appliance industry is anticipated to maintain stable demand release in the second half of 2025, supported by a more balanced use of subsidy funds [4].