Midea Group(SZ:000333)2025-04-28 15:33Summary 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].