CICC's report indicates that as of August this year, the domestic sales volume of household air conditioners was 7.54 million units, down 5.4% year-on-year; the export volume was 5.52 million units, up 31.5% year-on-year. CICC predicts that the destocking of air conditioners is about to end, and domestic sales are expected to increase year-on-year in the near future, with good retail performance of white appliances in September. From 2023 to the first half of 2024, the export of electric appliances will continue to improve, with overseas high temperatures in the summer of 2024 causing air conditioner exports to exceed market expectations for several months in a row.

The bank believes that the current round of high growth in appliance exports is mainly driven by the increasing market demand caused by the popularity of major household appliances in emerging market countries, as well as the gradual increase of Chinese companies' market share overseas, both of which have a long-term sustainable impact. The bank states that increasing the allocation of white appliances is recommended. $HAIER SMARTHOME (06690.HK)$ (With a target price of HK$33 for the H shares and RMB 32 for the A shares), $HISENSE HA (00921.HK)$ (With a target price of HK$27 for the H shares and RMB 32 for the A shares) and $Gree Electric Appliances,Inc.of Zhuhai (000651.SZ)$ (With a target price of RMB 50.64 for the A shares).