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, 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].

Core Viewpoint - The report from Guolian Minsheng Securities maintains an "outperform" rating for the home appliance industry, highlighting a significant acceleration in retail sales 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 ongoing product upgrades [1] Group 1: Retail Performance - The home appliance industry experienced a notable uplift in overall sales during the 618 shopping festival, with a weighted average year-on-year growth rate of +15% for 20 representative categories in online retail sales from May 12 to June 15, 2025 [1] - The online retail volume and price growth rates for these 20 core categories were +13% and +1% respectively, indicating a strong performance in both volume and pricing [1] - Major appliances like air conditioners, washing machines, and black goods saw retail growth rates exceeding 20%, while low-priced small appliances also experienced significant growth, with online prices for rice cookers, pressure cookers, and air fryers rising over 10% year-on-year [1] Group 2: Brand Performance - Leading brands performed exceptionally well during the 618 shopping festival, with Midea's retail sales increasing 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 [2] - Other notable performers included Little Swan, COLMO, Haier, and Casarte in the white goods sector, while Hisense led the black goods market with a 24% share, particularly excelling in the high-end segment [2] - In the cleaning appliance category, Ecovacs maintained the top position in total sales, with Stone Technology achieving rapid growth, ranking first and second in sales for sweeping and washing machines respectively during the festival [2] Group 3: Subsidy and Demand Outlook - Concerns arose regarding the continuity of subsidy programs after notifications of pauses in certain regions, but data indicates that the usage of subsidy funds has accelerated since May, with approximately 50 billion yuan utilized by the end of May 2025 [3] - The central government is expected to allocate an additional 138 billion yuan in subsidies in July and October, ensuring a steady and orderly implementation of the policy through the end of the year [3] - The home appliance replacement program is anticipated to maintain a steady demand release in the second half of 2025, supported by a more stable pace of subsidy fund usage [3]

Group 1 - The recent reduction in "reciprocal tariffs" has led to a surge in demand for shipping containers among home appliance companies, with reports of container prices increasing by 20,000 to 40,000 yuan [2][3] - Companies are experiencing a situation where the demand for containers exceeds supply, leading to a competitive environment for securing shipping space [2][3] - The logistics sector has seen a significant increase in shipping volumes to the U.S., with container booking volumes from China to the U.S. rising nearly 300% following the tariff adjustments [5][6] Group 2 - Despite the tariff reductions, some companies are facing logistical challenges that hinder smooth trade, as they struggle to secure shipping containers and vessels [3][4] - The overall shipping rates have increased, with the Shanghai-New York container freight index rising to 4,350 USD, reflecting a 19.31% increase [6] - The current shipping situation is characterized by a mismatch in supply and demand, with many shipping routes being adjusted due to previous tariff policies [7] Group 3 - Home appliance companies have mixed feelings about the tariff reductions; while some clients are eager to place orders, others remain cautious and are reassessing their strategies [8][9] - The impact of tariff changes has led to operational disruptions, requiring companies to reallocate production capacity and manage increased workloads [9][10] - Some companies report that their orders to the U.S. have recovered to about 60% of last year's levels, driven by clients needing to replenish low inventories [9][10] Group 4 - The sudden drop in tariffs has created challenges for cross-border e-commerce, particularly for new entrants in highly concentrated product categories like electric pressure cookers [12] - Companies are facing difficulties in hiring due to the fluctuating demand for labor, with many workers seeking alternative employment during periods of low orders [13][14] - Digital transformation initiatives in the home appliance sector are helping companies manage production scheduling and capacity issues more effectively [14][15]

Summary of Conference Call on Small Home Appliances Investment Opportunities Industry Overview - The conference call discusses the small home appliance industry, particularly in the context of the national subsidy policy that is expected to significantly boost growth in 2025 [1][3]. Key Points and Arguments - **National Subsidy Impact**: The national subsidy policy introduced in early 2025 has led to a recovery in the small home appliance sector, with notable growth in various categories. For instance, rice cookers and induction cookers have seen a year-to-date growth of 12%, steam cookers at 19%, and health pots at an impressive 37% [1][3]. - **Sales Recovery**: Companies like Supor have shown a recovery in Q1 2025, with revenue growth of approximately 4-5% after a decline in Q4 2024. Other brands such as Mofei, Joyoung, and Bear also exhibit signs of recovery, with domestic sales expectations higher than in the previous quarter [1][6]. - **Consumer Demand**: Essential categories like rice cookers, pressure cookers, and microwaves have benefited from being included in the subsidy range, with growth driven primarily by price increases. In contrast, health pots and other dynamic small appliances have experienced both price and volume increases [1][5]. - **Market Leaders**: Midea and Supor lead the market in rice cookers, pressure cookers, and microwaves, holding a combined market share of 51% in Q1 2025. Their online sales of related products account for 25% and 30%, respectively, showcasing their strong market position and pricing strategy [1][8]. Additional Important Insights - **Regional Subsidy Variations**: The subsidy policies on platforms like Tmall and Taobao remain consistent with 2024, but the range of covered categories has expanded significantly, particularly for small home appliances in regions like Zhejiang, Guangdong, and Hubei [2]. - **Channel Benefits**: Companies with a high presence on JD.com are likely to benefit the most from the national subsidy, as JD.com offers broader coverage and higher subsidy rates compared to Tmall's regional focus. Midea, with over 60% presence on JD.com, stands to gain significantly [4][10]. - **Company Performance**: Supor's domestic sales growth is around 4-5%, while Bear is expected to report a 10% growth in domestic sales. Both companies are valued at approximately 19 times earnings, indicating strong market confidence [12]. Recommendations - **Focus on Key Players**: Investors are advised to pay attention to Supor and Bear, as both companies are positioned to benefit from the subsidy policies and have shown promising growth in their latest earnings reports [12].

Core Viewpoint - The kitchen small appliance industry is experiencing significant performance differentiation among companies, driven by varying progress in diversification and internationalization [1] Market Trends - The "stay-at-home economy" boosted kitchen small appliance sales in 2020-2021, but demand has since slowed, leading to a decline in sales in 2022 [2] - In 2023, some brands like Bear Electric and Supor saw sales recover due to new live-streaming e-commerce channels, but others continued to experience declines [2] - The overall retail sales of kitchen small appliances reached 60.9 billion yuan last year, a year-on-year decrease of 0.8% [2] - There is a notable price decline in the small appliance sector, attributed to weakened market demand and intense price competition [2][3] International Expansion - To overcome growth challenges, small appliance companies are increasingly looking to international markets, with exports showing positive trends [4] - In the past year, kitchen small appliance exports reached 19.9 billion USD, a year-on-year increase of 9.1% [4] - Supor's domestic revenue fell by 1.21% to 14.925 billion yuan, while foreign trade revenue grew by 21.07% to 7.502 billion yuan [4] - New Treasure and Bear Electric also reported declines in domestic revenue but increases in foreign revenue [4] Competitive Landscape - The small appliance industry is characterized by intense competition, with companies needing to innovate and adapt to survive [5] - Analysts note that the domestic market is largely saturated, prompting companies to seek growth in overseas markets [5] Product Innovation - Companies are focusing on rapid product iteration to meet changing consumer demands, with some launching over 80 new products annually [6] - The unique attributes of small appliances require manufacturers to quickly adapt to consumer preferences and trends [7] - There is a shift from single-function products to multi-functional product development to enhance value and growth potential [7][8] Consumer Preferences - Consumers are increasingly willing to pay for smart appliances with practical functions, indicating a trend towards mid-to-high-end products [8]

Core Viewpoint - The electric pressure cooker market in China is experiencing significant growth, with a projected sales revenue of 5.1 billion yuan in 2024, driven by rising living standards and the increasing demand for multifunctional kitchen appliances [1][13]. Industry Definition and Classification - Electric pressure cookers are electric heating devices that use temperature and pressure control to achieve rapid cooking, combining the advantages of traditional pressure cookers and rice cookers [2]. - They are characterized by high thermal efficiency (over 80%), time and energy savings, health benefits, convenience, and durability [2]. Industry Development History - The electric pressure cooker industry in China has evolved through several key stages, starting from its inception in the 1950s to the current era of smart and multifunctional products [6][7]. - The market has matured over the years, with brands like Midea and Supor leading through technological innovation and quality enhancement [7]. Industry Supply Chain Analysis - The supply chain consists of upstream raw material suppliers, midstream manufacturers, and downstream sales channels, all of which are interdependent and promote the healthy development of the electric pressure cooker industry [4]. - China is the largest producer of stainless steel, with a production of 39.44 million tons in 2024, which supports the electric pressure cooker industry by providing stable raw material supply [9]. - Aluminum alloy production is also on the rise, reaching 16.14 million tons in 2024, ensuring timely access to materials for manufacturers [11]. Current Industry Status - The electric pressure cooker market is increasingly favored by consumers due to its diverse cooking functions and growing quality expectations [13]. - Consumers are now looking for products that offer safety, durability, intelligence, and effective cooking results for various ingredients [13]. Key Companies Analysis - Midea Group leads the market with strong technological innovation and high market share, continuously launching advanced products [15][17]. - Supor is known for its high-quality products and strong brand reputation, focusing on both domestic and international markets [19]. - Joyoung leverages its experience in kitchen appliances to innovate and meet diverse consumer needs [15]. - Other notable companies include Boss Electric, Double Happiness, and Bear Electric, each with unique market strategies and product offerings [15][17]. Future Development Trends - The industry is moving towards deeper integration of smart technology, allowing for remote control and enhanced safety features in electric pressure cookers [21]. - There is a growing trend towards multifunctionality, with products designed to perform various cooking tasks, catering to diverse consumer needs [22]. - Aesthetic design is becoming increasingly important, with manufacturers offering a variety of styles and colors to meet consumer preferences [23].